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PT Bank BNI: Annual Report 2018

IM Insights
By IM Insights
5 years ago
PT Bank BNI: Annual Report 2018

Halal, Hawalah, Hibah, Islam, Islamic banking, Murabahah, Rahn, Salah, Shariah, Sukuk, Wakalah, Credit Risk, Daya, Masih, Murabahah Receivables, Net Assets, Participation, Provision, Receivables, Reserves, Sales

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  1. Serving the Country , the Pride of the Nation Adapting Quickly to Face Change ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1
  2. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk THEMES AND THEIR MEANING Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk’s performance in 2018 strengthened as they recorded achievements that exceeded the banking standards. Bank BNI continued its transformation and adapted quickly to the current changes in the modern banking industry. In the technology disruption era, Bank BNI has become a pioneer bank for digital banking services. This has been achieved through Digital Transformation, starting from internal process improvements, then preparing its competent human capital to master technology, to offering its customers many electronic and digital services and products, such as BNI DigiCare, DigiDeal, DigiMaster, and DigiSport. For BNI, the digital services transformation is necessary when facing the challenge of becoming a bank that remains relevant and offers fast, flexible and mobile service solutions to its customers. 2 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  3. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 3
  4. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk THEME CONTINUITY Rising to The Challenge BNI juga telah tumbuh dan berkembang menjadi bank nasional yang solid dengan pertumbuhan keuangan berkelanjutan. Sebagai bank yang Melayani Negeri, Kebanggaan Bangsa, tantangan kami adalah untuk terus melanjutkan dan meningkatkan kontribusi nyata BNI terhadap kemajuan bangsa dan negara, saat ini dan di masa mendatang. Bigger, Better, Together With a focus on quality growth, BNI with a broad customer base maintains a leading role in supporting national economic growth. BNI supports customer business segments in the 8 main industry sectors, including Small and Medium Enterprises entrepreneurs. BNI is a loyal and reliable partner for all customers with its products, service, service coverage and electronic channels. Advancing On The Right Track BNI has made significant progress and important achievements in many areas. Most of the achievements and progress can be directly measured, presented in graphs, or reported in the BNI financial statements, such as the branch and ATM growth, the high capital adequacy ratio, and the Net Income growth of Rp10.8 trillion in 2014. 4 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  5. Working To Build The Nation The Indonesian people have noble ideals as an independent nation to excel in global competition . To support the achievement of these goals, BNI plays an active role as an Agent of Development carrying out the intermediary function of supporting the national banking needs, and continues to show the spirit of achievement to build a nation with a strong sense of responsibility. Moving Faster Wins The Competition The implementation of the ASEAN Economic Community (AEC) in 2015 will further increase competition, especially in the real sector. Mastery of the domestic market will be the answer for MEA, together with an increase in national banking system competitiveness. A value chain approach has became the focus for BNI and is the strategy expected to answer the future challenges and support the development of institutions / corporations, small and medium enterprises (SMEs), and well as reach out to the individuals within. Strengthening Competitive Advantage Based on the Vision and Mission of the Company, BNI strives to provide the best contribution to encourage economic growth and development for the realization of the welfare of the whole society. It is implemented, coordinates, and cooperates with other institutions from countries, governments, individuals, communities, fellow financial companies, and other private entities. Beside to its contribution to the nation and the State, BNI seeks to assert its existence by striving to become one of the major players in the financial sector, especially banking through comprehensive financial services to all banking customers and value added benefits to all stakeholders: customers, investors, employees, and the financial industries. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 5
  6. ANNUAL REPORT 2018 PERFORMANCE HIGHLIGHT PT Bank Negara Indonesia (Persero) Tbk Loans disbursed increased by Net Interest and Sharia income increased by 11.0% 16.2% to Rp to Rp billion Customer deposits increased by 12.1% billion Total assets increased by 14.0% to Rp billion to Rp Equity increased by 9.4% to Rp 6 billion Profits increased by 10.3% to Rp billion billion Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  7. Gross NPL decreased from 1 .9% in 2018 Coverage Ratio increased by 152,9% In 2018 The ACGS score in 2018 was 91.58 (Very Good) up from 88.60 (Good) in the previous year. The Best State Owned Enterprise and Top 50 Public Listed Companies at the Good Corporate Governance Award organized by the Indonesian Institute for Corporate Directorship (IICD). Most Trusted Company Based on Corporate Governance Perception Index (CGPI) in the Good Corporate Governance Award 2018. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 7
  8. MILESTONES BNI converts to a commercial bank and BNI opens its first overseas branch in Singapore . The establishment of PT Bank Negara Indonesia (Persero) Tbk as the first state-owned bank, functioning as a central bank and a commercial bank. BNI as a development bank given the right to act as a foreign exchange bank. BNI issues Global Bonds through its London branch office worth USD500 million. BNI’s Global Bonds are registered at the Singapore Stock Exchange. BNI joins a strategic partnership with Sumitomo Life Insurance Company who purchases new shares issued by PT BNI Life Insurance worth Rp4.2 trillion. 8 Adapting Quickly to Face Change BNI issues new shares through a Rights Issue so that public ownership increases to 40%. BNI’s Net Income for the first time breaks the double-digit figure (Rp10,8 trillion), as one result of BNI’s transformation programs implemented since 2008. As a commercial bank with the name “Bank Negara Indonesia 1946”, BNI is given the task of improving the economy of the people of Indonesia and participates in the national economic development by empowering various industrial sectors in Indonesia. BNI supports the Indonesian economy and introduces various banking services such as Floating Banks and Mobile Banks. BNI shareholders agreed to separate business units syariah bank independent business entity . In order to adapt to the changing dynamic business environment, to meet the needs of all stakeholders interests, and to align with regulations related to management for financial conglomerate institutions, BNI restates its vision: “Becoming a Superior Financial Institution in Service and Performance”. PT Bank Negara Indonesia (Persero) Tbk
  9. BNI launches its new logo “the ark of sailing in the middle of the ocean” as a reflection and expression of the Company’s expectations. BNI conducts operational restructuring and corporate reforms, including developing its vision and mission and Performance Improvement Program (PIP). BNI obtains additional capital from the Government through the bank recapitalization program. BNI succeeds in obtaining ISO 9002 certificate in recognition of quality standards including the Joint Processing Unit (UPB). BNI offers initial public shares and lists its shares on the Jakarta and Surabaya Stock Exchanges. This makes BNI the first government bank to become a public company. The legal status of BNI is changed to PT (Persero) in line with the Banking Law provisions. Under a new Management team, BNI steps up in the midst of the global economic crisis, reinforcing its financial foundation through five key strategies: adequacy of reserves, improving the quality of assets, focusing on profitability, creating sustainable business models and maintaining efficient cost structures. BNI issued new shares listed on the Jakarta and Surabaya Stock Exchanges at the same time as the government share divestment program. With the completion of both programs, public ownership increases to 23.64%. The monetary crisis hits Asia and Indonesia. Like other banks, BNI is also affected by the crisis, as reflected in the decline in financial performance indicators. BNI launches its new corporate logo and identity related to efforts to build a firm image of the Company in the face of competition. coverage ratio 146% CAR 19.4%. For the second time BNI achieves a double-digit profit of Rp11.4 trillion with better fundamentals, indicated by a coverage ratio of 146% and CAR of 19.4%. PT Bank Negara Indonesia (Persero) Tbk  Sustainable Bond I BNI Phase I Issuance In 2017 with a value of Rp3 Trillion for a period of 5 years with a coupon of 8% per annum. BNI Bonds were published on July 11, 2017 and listed on BEI. BNI Subordinate I Medium Term Notes (MTN) Issuance in 2018 with a value of Rp100 billion for a period of 5 years with a fixed interest rate of 8% per annum. The MTN were registered at OJK, effective June 8, 2018. Adapting Quickly to Face Change 9
  10. OUR ADVANTAGES CORPORATE SEGMENT GROWTH IS FASTER THAN THE COMPETITORS 12 .7 15.3 11.8 7.7 2018 2018 2017 Industri 2017 BBNI STRONG CREDIT CARD PENETRATION In 2018 BNI’s credit card market share in Indonesia reached 15.5%, an increase of 14.60% compared to 2017. BNI’s average credit card growth over the past 5 (five) years has been 18.7%, the highest compared to other banks. The growth in the number of cards, the increase in credit card sales volume through e-commerce penetration programs, and the introduction of new products increased BNI Credit Card outstandings by the end of 2018. The credit card sales volume in 2018 amounted to Rp38,924 billion, or an increase of 11.3% compared to 2017, while credit card outstandings in 2018 amounted to Rp12,558 billion, an increase of 7.9% compared to 2017. 10 Adapting Quickly to Face Change CREDIT CARD MARKET SHARE BBNI Other 49.9% 15.5% Bank Mega 9.6% Mandiri 14.3% CIMB Niaga 10.7% PT Bank Negara Indonesia (Persero) Tbk
  11. HIGHER GROWTH OF BUSINESS LOANS (KUR) As of December 31, 2018, BNI had disbursed KUR amounting to Rp66.1 trillion, an increase of 16.9% from Rp61.3 trillion in 2017. The disbursed KUR continues to increase and was above the expected proportional target to assist MSMEs in developing their businesses, which in turn will increase the Indonesian economy. Through good economic growth, BNI is expected to improve its business. GOOD CASH MANAGEMENT SKILLS Based on AsiaMoney Magazine, BNI ranked first in the corporate and middle segment cash management. BNI was also ranked second in the small segment. The following shows the AsiaMoney’s assessment results for BNI, and other banks, cash management: CORPORATE MIDDLE SMALL 6.4 6.2 5.9 5.7 5.5 5.5 5.4 5.5 5.4 5.1 5.9 5.3 5.4 5.5 4.4 BNI Danamon Permata Mandiri BCA PT Bank Negara Indonesia (Persero) Tbk  BNI Mandiri BCA Permata Danamon Danamon BNI Mandiri BCA Permata Adapting Quickly to Face Change 11
  12. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk TABLE OF CONTENTS 2 THEMES AND THEIR MEANING 4THEMECONTINUITY 6 PERFORMANCE HIGHLIGHT 8MILESTONES 10 OUR ADVANTAGES 12 TABLE OF CONTENTS 25 TEMPORARY SUSPENSION AND / OR DELISTING OF SHARES 26 BONDS, SUKUK AND/OR CONVERTABLE BONDS INFORMATION 27 OTHER FUNDING SOURCES INFORMATION 28 IMPORTANT EVENTS IN 2018 PERFORMANCE HIGHLIGHTS 2018 16FINANCIAL OVERVIEW 20 OPERATIONAL OVERVIEW 22 SHARE PRICE INFORMATION 25 AKSI KORPORASI MANAGEMENT REPORT 35 BOARD OF COMMISSIONERS' REPORT 44 BOARD OF DIRECTORS’ REPORT 54 RESPONSIBILITY STATEMENT COMPANY PROFILE 58COMPANY IDENTITY 60 BRIEF HISTORY OF THE COMPANY 62BRAND PERUSAHAAN 63BUSINESS FIELDS 64PRODUCTS AND SERVICES 68 REGIONAL BUSINESS MAP 72ORGANIZATION STRUCTURE 74 VISION, MISSION AND CORPORATE CULTURE 76 VISION AND MISSION REVIEW BY THE BOARD OF COMMISSIONERS AND BOARD OF DIRECTORS 77COMPANY 77CULTURE 78 BOARD OF COMMISSIONERS PROFILES 12 Adapting Quickly to Face Change 87 BOARD OF DIRECTORS PROFILE 98 SENIOR EXECUTIVE VICE PRESIDENT PROFILE 99 EXECUTIVE OFFICERS PROFILE 115EMPLOYEE PROFILE AND EMPLOYEE COMPETENCY DEVELOPMENT KARYAWAN 126SHAREHOLDER COMPOSITION 129LIST OF SUBSIDIARIES AND/OR ASSOCIATED ENTITIES 134BNI GROUP STRUCTURE 135SHARE ISSUANCE CHRONOLOGY 137BOND ISSUANCE CHRONOLOGY 140OTHER SECURITIES ISSUANCE AND/OR LISTING CHRONOLOGY 141NAME AND ADDRESSES OF INSTITUTIONS AND/OR SUPPORTING PROFESSIONS 142PENGHARGAAN DAN SERTIFIKASI 149NAMES AND ADDRESSES OF SUBSIDIARIES, ASSOCIATED ENTITIES, BRANCH OFFICES AND OVERSEAS REPRESENTATIVES AND REGIONAL OFFICES 150OVERSEAS BRANCH OFFICES, SUB BRANCH OFFICES, REPRESENTATIVES OFFICES AND REGIONAL OFFICES 152INFORMATION AVAILABLE ON THE WEBSITE 154EDUCATION AND/OR TRAINING FOR THE BOARD OF COMMISSIONERS, BOARD OF DIRECTORS, COMMITTEES, CORPORATE SECRETARY, AND INTERNAL AUDIT UNIT PT Bank Negara Indonesia (Persero) Tbk
  13. MANAGEMENT DISCUSSION AND ANALYSIS 170ECONOMIC AND INDUSTRY REVIEW 174OPERATIONAL REVIEW 232FINANCIAL REVIEW 293TAX 296TRANSFER PRICING DOCUMENT 299FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA) 301OTHER MATERIAL INFORMATION 331INFORMATION TECHNOLOGY UTILIZATION 335INFORMATION TECHNOLOGY GOVERNANCE 336INFORMATION TECHNOLOGY FUTURE DEVELOPMENT PLAN 339DIGITAL BANKING 340ELECTRONIC BANKING 347HUMAN CAPITAL 363IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE 367EFFORTS TO IMPROVE THE QUALITY OF GOOD CORPORATE GOVERNANCE IMPLEMENTATION 370MONITORING OF IMPLEMENTASI GCG 371GOOD CORPORATE GOVERNANCE ASSESSMENT 379COMPANY ORGANS AND IMPLEMENTATION PROCESS OF GOOD CORPORATE GOVERNANCE 659INFORMATION ON MAIN AND CONTROLLING SHAREHOLDER 671INFORMATION ON MAIN AND CONTROLLING SHAREHOLDER 694BASED ON SUSTAINABLE FINANCE CONCEPT 696CORPORATE SOCIAL RESPONSIBILITY APPLICATION BASIC 697CORPORATE SOCIAL RESPONSIBILITY MANAGEMENT STRUCTURE 698CORPORATE SOCIAL RESPONSIBILITY RELATED TO THE ENVIRONMENT 703CORPORATE SOCIAL RESPONSIBILITY RELATED TO EMPLOYMENT, OCCUPATIONAL HEALTH AND SAFETY 706CORPORATE SOCIAL RESPONSIBILITY RELATED TO SOCIAL COMMUNITY DEVELOPMENT 713CORPORATE SOCIAL RESPONSIBILITY RELATED TO CONSUMERS BUSINESS SUPPORT UNIT 316CREDIT RISK MANAGEMENT 321NETWORK AND SERVICES 324BNI CONTACT CENTER 327UNIT SERVICES UNIT 328INFORMATION TECHNOLOGY GOOD CORPORATE GOVERNANCE 358GOOD CORPORATE GOVERNANCE 361RELATIONSHIP BETWEEN GOOD CORPORATE GOVERNANCE AND COMPANY PERFORMANCE 362LEGAL FOUNDATION OF THE IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE CORPORATE SOCIAL RESPONSIBILITY 686SOCIAL RESPONSIBILITY GOVERNANCE 691CORPORATE SOCIAL RESPONSIBILITY RELATED TO HUMAN RIGHTS 693CORPORATE SOCIAL RESPONSIBILITY RELATED TO FAIR OPERATIONS 694SOCIAL RESPONSIBILITY IMPLEMENTATION PERMODALAN & PRAKTIK MANAJEMEN RISIKO 721PERMODALAN 725PRAKTIK MANAJEMEN RISIKO FINANCIAL REPORT PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 13
  14. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Performance Highlights 2018 16 20 22 25 25 26 27 28 14 FINANCIAL OVERVIEW OPERATIONAL OVERVIEW SHARE PRICE INFORMATION AKSI KORPORASI TEMPORARY SUSPENSION AND / OR DELISTING OF SHARES BONDS, SUKUK AND/OR CONVERTABLE BONDS INFORMATION OTHER FUNDING SOURCES INFORMATION IMPORTANT EVENTS IN 2018 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  15. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 15
  16. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk FINANCIAL OVERVIEW (in million Rupiah) Description 2018 2017 2016 2015 2014 REPORT OF FINANCIAL POSITION ASSETS Cash 14,044 11,578 11,168 12,890 11,436 Current Accounts with Indonesia Bank 35,591 32,701 30,147 30,932 24,598 Current Accounts with Other Banks - Net 13,134 21,335 6,298 8,999 4,496 Placements with Other Banks – Net 39,325 28,593 33,662 33,417 14,527 Marketable securities – Net 32,044 36,050 23,765 9,927 12,738 - 679 1,665 376 6,237 Export bills and others receivables - Net Securities purchased under agreements to resell – Net 24,587 15,701 8,932 8,831 2,301 Acceptances receivables - Net 20,295 18,106 14,724 10,821 12,467 606 217 250 441 165 Loans Disbursed 512,779 441,314 393,275 326,105 277,622 Allowance for impairment losses on the Loans (14,892) (14,524) (16,681) (12,039) (6,970) Derivatives receivables - Net Government Bonds 86,791 79,849 63,006 47,222 43,830 Prepaid taxes 1,624 623 620 2,299 1,437 Prepaid expenses 2,337 2,318 2,411 1,633 1,392 604 713 57 36 37 Equity investments - net Other Assets 11,900 10,381 6,429 4,482 3,370 Fixed Assets – net 26,127 22,805 21,972 20,757 6,222 Deferred tax assets – net TOTAL ASSETS 1,676 891 1,332 1,465 668 808,572 709,330 603,032 508,595 416,574 4,160 4,868 3,276 1,805 1,813 578,775 516,098 435,545 370,420 313,893 14,233 12,228 10,801 4,698 3,177 LIABILITIES Obligations due immediately Deposits from customers * Deposits from other banks * Derivatives Payable Securities sold under agreements to repurchase Accaptances payable Accrued expenses Taxes payable Employee benefits Provisions Other liabilities Securities issued * Loans Received Subordinated Securities TOTAL LIABILITIES 16 Adapting Quickly to Face Change 322 114 411 1,162 662 21,524 2,390 3,765 3,163 2,492 4,417 4,507 4,359 6,188 6,469 876 972 1,047 917 660 481 80 151 749 318 3,512 4,094 3,503 3,481 3,393 178 192 156 99 87 14,608 14,731 11,149 7,584 5,219 2,987 3,482 7,227 7,367 6,158 52,025 44,671 32,389 22,524 11,212 100 - - - - 698,198 608,427 513,778 430,157 355,552 PT Bank Negara Indonesia (Persero) Tbk
  17. Performance Highlights 2018 Description 2018 2017 2016 2015 2014 TEMPORARY SYIRKAH FUNDS Deposits From Customers Deposits From Other Banks Mudharabah Sukuk Issued TOTAL TEMPORARY SYIRKAH FUNDS 26 ,603 23,350 20,092 16,484 13,629 358 494 489 449 775 26,961 496 24,340 496 21,077 496 17,429 14,404 EQUITY Share Capital Additional Paid-in Capital/Agio Shares Exchange Difference on Translation of Foreign Currency Financial Statements Transactions Difference With Non-Controlling Interest 9,055 9,055 9,055 9,055 9,055 14,568 14,568 14,568 14,568 14,568 85 93 82 76 58 2,257 2,257 2,257 2,257 2,257 Unrealized Gains (Losses) on Available-For-Sale Marketable Securities And Government Bonds, Net of Tax (3,914) 22 (1,888) (2,519) (1,945) Net Difference in Revaluation of Fixed Assets after Deductible Taxes 14,979 12,283 12,285 12,190 - Retained Earnings 71,047 60,314 50,798 41,538 35,078 2,297 2,311 2,097 2,023 1,950 TOTAL EQUITY 110,374 100,903 89,254 78,438 61,021 TOTAL LIABILITIES, TEMPORARY SYIRKAH FUNDS AND EQUITY 808,572 709,330 603,032 508,595 416,574 54,138 48,177 43,768 36,895 33,750 (18,692) (16,240) (13,773) (11,335) (10,989) 35,446 31,937 29,995 25,560 22,761 5,997 6,871 5,597 3,618 1,476 (4,285) (5,104) (4,255) (2,485) (1,343) 1,712 1,767 1,342 1,133 607 11,613 11,040 9,552 8,274 8,145 - Other Operating Income 9,616 9,308 8,174 6,684 6,559 - Recovery 1,997 1,732 1,378 1,590 1,856 Total Operational Income 48,771 44,744 40,888 34,967 31,783 Other Operating Expenses (21,783) (20,396) (18,806) (16,218) (14,576) Allowance For Impairment Losses (7,388) (7,126) (7,853) (7,336) (3,642) Operating Income 19,599 17,222 14,229 11,412 13,566 221 (57) 74 54 178 Income Before Tax Expenses 19,821 17,165 14,303 11,466 13,744 Tax Expense (4,729) (3,394) (2,893) (2,326) (2,695) Income For The Year 15,092 13,771 11,410 9,141 11,049 Non-Controlling Interest in Net Assets of Consolidated Subsidiaries * includes temporary Syirkah funds STATEMENT OF PROFIT OR LOSS AND OTHER COMPRHENSIVE INCOME INCOME AND OPERATING EXPENSES Interest Income and Sharia Income Interest Expense and Sharia Expense Interest Income and Sharia Income - Net Premium Income Claims Expense Premium Income - Net Other Operating Income (Incl Recovery) Non-Operating (Expense)/Income-Net – Net PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 17
  18. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Description 2018 2017 2016 2015 2014 Income For The Year Attributable To: - Non-controlling interests - Owner of the Parent Entity 77 154 71 74 47 15,015 13,617 11,339 9,067 10,783 Profit and Loss - Comprehensive Other Comprehensive Income / Loss For The Year After Taxes         (856) 1,847 922 11,722 1,085 14,236 15,617 12,333 20,863 11,915 (14) 215 73 74 47 14,250 15,403 12,260 20,789 11,868 805 730 610 487 578 Cash Flows from Operating Activities (4,274) 33,677 15,999 24,357 (610) Arus Kas bersih dari Dana Syirkah Temporer (9,612) (23,274) (29,400) (3,516) (2,406) Net Cash Flows from Temporary Syirkah Funds 20,609 3,194 8,060 9,250 (4,454) 222 96 17 5 (78) 91,977 78,284 83,606 53,512 61,061 6,723 13,597 (5,341) 30,090 (7,471) 98,922 91,977 78,284 83,606 53,512 18.5 18.5 19.4 19.5 16.2 Total Comprehensive Income For The Year Comprehensive Income for the Year Attributable To: - Non-controlling interests - Owner of the Parent Entity EARNINGS PER SHARE (in full Rupiah amount) CASH FLOW STATEMENT Cash Flows from Financing Activities Effect of Foreign Currency Exchange Rate Changes Cash and cash equivalents at beginning of year Cash and cash equivalents at the end of year FINANCIAL RATIOS CAPITAL (%) Minimum Capital Adequacy Ratio (KPMM) KPMM Taking into account Credit Risk, Operational Risk 18.6 18.6 19.5 19.6 16.3 KPMM Taking into account Credit Risk, Operational Risk and Market Risk 18.5 18.5 19.4 19.5 16.2 Fixed Assets Against Capital 24.6 23.7 25.7 27.7 10.4 Troubled Productive Assets and Troubled Non-Productive Assets to Total Productive Assets and Non-Productive Assets 1.3 1.5 2.1 1.9 1.5 Troubled Productive Assets to Total Productive Assets 1.3 1.5 2.0 1.9 1.4 Allowance for Impairment Losses (CKPN) for Financial Assets Against Productive Assets 1.9 2.1 2.7 2.5 1.7 CKPN Fulfillment for Productive Assets 1.9 2.1 2.7 2.4 1.7 CKPN Fulfillment for Non-Productive Assets 4.1 19.9 42.3 33.5 98.3 Gross NPL 1.9 2.3 3.0 2.7 2.0 Net NPL 0.8 0.7 0.4 0.9 0.4 Loan Ratio to Total Productive Assets 62.1 59.2 61.7 63.2 67.0 Ratio of core debtors to total loans 20.2 26.6 29.6 26.2 23.4 0.2 0.1 0.1 0.2 0.1 ASSET QUALITY (%) Ratio of foreclosed collateral to total loans 18 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  19. Performance Highlights 2018 Description 2018 2017 2016 2015 2014 PROFITABILITY (%) Return on Assets (ROA) 2.8 2.7 2.7 2.6 3.5 Return on Equity (ROE) 16.1 15.6 15.5 17.2 23.6 5.3 5.5 6.2 6.4 6.2 Other Operating Income to Operating Income 26.5 27.3 25.7 26.0 27.7 BOPO (Operating Cost/Operating Income) 70.1 71.0 73.6 75.5 69.8 Ratio of Profit (Loss) to Total Assets 2.0 2.1 1.9 1.8 2.7 Ratio of Profit (Loss) to Total Equity 14.5 14.5 12.9 11.7 18.7 Ratio of Liabilities to Total Assets 86.3 85.8 85.2 84.7 85.7 Ratio of Liabilities to Total Equity 628.4 603.8 576.1 551.8 598.7 Fee Based Income Ratio to Other Operating Incomes 82.8 84.9 85.7 81.0 77.4 Profit per Share (EPS) (In full amount) 805 730 610 487 578 Loan to Deposit Ratio 88.8 85.6 90.4 87.8 87.8 Loan to Funding Ratio 85.6 85.3 90.4 87.8 87.8 Ratio of Liquid Asset to total assets 19.7 20.2 19.0 21.0 18.6 - - - - - 17.6 18.3 17.7 16.0 16.2 - Related parties Nihil Nihil Nihil Nihil Nihil - Unrelated Parties Nihil Nihil Nihil Nihil Nihil - Related parties Nihil Nihil Nihil Nihil Nihil - Unrelated Parties Nihil Nihil Nihil Nihil Nihil - GWM Primary Rupiah reserve 6.5 6.6 6.8 9.2 8.1 - GWM Foreign Currency 8.0 8.0 8.0 8.0 8.3 Net Open Position (NOP) 2.0 2.5 3.4 1.7 1.6 152.9 148.0 146.0 140.4 130.1 42.5 43.9 44.0 44.2 43.8 Operating Income/Employee (in Million Rp) 1,657 1,496 1,330 1,196 1,115 Total Outlets (full, unaudited, in-unit) 2,262 2,150 1,990 1,826 1,766 Total ATM (full, unaudited, in unit) 18,311 17,966 17,056 16,071 14,071 Number of Employees (full, unaudited, in person) 27,224 27,209 28,184 26,875 26,536 Net Interest Margin (NIM) LIQUIDITY (%) Ratio of total liquid assets to short-term funding The ratio of total loans to MSMEs to total loans COMPLIANCE LLL Percentage LLL Excess Percentage Minimum mandatory reserve (GWM) OTHER RATIOS LLR/NPL Gross (Coverage Ratio) - (%) CIR (Ratio of Cost to Income) - (%) PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 19
  20. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk OPERATIONAL OVERVIEW Business Banking Loan Product Performance Segment Corporate (in billion Rupiah) 2018 2017 2016 2015 2014 222,910 188,026 174,073 137,909 119,715 Medium Commercial 74,731 70,261 61,330 51,147 40,324 Small 66,063 56,479 50,684 42,076 40,374 Overseas TOTAL 39,789 30,734 21,237 19,538 10,082 403,493 345,499 307,323 250,670 277,622 Consumer Loan Product Performance Product Mortgage (in billion Rupiah) 2018 2017 40,753 2016 37,066 2015 36,396 2014 34,664 Credit Card 12,558 11,635 10,549 9,795 7,777 Payroll 23,744 17,687 12,026 7,048 4,290 Others 2,680 5,057 6,097 6,032 6,617 TOTAL 79,735 71,445 65,069 57,540 52,024 Corporate Segment Loan Product Performance Including Overseas Based on Sector Sector Industry 2018 2017 69,350 (in billion Rupiah) 2016 55,941 2015 54,034 2014 50,703 36,625 Agriculture 38,189 38,840 35,706 23,307 19,779 Business Services 35,235 27,842 18,222 13,868 13,283 Electricity, Gas and Water 22,328 25,232 27,387 17,605 13,682 Transportation, Warehousing and Communication 20,479 17,439 17,648 17,694 14,921 Construction 22,200 16,869 8,907 6,643 2,477 Trade, Restaurant and Hotel 26,591 16,490 9,207 7,838 7,462 Mining 15,704 9,496 12,472 13,064 16,435 7,623 5,496 7,292 1,801 1,392 Social Services 20 33,341 Others 4,999 5,115 4,435 4,924 3,741 TOTAL 262,699 218,760 195,310 157,447 129,797 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  21. Performance Highlights 2018 Small Loan Product Performance (in billion rupiah) Product 2018 2017 2016 2015 2014 BCM 39,521 36,095 34,405 KUR 20,289 14,194 10,964 4,326 3,186 KKLK 1,459 2,019 2,457 3,164 3,807 BWU TOTAL 31,958 30,084 4,794 4,171 2,859 2,628 3,297 66,063 56,479 50,684 42,076 40,374 Third Party Funds Performance (in billion rupiah) Product Current Accounts* 2018 169,274 2017 143,162 2016 2015 2014 122,652 91,194 82,743 Saving* 206,056 182,295 158,662 135,065 119,779 Deposit* 203,445 190,641 154,230 144,161 111,371 578,775 516,098 435,545 370,421 313,893 TOTAL * includes temporary Syirkah funds PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 21
  22. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk SHARE PRICE INFORMATION BNI Share Price, Volume and Capitalization in 2015-2018 Year Price per share (Rp) Opening Highest Lowest Number of Shares (shares) Transaction Volume (shares) Closing Market Capitalization (Rp Million) 2018 Quarter I 9,775 10,175 8,650 8,675 19,135,000 161,777,095 Quarter II 8,725 9,000 6,800 7,050 31,968,800 131,473,028 Quarter III 7,125 8,300 6,750 7,400 13,735,400 138,000,058 Quarter IV 7,425 9,050 6,675 8,800 16,215,800 184,621,699 Quarter I 5,525 6,900 5,450 6,475 49,095,300 120,750,049 Quarter II 6,400 6,825 6,150 6,600 33,985,100 123,081,131 Quarter III 6,600 7,500 6,575 7,400 18,413,500 138,000,057 Quarter IV 7,500 9,925 7,300 9,900 44,149,300 184,621,698 Quarter I 4,990 4,835 4,675 5,200 27,788,000 96,192,494 Quarter II 5,100 4,270 5,300 5,200 44,907,800 96,192,494 Quarter III 5,225 5,100 5,975 5,200 23,008,500 103,500,043 Quarter IV 5,625 5,450 5,650 5,525 28,428,000 103,033,826 18,648,656,458 2017 18,648,656,458 2016 22 Adapting Quickly to Face Change 18,648,656,458 PT Bank Negara Indonesia (Persero) Tbk
  23. Performance Highlights 2018 Transaction Volume Shares 50 ,000,000 40,000,000 30,000,000 20,000,000 10,000,000 Quarter II Quarter I 2018 Quarter III 2017 Quarter IV 2016 Market Capitalization 200,000,000 150,000,000 100,000,000 50,000,000 Quarter II Quarter I 2018 PT Bank Negara Indonesia (Persero) Tbk  Quarter III 2017 Quarter IV 2016 Adapting Quickly to Face Change 23
  24. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BBNI Stock Prices in 2017 (Rp/IHSG) BBNI 7,000 IHSG Volume (000) unit VOLUME 140,000,000 1,000 40,000,000 - 20,000,000 N ec O D p17 Se A ug -1 7 A Fe -1 6 ec D -1 7 40,000,000 ov -1 7 2,000 ct -1 7 60,000,000 Ju l-1 7 3,000 Ju n17 80,000,000 M ay -1 7 4,000 pr -1 7 100,000,000 M ar -1 7 5,000 b17 120,000,000 Ja n17 6,000 BBNI Stock Prices in 2018 (Rp/IHSG) Volume (000) unit BBNI 11,000 VOLUME 80,000,000 10,000,000 ec D N O Se A Fe ec Adapting Quickly to Face Change -1 8 - ov -1 8 20,000,000 ct -1 8 5,000 p18 30,000,000 A ug -1 8 6,000 Ju l-1 8 40,000,000 Ju n18 7,000 M ay -1 8 50,000,000 pr -1 8 8,000 M ar -1 8 60,000,000 b18 9,000 Ja n18 70,000,000 -1 7 10,000 D 24 IHSG PT Bank Negara Indonesia (Persero) Tbk
  25. Performance Highlights 2018 AKSI KORPORASI During 2018 , the Company did not carry out any corporate actions. TEMPORARY SUSPENSION AND / OR DELISTING OF SHARES Up to December 2018, BNI was not subject to any suspension and / or delisting of shares. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 25
  26. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BONDS, SUKUK AND/OR CONVERTABLE BONDS INFORMATION BOND INFORMATION BNI Bonds Issuance Chronology Description Obligasi Berkelanjutan I BNI Tahap I Tahun 2017 Issued Date Effective Date Tenor July 11, 2017 June 22, 2017 5 years Currency IDR Total Bonds 3,000,000,000,000 Offering Price Maturity date Interest Rate Payment Status 100.00 July 11, 2022 8.00% p.a Not Yet Paid Ranking Trustees 2018 2017 idAAA (Pefindo) idAAA (Pefindo) BRI Tabel Medium Term Notes (MTN) BNI Description Issued Date Effective Date Tenor Currency Value (million) Maturity date Ranking Payment Status Discount Rate Trustees 2018 2017 Medium Term Notes (MTN) MTN Subordinated I BNI Year 2018 - 60 August 10, 2018 months Rp 100,000,000 August 10, 2023 8.00% Not Yet Paid Tabel Realisasi Hasil Penggunaan Dana Hasil Obligasi BNI Sustainable Bond I BNI Phase I 2017 Effective Date Total Proceeds from Public Offering June 22, 2017 Cost of Public Offering Rp3 Rp0,0074 * PT Bank Rakyat Indonesia (Persero) (dalam triliun Rupiah) Public Offering Proceeds Realization Type of Public Offering idAAA Net Results Rp2,992 Fund Proceeds Realization Fund Proceeds Plan Credit Expansion Rp2,992 Total Credit Expansion Rp2,992 Rp2,992 Public Offering Proceeds Remaining Total Rp2,992 - SUKUK INFORMATION Until December 2018, BNI has never issued sukuk so there is no information regarding Sukuk. CONVERTIBLE BOND INFORMATION Until December 2018, BNI has never issued Convertible Bonds so there is no information regarding Convertible Bonds. 26 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  27. Performance Highlights 2018 OTHER FUNDING SOURCES INFORMATION Negotiable Certificates of Deposit (NCD) BNI Description Issued Date Effective Date Tenor Currency Value (million) Maturity Date Discount Rate Payment Status Ranking Trustees 2018 2017 NCD Phase I NCD Phase I Series F June 16, 2016 - 36 months Rp 925,000 June 14, 2019 8.40% Not Yet Paid - - - September 27, 2016 - 36 months Rp 815,000 26 September 2019 8.10% Not Yet Paid - - - March 10, 2017 - 24 months Rp 150,000 28 Februari 2019 8.05% Not Yet Paid - - - - 36 months Rp 5,000 24 Februari 2020 8.35% Not Yet Paid - - - NCD Phase II NCD Phase II Series D NCD Phase III NCD Phase III Series C NCD Phase III Series D PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 27
  28. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk IMPORTANT EVENTS IN 2018 January 26, 2018 46.000 likes February 28, 2018 46.000 likes BNI yap! Launched, Easy, Safe, and Recent Payment System January 12, 2018 Jakarta BNI Taplus Prepares the Best Team to Become a Champion January 21, 2018 Passport Payment Service, BNI Becomes the Bank with the Most PNBP Online Deposit Services January 31, 2018 Become a Partner, Pay PTKIN Entrance Exams easier with BNI February 08, 2018 Commemorating National Press Day, BNI Invites 100 Journalists to Learn About Entrepreneurship February 16, 2018 BNI Cooperates with 4 Airlines to Present Travel Experience 46.000 likes April 6, 2018 BNI Sergab46 reserves 700 Tons for East Java Grain Farmers in Banyuwangi April 26, 2018 Garuda Indonesia and BNI Online Travel Fair (GOTF) in Cengkareng #bni46 #AnnualReport2018 Adapting Quickly to Face Change March 1, 2018 BNI Java Jazz Festival 2018 March 9, 2018 BNI KUR Reaches 1,700 Farmers in East Java March 11, 2018 BNI launches BNI MoRe in Singapore #bni46 #AnnualReport2018 #bni46 #AnnualReport2018 June 8, 2018 46.000 likes April 3, 2018 Ahead of the 2018 Asian Games, BNI Invited Reporters to Get to Know Indonesian Banking BNI and BNI Life (Subsidiary) Support Issuance of SOE Health Card March 29, 2018 BNI in collaboration with ITS, Delivers Loan Education at Surabaya May 9, 2018 #BNITuDigital Enlivens Inacraft 2018 and engages 35 Partners 28 46.000 likes BNI in collaboration with RI Ministry of Finance, BNICorporate Card Ready as a Government Payment Tool #bni46 #AnnualReport2018 April 25, 2018 March 22, 2018 46.000 likes Ahead of BNI’s 72nd Anniversary, BNI Emerald Customers Treated to BNI Helicity Service May 07 2018 BNI Supports Online Transactions, Ship Ticket Payments and PELNI Agent Top Up in Jakarta May 17, 2018 BNI Distributes 6,000 Cheap Food Packages for PMI Families in Pamekasan May 25, 2018 PMI family in Pamekasan - BNI & Angkasa Pura Kargo Expands Cooperation, Increased Variety of Cashless Transactions #bni46 #AnnualReport2018 BNI Mudik Bus Travelers at Taman Mini Indonesia Indah June 5, 2018 BNI Offers State Civil Housing Funding in Jakarta June 22, 2018 After Reducing Tariffs, BNI Is Ready to Accommodate Tax Payments for MSMEs in Surabaya June 29, 2018 BNI Mudik Travelers at Gambir Station, BNI in collaboration with the Indonesian Navy Distributes Soldier Salaries #bni46 #AnnualReport2018 PT Bank Negara Indonesia (Persero) Tbk
  29. Performance Highlights 2018 July 8 , 2018 August 12, 2018 46.000 likes 46.000 likes BNI Celebrates 72nd Anniversary July 17, 2018 BNI Funds First Toll Road in North Sulawesi July 18, 2018 Support for the 2018 Asian Games, BNI Launches Virtual Debit Combo Card Account in Yogyakarta July 20, 2018 To encourage Indonesian Exports, BNI Disburses Loans Dominated in Yen 46.000 likes BNI Distributes 2,000 Taplus Anak Accounts, to strengthen the Financial Literacy campaign at the 2018 Asian Games To Strengthen the Logistics Sector Services, BNI and Triplogic Develops a Digital Transaction System August 7, 2018 Supporting IPC, BNI Distributes Port Service Financing and IPC Smart Card in Jakarta September 4, 2018 BNI Millennial Children Treats Program, a manifestation of Financial Literacy strengthening for Millennialsl August 14, 2018 Starting in NTT, BNI Pioneers KUR Disbursements for Salt Farmers in Kupang August 15, 2018 Constructing Drinking Water Facilities in Lampung, BNI and IIF Disburse Rp550 billion in Jakarta August 19, 2018 Start of the 2018 Asian Games, BNI Participates by Maximizing Services #bni46 #AnnualReport2018 October 14, 2018 46.000 likes November 13, 2018 46.000 likes October 3, 2018 Enlivens IBDExpo 2018, BNI Digital Ecoservices November 7, 2018 BNI Supports the Cashless Program at Pertamina Gas Stations, Various Promos Ready to Pamper Customers in Jakarta #bni46 #AnnualReport2018 PT Bank Negara Indonesia (Persero) Tbk  September 24, 2018 BI, BNI, & BRI Cooperate with 50 Top Exporters for Hedging Program in Jakarta #bni46 #AnnualReport2018 December 13, 2018 46.000 likes BNI Pioneers “I am a Young Merchant” Creating Business minded School Students in Tegal October 25, 2018 Realizing Cashless and Cardless Shopping at Supermarkets, BNI Products Yap! Present at Ranch Market September 18, 2018 BNI Retains its Trade Finance Service Excellence, BNI Syariah Becomes the Best Sharia Bank #bni46 #AnnualReport2018 As part of its Role for a Better World Economy, BNI Launches GPN Card (National Payment Gateway) October 12, 2018 BNI ITB Ultra Marathon, Ministry of Youth and Sports Release Runners from BNI Office Lobby, Financial Literacy Campaign Through Sports September 10, 2018 November 7, 2018 Support for US Trade and Investment in Indonesia, BNI New York Branch Trade Finance Grows 25% #bni46 #AnnualReport2018 Saksansin Wins BNI Indonesian Masters in Jakarta December 03, 2018 Ministry of Social Affairs Recognizes Bank BNI as being Friendly to People with Disabilities December 21, 2018 Exceeding 2018 FLPP Target, BNI Disburses Subsidized Mortgages for 10 Thousand Houses in 2019 in Jakarta December 22, 2018 BUMDes Can Now Open SOE Shops, with Definite Prices & Guaranteed supply #bni46 #AnnualReport2018 Adapting Quickly to Face Change 29
  30. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Management Report 35 BOARD OF COMMISSIONERS’ REPORT 44 BOARD OF DIRECTORS’ REPORT 54 RESPONSIBILITY STATEMENT 30 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  31. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 31
  32. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Revrisond Baswir Pataniari Siahaan (Independent Commissioner) Joni Swastanto (Commissioner) 32 Adapting Quickly to Face Change Wahyu Kuncoro (Independent Commissioner) (Vice President Commissioner) Ari Kuncoro (President Commissioner/ Independent Commissioner) PT Bank Negara Indonesia (Persero) Tbk
  33. Bistok Simbolon Sigit Widyawan (Commissioner) (Independent Commissioner) Ahmad Fikri Assegaf (Independent Commissioner) PT Bank Negara Indonesia (Persero) Tbk  Marwanto Harjowiryono (Commissioner) Adapting Quickly to Face Change 33
  34. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk In the middle of this external pressure, Indonesia’s economic situation did not change significantly in 2018. The Board of Commissioners’ view is that the BNI Directors and staff’s spirit continued to grow amid the very high economic challenges, and they were able to continue competing in an increasingly competitive banking business.. Ari Kuncoro President Commissioner/Independent Commissioner 34 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  35. Management Report Board of Commissioners ' Report In 2018, BNI maintained its asset growth in their prospective sectors, which is reflected in total assets reaching Rp99.2 trillion. BNI’s loans grew by 16.2%, higher than last year’s 12.2%. During 2018, customer deposits stood at Rp578.8 trillion, an increase of Rp62.7 trillion or 12.1% from Rp516.1 trillion in 2017. Dear respected shareholders and stakeholders, This report covers the Board of Commissioners’ duties and responsibilities conducted during the 2018 financial year. When supervising and advising the Board of Directors’ duties, the Board of Commissioners refers to the approved Bank Business Plan, ensures that the Company runs effectively and acts in accordance with the expectations of shareholders and other stakeholders. During 2018 the Board of Commissioners carried out its duties, obligations and responsibilities covered the management policy supervision, and the Company management as stipulated by the applicable laws and regulations, the Articles of Association and the Work Plans set at the beginning of the year. Important matters related to the Board of Commissioners’ duties and responsibilities are presented below. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 35
  36. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk STRATEGY IMPLEMENTATION SUPERVISION Key strategies were established in BNI’s Corporate Plan to help achieve the Bank Business Plan (RBB) targets, and became one of the main focuses for the Board of Commissioners. The Board of Commissioners directed, monitored and evaluated the Bank’s strategic policies implementation in 2018, including evaluating the BNI and RBB Corporate Plan and 2018 financial performance every month. The Board of Commissioners supervises the efforts made to achieve the RBB, particularly the important elements in the business plan such as lending, improving asset quality, collecting third party funds, productivity and efficiency. The Board of Commissioners also evaluates and submits the RBB realization reports to the Financial Services Authority through the RBB supervision reports every semester. If revisions are made, the Board of Commissioners will conduct a further review for approval. In addition, the Board of Commissioners conducts reviews and approvals for the following years’ RBB, including the RBB for 2019-2021 and the BNI Corporate Plan for 2019-2023. FREQUENCY AND HOW ADVICE IS GIVEN TO THE BOARD OF DIRECTORS The Board of Commissioners’ supervision functions, duties and obligations is conducted through the following mechanism: 1. Through the Board of Commissioners’ MeetingsThe Board of Commissioners’ Meetings are conducted internally by Commissioners, or by inviting Sector Directors or Senior Executive Vice Presidents related to the Meeting agenda, as well as regular joint Meetings with the Board of Directors. 2. The Committees below the Board of Commissioners play an active role in assisting and supporting the Board’s smooth operation through Committee meetings as well as by evaluating, studying or reviewing matters related to the Board of Commissioners’ duties. 3. Providing the Board of Commissioners’ direction and opinion in writing to the Board of Directors in response to reports on the execution of their duties, all approval or consultation requests submitted by the Board of Directors, as well as information on strategic and significant issues. 4. Board of Commissioners’ work visits to BNI work units, and giving direction and opinion to the Board of Directors based on the results of these visits. 36 Adapting Quickly to Face Change During 2018 a Board of Commissioners held 41 meetings including internal Board of Commissioners meetings, or by inviting the Sector Director or the related Senior Executive Vice President. Joint Meetings with the Board of Directors were held 11 times. The Commissioners and Directors conducted all meetings effectively, with a high level of attendance. BOARD OF DIRECTORS’ PERFORMANCE ASSESSMENT The Board of Commissioners gives its highest appreciation for the Board of Directors’ excellent performance achievements in managing Bank’s, which resulted in the Company exceeding its performance targets in 2018. Some areas that the Board of Commissioners considered in the Board of Directors’ performance evaluation are presented below. ECONOMIC CONDITIONS AND COMPANY PERFORMANCE Bank Indonesia projected that Indonesia’s economic growth in 2018 would reach 5.17%. Inflation at the end of November 2018 was 3.23% (yoy), against Bank Indonesia’s target of 3.5% ± 1%. The Indonesian economy is still dominated by 3 (three) main business areas, namely agriculture, forestry / fisheries, and trade. By the second quarter of 2018, the processing industry had the highest growth at 0.91%, followed by the trade sector at 0.69%, and construction at 0.57%. The Rupiah exchange rate against the US Dollar was under pressure in mid-2018 and this continued until the end of the year leading to an outflow of foreign capital from the Indonesian financial system, resulting in an account deficit, mainly due to the export-import deficit, which dominated the Indonesian economy throughout 2018. In addition, other external factors came into play including the Fed Fund Rate (FFR) and the US and China trade wars. In the middle of this external pressure, Indonesia’s economic situation did not change significantly in 2018. The Board of Commissioners’ view is that the BNI Directors and staff’s spirit continued to grow amid the very high economic challenges, and they were able to continue competing in an increasingly competitive banking business. BNI maintained this spirit throughout 2018 in relationship to business growth, by becoming more selective in choosing the right industrial sectors. The Board of Commissioners’ view is that the Board of Directors has been able to face the disruptive economy era that began in 2017, and has adapted well especially in terms of technology and service innovations. PT Bank Negara Indonesia (Persero) Tbk
  37. Management Report In 2018 , BNI maintained its asset growth in their prospective sectors, which is reflected in total assets reaching Rp99.2 trillion. Loans disbursed, as the bank’s main business, accounted for 63.4% of the total assets in 2018. BNI’s loans grew by 16.2%, higher than last year’s 12.2%. BNI’s aggressive expansion relied on it staying selective, especially on asset quality and paying attention to prudential banking principles. The highest loan growth was with other SOEs, which grew by 31.6%, and private corporate loans which grew 12.9%, with the largest contributions coming from the manufacturing industry, restaurant and hotel trade, and business services. Absolute NPL decreased from Rp9.4 trillion in 2017 to Rp9.2 trillion in 2018, a decrease of 2.4%, showing BNI’s commitment to maintaining the loan quality amid the aggressive expansion. BNI’s Third Party Funds (TPF) through customer deposits grew during 2018, mainly driven by digital banking transactional services. BNI also raised cheap funds by continuing to enhance its partnerships with institutional customers, both private, state-owned and government. During 2018, customer deposits stood at Rp578.8 trillion, an increase of Rp62.7 trillion or 12.1% from Rp516.1 trillion in 2017. Giro accounts reached Rp169.3 trillion, an increase of 18.2% or Rp26.1 trillion from Rp143.2 trillion in 2017. Savings also recorded aggressive growth and reached Rp206.1 trillion, an increase of Rp23.8 trillion from Rp182.3 trillion in 2017. Deposit products also grew 6.7% or Rp12.8 trillion during 2018 to Rp203.4 trillion. This growth was not as aggressive as the giro and savings products as BNI implemented its strategy to focus on funding sourced from CASA. The excellent operational performance helped generate net profit growth of 10.3% compared to 2017, mainly due to the increases in interest and sharia income which were the main driving forces for the banking operations. BANK HEALTH LEVEL One important factor for the Board of Commissioners is the Bank’s Health Level (BHL) that is derived from assessing the Bank’s risk based rating, and the Bank’s performance. The BHL helps BNI identify problems early so it can develop and implement corrective actions, and establish future business strategies. The BHL is based on 4 (four) factors as follows: 1. Risk Profile A Risk Profile Assessment is carried out by assessing the Inherent Risk in BNI activities, and the Quality of Risk Management on 8 (eight) risk types. 2. Good Corporate Governance The Corporate Governance Assessment evaluates the quality of BNI’s management on the execution of Corporate Governance principles. 3. Earnings Assesses the Earnings factors including performance, sources, sustainability, and management. 4. Capital Assesses the capital factors including capital adequacy and its management. When assessing capital adequacy, BNI links its capital adequacy to its risk profile. Rating (TKB) is reported to the regulator (OJK) every 6 months (semester) in June and December. The BNI Bank Health Rating for the period to December 31, 2018 resulted in the “Healthy” rating, which means that: 1. The Bank’s condition is generally healthy, so it is considered capable of facing significant negative effects from changes in business conditions and other external factors. 2. The rankings for the assessment factors (Risk Profile, Governance, Earnings and Capital) are generally good. If there are any weaknesses, they are not significant. BNI’s risk profile, as one of the factors in the TKB assessment for December 31, 2018, was ranked 2 (low to moderate). As a result of BNI’s low to moderate risk profile and based on Internal Capital Adequacy Assessment Process (ICAAP) calculations, the minimum CAR based on the risk profile is 9.9%. If the buffer capital is added, namely Conservation Buffer 1.875%, Countercyclical Buffer 0% and Capital Surcharge 1.125%, then the Minimum Capital Adequacy Ratio (MCAR) limit becomes 12.9%. In 2018, BNI’s MCAR of 18.5% exceeded the specified minimum limit. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 37
  38. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk VIEW ON PROSPECTS PREPARED BY THE BOARD OF DIRECTORS VIEW ON GOOD CORPORATE GOVERNANCE Long-term business continuity is the goal that must always be properly analyzed by the Board of Directors. Their ability to predict future business prospects is an important matter that is of concern to the Board of Commissioners. Based on external and internal conditions, the Board of Commissioners considers that the business prospects that have been prepared by the Board of Directors are appropriate, in accordance with realistic assumptions. The Banks performance cannot be separated from applying good corporate governance (GCG), and its effectiveness is a key factor in achieving superior company performance. Therefore, the Board of Commissioners strongly emphasizes its supervision of the Banks GCG, and we view that it has been implemented properly. The independent GCG assessments carried out by the Indonesian Institute for Corporate Directorship (IICD) in 2018 show that the Banks has implemented GCG very well as indicated by an Asean Corporate Governance Scorecard (ACGS) score of 91.58. Even though global economic conditions have not yet escaped the past difficult conditions, the Government of Indonesia continues to focus on encouraging the maintenance of public purchasing power through subsidy programs, both for energy and non-energy subsidies. The Government’s efforts to encourage Indonesia’s economic growth have resulted in economic growth in various sectors. This creates opportunities for BNI to develop its business supported by its core capabilities. BNI’s ability to mobilize and allocate resources and maintain and develop its core capabilities are important factors in anticipating and grabbing business opportunities from existing external conditions. The Board of Commissioners believes that BNI will continue to do its best, and is optimistic that the Board of Directors will continue to achieve its performance targets. Over the last three years, BNI’s adaptive capacity has already shown that it can grow higher than the industry. 38 Adapting Quickly to Face Change The Board of Commissioner optimistic that the Board of Directors will continue to achieve its performance targets. Over the last three years, BNI’s adaptive capacity has already shown that it can grow higher than the industry. The key GCG components that receive the main attention from the Board of Commissioners include the risk management system, internal control systems, and the whistleblowing system. RISK MANAGEMENT As a part of GCG, BNI’s risk management has been running effectively and integratedly, and has supported the sustainable performance achievement and growth while increasing the company’s competitiveness. The Board of Commissioners actively supervises the application of risk management through the following mechanisms: 1. Approves BNI’s risk management policies including the risk management strategy and framework that are determined based on risk appetite and risk tolerance. 2. Evaluates risk management policies and strategies. 3. Evaluates the Board of Directors’ accountability and provides direction for improvements to BNI’s risk management policies. 4. Ensures that the risk management policies and processes are carried out effectively, and are integrated into all BNI risk management processes. PT Bank Negara Indonesia (Persero) Tbk
  39. Management Report The Board of Commissioners ’ supervisory function is conducted through the Directors and Commissioners forum (Radikom), as well as in the Risk Monitoring Committee, the Integrated Governance Committee and the Audit Committee meetings. For Risk Management to run effectively, the implementation is based on established Risk Governance, which includes clearly regulated roles and responsibilities, decisionmaking processes, the interrelationships between the Risk management functions, and the establishment of policies that ensure that Risk is managed properly. BNI has a General Risk Management Policy that is the strategic and comprehensive basic reference for applying Risk Management. Risk Management Procedures are in place to guide the implementation of Risk Management. As a guideline for implementing Risk Management, BNI has already established policies and procedures for managing each of the Risks. To apply Integrated Risk Management, the BNI Financial Conglomerate has a joint commitment to carrying out the duties and responsibilities of each Financial Services Institution (FSI), as outlined in the Integrated Risk Management Pact that has been approved and signed by the President Director and President Commissioner of all BNI Financial Conglomerate FSI. The Board of Commissioners believes that the Bank’s risk management and integrated risk management has been conducted properly. Banks has sufficient policies, risks and risk limits that are regularly reviewed with the approval of the Board of Directors. Banks also has adequate processes for identifying, measuring, monitoring and controlling risk on an ongoing basis for all material risk factors supported by a Risk Management Information System. INTERNAL CONTROL SYSTEM An effective Internal Control System is an important component in the Bank’s management and is the basis for sound and safe Bank operations. The Board of Commissioners constantly monitors the internal control system’s effectiveness, especially the Internal Audit Work Unit review results, related to their function as the third line of defense. PT Bank Negara Indonesia (Persero) Tbk  BNI’s Internal Control System refers to the Financial Services Authority Circular No. 35/SEOJK.03/2017 dated July 7, 2017 concerning the Standard Guidelines for Internal Control Systems for Commercial Banks, in line with the COSO framework and the Basel Committee - Internal Control, covering 5 (five) key interrelated elements in the Bank’s internal control system including: 1. Management supervision and control culture 2. Risk identification and assessment 3. Control activities and separation of functions 4. Accounting, information and communication systems 5. Monitoring activities and deviations/weaknesses correction actions WHISTLEBLOWING SYSTEM A key mechanism in Banks Anti-Corruption Program is the whistleblowing system (WBS), and includes “WBS to CEO” as a means for early detection of violations in BNI that could cause financial losses, or could damage BNI’s image. The WBS is used by BNI staff to report violations that occur in the BNI environment, and is managed in collaboration with an external party, Deloitte, with the aim of realizing a clean working environment with more effective integrity. The Board of Commissioners is of the opinion that the management of WBS externally will increase the potential for staff to report violations as they will feel freer when reporting, without fear of reprisal actions from the reported parties, especially if those reported are their superiors, and for this reason the WBS management has become more independent. During 2018, the WBS received 93 (ninety three) violations reports, which were followed up through investigation processes. Based on the ICU results for their examination on WBS reporting, there were 21 reports that were declared proven, and sanctions were imposed in accordance with the Company’s policies. The Board of Commissioners view is that the WBS is working well, and they have provided direction so that socialization is carried out on an ongoing basis to improve employees’ understanding and concern in reporting violations so as to create a clean working environment with more effective integrity. Adapting Quickly to Face Change 39
  40. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk CHANGES IN BOARD OF COMMISSIONERS’ COMPOSITION During 2018, the membership and composition of the BNI Board of Commissioners saw 2 (two) changes as follows: JANUARY 1, 2018 - MARCH 20 2018 The Board of Commissioners consisted of 8 (eight) people including 1 (one) President Commissioner and Independent Commissioner, 1 (one) Deputy President Commissioner, 3 (three) Independent Commissioners and 3 (three ) Commissioners. Name Position Domicile Date Appointed Effective Date Ari Kuncoro President Commissioner / Independent Commissioner Jakarta November 2, 2017 March 14, 2018 Wahyu Kuncoro Commissioner Vice President Commissioner / Commissioner. Jakarta March 10, 2016 March 16, 2017 January 25, 2017 May 29, 2017 Revrisond Baswir Commissioner Independent Commissioner Jogjakarta March 17, 2015 March 10, 2016 June 24, 2015 January 25, 2017 Pataniari Siahaan Commissioner Independent Commissioner Jakarta March 17, 2015 March 10, 2016 June 25, 2016 January 25, 2017 Bistok Simbolon Commissioner Jakarta January 12, 2016 May 10, 2016 Joni Swastanto Commissioner Jakarta March 10, 2016 April 20, 2016 Marwanto Harjowiryono Commissioner Jakarta March 16, 2017 July 19, 2017 Ahmad Fikri Assegaf Independent Commissioner Jakarta March 16, 2017 July 19, 2017 MARCH 20, 2018 - DECEMBER 31, 2018 The Board of Commissioners consisted of 9 (nine) people including 1 (one) President Commissioner and Independent Commissioner, 1 (one) Deputy President Commissioner, 4 (four) Independent Commissioners and 3 (three) Commissioners. Name Position Domicile Date Appointed Effective Date Ari Kuncoro President Commissioner / Independent Commissioner Jakarta November 2, 2017 March 14, 2018 Wahyu Kuncoro Commissioner Vice President Commissioner / Commissioner. Jakarta March 10, 2016 March 16, 2017 January 25, 2017 May 29, 2017 Revrisond Baswir Commissioner Independent Commissioner Jogjakarta March 17, 2015 March 10, 2016 June 24, 2015 January 25, 2017 Pataniari Siahaan Commissioner Independent Commissioner Jakarta March 17, 2015 March 10, 2016 June 25, 2016 January 25, 2017 Bistok Simbolon Commissioner Jakarta January 12, 2016 May 10, 2016 Joni Swastanto Commissioner Jakarta March 10, 2016 April 20, 2016 Marwanto Harjowiryono Commissioner Jakarta March 16, 2017 July 19, 2017 Ahmad Fikri Assegaf Independent Commissioner Jakarta March 16, 2017 July 19, 2017 Sigit Widyawan Independent Commissioner Jakarta 20 Maret 2018 September 7, 2018 Changes to the Board of Commissioners’ composition are based on Banks business needs, and the results of the needs analysis carried out by the Remuneration and Nomination Committee. 40 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  41. Management Report COMMITTEES UNDER THE BOARD OF COMMISSIONERS PERFORMANCE ASSESSMENT AND BASIS FOR THE ASSESSMENT In carrying out its duties and responsibilities the Board of Commissioners is assisted by committees that report to them , including the Audit Committee, Nomination and Remuneration Committee, Risk Monitoring Committee and Integrated Governance Committee. The performance assessment for the committees under the Board of Commissioners is based on the correct implementation of all Committees programs/work plans established at the beginning of the year. The committee programs/work plans are implemented through the following mechanism: 1. Holding of committee meetings including those inviting sector directors or related divisions/work units. 2. Studying/evaluating/reviewing by the committees outside the meeting forum where the results are sent in writing to the Board of Commissioners. The fact that the Committees under the Board of Commissioners’ completed of all the programs / work plans set at the beginning of the year, and the frequency and level of attendance at the Meetings, and the activity reports from the Audit Committee, Nomination and Remuneration Committee, Risk Monitoring Committee and Integrated Governance Committee indicates that each committee carried out its duties properly. CLOSING Accordingly, this reports the Board of Commissioners execution of their duties and responsibilities related to the Company’s management during 2018. To all BNI Directors and management, the Board of Commissioners expresses its highest appreciation for the satisfying achievements in 2018. We hope that in the future, BNI Bank will continue to contribute to the Indonesian nation through its role in increasing national economic growth. Jakarta, March 2019 On behalf of the Board of Commissioners Ari Kuncoro President Commissioner PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 41
  42. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Herry Sidharta (Vice President Director) Anggoro Eko Cahyo (Director of Finance) 42 Adapting Quickly to Face Change Dadang Setiabudi (Director of Information Technology and Operations) Tambok P. Setyawati (Director of Retail Banking) Endang Hidayatullah (Director of Compliance) PT Bank Negara Indonesia (Persero) Tbk
  43. Management Report Adi Sulistyowati (Director of Institutional Relations) Achmad Baiquni (President Director) PT Bank Negara Indonesia (Persero) Tbk  Bob Tyasika Ananta (Director of Risk Management) Rico Rizal Budidarmo (Director of Treasury and International Banking) Putrama Wahju Setiawan (Director of Medium Business) Catur Budi Harto (Director of Small Business & Network) Adapting Quickly to Face Change 43
  44. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BOARD OF DIRECTORS’ REPORT Compared to the banking industry and its peers group, BNI grew higher both in terms of assets and funding. BNI loans grew 15.3% as of September 2018, while customer deposits grew 13.7% higher than the industry and also peers groups for the same period. With the loans and customer deposits growth, BNI’s assets grew 14.3%, higher than the industry and peers groups. Dear respected shareholders and stakeholders, Through this report, please allow us to present the Company’s management results for 2018, as carried out by the Board of Directors. Thanks to the presence of God Almighty, in this challenging year, the Directors, management and all employees have produced a performance that has exceeded the Bank’s Business Plan targets. In this report, we will present our analysis of Banks performance and BNI business prospects going forward. This report will also convey the corporate governance development, and will contain information on changes to the Board of Directors’ composition in 2018. PERFORMANCE ANALYSIS 44 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  45. Management Report The improved BNI performance succeeded in driving net profit growth of 10 .3% compared to 2017, triggered by the increasing contribution of income such as interest and sharia income which are the main driving forces of the banking operations. Achmad Baiquni President Director PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 45
  46. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk PERFORMANCE ANALYSIS The Company’s performance achievements in 2018 were strongly influenced by a number of external and internal factors, and choosing the right strategy was necessary in the face of economic challenging conditions. In the next section, we will analyze the macro economy and banking industry, outline the strategic policies that have been implemented, and present Banks performance. ECONOMIC AND BANKING INDUSTRY ANALYSIS In the global economy, during 2018 the conditions in the United States remained a major concern, with the United States central bank The Federal Reserve (The Fed) grabbing the world’s attention with its interest rate policy. The Fed raised its benchmark interest rate by 25 bps 4 (four) times, and it is currently standing at 2.50%. The increases took place in March, June, September and December 2018 following the increases in US inflation that exceeded the comfort limit of 2%, and the unemployment rate standing at 3.9% at the end of 2018. In the European region, the Eurozone (EZ) economy’s improving inflation pushed the European Central Bank to reduce its stimulus to buy securities. China’s economy contracted in 2018, after growing moderately 6.8% (YoY) in Q1, it slowed to 6.7% (YoY) in Q2, then fell to 6.5% (YoY) in Q4, and fell again to 6.4% (YoY) in Q4. The tariff war with the US depressed China’s export performance, as the US was China’s main export destination market. In Japan, the negative interest rate policy has not consistently encouraged Japan’s economic growth. After contracting 1.2% (YoY) in Q1 - 2018, it grew 1.4% (YoY) in Q2, but fell again to 0.0% (YoY) in Q3. Japanese inflation continued to improve leaving behind the deflation era of 2016 and the low inflation era of 2017. In 2018 Japanese inflation was closer to 2%, with it’s highest in February 2018 at 1.5%. Food and energy prices drove the inflation increase, while core inflation remained relatively low. This condition encouraged the Bank of Japan (BOJ), as the Japanese central bank, to keep its benchmark interest rate at -0.10%. controlled inflation was influenced by low core inflation, and low volatile food inflation, so price inflation was relatively well maintained. BI’s success in maintaining inflation cannot be separated from its joint coordination with the Government both at the central and regional levels. One major problem in 2018 was the current account deficit (CAD), with the CAD ratio to Indonesia’s GDP continuing to increase during 2018. In QI - 2018, CAD reached 2.17% of GDP, then increased to 3.02% Q2, and widened again to 3.37% of GDP in Q3. CAD has become the focus of attention for the Government as it negatively impacts the rupiah exchange rate. The negative impact from the CAD drove BI to be preemptive and ahead of the curve towards its benchmark interest rate, the BI 7 days Repo Rate which was increased by 175bps in 2018. From within the country, another factor considered by BI besides the widening CAD was the trade balance deficit. Cumulatively, Indonesia recorded a trade balance deficit of US$8.57 billion, against the US$11.84 billion surplus in 2017. Indonesia’s exports grew 6.65% in 2018 to reach US180.06 billion, while imports grew 20.15% to reach US$188.63 billion. The Indonesian banking industry condition up to September 2018, saw bank loans grow by 12.7% (YoY) higher than the 8.2% growth in December 2017. In terms of funding, bank third party funds as of September 2018 grew by 6.6% lower than the 9.4% growth in December 2017. The slowdown in third party funds growth had an impact on banking assets, which by September 2018 had grown 8.6%, lower than the 9.8% growth in December 2017. When compared to the banking industry and its peers group, BNI grew higher both in terms of assets and funding. BNI loans grew 15.3% as of September 2018, while customer deposits grew 13.7% higher than the industry and also peers groups for the same period. With the loans and customer deposits growth, BNI’s assets grew 14.3%, higher than the industry and peers groups. During these unstable world economic conditions, the Indonesian economy grew moderately. In Q1 - 2018 the economy grew 5.06% (YoY), and grew to 5.27% (YoY) in Q2, and finally reached 5.17% (YoY) in Q3. Indonesian inflation for 2018 was 3.13%, within the BI target range of 3.5 ± 1%. The 46 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  47. Management Report STRATEGIC POLICIES BNI continually strives to provide the best contribution to encourage economic growth and development for the welfare of society as a whole . This is achieved by coordinating and cooperating with other institutions from countries, governments, individuals, communities, fellow financial companies, and other private entities. BNI is seeks to cement its existence by endeavoring to be one of the major players in the financial sector, especially banking, through comprehensive financial services to all banking customers, and by adding value that is beneficial to all stakeholders, namely customers, investors, employees, communities, and the financial industry. BNI has developed a Long Term Plan and a Short Term Plan after considering the latest internal and external factors. During 2018, BNI succeeded in carrying out its plans that followed 4 (four) main themes, namely Selective, Digitalize, Market Penetration, and Organization Capabilities. The 2018 strategy has been executed well, resulting in BNI’s lending growing faster than the industry average, mainly driven by the corporate segment’s lending, which focused on infrastructure and the processing sector. In the medium segment, the lending increase was supported by optimizing the Corporate customer value chain, and taking over customers in selective industries based on regional potential. Loan expansion in the small segment was also supported by optimizing the financing value chain PT Bank Negara Indonesia (Persero) Tbk  and supply chain, and by maximizing our role in the government programs as the basis for growth. In addition, to support and facilitate loan applications in the small segment we added more channels, namely agen46 and digital-based lending. The above the industry average loan growth was achieved by always following the principle of prudence ensuring that Non-Performing Loans (NPL) are maintained and decreased, to produce relatively high returns. The consumer business increase was achieved by selling BNI Griya, BNI Fleksi, Credit Cards and other loans, focusing on potential millennials through digital development. To grow the digital and potential millennial business, BNI launched a QR-based mobile payment systems called Yap!, Cinta banking chat, and BNI Call application (1500046 Virtual Assistant). To provide a better user customer experience, BNI has opened 8 (eight) digital branches. The strategy for increasing TPF focuses on closed loop transactions to ensure all customer transactions remain in BNI. The closed loop transactions for Corporate and Commercial customers and their supply chains is through the use of product and service solutions, one being the increase in cash management transactions. In addition, to increase customer transactions through e-commerce, several feature developments and strategic partnerships were carried out. Interest income and sharia income increased from Rp31.9 trillion in 2017 to Rp35.4 trillion in 2018 or 11.0%, with the largest increase in interest income coming from loans disbursed amounting to Rp3.9 trillion. Adapting Quickly to Face Change 47
  48. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk PERFORMANCE TARGETS ACHIEVEMENT The selection of the right strategies produced a satisfactory performance in 2018. In 2018, BNI maintain its asset growth in its prospective sectors, which is reflected in it growing to Rp99.2 trillion. The loans disbursed to the bank’s main business contributed 63.4% of total assets in 2018. BNI’s loans grew by 16.2%, higher than last year’s 12.2%, due to BNI aggressively expanding its lending while staying selective, especially on asset quality, and while paying attention to prudential banking principles. The growth was mainly in loans to SOEs that grew by 31.6%, and private corporate loans that grew 12.9%, with the largest contribution coming from the manufacturing industry, restaurant and hotel trade, and business services. BNI, as a state-owned bank, again played an important role in strengthening the government’s strategies, which subsequently had an impact on increasing loans disbursed to SOEs by 31.6% and loans disbursed to private corporations that grew by 12.9%, mainly in the manufacturing industry, restaurant and hotel trade, business services and construction services sectors. This resulted in the composition of loans disbursed to the bank’s main business increasing from 62.2% in 2017 to 63.4% in 2018. In 2018 the gross NPL ratio improved to 1.9% compared to 2.3% in 2017. Net NPL was 0.8% in 2018, compared to 0.7% in 2017. This was due to BNI’s strategy of selective expansion in low risk sectors, and shows us as a major player in the regions. In addition, BNI also restructured and remedied troubled debtors who still have the potential for financial and operational improvements. In anticipation of the fluctuating macroeconomic conditions, BNI mitigated its lending risks by providing higher reserves than the previous year, as reflected in the 2018 coverage ratio of 152.9% compared to 148.0% in 2017. Absolute NPL (Bank only) decreased 2.4% from Rp9.4 trillion in 2017 to Rp9.2 trillion in 2018, showing BNI’s commitment to maintaining the quality of its loans amid aggressive expansion. Liquidity became an issue in the banking industry during 2018, with the growth in lending being higher than the growth in customer deposits resulting in the industry Loan to Deposit Ratio (LDR) being above 90%. During this tight 48 Adapting Quickly to Face Change banking liquidity, BNI produced encouraging growth in customer deposits during 2018, with Digital-based banking transactional services becoming BNI’s main weapon in driving this growth. Also to collect cheap funds, BNI continued expanding its partnerships with institutions or institutional customers, both private, state-owned and government. During 2018, customer deposits stood at Rp578.8 trillion, an increase of Rp62.7 trillion or 12.1% from Rp516.1 trillion in 2017. Giro accounts reached Rp169.3 trillion, an increase of 18.2% or Rp26.1 trillion from Rp143.2 trillion in 2017. Savings also recorded aggressive growth and reached Rp206.1 trillion, an increase of Rp23.8 trillion from Rp182.3 trillion in 2017. Deposit products also grew 6.7% or Rp12.8 trillion during 2018 to Rp203.4 trillion. This deposit growth was not as aggressive as the giro and savings products as BNI implemented its strategy to focus on funding sourced from CASA. This strategy resulted in an improvement in BNI’s CASA ratio from 63.1% in 2017 to 64.8% in 2018. This condition also led to a decrease in the cost of funds of 0.2% from 3.0% in 2017 to 2.8% in 2018. The improved BNI performance succeeded in driving net profit growth of 10.3% compared to 2017, triggered by the increasing contribution of income such as interest and sharia income which are the main driving forces of the banking operations. Interest income and net sharia income increased from Rp31.9 trillion in 2017 to Rp35.4 trillion in 2018 or 11.0%, with the largest increase in interest income coming from loans disbursed amounting to Rp3.7 trillion. These 2018 achievements indicate that the Company’s performance has met its target. OBSTACLES FACED AND STEPS TAKEN The superior performance in 2018 is inseparable from the Board of Directors and management efforts to overcome the many obstacles and challenges faced. Like other business entities, BNI faced a variety of challenges from the external environment and also from several internal challenges. The increase in benchmark interest rates and the weakening trend in the exchange rate, as well as the increase in the Banking NPL were the external challenges that had to be faced with appropriate strategies. Like other banking companies, the threat of cyber crime is also a challenge that has to be faced by BNI. PT Bank Negara Indonesia (Persero) Tbk
  49. Management Report In addition , internally there are also several matters that need to be improved, especially related to loan collectibility. The contribution from subsidiaries is also an important matter that needs to be improved, so that significant synergies can be achieved. Related to the internal challenges and constraints, the Board of Directors continually tries to overcome these obstacles. One way has been through selectively channeling financing that focuses on priority industries and by optimizing the Banks’ role in government programs as a basis for growth. BNI has also strengthened its consumer business in collaboration with business partners and provided financial transaction solutions with a focus on e-commerce and the millennial generation through the development of digital channel acquisition and feature development through strategic partnerships. Also importantly, BNI is optimizing its organization capabilities to support its business achievements by increasing employee productivity, increasing the effectiveness and efficiency of business processes and developing information technology that supports Banks business. These strategies have been implemented appropriately and BNI produced a proud performance in 2018. Based on its targeted achievements in 2018, BNI increased its net profit and reduced its NPL in 2018, according achieving the targets. Regarding domestic liquidity, estimates say that it will be tight due to several reasons. Firstly, higher loan growth compared to deposit growth, reflected in a higher loan to deposit ratio (LDR). Based on regulation No. 17/11/ PBI/2015, the LDR lower limit is 78% and the upper limit is 92%. Secondly, the government is increasingly active in issuing retail bonds that can be purchased by individuals so there is the potential they may switch from deposits in banks (both deposits and savings) to retail bonds. Currently the Government owned retail bonds consist of Retail Government Bonds (ORI), Retail Sukuk (SR) and Sukuk Tabungan (ST). The amount of retail Government Securities (SBN) in 2019 will reach Rp60 trillion, and to facilitate the public, the Government will issue SBN online with a first come first served system. If liquidity is tightened, there will be increased competition between banks for deposits, which will affect funds growth in 2019. In line with the adoption of the Macroprudential Intermediation Ratio (MIR), BI continues to encourage bank lending while expanding funding and financing sources through issuance of securities. These financing alternatives present a challenge for banks in carrying out its intermediary function. The low cost of issuing bonds will encourage companies to choose financing through bonds. The national bank lending growth will become a problem if it does not grow like in 2018, which until September 2018 had grown by 12.6%. BUSINESS PROSPECTS ANALYSIS The world’s and Indonesia’s economic conditions in 2019 are predicted to still face many challenges, with several world institutions agreeing that the global economy would be supported by the US and developing countries such as India, ASEAN-5 (especially Indonesia and the Philippines), Brazil and Mexico (Economic Outlook 2019, IMF). There is still the potential for an increase in the FFR in 2019 if the American economy continues to grow in accordance with the expectations and realization of American inflation, which has reached its target of 2%. In addition, the end of Quantitative Easing (QE) in both Europe and Japan will impact the lack of foreign funds entering the Indonesian financial market compared to the previous year. The US and China trade wars will also continue and cause an impact. Given that global economic growth is still problematic, the main source for Indonesia’s economic growth comes from within the country. The government will continue to focus on encouraging the maintenance of public purchasing power through various subsidy programs, both for energy and nonenergy subsidies. PT Bank Negara Indonesia (Persero) Tbk  The economic conditions, especially in the financial industry, is still facing various challenges, and will of course have an impact on BNI’s business activities. BNI’s ability to mobilize and allocate resources and maintain and develop its core capabilities is an important factor in anticipating and taking business opportunities from existing external conditions. BNI remains confident that it will still be able to do its best. BNI is optimistic that it will always be able to achieve its performance targets as the business world will still offer many excellent growth opportunities in the coming years, especially for companies that are able to adapt to the environment and are agile enough to exploit these opportunities. BNI’s adaptability and agility has historically been proven in recent years, where in years of moderate economic and financial industry growth conditions, BNI has been able to grow higher than the industry. From the quarterly breakdown of Indonesia’s economic growth in 2017-2018, the largest contributions apart from the Industrial Trade Sector came from the Processing Adapting Quickly to Face Change 49
  50. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Industry, Agriculture (including Forestry and Fisheries), Construction, Transportation and Warehousing, and Communication Information Sectors with an average growth contribution of 20%, 13%, 10.5%, 5.5%, and 3.8% respectively. By comparison, the Industrial Trade Sector contributed an average of 13% to economic growth. This economic structure is an opportunity for BNI to develop its business supported by its core capabilities. In 2018, the largest funding to the BNI Corporate Segment was given to the Manufacturing, Agriculture, and the Business Services Industry Sectors with each portfolio’s composition being 26%, 15% and 13% respectively. The Business Services Industry Sector is the third highest-growth Industrial Sector after the Information and Communication Industry Sector and the Transportation and Warehousing Industry Sector. During the same period, BNI’s Medium Segment provided the largest financing to the Industrial Trade, Manufacturing, and Transportation and Warehousing Sectors with a portfolio composition of 31%, 26% and 11% respectively. BNI’s Small Segment largest financing was to the Trade, Manufacturing and Agriculture sectors with a financing composition of 57%, 11% and 10% respectively. BNI has and will continue to make significant investments in the development of its technology in an effort to always remain relevant in the era of technological change, including efforts to be a pioneer in the use of information technology in accordance with changes in customer preferences due to internet penetration and devices. Information technology applications will be perceived by customers, both individuals and business entities, or other institutions, when using BNI financial services, to be superior and are expected to help increase engagement with BNI so that it can provide long term added value not only for BNI but also its customers. The information technology applications developed include digitizing business processes to improve quality, service speed, process transparency, and system interoperability. In addition, platform development and transaction applications that enable interaction between customers both Business to Business (B to B), Business to Customer (B to C), and Customer to Customer (C to C) will be developed so as to increase the user’s experience in every customer trip to BNI. Development of features and applications like the Yap! cash management system will continue to meet customer needs by optimizing the capabilities of data analytics. 50 Adapting Quickly to Face Change Support for the Government programs will continue to be carried out as BNI is one of the national agents of development, and this government program and the entire community involved can become BNI’s potential business targets. Support for cross-sectoral government development strategies such as infrastructure development, tourism, transportation, or agriculture will continue. The business contribution from this support is quite significant for BNI, both for finance distribution and for raising funds and feebased income. Other Government programs such as the People’s Business Loans, Financial Inclusion, Laku Pandai, and social assistance will help improve the quality of the economic growth quickly and sustainably and will ultimately increase BNI’s business as a whole. CORPORATE GOVERNANCE DEVELOPMENT BNI is committed to continuously improving the quality of its good corporate governance principles in all aspects of its business activities including its integrated subsidiaries. Together with the development of good corporate governance (GCG) best practices, both in the banking industry and the financial services industry, BNI as a stateowned bank registered in the capital market understands that the execution and development of GCG brings enormous benefits. To achieve this, BNI has guidelines for conducting its business activities so they are always in line with each stakeholder’s goals and needs. Alignment between stakeholders and BNI will foster mutual trust and a conducive attitude in the corporate environment resulting in the emergence of, and increase in the superior nature of work and professionalism in all BNI people. BNI also realizes that corporate governance will further enhance its investors’ trust and security in the current global era. On an ongoing basis, in addition to implementing the basic GCG principles, BNI is adopting many best governance standards at regional and international levels, including the ASEAN Corporate Governance Scorecard, Minister of State-Owned Enterprises Regulation No. PER-01/ MBU/2011 concerning Good Corporate Governance. and its amendments namely Minister of State-Owned Enterprises Regulation No. PER-09/MBU/2012, OJK Regulation No. 21/ POJK.04/2015 concerning Application of Public Company Governance Guidelines, and OJK Regulation No. 55/ POJK.03/2016 concerning Implementation of Governance PT Bank Negara Indonesia (Persero) Tbk
  51. Management Report for Commercial Banks , Principles for Enhancing Corporate Governance issued by the Basel Committee on Banking Supervision, OJK Circular Letter No. 32/SEOJK.04/2015 concerning Guidelines for Public Company Governance, and OJK Circular Letter No. 13/SEOJK.03/2017 concerning Implementation of Governance for Commercial Banks. In 2018, BNI again won the Best State Owned Enterprise and Top 50 Public Listed Companies awards at the Good Corporate Governance Award Ceremony organized by the Indonesian Institute for Corporate Directorship (IICD), and the Most Trusted Company Based on Corporate Governance Index (CGPI) at the Good Corporate Governance Award 2018 Ceremony. Other GCG developments in 2018 included: 1. Signing of GCG Commitments by all BNI Personnel. 2. Anti-Fraud socialization to all BNI employees. 3. Anti-Gratification Publication in Kompas and Bisnis Indonesia Daily on 30 May 2018 and 21 December 2018. 4. Completion of the Board of Directors’ Charter as stated in the Directors’ Decree No.KP/228/DIR/R dated 29 June 2018. 5. The Implementation of the Socialization GCG Division and the Secretariat, Corporate Communications the district office Makasar (WMK), the district office (WMK), poor a branch office Singkawang and Pontianak as well as all the representative of subsidiary. 6. Anti-Money Laundering and Prevention of Terrorism Financing Compliance Forum in the Financial Services Sector on 30 August 2018. 7. To improve the application of GCG principles in the BNI work environment, internal activities were held in the form of a Vlog GCG competition with the theme “Integrity as the Lifestyle for BNI People #IniIntegritasGue”. The competition’s purpose and objective was to raise awareness in all BNI people to make integrity a lifestyle choice, and to increase the participation of all BNI people to play an active and creative role in BNI’s integrity lifestyle campaign. In principle, GCG in BNI was conducted well by the Board of Commissioners, Board of Directors and all employees in all activities, with the aim of protecting the interests of the Bank, shareholders and stakeholders. BNI always evaluates the application of GCG on an ongoing basis, so that GCG will always increase. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 51
  52. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BOARD OF DIRECTORS’ COMPOSITION CHANGES In the 2018 period, the Board of Directors’ membership and composition changed as follows: BOARD OF DIRECTORS’ COMPOSITION BEFORE THE AGMS ON MARCH 20, 2018 The Board of Directors consisted of 10 (ten) people including 1 (one) Managing Director, 1 (one) Deputy Managing Director and 8 (eight) Directors. All members of the Board of Directors are domiciled in the BNI Head Office work area. Name Position Domicile Date Appointed Effective Date President Director Jakarta March 17, 2015 April 16, 2015 Vice President Director Jakarta March 17, 2015 (appointment as Director). March 16, 2017 (redirection to be a Vice President Director) May 22, 2015 Achmad Baiquni Herry Sidharta Rico Rizal Budidarmo May 29, 2017 Director of Finance and Credit Risk Jakarta Director of Planning and Operational Jakarta March 17, 2015 April 16, 2015 Director of Institutional Relations & Transactional Banking Jakarta March 17, 2015 May 22, 2015 Director of Consumer Business Jakarta March 17, 2015 May 22, 2015 Director of Company Compliance & Risk Jakarta March 17, 2015 May 22, 2015 Director of Treasury & International Jakarta January 12, 2016 April 11, 2016 Putrama Wahju Setyawan Director of Medium Business Jakarta March 10, 2016 July 15, 2016 Catur Budi Harto Director of Small Business & Network Jakarta March 16, 2017 July 19, 2017 Bob Tyasika Ananta Adi Sulistyowati Anggoro Eko Cahyo Imam Budi Sarjito Panji Irawan April 16, 2015 BOARD OF DIRECTORS’ COMPOSITION AFTER THE AGMS ON MARCH 20, 2018 The Board of Directors consisted of 11 (eleven) people including 1 (one) President Director, 1 (one) Deputy Managing Director and 9 (nine) Directors. All members of the Board of Directors are domiciled in the BNI Head Office work area. Name Position Domicile Date Appointed Effective Date President Director Jakarta March 17, 2015 April 16, 2015 Vice President Director Jakarta March 17, 2015 (appointment as Director). March 16, 2017 (redirection to be a Vice President Director) May 22, 2015 Achmad Baiquni Herry Sidharta Rico Rizal Budidarmo Director of Finance and Credit Risk Jakarta March 17, 2015 April 16, 2015 Director of Planning and Operational Jakarta March 17, 2015 April 16, 2015 Director of Institutional Relations & Transactional Banking Jakarta March 17, 2015 May 22, 2015 Anggoro Eko Cahyo Director of Consumer Business Jakarta March 17, 2015 May 22, 2015 Tambok P. Setyawati Director of Retail Banking Jakarta March 20, 2018 July 5, 2018 Bob Tyasika Ananta Adi Sulistyowati 52 May 29, 2017 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  53. Management Report Dadang Setiabudi Director of Information Technology and Operations Jakarta March 20 , 2018 July 5, 2018 Putrama Wahju Setyawan Director of Medium Business Jakarta March 10, 2016 July 15, 2016 Catur Budi Harto Director of Small Business & Network Jakarta March 16, 2017 July 19, 2017 Director of Compliance Jakarta March 20, 2018 July 5, 2018 Endang Hidayatullah The Board of Directors’ composition changes are based on the Company needs, as decided by the Shareholders. PERFORMANCE ASSESSMENT OF COMMITTEES UNDER BOARD OF DIRECTORS AND THE BASIS OF ASSESSMENT In carrying out its management duties, the Board of Directors established Committees at the Board of Directors level in accordance with BNI’s business needs and regulatory provisions, which are expected to create operational effectiveness and efficiency, including: 1. Loan Committee. 2. Integrated Risk Management Committee. 3. Risk and Capital Management Committee. 4. Product Committee. 5. Performance Management Committee. 6. Technology Management Committee. 7. Credit Policy and Procedure Committee. 8. Human Capital Committee. The assessment of members of Committee under the Board of Directors is carried out by the Board of Directors by assessing their duties in accordance with the Committee Charter, Competencies and Skills and the Attendance Level of the Committee members. The Board of Directors periodically evaluates the Performance of Committees under the Board of Directors. During 2018, the overall performance of Committees under the Board of Directors was satisfactory. CLOSING Accordingly, this reports the Board of Directors report on the Company management in 2018. The Directors expresses their highest gratitude for the support at all levels of management and employees for their best contribution in achieving the satisfactory Company performance in 2018. To the Board of Commissioners, all of the Directors express their gratitude for the supervision and directives given. The Board of Directors also thanks the Shareholders and other stakeholders for their trust, enabling BNI to provide the best for the nation and state of Indonesia. Jakarta, March 2019 On behalf of the Board of Directors Achmad Baiquni PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 53
  54. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk RESPONSIBILITY STATEMENT We, the undersigned, state that all information contained in the 2018 Annual Report of PT Bank Negara Indonesia (Persero) Tbk is presented in its entirety, and we take full responsibility for the correctness of the contents in this Annual Report This statement is hereby made in all truthfulness. Jakarta March, 2019 BOARD OF COMMISSIONERS ARI KUNCORO President Commissioner/Independent Commissioner WAHYU KUNCORO PATANIARI SIAHAAN REVRISOND BASWIR Commissioner Vice President Commissioner Independent Commissioner Independent Commissioner AHMAD FIKRI ASSEGAF SIGIT WIDYAWAN Independent Commissioner Independent Commissioner BISTOK SIMBOLON JONI SWASTANTO MARWANTO HARJOWIRYONO Commissioner Commissioner Commissioner Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  55. Management Report We , the undersigned, state that all information contained in the 2018 Annual Report of PT Bank Negara Indonesia (Persero) Tbk is presented in its entirety, and we take full responsibility for the correctness of the contents in this Annual Report This statement is hereby made in all truthfulness. Jakarta March, 2019 BOARD OF DIRECTORS ACHMAD BAIQUNI President Director HERRY SIDHARTA PUTRAMA WAHJU SETYAWAN ADI SULISTYOWATI Vice President Director Director of Medium Business Director of Institutional Relations RICO RIZAL BUDIDARMO ANGGORO EKO CAHYO CATUR BUDI HARTO Director of Treasury and International Banking Director of Finance Director of Small Business & Network BOB TYASIKA ANANTA ENDANG HIDAYATULLAH TAMBOK P. SETYAWATI Director of Risk Management Director of Compliance Director of Retail Banking DADANG SETIABUDI Director of Information Technology and Operation PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change
  56. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Company Profile 58 60 62 63 64 68 72 74 76 COMPANY IDENTITY BRIEF HISTORY OF THE COMPANY BRAND PERUSAHAAN BUSINESS FIELDS PRODUCTS AND SERVICES REGIONAL BUSINESS MAP ORGANIZATION STRUCTURE VISION, MISSION AND CORPORATE CULTURE VISION AND MISSION REVIEW BY THE BOARD OF COMMISSIONERS AND BOARD OF DIRECTORS 77 COMPANY CULTURE 78 BOARD OF COMMISSIONERS PROFILES 87 BOARD OF DIRECTORS PROFILE 98 SENIOR EXECUTIVE VICE PRESIDENT PROFILE 99 EXECUTIVE OFFICERS PROFILE 115EMPLOYEE PROFILE AND EMPLOYEE COMPETENCY DEVELOPMENT KARYAWAN 126SHAREHOLDER COMPOSITION 129LIST OF SUBSIDIARIES AND/OR ASSOCIATED ENTITIES 134BNI GROUP STRUCTURE 56 Adapting Quickly to Face Change 135SHARE ISSUANCE CHRONOLOGY 137BOND ISSUANCE CHRONOLOGY 140OTHER SECURITIES ISSUANCE AND/OR LISTING CHRONOLOGY 141NAME AND ADDRESSES OF INSTITUTIONS AND/OR SUPPORTING PROFESSIONS 142PENGHARGAAN DAN SERTIFIKASI 149NAMES AND ADDRESSES OF SUBSIDIARIES, ASSOCIATED ENTITIES, BRANCH OFFICES AND OVERSEAS REPRESENTATIVES AND REGIONAL OFFICES 150OVERSEAS BRANCH OFFICES, SUB BRANCH OFFICES, REPRESENTATIVES OFFICES AND REGIONAL OFFICES 152INFORMATION AVAILABLE ON THE WEBSITE 154EDUCATION AND/OR TRAINING FOR THE BOARD OF COMMISSIONERS, BOARD OF DIRECTORS, COMMITTEES, CORPORATE SECRETARY, AND INTERNAL AUDIT UNIT PT Bank Negara Indonesia (Persero) Tbk
  57. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 57
  58. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk COMPANY IDENTITY Currently BNI has 1 (one) Head Office, 17 Regional Offices and 2,245 office networks consisting of branch offices, sub-branch offices, overseas offices, cash offices and other office networks such as payment points, mobile cash and O-Branch. In addition, BNI also has Agen46 in all provinces in Indonesia. 58 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  59. Company Profile Nama Perusahaan PT Bank Negara Indonesia (Persero) Tbk Business Activity Banking business in accordance with the Articles of Association No. 52, dated May 22, 2018 Nama Panggilan BNI Date of Establishment Business Segment 5 Juli 1946 •Business Banking Corporate, Medium and Small •Consumer Banking •international Banking and Treasury Agen46 Establishment Legal Basis •2018: 111.836 •2017: 69.589 •Regulation in lieu Law No. 2 of 1946 •State Gazette of Republic of Indonesia No. 70 of 1968 •Act Number 17 of 1968 • Government regulation No. 19 of 1992 (Adjustment to Legal Form of BNI) Office Network Data Head Office Address Grha BNI Jl. Jenderal Sudirman Kav. 1. Jakarta 10220 Phone : (62-21) 251 1946 I-Telex : 765185 BNI DLN IA Fax, : (62-21) 251 1214 E-mail : bni@bni.co.id Website : www.bni.co.id PO Box 1946 Central Jakarta 10220 Information Access Cal Center: 24 hour Service BNI Call 1500046 E-mail: bnicall@bni.co.id Twitter: @BNI Facebook: BNI Instagram: @BNI46 Listing Date on Indonesia Stock Exchange •1 Head Office •17 Regional Office •201 Branch Offices •5 Subsidiaries •1,109 Branches •605 Cash Office •128 Payment Point •18,311 ATM •196 O-Branch •6 Foreign Office Networks 28 Oktober 1996 Ticker Code BBNI Total Employees 27,224 Subsidiaries Investor Relations Corporate Secretary and Communcation Division Grha BNI, 24th floor Jl. Jenderal Sudirman Kav. 1 Jakarta 10220 Phone: (62-21) 2511 946, 572 8387 Fax: (62-21) 572 8295, 572 8053 E-mail: investor.relations@bni.co.id •Bank BNI Syariah •BNI Multifinance •BNI Sekuritas •BNI Life Insurance •BNI Remittance Ltd. Authorized capital Rp15,000,000,000,000 Issued and Fully Paid Capital Rp9,054,806,974,125 PT Bank Negara Indonesia (Persero) Tbk  Ownership Composition Republic of Indonesia: 60% Public: 40 % Adapting Quickly to Face Change 59
  60. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BRIEF HISTORY OF THE COMPANY PT Bank Negara Indonesia (Persero)Tbk (hereinafter “BNI” or “Bank”) was originally established in Indonesia as a central bank under the name of “Bank Negara Indonesia” based on Government Regulation in Lieu of Law No. 2 of 1946 dated July 5, 1946. Subsequently, pursuant to Law 17 in 1968, BNI became “Bank Negara Indonesia 1946”, with the status of a State-owned Commercial Bank. Additionally, BNI’s role as a bank was mandated to improve the people’s economy and participate in national development as confirmed by Law 17 of 1968 regarding Bank Negara Indonesia 1946. Based on Government Regulation No. 19, 1992, April 29, 1992, BNI changed its legal status to a limited liability company (Persero). The change of legal status to limited liability company, was made in Deed No. 131, dated July 31, 1992, before Muhani Salim, SH, and was published in the State Gazette of the Republic of Indonesia No. 73 dated September 11, 1992, Supplement No. 1A. In 1996, BNI as a State Owned Enterprise was the first to become a public company after listing its shares on the Jakarta Stock Exchange and the Surabaya Stock Exchange. To strengthen it’s financial structure and competitiveness in the national banking industry. BNI conducted a number of corporate actions, including being recapitalized by the Government in 1999, with a Government share divestment in 2007, and a limited public offering in 2010. To fulfill the provisions of Law 40 of 2007 dated August 16, 2007 on Limited Liability Companies, BNI’s Articles of Association were amended. The amendments were stated in Deed No. 46 dated June 13, 2008, made before Fathiah Helmi, SH, notary in Jakarta, based on an Extraordinary General Meeting Shareholders decision dated May 28, 2008, which was approved by the Minister of Justice and Human Rights of the Republic of Indonesia, by Decree AHU-AH,01,02-50609 dated August 12, 2008 and published in the State Gazette of the Republic of Indonesia No. 103 dated December 23, 2008, Supplement No. 29015. 60 Adapting Quickly to Face Change BNI’s Articles of Association latest changes relates to a realignment of the Articles of Association in accordance with Deed No. 35 dated March 17, 2015, made before Notary Fathiah Helmi, SH, which was approved by the Minister of Justice and Human Rights of the Republic of Indonesia, by decree No. AHU-AH,01,03-0776526 dated April 14, 2015 The latest amendment to the BNI Articles of Association were included in Deed No. 52 dated May 22, 2018 made before Notary Fathiah Helmi, S.H., and approved in the Ministry of Law and Human Rights of the Republic of Indonesia Decree No. AHU-0012962.AH.01.02.TAHUN 2018 dated June 25, 2018. Currently, 60% of BNI’s shares are owned by the Government of the Republic of Indonesia, while the remaining 40% are owned by the public, both individuals and institutions, domestic and foreign. Currently BNI is listed as the 4th largest national bank in Indonesia, in terms of total assets, total loans and total third party funds. To provide financial services in an integrated manner, BNI is supported by a number of subsidiaries, namely Bank BNI Syariah, BNI Multifinance, BNI Securities, BNI Life Insurance, and BNI Remittance Ltd. BNI offers deposit and loan facilities for the corporate, medium, and small segments. Many of the best products and services have been adapted to meet the needs of customers from childhood, through adolescence and adulthood, until retirement. PT Bank Negara Indonesia (Persero) Tbk
  61. Company Profile CHANGE OF NAME As per the description of the company ’s brief history, BNI has changed its name 1 (one) time since its establishment, from its original name Bank Negara Indonesia to Bank Negara Indonesia 1946 on December 18, 1968 based on the 1968 Law No. 17 concerning Bank Negara Indonesia 1946. As well as the change of name, BNI also changed its legal status from the original Bank Negara Indonesia 1946 to become a Limited Liability Company (Persero) effective on April 29, 1992. BNI has also changed its status from the previous Private Company to Public Company effective on August 6, 1996. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 61
  62. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Brand PERUSAHAAN The BNI Logo uses the colors Orange and Turquoise as its corporate signature colors, which have been developed to give the impression of modernity and freshness. The figure 46 is part of the history as the first BNI Indonesian bank to contribute relentlessly to building the nation The slogan “Serve the State, Pride of the Nation” reinforces the Company’s philosophy and vision. The 2017 Value Proposition sees BNI as a comprehensive and reliable Digital Financial Institution that will continue to provide the experience of digital innovation to all levels of Indonesian society without exception, whether large corporations or very small, individuals of all ages, even for those that have not yet been not touched the bank (unbank). The 2018 Value Proposition is BNI with Digital Banking. 62 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  63. Company Profile BUSINESS FIELDS BNI conducts banking businesses and activities in accordance with the Articles of Association as set forth in Deed No . 52, dated May 22, 2018. The following is a description of the main activities and supporting activities that have been, or have not yet been implemented by the Bank: BUSINESS ACTIVITY IN ACCORDANCE WITH THE LAST ARTICLES OF ASSOCIATION BNI’s Business Activity Main Business MAIN BUSINESS Has Been Implemented Collecting funds from the public in the form of savings, current deposits, time deposits, savings deposits, or other equivalent forms. √ Providing credit. √ Issuing debt instruments. √ Buying, selling, or guaranteeing, at their own risk or for the interests and on the order of customers, (money orders, debt securities/other trade paper, treasury bills, government guarantee letters, Bank Indonesia certificates, bonds, fixed maturity trade securities, and other fixed maturity securities instruments). √ Transfering money either for its own needs or the needs of customers. √ Placing, lending or borrowing with other banks, by using mail, telecommunication facilities and notes, checks or other facilities. √ Receiving payments from securities billing and performing calculations with or among third parties. √ Facilitating a secure place for expensive goods and securities. √ Performing escrow activities for another party based on a contract. √ Performing funds placements from a customer to other customers in the form of securities that are not listed on a stock exchange. √ Conducting financing and/or other activities based on sharia principles, in accordance with the provisions stipulated by competent authorities. √ Performing factoring, credit card business and trusteeship. √ Conducting foreign currencies activities by fulfilling the conditions set by the competent authorities. √ Performing equity activities in banks or other companies in the financial sector. √ Conducting temporary capital participation activities to overcome any consequence of loan failure, including financing failure activities based on sharia principles provided they withdraw their investments in accordance with the provisions stipulated by the competent authorities. √ Acting as a Pension Fund Founder and pension fund manager in accordance with legislation. √ Performing financial services, commercial banking, and other investment banking activities. √ Conducting other activities commonly carried out by banks as long as they do not conflict with laws and regulations. √ Carrying out supporting business activities in the context of optimizing the use of resources, to support the main business activities insofar as they do not conflict with the laws and regulations. √ PT Bank Negara Indonesia (Persero) Tbk  Has Not Implemented Adapting Quickly to Face Change 63
  64. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk PRODUCTS AND SERVICES BNI’s business activities include various deposit products, loan products, and various services described below: CONSUMER SAVINGS • BNI Taplus • BNI Taplus Muda • BNI Taplus Bisnis • BNI Tappa (Taplus Pegawai/ Taplus Anggota) • BNI Tapma (Taplus Mahasiswa) • BNI Haji • BNI Tapenas • BNI Taplus Anak • BNI Taplus Anak Co-Brand • BNI Simpanan Pelajar • BNI Pandai • Tabunganku • BNI Giro • BNI Dollar • BNI Deposito • BNI Simponi • BNI Duo • Tabungan Indonesia Pintar (PIP) LOAN • BNI Griya • BNI Griya Multiguna • BNI Fleksi • BNI Fleksi Pensiun • BNI Oto • BNI Instan • BNI Wirausaha 64 Adapting Quickly to Face Change CREDIT CARD • Reguler Credit Card »» Kartu Kredit Visa Silver »» Kartu Kredit Visa Gold »» Kartu Kredit Mastercard Silver »» Kartu Kredit Mastercard Gold »» Kartu Kredit BNI JCB Gold • Premium Credit Card »» BNI Style Titanium »» BNI Visa Platinum Card »» BNI JCB Precious »» BNI MasterCard World »» BNI Visa Infinite 
 • Affinity Credit Card »» Kartu Kredit BNI Affinity BNI Affinity – Universitas Credit Card »» BNI Affinity – Ikatan Alumni Credit Card »» BNI Affinity – Organisasi/Komunitas Credit Card • Corporate Credit Card »» BNI Corporate Card Gold »» BNI Corporate Card Platinum »» BNI American Express Business Card 
 • Co-Branding Credit Card »» BNI – Garuda Card »» BNI – Lotte Mart Card »» BNI – Bank Sumselbabel Card »» BNI – Bank Jabar Banten Card »» BNI – Bank DKI Card »» BNI – Pertamina Card 
 • • Private Label Credit Card »» BNI Travelling Card »» BNI Gasoline Card »» BNI Health Card- BNI »» Distribution Card BNI Cash card DEBIT CARD • Debit Reguler Card »» Debit Silver Card »» Debit Gold Card • Debit Premium Card »» Debit Platinum Card • Debit Co-Branding Card
 »» Debit Garuda Card »» Debit Ferrari by BNI Card 
 »» Debit LOTTE Mart Wholesale Card 
 »» Debit Co-Branding Multimart Card 
 »» Debit Co-Branding Indogrosir Card • BNI Emerald World MasterCard Card
 E-BANKING • BNI ATM Reguler • BNI ATM Non Tunai • BNI ATM Setoran Tunai • BNI ATM Drive Thru • BNI SMS Banking • BNI Internet Banking • BNI Phone Banking • BNI Mobile Banking • BNI O-Branch • BNI Debit Online • Tap Cash • Agen 46
 • Unikqu
 • EDC
 • EDC Mini ATM • BNI iPay • BNI SmartPay SERVICES • Remittances in Domestic Currency (BNITRANSFER) • International Money Remittance • Safe Deposit Box • BNI Multiguna Voucher • Inkaso • BNI Bank Certificate • Traveler’s Cheque • Foreign Banknotes • Electronic Data Capture (EDC) PENSION SAVING • BNI Simponi BANCASSURANCE • In Branch and Telemarketing • Solusi Abadi Plus • B-Life Plan Multipro • B-Life Cash Pro • Prima Proteksi • Pro Maxima • Pro Medika • Blife Medplus • Rencana Pintar • Rencana Sehat PT Bank Negara Indonesia (Persero) Tbk
  65. Company Profile PRIORITY BANKING BUSINESS BANKING EMERALD SERVICE • BNI Emerald Card • BNI Infinite Card • BNI Emerald Saving • Layanan BNI Emerald INDUSTRIAL SECTOR • Agribusiness • Telecommunications • Food and Drink • Oil and Gas Mining • Chemical Industry • Construction • Electricity • Large and Retail Trade INVESTMENT PRODUCTS • BNI Supermarket Investment • Supermarket Mutual Funds »» Money Market Mutual Funds »» Fixed Income Mutual Funds »» Shares Mutual Funds »» Mix Mutual Funds »» Protected Mutual Funds INSURANCE PRODUCTS • In Branch and Telemarketing • Solusi Abadi Plus • BNI Life Multi Pro • BNI Life Cash Pro • Prima Proteksi • Pro Maxima • Pro Medika • Blife MedPlus • Rencana Pintar • Rencana Sehat E-BANKING • BNI ATM
 • ATM Drive Thru • SMS Banking
 • Internet Banking • Phone Banking • O-Branch • Mobile Banking • Tapcash • Unikqu
 • EDC
 • EDC Mini ATM BNI BUSINESS BANKING • Local Corporate and Multinational Company 1 • Local Corporate and Multinational Company 2 • Transactional Banking Services »» BNI Direct (Payment Management, Collection Management, Liquity Management, Information Management) »» Supply Chain Financing »» Custody and Securities Services • Commercial and Small »» Working Capital Loan (KMK) »» Investment Loan (KI) »» Bank Guarantee (GB) »» Domestic Letter of Credit (SKBDN) »» Letter of Credit (LC) »» People’s Business Loan (KUR) »» Program Loan »» Marketing Intelligence and Business Portfolio FUNDING • Non-Individual BNI Current Accounts • Company Time Deposits • Single Currency • Dual Currency (BNI duo) LENDING • Working Capital Loan • Investment Loan • Supply Chain Loan • Loan to Financial Institutions (KKLK) • People’s Business Loan (KUR) • Two Step Loan • Two Step Loan - IEPC 2 • Time Deposit Backed Loan • BNI Entrepreneurship • Cash Collateral Loan • Export Loan • Import Loan • Primary Cooperative Loan • Syndication Loan • Loan for Food and Energy Security (KKP-E) • Loan Plantation Revitalization - Partnership Program SERVICES • Cash Management »» Transfer Management »» Collection Management (Auto Collection, Pickup Services, BNI Virtual Account) »» Payment Management (Bulk Payment, Payroll Management, BNI e-Tax) »» Liquidity management • Sindikasi »» Arrangement »» Agent • Facility Agent • Security Agent • Escrow Agent • Fund Services »» Fund Accounting, Fund Administration, Reporting and Publication Supervision »» Core Banking BNI »» Transfer Agency • Custody Service • Wali Amanat • Garansi Bank »» Big Bond/Jaminan Tender »» Advance Payment Bond/Jaminan Uang Muka »» Performance Bond (Garansi Bank Pelaksana/ Performance Bond, Garansi Bank Jaminan Pemeliharaan/ Maintenance Bond/ Retention Bond, Garansi Bank Pembayaran) »» • PT Bank Negara Indonesia (Persero) Tbk  Custom Bond Agen Pembayaran (Paying Agent) Adapting Quickly to Face Change 65
  66. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk INTERNATIONAL TRADE FINANCE PRODUCTS • Import LC Issuance »» Sight LC »» Usance LC »» Back to Back LC (BBLC) »» Transferable Letter of Credit • Export LC Negotiation • Inward Documentary Collection • Outward Documentary Collection • Shipping Guarantee • Trust Receipt • Advances Under Collection Bills • Open Account Financing • Bills Discounting • “UPAS” LC Refinancing • Standby Letters of Credit LOAN PRODUCTS • Corporate Loan (Working Capital Loan and Investment Loan) • Term Loan • Overdraft Facility • Trade Financing • Syndication Loan • Project Financing • Discount Bills • Loan on Bills • Housing Loan • Two Steps and Channeling Loans to Local Companies from Indonesia RETAIL SERVICE PRODUCTS • BNI Current Account • BNI Fixed Deposit • BNI SingPlus Saving Account • BNI Simpanan Hong Kong Dollar • BNI Giro Hong Kong Dollar & US Dollar • Demand Deposits • Negotiable Deposits • Remittance • Hospital Guarantee • Bank BNI Singapore| MAS Electronic • Payment System (MEPS) • Escrow Agent • Safe Deposit Box 66 Adapting Quickly to Face Change FINANCIAL INSTITUTION PRODUCTS • Bank Guarantee based on Counter Guarantee • Confirm LC/SKBDN • Nostro Account • Foreign Exchange • Today, Tom, and Spot • Forward Transaction • Swap Transaction • Penempatan Dana • Money Market Account • Deposit on Call • Billateral Trade Financing • Risk Participation and Forfaiting • Custodian Services • Bankers Acceptance • Derivatif • Interest Rate Swap • Option • Cross Currency Swap • Bank Notes • Plain Vanilla Option • Repo Obligasi/Reverse Repo TREASURY • Foreign Exchange »» Today, Tom, and Spot • Forward Transaction • Penempatan Dana »» Money Market Account »» Deposit on Call • Derivatif »» Interest Rate Swap »» Option »» Cross Currency Swap • Bank Notes • Plain Vanilla Option • Repo Obligasi/Reverse Repo PT Bank Negara Indonesia (Persero) Tbk
  67. Company Profile PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 67
  68. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk REGIONAL BUSINESS MAP Currently BNI has 1 (one) Head Office, 17 Regional Offices and 2,245 office networks consisting of branch offices, sub-branch offices, overseas offices, cash offices and other office networks such as payment points, mobile cash and O-Branch. In addition, BNI also has Agen46 in all provinces in Indonesia. MEDAN REGION »» »» »» »» »» »» 19 Branch Office 68 Sub-branch Office 39 Cash Offices 8 Payment Point 1.115 ATM 21 O-Branch BANJARMASIN REGION »» »» »» »» »» »» PADANG REGION »» »» »» »» »» »» 21 Branch Office 70 Sub-branch Office 59 Cash Offices 5 Payment Point 1.438 ATM 21 O-Branch PALEMBANG REGION 13 Branch Office 73 Sub-branch Office 29 Cash Offices 9 Payment Point 1.037 ATM 13 O-Branch »» »» »» »» »» »» 15 Branch Office 74 Sub-branch Office 32 Cash Offices 6 Payment Point 1.015 ATM 15 O-Branch SEMARANG REGION »» »» »» »» »» »» JAKARTA KEMAYORAN REGION »» »» »» »» »» »» 8 Branch Office 76 Sub-branch Office 50 Cash Offices 9 Payment Point 1.530 ATM 6 O-Branch BANDUNG REGION »» »» »» »» »» »» 15 Branch Office 76 Sub-branch Office 42 Cash Offices 11 Payment Point 1.440 ATM 16 O-Branch JAKARTA SENAYAN REGION »» »» »» »» »» »» 7 Branch Office 86 Sub-branch Office 46 Cash Offices 8 Payment Point 956 ATM 3 O-Branch JAKARTA KOTA REGION »» »» »» »» »» »» 6 Branch Office 78 Sub-branch Office 40 Cash Offices 4 Payment Point 862 ATM 4 O-Branch 11 Branch Office 38 Sub-branch Office 38 Cash Offices 8 Payment Point 805 ATM 12 O-Branch YOGYAKARTA REGION »» »» »» »» »» »» 15 Branch Office 56 Sub-branch Office 44 Cash Offices 22 Payment Point 1.103 ATM 15 O-Branch SURABAYA REGION »» »» »» »» »» »» 12 Branch Office 77 Sub-branch Office 44 Cash Offices 10 Payment Point 1.286 ATM 11 O-Branch MALANG REGION »» »» »» »» »» »» 14 Branch Office 43 Sub-branch Office 27 Cash Offices 11 Payment Point 1.029 ATM 14 O-Branch JAKARTA BSD REGION 68 »» »» »» »» »» »» 9 Branch Office 71 Sub-branch Office 48 Cash Offices 6 Payment Point 1.816 ATM 7 O-Branch Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  69. Company Profile Region Office Branch Office Sub-branch Office Cash Offices Payment Point O-Branch ATM LUAR NEGERI MANADO REGION »» »» »» »» »» 11 Branch Office 43 Sub-branch Office 12 Cash Offices 544 ATM 11 O-Branch »» 8 ATM PAPUA REGION »» »» »» »» »» 5 Branch Office 18 Sub-branch Office 19 Cash Offices 223 ATM 5 O-Branch MAKASAR REGION »» »» »» »» »» »» 11 Branch Office 71 Sub-branch Office 29 Cash Offices 10 Payment Point 1.042 ATM 12 O-Branch BNI OFFICE NETWORKS IN 2014 - 2018 Type of Office DENPASAR REGION »» »» »» »» »» »» 9 Branch Office 91 Sub-branch Office 7 Cash Offices 1 Payment Point 1.062 ATM 10 O-Branch Head Office Region Office Branch Overseas Offices 2018 2017 2016 2015 2014 1 1 1 1 1 17 17 17 15 15 6 6 6 6 5 201 200 196 169 168 1.109 1.085 948 911 912 Cash Offices 605 595 623 545 495 Payment Point 128 130 110 105 92 18.311 17.966 17.056 16.071 14.071 196 122 86 81 78 Branch Office Sub-branch Office Others Office Network ATM O-Branch PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 69
  70. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk The BNI implemented 8 (eight) Digital Branch outlet units in 2017, with an additional 6 (six) outlets and 1 (one) Digital Branch devices in 2018. D-Branch Network Per Region in 2018 No. 70 Outlet Name Branch Office Location Year Of Development KC Jl. Perintis Kemerdekaan Bandung Mall 23 Paskal Bandung, Jawa Barat 2017 KC UGM Yogyakarta Hartono Mall Yogyakarta, D.I. Yogyakarta 2017 1. D-Branch 23 Paskal 2. D-Branch Hartono Mall 3. D-Branch Grand City Mall KC Surabaya Grand City Mall Surabaya, Jawa Timur 2017 4. D-Branch Plaza Medan Fair KC Medan Plaza Medan Fair, Sumatera Utara 2017 5. D-Branch Bandara Ngurah Rai KC Renon Bandara Ngurah Rai, Denpasar, Bali 2017 6. D-Branch Gandaria City KC Pasar Mayestik Gandaria City, Jakarta 2017 7. D-Branch Pacific Place KC Melawai Raya Pacific Place, Jakarta 2017 8. D-Branch Kota Kasablanka KC Tebet Kota Kasablanka , Jakarta 2017 9. D-Branch Pejompongan KC Mega Kuningan Menara BNI Pejompongan, Jakarta 2018 10. D-Branch Stasiun BNI City KC Mega Kuningan Stasiun BNI City, Jakarta 2018 11. D-Branch Pondok Indah Mall 2 KC Fatmawati Pondok Indah Mall 2, Jakarta 2018 12. D-Branch Nipah Mall Makassar KC Makassar Nipah Mall Makassar, Sulawesi Selatan 2018 13. D-Branch Manado Town Square KC Manado Manado Town Square Sulawesi Utara 2018 14. D-Branch Ciputra World KC Surabaya Ciputra World Surabaya, Jawa Timur 2018 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  71. Company Profile PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 71
  72. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk ORGANIZATION STRUCTURE In line with the Bank’s business development, BNI’s organizational structure has undergone several changes. The last organizational change took place on November 09, 2018, based on the letter KEPDIR No.KP/384/DIR/R dated November 09, 2018. THE BOARD OF COMMISSIONER MANAGING DIRECTOR CORPORATE BANKING Putrama Wahju Setyawan INTERNAL AUDIT Muhammad Gunawan Putra POLICY GOVERNANCE DIVISION Josdi Situmorang LOCAL & CORPORATE MULTINATIONAL COMPANY 1 DIVISION Benny Yoslim CORPORATE SECRETARY & COMMUNICATION DIVISION Kiryanto* SUBSIDIARIES DEVELOPMENT DIVISION Teddy Erdius E. Saputra MANAGING DIRECTOR SMALL BUSINESS & NETWORK MANAGING DIRECTOR RETAIL BANKING Catur Budi Harto Tambok P. Setyawati MANAGING DIRECTOR TREASURY & INTERNATIONAL BANKING Rico Rizal Budidarmo SMALL BUSINESS 1 DIVISION Edy Awaludin CONSUMER PRODUCT MANAGEMENT DIVISION J. Donny Bima Herjuno TREASURY DIVISION Legendariah Bur Rasuanto LOCAL & CORPORATE MULTINATIONAL COMPANY 2 DIVISION Warda Nadjamuddin SMALL BUSINESS 2 DIVISION Bambang Setyatmojo CONSUMER SALES DISTRIBUTION DIVISION Hermita INTERNATIONAL BANKING DIVISION Eko Setyo Nugroho STATEDOWNED & ENTERPRISE GOVERNMENT INSTITUTION DIVISION A.A.G Agung Dharmawan CHANNEL MANAGEMENT DIVISION Fauzi CARD BUSINESS DIVISION Okki Rushartomo Budiprabowo PENSION FUND UNIT Saktimaya Murti SERVICE QUALITY UNIT Grace Daturante Pong Samma E-BANKING DIVISION Anang Fauzie SYNDICATION BUSINESS UNIT Rommel TP. Sitompul BNI CONTACT CENTER UNIT Yohanes Iwan Kurniawan MARKETING COMMUNICATION DIVISION Indomora Harahap REGIONAL BNI MULTIFINANCE BNI SYARIAH BNI LIFE INSURANCE BNI REMITTANCE BNI SECURITIES 72 *Served until 28 January 2019. Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  73. Company Profile ANNOTATION Supervision Line Coordination Line Communication & Information Delivery Line GENERAL MEETING OF SHAREHOLDERS (GMS) Board of Directors Committee RISK MONITORING COMMITTEE NOMINATION & REMUNERATION COMMITTEE INTEGRATED GOVERNANCE COMMITTEE Revrisond Baswir Ari Kuncoro Revrisond Baswir AUDIT COMMITTEE Pataniari Siahaan THE BOARD OF DIRECTORS & SEVP PRESIDENT DIRECTOR Achmad Baiquni VICE PRESIDENT DIRECTOR Herry Sidharta MANAGING DIRECTOR INSTITUTIONAL RELATION Adi Sulistyowati MANAGING DIRECTOR RISK MANAGEMENT Bob Tyasika Ananta MANAGING DIRECTOR FINANCE (CFO) Anggoro Eko Cahyo MANAGING DIRECTOR INFORMATION TECHNOLOGY & OPERATION Dadang Setiabudi IT SOLUTION & SECURITY DIVISION Muhammad Faisal Jazuli MANAGING DIRECTOR COMPLIANCE Endang Hidayatullah INSTITUTIONAL RELATION DIVISION G.C. Koen Yulianto ENTERPRISE RISK MANAGEMENT DIVISION Aryanto Purwadi TRANSACTIONAL BANKING SERVICES DIVISION Teddy Wishadi CORPORATE CREDIT RISK DIVISION Retno Murwani FINANCIAL BUDGETING & CONTROL DIVISION Putu Bagus Kresna WEALTH MANAGEMENT DIVISION Neny Asriani MIDDLE & SMALL CREDIT RISK DIVISION Babas Bastaman PROCUREMENT & FIXED ASSETS DIVISION Dandy Perwandi Sjamsudin BANKING OPERATION DIVISION Ahmad Fikri HUMAN CAPITAL DIVISION Efita Praharani CONSUMER LOAN PROCESSING & COLLECTION DIVISION Moh. Hisyam DATA MANAGEMENT DIVISION Sigit Eri Soelistianto E-CHANNEL UNIT Tennisiana Soekesi BNI CORPORATE UNIVERSITY Wicaksono Sarwo Edi STRATEGIC PLANNING DIVISION Mucharom CREDIT ADMINISTRATION DIVISION Anang Basuki PT Bank Negara Indonesia (Persero) Tbk  IT OPERATION DIVISION Afthon Shodaq Noor SEVP COMMERCIAL BANKING SEVP REMEDIAL & RECOVERY Ronny Venir Yuddy Renaldi MIDDLE BUSINESS DIVISION COMPLIANCE DIVISION Risang Widoyoko LEGAL DIVISION Johansyah CORPORATE REMEDIAL & RECOVERY DIVISION Iwan Setiawan Eko Setiawan CUSTOMER ANALYSIS & PORTFOLIO MANAGE MENT UNIT Syafrudin MIDDLE & SMALL REMEDIAL & RECOVERY DIVISION Julius D. Aritonang BOARD OF DIRECTORS COMMITTEE INTEGRATED RISK MANAGEMENT COMMITTEE CREDIT COMMITTEE PRODUCT COMMITTEE RISK MANAGEMENT & CAPITAL COMMITTEE PERFORMANCE MANAGEMENT COMMITTEE HUMAN CAPITAL COMMITTEE TECHNOLOGY MANAGEMENT COMMITTEE CREDIT POLICY & PROCEDURE COMMITTEE Adapting Quickly to Face Change 73
  74. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk VISION, MISSION AND CORPORATE CULTURE TO BE A FINANCIAL INSTITUTION WITH SERVICE AND PERFORMANCE EXCELLENCE VISION An explanation of the Vision follows: “Financial Institutions” • Customer financial services needs will become more complex, and will cover financing, transactions, sharia, investments, insurance, and alternative financing other than loans. • The increasingly complex customer needs are also influenced by information technology development that causes changes in customer preferences. The convenience of information technology has led customers to need easy and fast products and financial services. At the same time, the financial institution must manage the emerging risks appropriately. The impact of changes in customer preferences means the financial services industry must be increasingly integrated with the non-financial services industry. • There are policies for financial service industry players to implement integrated governance in the conglomerates involving financial service institutions. These aim to improve the effectiveness and efficiency of monetary and fiscal policies and the supervision of the financial services industry. 74 Adapting Quickly to Face Change “Excellence in Service” • Service is the main value offered to customers of financial service providers. • Superior services be added value for customers choosing financial institutions. • Financial institutions services are required to meet all relevant aspects of customer needs so as to make financial institutions as financial lifetime partners, able to provide total financial solutions, including serving the business ecosystems in an integrated manner. “Excellence in Performance” • Financial performance is an indicator of the company’s success in conducting its operations in the form of financial return. Quality financial performance will convince investors, customers, employees, industries that investments and risks are properly managed, generate added value, and grow sustainably. • Superior non-financial performance will provide added value to wider stakeholders. Non-financial performance indicators that can be used include support for government programs such as the financial inclusion or partnership programs, contributions to the environment and communities such as the through sustainable financing or community development, and other non-financial indicators such as the quality and speed of services or operational reach of the financial institutions.. PT Bank Negara Indonesia (Persero) Tbk
  75. Company Profile • To provide excellent services and value-added solutions to all customers and partners by being the primary banking choice • To increase investment value for investors • To create the best working environment for employees to proudly work and actualize oneself • To increase awareness and responsibility to the local community and environment • To become the role model for compliance to laws and regulations, as well as good corporate governance for the industry MISSION A description of the BNI Mission is as follow: 1. To provide excellent services and value-added solutions to all customers and partners by being the primary banking choice as described below: a. Providing complete, integrated, quality, reliable, and dependable products / banking services; b. Providing “one stop solution” services for both business and individual customers; c. Providing superior best-in-class products and services; d. Improving customer experience for processes considered critical by customers e. Proactively making adjustments and improvements in accordance with development needs and customer demands for quality products / services offered by BNI. f. Providing convenience for customers when making transactionsi. 2. To increase investment value for investors, as described below: a. Maximum business profitability; b. Sustainable and accountable growth; c. A sound Financial Institution; d. Cost effectiveness. e. Stable share prices and continuing to increaset. 3. To create the best working environment for employees to proudly work and actualize oneself, as described below: a. Providing equal opportunities and an area to increase knowledge, skills, and an assured career path; b. Creating and supporting talent management programs to mold future leaders for both BNI and Indonesia ; c. Providing safe, comfortable, harmonious facilities and working environments to support the goal of PT Bank Negara Indonesia (Persero) Tbk  productivity improvement. 4. To increase awareness and responsibility to the local community and environment, as described below: a. Actively serving the banking needs of all levels of society; b. Actively seeking and entering new businesses in accordance with the latest laws and regulations; c. Actively developing international businesses for business repayments in prospective countries; d. Actively improving the environment and communications quality in line with business development. 5. To become the role model for compliance to laws and regulations, as well as good corporate governance for the industry, as described below: a. Implementing Integrated risk management; b. Accommodating whistle blowers, to protect the company’s and the communities’ interests; c. Active communication between the Company’s management and leaders Senior Leadership actively with to create role models; d. Actively updating rules, regulations, and implementing them in a disciplined and systematic manner, to create a trusted financial institution Adapting Quickly to Face Change 75
  76. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk VISION AND MISSION REVIEW BY THE BOARD OF COMMISSIONERS AND BOARD OF DIRECTORS During the preparation of the BNI Long-Term Corporate Plan 2019-2023, which began in early 2018, a review of the company’s Vision and Mission was carried out. The long-term plan preparation involved all BNI stakeholders, including the Board of Commissioners, Management, subsidiaries, representatives at all levels of employees, and the public, and financial industry experts using surveys, interviews and joint discussions. From the stakeholders’ aspirations, aligned with the latest external and internal conditions, it can be concluded that in the long term BNI is expected to become “To be the Most Profitable Financial Institution in Indonesia”. After considering these aspirations, Management determined that the current BNI Vision and Mission is still very relevant in the long term. In the context of these aspirations, the Vision and Mission is explained in other sections of this Annual Report regarding the Vision and Mission elaboration. The Vision and Mission was officially established in the BNI Long-Term Corporate Plan 2019-2023 and approved in Board of Commissioners Number DK/117 dated October 22, 2018, and then stipulated in the Board of Directors’ Decree Number KP/385/DIR/R dated November 9, 2018. 76 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  77. Company Profile COMPANY CULTURE The BNI Working Culture is called “PRINCIPLE 46” and is the behavioral guidance for BNI People BNI 4 WORKING CULTURE 6 BNI PEOPLE MAIN BEHAVIOURS PROFESSIONALISM Improving the competence and giving the best result. • Increasing Competence and Giving the Best Results INTEGRITY Commit to always be consistent for thoughts, words and deeds based on conscience and belief in essential truth principles. • Honest, Sincere and Heartfelt • Discipline, Consistent and Responsible COSTUMER ORIENTATION Always prioritize customer interests based on mutual respect and synergistic relationships. • Delivering the Best Service Through Synergistic Partnership CONTINUOUS IMPROVEMENT Always seek opportunities and solutions to improve services and performance that exceed Customer expectations. • Always Improving • Creative and Innovative PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 77
  78. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk BOARD OF COMMISSIONERS PROFILES Ari Kuncoro (President Commissioner/Independent Commissioner) Citizenship, Domicile, Age and Educational History Indonesian citizen, domiciled in Jakarta, born in Jakarta in 1962, is currently 56 years old on December 2018. He earned a Bachelor’s degree in Economics from Universitas Indonesia in 1986, and a Master of Art degree from the University of Minnesota, USA in 1990, as well as a PhD, in Economics from Brown University, USA in 1994. He attended the English to Academic Teaching Training in 1992 at Brown University (Universitas Brunensis), giving a Public Lecture for the Regional Finance Course in 2014 at LPEM FEB UI, AACSB Cooperative and Attachment, from 2015 to present from AACSB International Accreditation Institute. In 2018, he actively participated in the 1st Roundtable at the Southeast Asian Economic and Trade Seminar and the CSIS Global Leaders Forum in Washington DC, and the Key Risk Management Challenges Training in 2018 by the Banking Professional Certification Institute Banking Professional Certification Institute (LSPP) in 2017 (Risk Management Certification for Independent Commissioners at a maximum level 2). Concurrent Positions and Affiliated Relationships While serving as President Commissioner of BNI, he has served on the East Asia Economist Association Board since 2013, and as Dean at the Faculty of Economics and Business Universitas Indonesia since 2013. He has no affiliated relationships with members of the Board of Directors, other members of the Board of Commissioners or with the Majority and Controlling Shareholders. Appointment Basis Initial appointment as the President Commissioner of BNI at the Extraordinary General Meeting (EGM) on November 2, 2017, based on EGM the decision deed No. 02 November 2, 2017 and received approval from the Financial Services Authority (OJK) on March 14, 2018. Since April 5, 2018, has been assigned as a Member of the Nomination and Remuneration Committee. Tenure November 02, 2017 - until the closing of the GMS 2020 (First Period). Position History He began his career at the Faculty of Economics and Business at Universitas Indonesia (FEB UI) in 1986 and during his career served as Economics Post Graduate Program Secretary from 1995 to 1998, Vice Dean for Teaching, Education and Community Service from 1998 to 2001. 78 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  79. Company Profile Wahyu Kuncoro Vice President Commissioner Citizenship , Domicile, Age and Educational History Warga Negara Indonesia, berdomisili di Jakarta. Lahir di Surakarta Indonesian citizen, domiciled in Jakarta Born in Surakarta in 1969, is currently 49 years old on December 2018. He earned his Bachelor’s degree in Agriculture from Universitas Sebelas Maret, in 1993 and a Bachelor’s degree in Economics from Universitas YAI in 2003, and then earned a Master’s degree in Management from Universitas Gadjah Mada in 2005. He has Obtained Level 1 Risk Management certification held by the Risk Management Certification Agency (BSMR) in 2016 (Risk Management Certification for Commissioners at a maximum level 2). Position History He began his career in the Finance Ministry in 1996 and throughout his career has served as Assistant Deputy for Services III Business Sector, Ministry of SOE (2013), Assistant Deputy of Banking and Insurance Business, Ministry of SOE (2014), Deputy of Infrastructure Business, (2015), Deputy of Agro Industry and Pharmaceutical Enterprises Ministry of BUMN (2016) and Commissioner of PT Angkasa Pura II (Persero) (2012-2016). PT Bank Negara Indonesia (Persero) Tbk  Concurrent Positions and Affiliate Relations While serving as a BNI Commissioner, he currently serves as Agro & Pharmaceutical Businesses Deputy since 2016. He has no affiliated relationships with members of the Board of Directors and other members of the Board of Commissioners. Appointment Basis First appointed as BNI Commissioner at the General Meeting of Shareholders (GMS) on March 10, 2016 based on GMS Deed No. 8 on March 10, 2016, and received approval from the Financial Services Authority (OJK) on January 25, 2017. At the GMS on March 16, 2017, was appointed as Vice President Commissioner of BNI based on the AGMS deed No. 42 dated March 16, 2017. Since February 14, 2017, has been assigned as a Member of the Nomination and Remuneration Committee. Tenure March 10, 2016 - until the closing of the GMS 2021 (First Period) Adapting Quickly to Face Change 79
  80. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Revrisond Baswir (Independent Commissioner) Citizenship, Domicile, Agie and Educational History Concurrent Positions and Affiliated Relationships Indonesian citizen, domiciled in Yogyakarta Born in Pekanbaru in 1958, is currently 60 years old on December 2018. He received his Bachelor degree in Accounting from Faculty of Economics and Business from Universitas Gadjah Mada, Yogyakarta in 1983, Master of Business Administration from Western Michigan University, USA in 1991 and Doctor of Economics from Universitas Airlangga, Surabaya in 2011. He actively participated in the Executive Risk Management Refreshment Program training and attended the “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” seminar in 2018. He has Obtained Level 2 Risk Management certification held by the Risk Management Certification Agency (BSMR) in 2016 (Risk Management Certification for Independent Commissioners at a maximum level 2). While serving as an Independent Commissioner at BNI, he does not any concurrent positions in other companies or institutions. He has no affiliated relationships with members of the Board of Directors and other members of the Board of Commissioners, or with the Majority and Controlling Shareholders. Position History He began his career as a Lecturer at FEB UGM in 1983, During his career he served as Expert Staff for the Ministry of Human Rights of the Republic of Indonesia (2000), Expert Staff for the Regional Representative Council (2005), Center Head for Populist Economics Studies UGM (2005-2007 and 2013-2014), Public Policy Committee Member at the Ministry of SOEs (2006-2011 and 2015-2016), Commissioner and Audit Committee Chairman for PTPN XIII, Pontianak (2008-2013), Commissioner for PTPN VIII, Bandung (20132014), Commissioner and Audit Committee Chairman for PTPN XI, Surabaya (2014-2015). 80 Adapting Quickly to Face Change Appointment Basis Appointed as BNI Commissioner at the General Meeting of Shareholders (GMS) dated March 17, 2015 based on GMS Deed No. 34 dated March 17, 2015, and received approval from the Financial Services Authority (OJK) on June 24, 2015. In the GMS dated March 10, 2016, was appointed Independent Commissioner, and received OJK approval on January 25, 2017, Since June 24, 2015 has been assigned as a Nomination and Remuneration Committee Member. Additionally, on February 14, 2017 and March 30, 2017, was assigned as Risk Monitoring Committee Chairman, and Integrated Governance Committee Chairman. Tenure March 10, 2016 - until the closing of the GMS 2021 (First Period) PT Bank Negara Indonesia (Persero) Tbk
  81. Company Profile Pataniari Siahaan (Independent Commissioner) Citizenship, Domicile, Age and Educational History Indonesian citizen, domiciled in Jakarta Born in Balige in 1946, is currently 72 years old on December 2018. He obtained his Bachelor of Engineering degree in civil engineering from Universitas Trisakti in 1978, and a Bachelor of Engineering degree in civil engineering transportation from Universitas Krisnadwipayana in 2006, then obtained his Master of Law degree from Universitas Trisakti in 2007, and a Doctorate degree in Law from Universitas Trisakti in 2011. He actively participated in the Executive Risk Management Refreshment Program training in Frankfurt & Bern, Germany and attended an “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” seminar in 2018. He has Obtained Level 2 Risk Management certification held by the Risk Management Certification Agency (BSMR) in 2016 (Risk Management Certification for Independent Commissioners at a maximum level 2). Position History He began his career in the House of Representatives / People’s Consultative Assembly in 1999 and throughout his career he has served as the Chairman of the MPR RI Decision Socialization Team in the 1945 Constitution, the Legislative Leaders of the House of Representatives and various positions of the chairmen and members of the DPR / MPR RI. PT Bank Negara Indonesia (Persero) Tbk  Concurrent Positions and Affiliated Relationships While serving as an Independent Commissioner at BNI, he is currently a Member of the MPR-RI Assessment Institute from 2015-present, Editorial Board of the Prioris Law Journal from 2013- present, and Lecturer at Universitas Trisakti Faculty of Law from 2011- present. He has no affiliated relationships with either the members of the Board of Directors and other members of the Board of Commissioners or with the Majority and Controlling Shareholders. Appointment Basis First appointed as Commissioner of BNI at the Annual General Meeting of Shareholders (AGMS) dated March 17, 2015 based on GMS Deed number 34 on March 17, 2015, and received approval from the Financial Services Authority (OJK) on June 25, 2015. Later in the GMS held on March 10, 2016, he was appointed Independent Commissioner based on AGMS deed No. 8 dated March 10, 2016 and received approval from OJK on January 25, 2017. On June 25, 2015 was assigned as a Member of the Nomination and Remuneration Committee. On March 30, 2017 was assigned as Chairman of the Audit Committee. Tenure March 10, 2016 - until the closing of the GMS 2021 (First Period) Adapting Quickly to Face Change 81
  82. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Ahmad Fikri Assegaf (Independent Commissioner) Citizenship, Domicile, Age and Educational History Indonesian citizen, domiciled in Jakarta, Born in Jakarta in 1968, is currently 50 years old on December 2018. He graduated from the Universitas Indonesia in 1991, and graduated with a Master’s Degree in Law from Cornell Law School, Ithaca, New York in 1994. He actively participated in the “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” Seminar in 2018. He has Obtained Level 2 Risk Management certification held by the Banking Professional Certification Institute (LSPP) in 2017 (Risk Management Certification for Independent Commissioners at a maximum level 2). Position History He began his career as a Lawyer in a Law Firm in Jakarta in 1993. In 2000 he established www,hukumonline,com, the largest legal portal in Indonesia. Then, in 2001 he established Law Firm Assegaf, Hamzah & Partners. He served as Managing Partner at Assegaf Hamzah & Partner (2008-2016), Supervisory Board Member, Kemayoran Complex Management Center (2015- 2017). Concurrent Positions and Affiliated Relationships While serving as an Independent Commissioner at BNI, he currently serves as Vice Chairman of the Regional Management Council Rajah Tann Asia (2016-present), and Co-Managing Partner of Assegaf Hamzah & Partners (2017 - present). He also serves as a Member of the Kemayoran Complex Management Center Supervisory Board (2015-2020), Member of the Judicial Commission Member Selection Committee (2015-present) and Honorary Board Member of the Capital Market Legal Consultants Association (2015-2018). He has no affiliated relationships with either the members of the Board of Directors and other members of the Board of Commissioners or with the Majority and Controlling Shareholders. Appointment Basis First appointed as Commissioner of BNI at the Annual General Meeting of Shareholders (AGMS) on March 16, 2017 based on GMS Deed No. 42, dated March 16, 2017 and received approval from the Financial Services Authority (OJK) on July 19, 2017. On July 31, 2017 was assigned as a Member of the Audit Committee, since April 5, 2018 was assigned as Chairman of the Nomination and Remuneration Committee. Tenure March 16, 2017 - until the closing of the GMS 2022 (First Period) 82 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  83. Company Profile Sigit Widyawan (Independent Commissioners) Citizenship, Domicile, Age and Educational History Indonesian citizen, domiciled in Solo. Born in Wonogiri in 1965, currently 53 years old as of December 2018. He earned a Bachelor’s degree in Economics from Universitas Negeri Sebelas Maret in March 1988, a Master’s degree in Accounting from Universitas Indonesia in 2001. He actively participated in the “Anti-Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” Seminar, and the Key Risk Management Challenges training in 2018. He has Obtained Level 2 Risk Management certification held by the Banking Professional Certification Institute (LSPP) in 2018 (Risk Management Certification for Independent Commissioners at a maximum level 2). Position History He started his career at PT Wijaya Karya (Persero) as a finance staff in the Trade Division in 1989 and during his career has served as Head of Taxation at PT Wijaya Karya (Persero) Concrete Products Division (1994 - 1997), Head of Finance at PT Wijaya Karya Beton (1997 - 2001), Finance Director at Roda Jati Grup (2002 - 2013), Director at PT Roda Pembangunan Jaya (2003 - 2015), and Independent Commissioner at PT Jasamarga (Persero) Tbk (2015 - 2018). PT Bank Negara Indonesia (Persero) Tbk  Concurrent Positions and Affiliated Relationships While serving as an Independent Commissioner at BNI, he currently does not have any concurrent positions in other companies or institutions. On September 13, 2018, was assigned as a Member of the Nomination and Remuneration Committee. He has no affiliations with members of the Board of Directors or other members of the Board of Commissioners. Appointment Basis Initial appointment as a BNI Independent Commissioner at the AGMS dated March 20, 2018 based on the AGMS Minutes No. 37 dated March 20, 2018, and received approval from the Financial Services Authority (OJK) on September 7, 2018. Since September 13, has been assigned as a member of the Nomination and Remuneration Committee. Tenure March 20, 2018 - until the closing of the GMS 2023 (First Period) Adapting Quickly to Face Change 83
  84. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Bistok Simbolon (Commissioner) Citizenship, Domicile, Age and Educational History Concurrent Positions and Affiliated Relationships Indonesian citizen, domiciled in Jakarta, Born in Tapanuli Utara in 1956, is currently 62 years old on December 2018. He earned a Bachelor of Law degree from Universitas Sumatera Utara, in 1984 and a Master of Economics degree from Universitas Indonesia in 2004. He actively participated in Key Risk Management Challenges training in 2018 and attended the “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” Seminar in 2018. He has Obtained Level 1 Risk Management certification held by the Banking Professional Certification Institute (LSPP) in 2017 (Risk Management Certification for Commissioners at a maximum level 2). While serving as a Commissioner at BNI, he currently also serves as Special Staff of the Cabinet Secretariat since February 2017. He has no affiliated relationships with members of the Board of Directors, other members of the Board of Commissioners Position History He began his career in the Cabinet Secretariat since 1986 and throughout his career he served as Head of the Bureau of Politics, Defense, Ratification and Legal Issues of the Cabinet Secretariat (2006-2011), Deputy Secretariat of the Cabinet on Politics, Law and Security (2011-2015) Deputy Cabinet Secretary (2015-January 2017). 84 Adapting Quickly to Face Change Appointment Basis Appointed as Commissioner of BNI at the General Meeting of Shareholders (AGM) dated January 12, 2016 based on the EGMS Deed number 01 dated January 12, 2016, and received approval from the Financial Services Authority (OJK) dated May 10, 2016. On May 10, 2016 was assigned as a Member of the Nomination and Remuneration Committee. On February 14, 2017 was assigned as a Member of the Risk Monitoring Committee. Tenure January 12, 2016 - until the closing of the GMS 2021 (First Period). PT Bank Negara Indonesia (Persero) Tbk
  85. Company Profile Joni Swastanto (Commissioner) Citizenship, Domicile, Age and Educational History Concurrent Positions and Affiliated Relationships Indonesian citizen, domiciled in Jakarta, Born in Yogyakarta in 1956, is currently 62 years old on December 2018. He earned a Bachelor of Economics from Universitas Gadjah Mada, Yogyakarta in 1981 and a Master’s Degree in Economics from Colorado State University, USA in 1985, and a Doctorate in Economics from Universitas Indonesia in 2007. He actively participated in Key Risk Management Challenges training in 2018 and attended the “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” Seminar in 2018. He has Obtained Level 1 Risk Management certification held by the Banking Professional Certification Institute (LSPP) in 2015 and a Refresher in 2017 (Risk Management Certification for Commissioners at a maximum level 2). While serving as a member of the Board of Commissioners at BNI, he currently does not have any concurrent positions in other companies or institutions. He has no affiliations with the members of the Board of Directors or other members of the Board of Commissioners. Position History He served as Director of the Bank 3 Supervision Department at Bank Indonesia (2008), Director of the Banking Information and Licensing Department at Bank Indonesia (2008-2011), Semarang Chief Representative at Bank Indonesia (2011-2013), Head of the Banking Information and Licensing Department at Bank Indonesia (2013), Head of the Banking Licensing and Information Department at the Financial Services Authority (2013 - 2015), Deputy Commissioner of Strategic Management IIB at the Financial Services Authority (June 2015-2016). PT Bank Negara Indonesia (Persero) Tbk  Appointment Basis First appointed as BNI Commissioner at the Extraordinary General Shareholders’ Meeting on March 10, 2016 based on AGMS Deed No. 8 dated March 10, 2016, and received approval from the Financial Services Authority (OJK) on April 20, 2016. On April 20, 2016 was assigned as a Member of the Nomination and Remuneration Committee. On February 14, 2017, he was assigned as a member of the Risk Monitoring Committee, and on September 14, 2017 was assigned as a Member of Integrated Governance. Tenure March 10, 2016 - until the closing of the GMS 2021 (First Period) Adapting Quickly to Face Change 85
  86. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Marwanto Harjowiryono (Commissioner) Kewarganegaraan, Domisili, Usia dan Riwayat Pendidikan Indonesian citizen, domiciled in Jakarta, Born in Yogyakarta in 1959, is currently 59 years old on December 2018. He earned a Bachelor’s degree of Economics degree from Universitas Gadjah Mada in 1983, and a Master of Arts degree from Vanderbilt University, USA in 1991, and a Doctorate degree in Public Policy from Universitas Gadjah Mada in 2009. He attended A Three-day Training and Directorship Certification program for Commissioners and Directors at the Ministry of SOEs in Jakarta in 2007, and Executive Education Training Programs: Senior Leadership Program, University of Melbourne in Australia in 2011, and Leadership Decision Making Training, Harvard Kennedy School, USA in 2013, and various short courses related to Fiscal Policy at IMF, World Bank and at Harvard University. In 2018, he actively participated in the Executive Risk Management Training Refreshment Program in Germany and the “Key Risk Management Challenges in 2018” Training in Makassar. He has Obtained Level 1 Risk Management certification held by the Banking Professional Certification Institute (LSPP) in 2017 (Risk Management Certification for Commissioners at a maximum level 2). Executive Director, Asian Development Bank (2009- 2011) General Fiscal Balance, Ministry of Finance (2011-2013). Concurrent Positions and Affiliated Relationships While serving as a BNI Commissioner, he currently has served as Director General for Treasury at the Ministry of Finance since 2013. He has no affiliated relationships with members of the Board of Directors and other members of the Board of Commissioners. Appointment Basis First appointed as Commissioner of BNI at the General Meeting of Shareholders (GMS) on March 16, 2017 based on GMS Deed No. 42, and obtained approval from the Financial Services Authority (OJK) on March 16, 2017. On July 31, 2017 was assigned as a Member of Nomination and Remuneration Committee. Tenure March 16, 2017 - until the closing of the GMS 2021 (First Period) Position History He began his career in the Ministry of Finance in 1983 and during his career has served as the Budget Analysis Bureau Head, Ministry of Finance (19982001), Foreign Cooperation Bureau Head, Ministry of Finance (2003-2004), Public Relations Bureau Head, (2004-2006), Executive Board Head, and the Bureaucracy Reform Team Deputy Head, Ministry of Finance (2007-2009), Expert Staff for the Minister of Finance of State Expenditure (2006-2009). 86 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  87. Company Profile BOARD OF DIRECTORS PROFILE Achmad Baiquni (President Director) Kewarganegaraan, Domisili, Usia dan Riwayat Pendidikan Concurrent Positions and Affiliated Relationships Indonesian citizen, domiciled in Jakarta, Born in Surabaya in 1957, is currently 61 years old, He earned a Bachelor of Economics degree in Development Studies from Universitas Padjadjaran, in 1982 and a Master of Business Management from Asian Institute of Management, Makati, Philippines in 1992. Actively participated in the Risk Management Refresher Program training held by BARa Risk Forum in 2017, Discovery and Dream workshop in the framework of compiling the BNI Corporate Plan 2019-2023 held by Bank BNI and McKinsey, and followed the Compliance Anti-Money Laundering and Prevention of Terrorism Funding Forum in Financial Services Sector held by Bank BNI. He has Obtained Risk Management certification in the Executive Program held by the Risk Management Certification Agency (BSMR) in 2006 and a Refresher in 2017. While serving as President Director of BNI, he currently does not hold concurrent positions either in the Company or other Institutions, He has no affiliated relationships with the other members of the Board of Directors and members of the Board of Commissioners. Appointment Basis Appointed as President Director of the Company on March 17, 2015, based on AGMS decision deed No. 34 on March 17, 2015 and received approval from the Financial Services Authority after a Fit and Proper Test based on OJK Letter No. SR-63/D.03/2015 April 16, 2015. Tenure March 17, 2015 until GMS 2020 close (First Period). Position History He began his career in BNI in 1984 and throughout his career has served as Consumer Director of PT Bank Negara Indonesia (Persero) Tbk (2003-2006), Corporate Director of PT Bank Negara Indonesia (Persero) Tbk (2006-2008), Business Director Small and Medium Enterprises and Sharia PT Bank Negara Indonesia (Persero) Tbk (20082010), Finance Director of PT Bank Rakyat Indonesia Tbk (2010-2015). PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 87
  88. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Herry Sidharta (Vice President Director) Citizenship, Domicile, Age and Educational History Indonesian citizen, domiciled in Jakarta Born in Yogyakarta in 1957, is currently 61 years old on December 2018, He earned a Bachelor of Economics degree in Financial Management from Universitas Pancasila Jakarta, in 1982 and a Master of Business Administration from Rensselaer Polytechnic Institute, New York, USA in 1995. He attended training in the Discovery and dream workshop for the BNI 2019-2023 Corporate Plan, the Design Workshop for the BNI 20192023 Corporate Plan from BNI and McKinsey, book launch and review “Turbulence Sport in Indonesia” organized by the Ministry of Youth and Sports, and attended Workshop Delivery for the BNI 2019-2023 corporate plan, Digital Leadership forum, BNI Q2 2018Business Meeting, APU PPT Refreshment, Corporate Governance Perception Index held by BNI, Speakers in the / Pancasila Festival held by BSMR and BNI in 2018. He has Obtained Level 5 Risk Management certification held by the Banking Professional Certification Institute (LSPP) in 2015 and a Refresher in 2017. Perum Jamkrindo (2013-2014), Director of Human Resources and General Perum Jamkrindo (2014-2015), Corporate Director of PT Bank Negara Indonesia (Persero)Tbk (20152017). Concurrent Positions and Affiliated Relationships While serving as Director of BNI, he currently does not hold concurrent positions either in the Company or other Institutions, He has no affiliated relationships with the other members of the Board of Directors and members of the Board of Commissioners. Appointment Basis Appointed as Vice President Director of the Company on March 17, 2015, based on AGMS decision deed No. 34 dated March 17, 2015. Tenure March 17, 2015 until GMS 2022 close (First Period). Position History He started his career in BNI in 1983 and throughout his career has served as Corporate Leader (2008-2009), Leader of Medium Enterprises (2009-2010), Head of Small Business Division of PT Bank Negara Indonesia Tbk (2010), Director Finance Perum Jamkrindo (2011-2013), Director of Operations 88 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  89. Company Profile Putrama Wahju Setyawan (Director of Corporate Business) Citizenship, Domicile, Age and Educational History Indonesian citizen, domiciled in Bekasi, Born in Yogyakarta in 1969, is currently 49 years old on December 2018. He graduated with a Bachelor degree in Forestry from Universitas Gadjah Mada in 1994 and a Master of Management Accounting from Universitas Gadjah Mada in 1996. In 2018 he actively participated in non-formal education, including the Discovery and dream workshop training in the preparation of the BNI Corporate Plan 2019-2023 organized by the Company and McKinsey. He has Obtained Level 5 Risk Management Certification held by the Risk Management Certification Agency (BSMR) in 2016 and a Refresher in 2017 in 2018. Position History He started his career in BNI in 1998 and during his career has served as Corporate Rescue and Settlement Division Head of PT Bank Negara Indonesia (Persero) Tbk (2011-2014), BUMN and Government Institution Division Head of PT Bank Negara Indonesia Tbk (Persero)Tbk (2014 - 2015), Commercial and Small Business Rescue and Settlement Division Head of PT Bank Negara Indonesia (Persero)Tbk (2015 – 2016), and Medium Business Senior Executive Vice President (SEVP) of PT Bank Negara Indonesia (Persero) Tbk (2016). PT Bank Negara Indonesia (Persero) Tbk  Concurrent Positions and Affiliated Relationships While serving as Director of BNI, he currently does not hold concurrent positions either in the Company or other Institutions, He has no affiliated relationships with the other members of the Board of Directors and members of the Board of Commissioners. Appointment Basis First appointed as BNI Medium Business Director on March 10, 2016, based on the AGMS decision deed No. 8 dated March 10, 2016 and received approval from the Financial Services Authority after a Fit and Proper Test based on OJK Letter No. SR-121/D.03/2016 dated July 15, 2016. Tenure March 10, 2016 until GMS 2021 close (First Period). Adapting Quickly to Face Change 89
  90. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Adi Sulistyowati (Director of Institutional Relations) Citizenship, Domicile, Age and Educational History Indonesian citizen, domiciled in Jakarta Born in Demak on 13th of 1964, is currently 54 years old, He received his Bachelor degree in Agronomy from Institut Pertanian Bogor and a Master of Management degree from Prasetya Mulya Management College in 2002. Actively participating in training including the Discovery and dream workshop in the framework of compiling the BNI Corporate Plan 2019-2023 organized by the McKinsey Company, and participated in the National Startup Agritech Conference 2018 held by the Institut Pertanian Bogor Alumni Association (IPB) in 2018. He has Obtained Level 5 Risk Management certification held by the Risk Management Certification Agency (BSMR) in 2016. Position History He began his career at PT Bank Rakyat Indonesia (Persero)Tbk, and throughout his career served as Deputy Head of Credit Card Division of PT Bank Rakyat Indonesia Tbk (2011-2013), Regional Leader of Banjarmasin PT Bank Rakyat Indonesia Tbk (2013- 2014), Head of Mass Banking Division of PT Bank Rakyat Indonesia (Persero) Tbk (2014-2015), Senior Executive Vice President of Network and Services of PT Bank Rakyat Indonesia Tbk (2015-2016), and Director of Commercial Funding, Digital Banking & Distribution PT Bank Tabungan Negara (2016-2017). 90 Adapting Quickly to Face Change Concurrent Positions and Affiliated Relationships As well as serving as Director of BNI, he is currently the Chairman of the Certified Wealth Manager’s Association since April 25, 2017, He has no affiliated relationships with the other members of the Board of Directors and members of the Board of Commissioners. Appointment Basis Appointed as BNI Director on March 16, 2017, based on AGMS decision deed No. 57 on July 25, 2017, based on AGMS decision deed No. 42 dated March 16, 2017 and received approval from the Financial Services Authority after a Fit and Proper Test based on OJK Letter No. KEP-136/D.03/2017 dated July 19, 2017. Tenure March 16, 2017 until GMS 2022 close (First Period). PT Bank Negara Indonesia (Persero) Tbk
  91. Company Profile Rico Rizal Budidarmo (Direktur Treasury & International Banking) Citizenship, Domicile, Age and Educational History Indonesian citizen, domiciled in Jakarta Born in Bandung in 1963, is currently 55 years old on December 2018, He earned a Bachelor of Economics degree in Management Economics from Universitas Gadjah Mada, in 1987, and earned a Master of Business Administration (MBA) in Finance & MIS from Stern Business School at New York University in 1996, and earned a Doctorate in Business Management in Artificial Intelligence from Institut Pertanian Bogor in 2010, and earned a Master’s degree in Law from Universitas Gajah Mada in 2017. In 2018, he actively participated in the Discovery and dream workshop training in the preparation of the BNI Corporate Plan 2019-2023 organized by Bank BNI and McKinsey, Treasury Level Advance Certification Training held by the Banking Professional Certification Institute and participating in “Daiwa Investment Conference Tokyo 2018” conference in Tokyo organized by Daiwa Capital Markets America Inc. He has Obtained Level 5 Risk Management Certification held by the Banking Professional Certification Institute (LSPP) in 2012 and a Refresher in 2017. 2014) Director Risk and Compliance of PT Bank Tabungan Negara (2014 - 2015). Concurrent Positions and Affiliated Relationships As well as serving as Director of BNI, he currently serves as Director of Research and Development of Bank’s Risk Management (BaRa), He has no affiliated relationships with the other members of the Board of Directors and members of the Board of Commissioners. Appointment Basis First appointed as BNI Director on March 17, 2015, based AGMS decision deed No. 34 dated March 17, 2015 and received approval from the Financial Services Authority based on Letter No. SR-65/D.03/2015 April 16, 2015. Tenure March 17, 2015 until GMS 2020 close (First Period). Position History He started his career at BRI in 1989 and during his career he served as GM / EVP Risk Management Division of PT Bank Rakyat Indonesia (Persero) Tbk (2009-2013), GM / EVP Treasury of PT Bank Rakyat Indonesia (Persero) Tbk (2013- PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 91
  92. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Anggoro Eko Cahyo (Director of Finance) Citizenship, Domicile, Age and Educational History Indonesian citizen, domiciled in Tangerang. Born in Jakarta in 1969, currently 49 years old as of December 2018. Obtained a degree in Industrial Engineering and Management from Institut Teknologi Indonesia, in 1992 and a Master’s degree in Agribusiness from Institut Pertanian Bogor in 2002. Actively participated in training including the Discovery and Dream Workshop in the framework of Preparing the BNI Corporate Plans for 2019-2023 held by BNI and McKinsey, the Executive Education “Talent Management” Program at Harvard Business School Boston, the Executive Education “Design Thinking Program” Program at Stanford University San Francisco, and participated as a speaker at the Seminar on “Digital Economic Trends: era of Electronic Transactions, Opportunities and Challenges “held by Bisnis Indonesia in 2018, participated in the Focus Group Discussion (FGD) “Digital Economic Challenges in Indonesia” organized by the Republic of Indonesia National Economic and Industrial Committee. Has obtained Level 5 Risk Management certification held by the Banking Professional Certification Institute (LSPP) in 2017. Position History He started his career in BNI in 1996 and during his career has served as Head of Jakarta City Regional Office PT Bank Negara Indonesia (Persero)Tbk (2010-2011), Head of Jakarta BSD Region PT Bank Negara Indonesia Tbk (2011), Network and Services Division Head of PT Bank Negara Indonesia (Persero) Tbk (2011-2012) and Human Capital Division Head of PT Bank Negara Indonesia Tbk (2012-2015). Concurrent Positions and Affiliated Relationships As well as serving as BNI Director, he currently serves as Chairman of the Indonesia Payment System Association (ASPI) since 2016, He has no affiliated relationships with the other members of the Board of Directors and members of the Board of Commissioners. Appointment Basis First appointed as BNI Director on March 17, 2015, based on AGMS Decision Decree No. 53 dated May 27, 2015 and approval from the Financial Services Authority for the Fit and Proper Test based on the Financial Services Authority Letter No. SR-90/D.03/2015 dated May 22, 2015. Tenure March 17, 2015 until GMS 2020 close (First Period) 92 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  93. Company Profile Catur Budi Harto (Director of Small Business and Network) Citizenship, Domicile, Age and Educational History Indonesian citizen, domiciled in Jakarta Born in Purbalingga in 1967, is currently 51 years old on December 2017, Graduated from Universitas Krisnadwipayana University in 1993. Actively participated in training including the Discovery and dream workshop in the preparation of the BNI Corporate Plan 2019-2023 organized by BNI and McKinsey, participated in the Focus Group Discussion (FGD) on “Implementation of superior products in rural areas with the Ministry of Village partnership pattern” organized by the Ministry of Villages, Development of Disadvantaged Areas and Transmigration. She has Obtained Level 5 Risk Management Certification held by the Banking Professional Certification Institute (LSPP) in 2015 and a Refresher in 2017. Position History She started her career in BNI in 1990 and throughout her career served as Regional Head of Jakarta Senayan PT Bank Negara Indonesia (Persero) Tbk (2010-2012) and Network and Service Division Head of PT Bank Negara Indonesia (Persero) Tbk (2012 -2015). PT Bank Negara Indonesia (Persero) Tbk  Concurrent Positions and Affiliated Relationships While serving as Director of BNI, she currently does not hold concurrent positions in other Companies or Institutions, She has no affiliated relationships with the other members of the Board of Directors and members of the Board of Commissioners. Appointment Basis First appointed as BNI Dirctor on March 17, 2015, based on AGMS decision deed No. 34 dated March 17, 2015 and received approval from the Financial Services Authority after a Fit and Proper Test based on OJK Letter No. SR-92/D.03/2015 May 22, 2015. Tenure March 17, 2015 until GMS 2020 close (First Period). Adapting Quickly to Face Change 93
  94. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Bob Tyasika Ananta (Director of Risk Management) Citizenship, Domicile, Age and Educational History Indonesian citizen, domiciled in Jakarta Born in Surakarta in 1963, is currently 55 years old on December 2018. He earned a Bachelor degree in Accounting from Universitas Gajah Mada, in 1986 and a Master of Finance degree from the University of Oregon, USA in 1989. Actively participated in the ASEAN Financial Innovation Network training organized by the ASEAN Financial Innovation, the Discovery and dream workshop in the framework of compiling the BNI Corporate Plan 2019-2023 held by Bank BNI and McKinsey, the Workshop on Early Warning System for Financial Conglomerates organized by the Financial Services Authority, Training Risk Management Refresher Program held by BARa Risk Forum, and the Assessor Refreshment Test held by the Banking Professional Certification Institute (LSPP) in 2018. He has Obtained Level 5 Risk Management certification in 2016 from the Banking Professional Certification Institute (LSPP) and a Refresher in 2017. Concurrent Positions and Affiliated Relationships While serving as BNI Director, he currently serves as Chairman of the Indonesia Change Management Forum (ICMF), He has no affiliated relationships with the other members of the Board of Directors and members Appointment Basis First appointed as BNI Director on March 17, 2015, based on AGMS decision deed No. 34 dated March 17, 2015 and received approval from the Financial Services Authority after a Fit and Proper Test based on OJK Letter No. SR-64/D.03/2015 April 16, 2015. Tenure March 17, 2015 until GMS 2020 close (First Period). Position History He started his career at BNI in 1996 and during his career served as General Manager of BNI Foreign Branch Offices in Hong Kong (2008-2010), International Division Head (20102011), and Strategic Planning Division Head (2011-2015). 94 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  95. Company Profile Endang Hidayatullah (Director of Compliance ) Citizenship, Domicile, Age and Educational History Indonesian citizen, domiciled in Bogor. Born in Sukabumi in 1970, is currently 48 years old on December 2018. He obtained a Bachelor’s degree in Civil Law from Universitas Padjajaran in 1993, Master’s in Marketing Management from STIE Nusantara in 2005. Actively participated in training included the Discovery and Dream Workshop in the framework of compiling the BNI Corporate Plan 2019-2023 organized by BNI and McKinsey , Compliance Anti Money Laundering and Prevention of Terrorism Funding Forum in the Financial Services Sector, the National Convention on Draft Indonesian National Work Competency Standards (RSKKNI) General Banking Division organized by the Financial Services Authority, Workshop on “Legal Issues Issues related to digital economic development in Indonesia “organized by the Business Law and Bankruptcy Forum, and the 2018 International Business Integrity Conference (IBIC) organized by the Corruption Eradication Commission (KPK). He has obtained level 5 Risk Management certification from the Risk Management Certification Agency (BSMR) in 2018. Concurrent Positions and Affiliated Relationships While serving as Director of BNI, he also serves as Chairman of the Banking Compliance Director Communication Forum and Steering Committee in the Indonesian Human Capital Forum. He has no affiliations with the members of the Board of Directors or other members of the Board of Commissioners. Appointment Basis Appointed first as Director of BNI on March 20, 2018, based on AGMS decision deed No. 37 dated March 20, 2018 and received approval from the Financial Services Authority after a Fit and Proper Test based on OJK Letter No. 13/KDK.03/2018 dated July 5, 2018. Tenure March 20, 2018 until GMS 2023 (First Period) Position History Joined BNI in 1996 and has served as Legal Division Deputy Head of PT Bank Negara Indonesia (Persero) Tbk (2012 2015), and Legal Division Head of PT Bank Negara Indonesia (Persero) Tbk (2015 - 2018). PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 95
  96. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Tambok P. Setyawati (Director of Retail Banking ) Citizenship, Domicile, Age and Educational History Born in 1964, domiciled in Jakarta. Born in Jakarta in 1964, is currently 54 years old on December 2018. He gained a Bachelor’s of Agriculture degree in Soil Science from Institut Pertanian Bogor in 1987, a Master’s degree in Accounting Management from the Universitas Indonesia in 1995. He actively participated in the Risk Management Refresher Program training organized by the Banking Professional Certification Institute (LSPP), Discovery and dream workshop for the preparation of the BNI Corporate Plan 2019-2023 organized by Bank BNI and McKinsey, as well as participated in the Bank Indonesia Seminar “Payment Gateway” held by Bank Indonesia in 2018. She has Obtained Level 5 Risk Management certification in 2016 from the Banking Professional Certification Institute (LSPP) and a Refresher in 2017. Concurrent Positions and Affiliated Relationships While serving as BNI Director, he does not hold concurrent positions in other Companies of Institutions. Has no affiliated relationships with the other members of the Board of Directors or members of the Board of Commissioners. Appointment Basis Initial appointment as Director of BNI on March 20, 2018, based on AGMS decision deed No. 37 dated March 20, 2018 and received approval from the Financial Services Authority after a Fit and Proper Test based on OJK Letter No. 11/ KDK.03/2018 dated July 5, 2018. Tenure March 20, 2018 until GMS 2020 close (First Period) Position History Joined BNI in 1996 and served as CEO Region Jakarta Kemayoran PT Bank Negara Indonesia (Persero) Tbk (20152016), and SEVP Digital Banking PT Bank Negara Indonesia (Persero) Tbk (2016). Also served as Finance Director of PT Krakatau Steel (Persero) Tbk (2016-2018). 96 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  97. Company Profile Dadang Setiabudi (Director of Information Technology & Operations) Citizenship, Domicile, Age and Educational History Indonesian citizen, domiciled in Jakarta. Born in Cimahi in 1962, currently 56 years old as of December 2018. Gained a Bachelor of Economics degree in Accounting from STIE Nusantara in 1987 and a Master’s degree in Agribusiness in Soil Science from Institut Pertanian Bogor in 1999. In 2018 , actively participated in the Discovery and dream workshop training in the framework of compiling the BNI Corporate Plan 2019-2023 organized by BNI and McKinsey, the “Oracle Open World” Annual Conference in San Francisco organized by Oracle Corporation, participated in the Irving Fisher Committee International Seminar on Big Data organized by Bank Indonesia, and participated as a speaker at the 2018 IBEX forum held by Perbanas. Obtained level 5 Risk Management certification held by the Risk Management Certification Agency (BSMR) in 2018. Concurrent Positions and Affiliated Relationships While serving as BNI Director, he does not hold concurrent positions in other companies and institutions. Has no affiliated relationships with the other members of the Board of Directors and members of the Board of Commissioners. Appointment Basis Appointed as Director of BNI on March 20, 2018, based on AGMS decision deed No. 37 dated March 20, 2018 and received approval from the Financial Services Authority after a Fit and Proper Test based on OJK Letter Letter No. 12/ KDK.03/2018 dated July 5, 2018. Tenure March 20, 2018 until GMS 2023 (First Period) Position History He began his career at PT Bank Rakyat Indonesia (Persero) Tbk in 1988. During his career he served as Micro Business Network Division Head at PT Bank Negara Indonesia (Persero) Tbk in 2013 and as Director Information Technology at BPJS Kesehatan (2014- 2016). Joined BNI in 2016, and before serving as Director, he served as Information Technology and Digital Banking SEVP at PT Bank Rakyat Indonesia (Persero) Tbk (2016-2018). PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 97
  98. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk SENIOR EXECUTIVE VICE PRESIDENT PROFILE Yuddy Renaldi SEVP Remedial & Recovery Currently 54 years old. Holds a Bachelor’s degree in Economics Accounting from Universitas Trisakti in 1990 and a Master’s degree in Management from STIE IPWI Jakarta. Has obtained level 5 Risk Management certification held by the Risk Management Certification Agency (BSMR). During 2018, actively participated in various training including Discovery and Dream Workshop in the framework of preparing the BNI Corporate Plan 2019-2023 organized by BNI and McKinsey. Appointed as SEVP Remedial & Recovery based on Specific Time Work Agreement No. DIR/298 on May 5, 2017. Ronny Venir SEVP Medium Business Currently 51 years old. Holds a Bachelor’s degree in Animal Husbandry from Universitas Padjajaran in 1993 and a Master’s degree in Agribusiness from Institut Pertanian Bogor in 2003. Started his career at BNI in 1995 and during his career he served as Padang Regional Head at PT Bank Negara Indonesia (Persero) Tbk (2016), Jakarta City Regional Head PT Bank Negara Indonesia (Persero) Tbk (2017) and Head of the Small Business Business Division at PT Bank Negara Indonesia (Persero) Tbk (2018). Appointed as SEVP Medium Business based on Board of Director’s Decree No. KP/146/DIR/R dated April 13, 2018. 98 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  99. Company Profile EXECUTIVE OFFICERS PROFILE Kiryanto Corporate Secretary Currently 54 years old . Obtained a Bachelor’s degree in Government Science from Universitas Gadjah Mada in 1989 and a Master’s degree in Finance from Universitas Indonesia in 2002. Appointed as Corporate Secretary based on Board of Director’s Decree No. KP/114/DIR/R dated April 12, 2017. Appointed Corporate Secretary on April 25, 2016 to January 28, 2019.. Meiliana PGS Head of Corporate Secretary & Communication Division Currently 46 years old. Holds a Master’s degree in Agribusiness from Institut Pertanian Bogor. Appointed as PGS Head of Corporate Secretary & Communication Division based on Board of Director’s Decree No. KP/01.005265/2019/HCT/R dated January 28, 2019. Appointed Temporary Substitute Corporate Secretary on January 29, 2019 to the present. Muhammad Gunawan Putra Head of Internal Control Unit Currently 48 years old. Holds a Bachelor’s degree in Economics in Accounting from Universitas Gajah Mada in 1995, Registered Accountant in 1996 and gained a Master of Business Administration degree in Strategic Management from Universitas Gajah Mada in 2009, and became a Chartered Accountant (CA) from the Association Indonesian Accountant (IAI) in 2015. Appointed as Head of Internal Control Unit based on Board of Director’s Decree No. KP/125/DIR/R dated 21 April 2017. Risang Widoyoko Head of Compliance Division Currently 52 years old. Holds a Bachelor’s degree in Economics and Accountancy from the Faculty of Economics, Accounting Department, Universitas Gadjah Mada in 1992, and a Master’s degree in Management from the Post Graduate Faculty at Universitas Lambung Mangkurat in 2004. Appointed as Head of the Compliance Division based on Board of Director’s Decree No. KP/147/DIR/R dated April 13, 2018. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 99
  100. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Wicaksono Sarwo Edi Head of BNI Corporate University Division Currently 54 years old. Holds a Master’s degree in Finance Management and Banking Universitas Gadjah Mada. Appointed as Head of BNI Corporate University Division based on Board of Director’s Decree No. KP/101/DIR/R dated April 10, 2017. Julius D. Aritonang Head of Commercial Remedial and Recovery Division Currently 47 years old. Holds a Masters degree in Financial Management & Banking from Universitas Indonesia. Appointed as Commercial Remedial and Recovery Division based on Board of Director’s Decree No. KP/147/DIR/R dated April 13, 2018. Iwan Setiawan Head of Corporate Remedial and Recovery Division Currently 50 years old. Holds a Bachelor’s degree in Civil Law from Universitas Padjadjaran. Appointed as Head of the Corporate Remedial and Recovery Division based on Board of Director’s Decree No. KP/482/DIR/R dated December 20, 2018. Anang Basuki Head of Credit Administration Division Currently 49 years old. Holds a Bachelor’s degree in Accounting from Universitas Gadjah Mada. Appointed as Head of Credit Administration Division based on Board of Director’s Decree No. KP/482/DIR/R dated December 20, 2016. 100 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  101. Company Profile Okki Rushartomo Budiprabowo Head of Card Business Division Currently 38 years old . Holds a Bachelor’s degree in Industrial Engineering from Institut Teknologi Bandung. Appointed as Head of the Card Business Division based on Board of Director’s Decree No. KP/032/DIR/R dated February 06, 2018. Benny Yoslim Head of Corporate and Multinational Business 1 Division Currently 38 years old. Holds a Master’s degree in Business Management from Institut Teknologi Bandung. Appointed as the Head of Corporate and Multinational 1 Division based on Board of Director’s Decree No. KP 011/DIR/R dated January 5, 2018. Warda Nadjamuddin Head of Corporate and Multinational Business 2 Division Currently 47 years old. Holds a Master’s degree in Management from Universitas Sam Ratulangi. Appointed as Head of Corporate and Multinational 2 Division based on Board of Director’s Decree No. KP/147/ DIR/R dated April 13, 2018. Eko Setiawan Head of Middle Business Division Currently 48 years old. Holds a Master’s degree in Finance from Universitas Gadjah Mada. Appointed as Middle Division Leader based on Board of Director’s Decree No. KP/032/DIR/R dated February 6, 2018. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 101
  102. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Edy Awaludin Head of Small Business 1 Division Currently 50 years old. Holds a Master’s degree in Agribusiness Management from Institut Pertanian Bogor. Appointed as Head of Small Business 1 Division based on Board of Director’s Decree No. KP/ 023/DIR/R dated January 17, 2019. Bambang Setyatmojo Head of Small Business 2 Division Currently 49 years old. Holds a Master’s degree in Management from Universitas Gadjah Mada. Appointed as Head of Small Business 2 Division based on Board of Director’s Decree No. KP/368/DIR/R dated November 1, 2018. A.A.G. Agung Dharmawan Head of SOE and Government Institutions Division Currently 47 years old. Holds a Master’s degree in Management from Universitas Gadjah Mada. Appointed as Head of SOE and Government Institutions Division based on Board of Director’s Decree No. KP/406/ DIR/R dated 28 August 2017. Anang Fauzie Head of E-Banking Division Currently 48 years old. Holds a Bachelor’s degree in Computer Engineering from Universitas Gunadarma. Appointed as Head of E-Banking Division based on Board of Director’s Decree No. KP/061/ DIR/R dated March 2, 2018. 102 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  103. Company Profile G .C. Koen Yulianto Head of Institutional Relations Division Currently 52 years old. Holds a Master’s degree in Management from Universitas Semarang. Appointed as Head of Institutional Relations Division based on Board of Director’s Decree No. KP/411/DIR/R dated November 30, 2018. Johansyah Head of Legal Division Currently 37 years old. Holds a Bachelor’s degree in Law from Universitas Hasanuddin. Appointed as Head of the Legal Division based on Board of Director’s Decree No. KP/342/DIR/R dated October 12, 2018. Eko Setyo Nugroho Head of International Division Currently 49 years old. Holds a Master’s degree in Business Administration Technology from Institut Teknologi Bandung. Appointed as Head of International Division based on Board of Director’s Decree No. KP/147/DIR/R daed April 13, 2018. Teddy Wishadi Head of Transactional Banking Services Division Currently 47 years old. Holds a Master’s degree in Computer Science from Universitas Indonesia. Appointed as Head of Transactional Banking Services Division based on Board of Director’s Decree No. KP/482/DIR/R dated December 20, 2016. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 103
  104. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Sigit Eri Soelistianto Head of Data Management Division Currently 49 years old. Holds a Bachelor’s degree from the Faculty of Economics, Universitas Indonesia majoring in Accounting and a Master’s degree in Professional Accounting Science from Universitas Indonesia. Appointed as Head of Data Management Division based on Board of Director’s Decree No. KP/210/DIR/R dated May 12, 2016. Efita Praharani Head of Human Capital Management Division Currently 51 years old. Holds a Bachelor’s degree in Psychology from Universitas Gadjah Mada and obtained a Master of Science degree in Administrative Sciences from Universitas Indonesia. Appointed as Head of Human Capital Management Division based on Board of Director’s Decree No. KP/292/DIR/R dated August 23, 2018. J. Donny Bima Herjuno Head of Consumer Product Management Division Currently 47 years old. Holds a Bachelor’s degree in Management from Universitas Indonesia. Appointed as Head of Consumer Product Management Division based on Board of Director’s Decree No. KP/274/ DIR/R dated August 3, 2018. Aryanto Purwadi Head of Bank Risk Management Division Currently 52 years old. Holds a Master’s degree in Agribusiness from Institut Pertanian Bogor. Appointed as Head of Bank Risk Management Division based on Board of Director’s Decree No. KP/274/DIR/R dated August 3, 2018. 104 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  105. Company Profile Neny Asriani Head of Wealth Management Division Currently 48 years old . Holds a Master’s degree in Management from Universitas Terbuka. Appointed as Head of Wealth Management Division based on Board of Director’s Decree No. KP/391/DIR/R dated August 11, 2017. Ahmad Fikri Head of Operational Division Currently 51 years old. Holds a Bachelor’s degree in Plant Pest & Disease from Universitas Sriwijaya. Appointed as Head of Operational Division based on Board of Director’s Decree No. KP/172/DIR/R dated April 26, 2016. Afthon Shodaq Noor Head of Information Technology Operations Division Currently 47 years old. Holds a Master’s degree in Finance from Universitas Gadjah Mada. Appointed as Head of Information Technology Operations Division based on Board of Director’s Decree No. KP/137/DIR/R dated April 5, 2018. Moh. Hisyam Head of Consumer Loan Processing and Collection Division Currently 51 years old. Holds a Master’s degree in Management from Universitas Ibnu Khaldun. Appointed as Head of Consumer Loan Processing and Collection Division based on Board of Director’s Decree No. KP/213/DIR/R dated May 12, 2016. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 105
  106. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Putu Bagus Kresna Head of Budgeting and Control Division Currently 46 Financial years old. Holds a Master’s degree in Financial Management from Universitas Indonesia. Appointed Head of Budgeting and Control Division based on Board of Director’s Decree No. KP/147-DIR-R dated April 13, 2018. Dandy Perwandi S. Head of Asset Management and Procurement Division Currently 47 years old. Holds a Master’s degree in Finance / Banking from the University of Monash. Appointed as Head of Asset Management and Procurement Division based on Board of Director’s Decree No. KP/036/DIR/R dated February 07, 2018. Fauzi Head of Network Management Division Currently 51 years old. Holds a Bachelor’s degree in Development from Universitas Andalas. Appointed as Head of Network Management Division based on Board of Director’s Decree No. KP/032/DIR/R dated February 6, 2018. Teddy Erdius E. Saputra Head of Subsidiary Development Division Currently 49 years old. Holds a Master’s degree in Agribusiness from Institut Pertanian Bogor. Appointed as Head of Subsidiary Development Division based on Board of Director’s Decree No. KP/449/DIR/R dated September 10, 2018. 106 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  107. Company Profile Hermita Head of Consumer Sales Division Currently 50 years old . Holds a Master’s degree in Agribusiness from Institut Pertanian Bogor. Appointed Head of Consumer Sales Division based on Board of Director’s Decree No. KP/032/DIR/R dated February 6, 2018. Mucharom Head of Strategic Planning Division Currently 49 years old. Holds a Master’s degree in International Business Management from Universitas Gadjah Mada.. Appointed as Head of Strategic Planning Division based on Board of Director’s Decree No. KP/126/DIR/R dated April 25, 2017. Babas Bastaman Head of Commercial and Small Business Risk Division Currently 51 years old. Holds a Master’s degree in Small and Medium Industry from Institut Pertanian Bogor. Appointed as Head of Commercial and Small Business Risk Division based on Board of Director’s Decree No. KP/463/DIR/R dated October 16, 2017. Retno Murwani Head of Corporate Credit Risk Division Currently 51 years old. Holds a Master’s degree in Social Sciences from Universitas Gadjah Mada. Appointed as Head of Corporate Credit Risk Division based on Board of Director’s Decree No. KP/027/DIR/R dated January 20, 2016. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 107
  108. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Muhammad Faisal Jazuli Head of Information Technology Solutions and Security Division Currently 42 years old. Holds a Master’s degree in Business Administration Management from Institut Teknologi Bandung. Appointed as Head of Information Technology Solutions and Security Division based on Board of Director’s Decree No. KP/26/DIR/R dated April 25, 2017. Josdi Situmorang Head of Policy Governance Division Currently 54 years old. Holds a Master’s degree in Agribusiness from Institut Pertanian Bogor. Served as Head of Policy Governance Division based on Board of Director’s Decree No. KP/147/DIR/R dated April 13, 2018. Legendariah Bur Rasuanto Head of Treasury Division Currently 48 years old. Holds a Master’s degree in Management from Universitas Indonesia. Appointed as Head of Treasury Division based on Board of Director’s Decree No. KP/147/DIR/R dated April 13, 2018. Indomora Harahap Head of Marketing Communication Division Currently 49 years old. Holds a Master’s degree in Business Management and Technology Administration from Institut Teknologi Bandung. Appointed as Head of Marketing Communication Division based on Board of Director’s Decree No. KP/016/DIR/R dated January 15, 2019. 108 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  109. Company Profile Novianto Harry Kristono Head of Medan Regional Office Currently 54 years old . Holds a Master’s degree in Financial Management from Universitas Sriwijaya. Appointed as Head of Medan Regional Office based on Board of Director’s Decree No. KP/147/DIR/R dated April 13, 2018. Hari Sundjojo Head of Padang Regional Office Currently 50 years old. Holds a Bachelor’s degree in Accounting from Universitas Merdeka Malang. Appointed as Head of Padang Regional Office based on Board of Director’s Decree No. KP/168/DIR/R dated April 27, 2018. Dodi Widjajanto Head of Palembang Regional Office Currently 52 years old. Holds a Master’s degree in Agribusiness from Institut Pertanian Bogor. Appointed as Head of Palembang Regional Office based on Board of Director’s Decree No. KP/032/DIR/R dated February 6, 2018. Afien Yuni Yahya Head of Bandung Regional Office Currently 50 years old. Holds a Master’s degree in Professional Path Management from Universitas Indonesia. Appointed as Head of Bandung Regional Office based on Board of Director’s Decree No. KP/032/DIR/R dated February 6, 2018. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 109
  110. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Mochamad Harsono Head of Semarang Regional Office Currently 54 years old. Holds a Bachelor’s degree in Management from Universitas Mahasaraswati. Appointed as Head of Semarang Regional Office based on Board of Director’s Decree No. KP/032/DIR/R dated February 6, 2018. Muhammad Jufri Head of Surabaya Regional Office Currently 49 years old. Holds a Master’s degree in Management from Universitas Trisakti. Appointed as Head of Surabaya Regional Office based on Board of Director’s Decree No. KP/011/DIR/R dated January 5, 2018. Faizal Arief Setiawan Head of Makassar Regional Office ar Currently 48 years old. Holds a Master’s degree in Finance from Universitas Gadjah Mada. Appointed as Head of Makassar Regional Office based on Board of Director’s Decree No. KP/031/DIR/R dated January 23, 2019. Suhardi Petrus Head of Denpasar Regional Office Currently 50 years old. Holds a Master’s degree in Financial Management from Universitas Wijaya Putra. Appointed as Head of Denpasar Regional Office based on Board of Director’s Decree No. KP/032/DIR/R dated February 6, 2018. 110 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  111. Company Profile Muhammad Arafat Head of Banjarmasin Regional Office Currently 48 years old . Holds a Master’s degree in Financial Management from Universitas Hasanuddin. Appointed as Head of Banjarmasin Regional Office based on Board of Director’s Decree No. KP/307/DIR/R dated September 7, 2018. Yanar Siswanto Head of Jakarta Senayan Regional Office Currently 49 years old. Holds a Master’s degree in Agribusiness from Institut Pertanian Bogor. Appointed as Head of Jakarta Senayan Regional Office based on Board of Director’s Decree No. KP/172/DIR/R dated April 24, 2016. Haris Agus Handoko Head of Manado Regional Office Currently 51 years old. Holds a Master’s degree in Financial Management from Universitas Hasanuddin. Appointed as Head of Manado Regional Office based on Board of Director’s Decree No. KP/219/DIR/R dated June 8, 2018. Yessy Kurnia Dyah W. Head of Jakarta Kota Regional Office Currently 48 years old. Holds a Master’s degree in Agribusiness Management from Universitas Pembangunan Nasional Veteran Surabaya.. Appointed as the Head of the Jakarta Kota Regional Office based on Board of Director’s Decree No. KP/324/DIR/R dated September 24, 2018. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 111
  112. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Henry Panjaitan Head of Jakarta BSD Regional Office Currently 49 years old. Holds a Master’s degree in Banking from University of South Australia. Appointed as the Head of the Jakarta BSD Regional Office based on Board of Director’s Decree No. KP/016/ DIR/R dated January 15, 2019. Feri Andajaya Head of Jakarta Kemayoran Regional Office Saat ini berusia 51 tahun. Meraih gelar Magister di bidang Bussiness Administration & Technology dari Institut Teknologi Bandung. Menjabat sebagai Pemimpin Kantor Wilayah Jakarta Kemayoran berdasarkan Surat Keputusan Direksi No. KP/147/DIR/R tanggal 13 April 2018. Setiawan Jahja Adie Head of Papua Regional Office Saat ini berusia 52 tahun. Meraih gelar Magister di bidang Manajemen dari Universitas Jember. Menjabat sebagai Pemimpin Kantor Wilayah Papua berdasarkan Surat Keputusan Direksi No. KP/031/DIR/R tanggal 23 Januari 2019. Arif Suwasono Head of Yogyakarta Regional Office Currently 52 years old. Holds a Master’s degree in Management from STIE Artha Bodhi Iswara. Appointed as Head of Yogyakarta Regional Office based on Board of Director’s Decree No. KP/585/DIR/R dated December 28, 2017. 112 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  113. Company Profile Wiwi Suprihatno Head of Malang Regional Office Currently 47 years old . Holds a Bachelor’s degree in Administration from Universitas Brawijaya and Master’s degree from Mahasaraswati. Appointed as Head of Malang Regional Office based on Board of Director’s Decree No. KP/032/DIR/R dated February 6, 2018. Yohanes Iwan Kurniawan Head of BNI Contact Center Unit Currently 48 years old. Holds a Master’s degree in Accounting Management from Universitas Gadjah Mada. Appointed as Head of BNI Contact Center Unit based on Board of Director’s Decree No. KP/1711/ HCT/1/R dated September 29, 2017. Rommel TP. Sitompul Head of Syndication Business Unit Currently 48 years old. Holds a Master’s degree in Marketing Management from Universitas Persada Indonesia YAI. Appointed as Head of Syndication Business Unit based on Board of Director’s Decree No. KP/1990/HCT/1/R dated 16 October 2018. Saktimaya Murti Head of Financial Institution Pension Fund Unit Head of Financial Institution Pension Fund Unit Currently 48 years old. Holds a Bachelor’s degree in Management from Universitas Jendral Soedirman. Appointed as Head of Financial Institution Pension Fund Unit based on Board of Director’s Decree No. KP/482/DIR/R dated December 20, 2016. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 113
  114. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Tennisiana Soekesi Head of E-Channel Unit Currently 49 years old. Holds a Master’s degree in Computer Science from Universitas Indonesia. Appointed as Head of E-Channel Unit based on Board of Director’s Decree No. KP/126/DIR/R dated 25 April 2017. Grace Daturante Pong Samma Head of Service Quality Unit Currently 52 years old. Holds a Bachelor’s degree in Management from Universitas Kristen Indonesia. Appointed as Head of Service Quality Unit based on Board of Director’s Decree No. KP/482/DIR/R dated December 20, 2016. Syafrudin PGS Head of Customer Analysis & Portfolio Management Unit Currently 50 years old. Holds a Master’s degree in Accounting Management from Universitas Gadjah Mada. Appointed as Head of Customer Analysis & Portfolio Management Unit based on Board of Director’s Decree No. KP/01.002785/2019/TBS/R dated January 14, 2019. 114 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  115. Company Profile EMPLOYEE PROFILE AND EMPLOYEE COMPETENCY DEVELOPMENT KARYAWAN TOTAL EMPLOYEES BASED ON POSITION LEVEL Total Employees Based on Position Level Position Level (number of employees) 2018 Male ≥ Vice President Female 196 Assistant Vice President Manager 2017 Total Male Female 182 Total 42 238 42 224 755 322 1,077 730 276 1,006 1,803 1,190 2,993 1,692 1,101 2,793 Assistant Manager 4,743 4,842 9,585 4,078 4,191 8,269 Assistant 5,451 7,684 13,135 5,576 8,592 14,168 196 - 196 749  - Basic Employee Total 27,224 749 27,209 TOTAL EMPLOYEES BASED ON EDUCATION LEVEL TTotal Employees Based on Education Level Education Level (number of employees) 2018 Male Doctorate Degree Female 5 Master’s Degree 2017 Total 4 Male Female 9 3 Total 4 7 1,556 1,028 2,548 1,509 963 2,472 10,031 11,392 21,423 9,718 11,334 21,052 Diploma 872 1.641 2,513 995 1,883 2,878 Primary – Senior High School 680 15 695 782 18 800 Bachelor’s Degree Total 27,224 27,209 TOTAL EMPLOYEES BASED ON EMPLOYMENT STATUS Total Employees Based on Employent Status Employent Status Male Permanent (number of employees) 2018 Female 2017 Total Male Female Total 12,485 13,401 25,886 11,866 12.775 24,641 Contract 446 443 889 1,141 1,427 2,568 Trainee 213 236 449 - - - Total PT Bank Negara Indonesia (Persero) Tbk  27,224 27,209 Adapting Quickly to Face Change 115
  116. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk TOTAL EMPLOYEES BASED ON AGE GROUP Total Employees Based on Age Group Age Group Male >50 Years (number of employees) 2018 2017 Female Total Male Female Total 664 302 966 813 344 1,157 >45-50 Years 1,946 1,322 3,268 2,030 1,379 3,409 >40-45 Years 1,888 1,407 3,295 1,928 1,482 3,410 >35-40 Years 1,769 1,805 3,574 1,881 1,950 3,831 >30-35 Years 2,449 2,884 5,333 2,507 3,027 5,534 >25-30 Years 3,432 4,795 8,227 3,404 5,061 8,465 996 1.565 2.561 444 959 1.403 ≤25 Years Total 27,224 27,209 TOTAL EMPLOYEES BASED ON GENERATION Total Employees Based on Generation Generation Male Baby Boomer (number of employees) 2018 130 Female 34 2017 Total Male 164 282 Female Total 85 367 Gen X 5,815 4,474 10,289 6,041 4,727 10,768 Gen Y 7,199 9,572 16,771 6,684 9,390 16,074 Total 27,224 27,209 EMPLOYEE COMPETENCY DEVELOPMENT COMPETENCY DEVELOPMENT POLICY The following are the new programs implemented in 2018 to support the development of BNI employee competencies: • Implementation of BNI Learning Wallet (BLW), a personal budget given to each employee that is used and managed by the employees to improve and develop their competencies. BNI Learning Wallet realization up to the end of 2018 included 31,237 applications with a total participation of 20,169 employees. • Implementation of BNI Smarter, namely the employee development framework through learning & sharing, a combination of informal on-the-job learning or discussions with superiors and coworkers, and formal learning in a structured manner in the classroom (real class and virtual class). This Learning & Development follows a 70:20:10 model, where the largest portion of learning & sharing activities actually occurs when employees interact with other parties and when completing their work. The development framework works through the bni.corpu.co.id website so employees can access it online anywhere and anytime. As of the end of 2018, 25,788 employees followed learning activities and 7,537 employees were involved in sharing activities. 116 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  117. Company Profile • • • Implementation of BNI Expert Locator, an online tool for knowledge sharing between employees and experts in problem solving and knowledge creation. Up to the end of 2018, more than 623 employees have been designated as BNI Experts in more than 674 areas of expertise, including: corporate communication, audit, policy, compliance, risk management, credit remedial and recovery, banking operational management, procurement management, strategic planning, data management, IT assessment, project management, financial analysis, credit analysis and credit process, project financing, and portfolio analysis. Furthermore, all employees may interact with these appointed experts. BNI’s Assessment Center Reactivation is a Center of Digital Assessment and Evaluation (BNI CODAE) placing BNI as the only State-Owned Bank with a digital format Assessment Center. Digitizing the BNI CODAE assessment process helps improve service effectiveness and the quality of assessment results. During 2018, BNI CODAE conducted assessments (soft skills and hard skills) for all employees at all organization levels, including employees at BNI subsidiaries. Implementation of Daily Exercise Employee Program 46 (DEEP 46), a learning program designed in the form of daily quizzes to gain insight into employees’ understanding of the necessary knowledge to help their daily work as well as a reminder of essential, information related to work. The number of DEEP46 participants throughout 2018 can be seen in the following table. DEEP46 Small Credit 4.574 Consumer Lending 1.956 Services – Teller 7.954 Services – CS 3.465 Services – Leaders 2.959 Auditor 759 Emerald RM 237 Small Credit Agricultural Commodities Sales Legal, Governance, Risk and Compliance Commercial Credit Treasury Human Capital 970 1.744 27.092 820 2.256 230 Procurement of goods/services 3.085 Brevet Branch Management 2.321 Total Partisipasi • Participants 60.422 Implementation of Leadership Programs: including Digital Leadership for All Levels, Leadership for Club 46 Program, Internships at Overseas Development Offices for the 10 best graduates from each program, Advanced Management Development Program (AMDP), General Management Program (GMP), Management Development Program (MDP), Management Trainee Program (MT) and Officer Development Program (ODP). PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 117
  118. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk • Implementation of Four Disciplines of Execution (4DX) with seven internal consultants called “7 Samurai”. Up to the end of 2018, the realization of 4DX implementation in BNI can be seen in the following graphic. 4DX Implementation 118 Adapting Quickly to Face Change Number of teams in the WIG Sessions 4,159 teams Number of teams receiving a Bronze Certificate 3,206 teams Number of teams receiving a Bronze Silver Certificate 1,684 teams Number of teams receiving a Bronze Gold Certificate 1,214 teams Sustainability Index 70.87% Realization PT Bank Negara Indonesia (Persero) Tbk
  119. Company Profile COMPETENCY DEVELOPMENT BASED ON POSITION LEVEL Competency Development Table Based on Position Level In 2018 No . 1. Position Level ≥ Vice President Total Vice President PT Bank Negara Indonesia (Persero) Tbk  Learning Program Learning Objectives Number of Participants Banking Operation Increase employee’s competency in banking operations. 6 Corporate Core Function Increase employee’s competency in support areas, such as law, information technology, HR management, language, quality management, procurement of goods and services, accounting, and so on. 13 Credit and Business Increase the competency of employees in the field of credit which is the main business of BNI. 65 Governance, Risk, and Compliance Increase employee’s competency in the areas of governance, risk, and compliance. 25 Leadership Increase employee’s competency in terms of leadership. 72 Marketing, Sales, and Service Increase employee’s competency in marketing, sales, and services to support BNI business. 10 Professional Certification Provide certification in various fields, such as Credit Certification, Sales Certification, IT Certification, and so on. 77 Strategic Initiative Increase employee’s competency through public learning, both inside and outside the country. 27 Transactional Banking Increase employee’s competency in the field of cash management services for nonindividual customers. 2 Treasury and Global Banking Increase the competency of employees in the field of treasury and global banking. 0 297 Adapting Quickly to Face Change 119
  120. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk No. 2. Position Level Assistant Vice President Total Assistant Vice President 120 Adapting Quickly to Face Change Learning Program Learning Objectives Number of Participants Banking Operation Increase employee’s competency in banking operations. 86 Corporate Core Function Increase employee’s competency in support areas, such as law, information technology, HR management, language, quality management, procurement of goods and services, accounting, and so on. 108 Credit and Business Increase the competency of employees in the field of credit which is the main business of BNI. 568 Governance, Risk, and Compliance Increase employee’s competency in the areas of governance, risk, and compliance. 75 Leadership Increase employee’s competency in terms of leadership. 309 Marketing, Sales, and Service Increase employee’s competency in marketing, sales, and services to support BNI business. 162 Professional Certification Provide certification in various fields, such as Credit Certification, Sales Certification, IT Certification, and so on. 410 Strategic Initiative Increase employee’s competency through public learning, both inside and outside the country. 129 Transactional Banking Increase employee’s competency in the field of cash management services for nonindividual customers. 7 Treasury and Global Banking Increase the competency of employees in the field of treasury and global banking. 11 1,865 PT Bank Negara Indonesia (Persero) Tbk
  121. Company Profile No . 3. Position Level Manager Total Manager PT Bank Negara Indonesia (Persero) Tbk  Learning Program Learning Objectives Number of Participants Banking Operation Increase employee’s competency in banking operations, 115 Corporate Core Function Increase employee’s competency in support areas, such as law, information technology, HR management, language, quality management, procurement of goods and services, accounting, and so on 423 Credit and Business Increase the competency of employees in the field of credit which is the main business of BNI 1,417 Governance, Risk, and Compliance Increase employee’s competency in the areas of governance, risk, and compliance 386 Leadership Increase employee’s competency in terms of leadership 554 Marketing, Sales, and Service Increase employee’s competency in marketing, sales, and services to support BNI business 373 Professional Certification Provide certification in various fields, such as Credit Certification, Sales Certification, IT Certification, and so on 608 Strategic Initiative Increase employee’s competency through public learning, both inside and outside the country 187 Transactional Banking Increase employee’s competency in the field of cash management services for nonindividual customers 39 Treasury and Global Banking Increase the competency of employees in the field of treasury and global banking 17 4,419 Adapting Quickly to Face Change 121
  122. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk No. 5. Position Level Assistant Manager Total Assistant Manager 122 Adapting Quickly to Face Change Learning Program Learning Objectives Number of Participants Banking Operation Increase employee’s competency in banking operations, 374 Corporate Core Function Increase employee’s competency in support areas, such as law, information technology, HR management, language, quality management, procurement of goods and services, accounting, and so on 1,286 Credit and Business Increase the competency of employees in the field of credit which is the main business of BNI 2,994 Governance, Risk, and Compliance Increase employee’s competency in the areas of governance, risk, and compliance 467 Leadership Increase employee’s competency in terms of leadership 1,006 Marketing, Sales, and Service Increase employee’s competency in marketing, sales, and services to support BNI business 3,653 New Entry Provide debriefing to employees who have just joined BNI so they can carry out their duties in their definitive positions later. 558 Professional Certification Provide certification in various fields, such as Credit Certification, Sales Certification, IT Certification, and so on 1,550 Strategic Initiative Increase employee’s competency through public learning, both inside and outside the country 422 Transactional Banking Increase employee’s competency in the field of cash management services for nonindividual customers 508 Treasury and Global Banking Increase the competency of employees in the field of treasury and global banking 47 12,865 PT Bank Negara Indonesia (Persero) Tbk
  123. Company Profile No . 6. Position Level Assistant Total Assistant PT Bank Negara Indonesia (Persero) Tbk  Learning Program Learning Objectives Number of Participants Banking Operation Increase employee’s competency in banking operations, 173 Corporate Core Function Increase employee’s competency in support areas, such as law, information technology, HR management, language, quality management, procurement of goods and services, accounting, and so on 1,891 Credit and Business Increase the competency of employees in the field of credit which is the main business of BNI 3,479 Governance, Risk, and Compliance Increase employee’s competency in the areas of governance, risk, and compliance 142 Leadership Increase employee’s competency in terms of leadership 983 Marketing, Sales, and Service Increase employee’s competency in marketing, sales, and services to support BNI business 4,704 New Entry Provide debriefing to employees who have just joined BNI so they can carry out their duties in their definitive positions later. 13 Professional Certification Provide certification in various fields, such as Credit Certification, Sales Certification, IT Certification, and so on 701 Strategic Initiative Increase employee’s competency through public learning, both inside and outside the country 219 Transactional Banking Increase employee’s competency in the field of cash management services for nonindividual customers 121 Treasury and Global Banking Increase the competency of employees in the field of treasury and global banking 77 12,503 Adapting Quickly to Face Change 123
  124. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk No. 7. Position Level Learning Program Basic Employee Learning Objectives Number of Participants Banking Operation Increase employee’s competency in banking operations, 0 Corporate Core Function Increase employee’s competency in support areas, such as law, information technology, HR management, language, quality management, procurement of goods and services, accounting, and so on 7 Credit and Business Increase the competency of employees in the field of credit which is the main business of BNI 72 Governance, Risk, and Compliance Increase employee’s competency in the areas of governance, risk, and compliance 0 Leadership Increase employee’s competency in terms of leadership 37 Marketing, Sales, and Service Increase employee’s competency in marketing, sales, and services to support BNI business 32 New Entry Provide debriefing to employees who have just joined BNI so they can carry out their duties in their definitive positions later. 0 Professional Certification Provide certification in various fields, such as Credit Certification, Sales Certification, IT Certification, and so on 0 Transactional Banking Increase employee’s competency in the field of cash management services for nonindividual customers 1 Treasury and Global Banking Increase the competency of employees in the field of treasury and global banking 0 Total Basic Employee 150 During 2018, to develop employee competencies, BNI trained 28,590 employees (including 1,796 terminated employees), with an average of 165.31 times per employee. The explanation be the next table below. Total Participant Total Training Hours (in hours) 4,452,413 7,871,298 Training Hours per Employee 293,77 Total Training per Employee 165,31 Total Employees Trained (people) 26,794* *) including 1,796 terminated employees 124 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  125. Company Profile As of 2018 Learning Realization based on Learning & Development Model 70:20:10 2018 Learning Realization based on Learning & Development Model 70:20:10 Development Method Experiential Learning "70" ∑ Class ∑ Participant On the Job Training (OJT) 543 931 In Service Training (IST) 135 196 3 27 Coaching 375 675 Mentoring 935 1,332 Role Play 12,487 28,974 In-Class Learning 15,080 15,544 e-Learning 27,502 29,688 13 868 Short Overseas Assignment Social Learning "20" Formal Learning "10" Certification EVALUATION OF COMPETENCY DEVELOPMENT IMPLEMENTATION To ensure that employee learning had an impact on productivity, the learning is measured. The learning and sharing impact measurements set by BNI, include: 1. Circle 1: to measure the learning experience, namely the learner’s level of satisfaction with the learning program. The employee’s level of satisfaction can be influenced by the learning material / modules, facilities, infrastructure and facilitators. This employee satisfaction level is calculated using the Net Promoter Score method, where in 2018 the NPS score was 62.07 (generally deemed excellent). 2. Circle 2: to measure the learning gained, namely the employee’s increased knowledge and skills after participating in the learning program. In 2018, the evaluation result for circle 2 was 55.90. 3. Circle 3: to measure the behavior change, namely changes in the participant’s behavior and abilities, as well as the application of the training results in the workplace. In 2018, the evaluation results for circle 3 was 11.27. COMPETENCY DEVELOPMENT COSTS Every year, 5% of the human capital budget is for learning. In 2018 Rp385.34 billion was used to increase employee capacity and capability, both through centralized learning by BNI Corporate University, or through decentralization by each Unit and by the employees themselves using their BLW budget. Based on the learning budget realization, 28,590 employees followed training for an average participation rate of 165.31 per employee. This high learning participation was due to digital learning through BNI SMARTER. Competence Cost Description Education & Training PT Bank Negara Indonesia (Persero) Tbk  2018 (Million Rp) 382,013.34 Growth 2017 (Million Rp) 348,150.11 In Currency 33,863.23 In Percent 9.73% Adapting Quickly to Face Change 125
  126. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk SHAREHOLDER COMPOSITION BNI SHAREHOLDER COMPOSITION AS OF DECEMBER 31, 2018 BNI Shareholder Composition as of December 31, 2018 No. Shares Ownership 1 Government 2 Public: Total Share Ownership Percentage 11,189,193,875 60.00000% 214,792,074 1.15178% • Indonesian Individuals • Cooperatives 1,016,329 0.00545% • Foundations 101,774,354 0.54575% • Pension Funds 163,280,124 0.87556% • Insurance 442,488,323 2.37276% • Banks • Limited Liability Companies • Other Business Enterprises • Mutual Funds • Foreign Individuals • Foreign Business Enterprises Total 1,766,636 0.00947% 508,838,625 2.72855% 5,298 0.00003% 646,867,810 3.46871% 2,891,622 0.01551% 5,375,741,388 28.82643% 18,648,656,458 100.00000 % 20 LARGEST BNI SHAREHOLDERS COMPOSITION AS OF DECEMBER 31, 2018 20 Largest BNI Shareholders No. 126 Investor Name Address Status Number of Shares Percentage Ownership 11,189,193,875 60.0000000% 1. NEGARA REPUBLIK INDONESIA MINISTRY OF SOE. JALAN MEDAN MERDEKA SELATAN NOMOR 13, JAKARTA 10110 REPUBLIC OF INDONESIA 2. BPJS KETENAGAKERJAAN - PROGRAM JHT JENDRAL GATOT SUBROTO No.79, JAKARTA LIMITED LIABILITY COMPANY 432,350,768 2.31840% 3. BNYMSANV RE BNYMSANVLUX RE S/A ESPRING INV-2040084086 46 RUE MONTOYER B-100 BRUSSELS, BELGIUM FOREIGN BUSINESS ENTERPRISE 234,646,936 1.25825% 4. HSBC BANK PLC S/A PRUDENTIAL ASSURANCE COMPANY OBA ESI HBEU AS AGENT LAURENCE POUTNEY HILL LONDON, EC4R OHH FOREIGN BUSINESS ENTERPRISE 188,236,000 1.00938% 5. BNYMSANV RE BNYMLB RE EMPLOYEES PROVIDENTFD BOARD -2039844119 EPF BUILDING, JL. RAJA LAUT 50350, KUALA LUMPUR MALAYSIA FOREIGN BUSINESS ENTERPRISE 163,303,600 0.87569% 6. JPMCB NA AIF CLT RE-STICHTING DEPOSITARY APG EME MRKT EQ POOL OUDE LINDESTRAAT 70, 6401 DJ HEERLEN, THE NETHERLANDS FOREIGN BUSINESS ENTERPRISE 137,983,700 0.73991% 7. JPMCB NA RE-VANGUARD INTERNATIONAL VALUE FUND 100 VANGUARD BOULEVARD, MALVERN, PA 19355, USA FOREIGN BUSINESS ENTERPRISE 119,284,300 8. JPMCB NA RE-VANGUARD EMERGING MARKETS STOCK INDEX FUND 100 VANGUARD BOULEVARD, MALVERN, PA 19355, USA FOREIGN BUSINESS ENTERPRISE 114,862,386 0.61593% 9. JPMCB NA RE-VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 100 VANGUARD BOULEVARD MALVERN PA 19355, USA FOREIGN BUSINESS ENTERPRISE 114,079,127 0.61173% Adapting Quickly to Face Change 0.63964% PT Bank Negara Indonesia (Persero) Tbk
  127. Company Profile No . Investor Name Address Status Number of Shares Percentage Ownership 10. GIC S/A GOVERNMENT OF SINGAPORE 168 ROBINSON ROAD 37-01 CAPITAL TOWER, SINGAPORE FOREIGN BUSINESS ENTERPRISE 102,173,541 0.54789% 11. SSBTC 26AD S/A INV GLOBAL STRATEGY FD-2144606346 49 AVENUE J.F. KENNEDY L-1855, LUXEMBOURG FOREIGN BUSINESS ENTERPRISE 100,468,400 0.53874% 12. CITIBANK NEW YORK S/A DIMENSIONAL EMERGING MARKETS VALUE FUND 6301 BEE CAVE RD. BUILDING ONE, AUSTIN TX 78746, USA FOREIGN BUSINESS ENTERPRISE 89,706,241 0.48103% 13. PT PRUDENTIAL LIFE ASSURANCE - REF PRUDENTIAL TOWER JL. JEND. SUDIRMAN KAV. 79,SETIABUDI, JAKARTA INSURANCE 85,155,716 0.45663% 14. CITIBANK NEW YORK S/A GOVERNMENT OF NORWAY - 15 BANKPLASSEN 2, 0151 OSLO, NORWAY FOREIGN BUSINESS ENTERPRISE 83,069,200 0.44544% 15. HSBC BANK PLC S/A SAUDI ARABIAN MONETARY AUTHORITY SAUDI ARABIAN MONETARY AUTHORITY PO BOX 2992, RIYADH FOREIGN BUSINESS ENTERPRISE 79,580,600 0.42674% 16. YKP BNI FOR PROGRAM LTI BNI JL LAUSER NO 73, KEBAYORAN BARU FOUNDATION 76,236,227 0.40880% 17. SSB 2Q27 S/A ISHARES CORE MSCI EMERGING MARKETS ETF-2144613424 400 HOWARD STREET, SAN FRANCISCO CALIFORNIA 94105 FOREIGN BUSINESS ENTERPRISE 68,661,700 0.36819% 18. BNYM RE BRIDGE BUILDER INTERNATIONAL EQUITY FUND2039926979 615 EAST MICHIGAN STREET MILWAUKEE WISCONSIN 53202, AMERIKA SERIKAT FOREIGN BUSINESS ENTERPRISE 66,565,800 0.35695% 19. PT AIA FINL - UL EQUITY MENARA MATAHARI LT.7 JL. BOULEVARD PALEM RAYA, BENCONGAN KELAPA DUA, TANGERANG INSURANCE 64,152,700 0.34401% 20. PT AXA MANDIRI FINANCIAL SERVICES S/A MANDIRI DINAMIC MONEY RP GEDUNG AXA TOWER KUNINGAN CITY LT. 17, JL. PROF, DR SATRIO KAV. 18, KARET, SETIABUDI INSURANCE 58,663,800 0,31457% BNI SHAREHOLDERS WITH OVER 5% OWNERSHIP COMPOSITION AS OF DECEMBER 31, 2018 BNI Shareholders with over 5% Ownership Composition Investor Name Number of Shares Republic of Indonesia Percentage Ownership 11,189,193,875 60.00000% COMPOSITION OF SHAREHOLDERS WITH LESS THAN 5% AS OF DECEMBER 31, 2018 Shareholders with less than 5% Ownership No, Public Shareholders Total Shareholders Number of Shares Percentage Ownership National Financier 1 Indonesian Individuals 2 Cooperatives 41,461 214,792,074 1.15178% 18 1,016,329 0.00545% 3 Foundations 41 101,774,354 0.54575% 4 Pension Funds 183 163,280,124 0.87556% 5 Insurance 121 442,488,323 2.37276% 6 Banks 4 1,766,636 0.00947% 204 508,838,625 2.72855% 5 5,298 0.00003% 7 Limited Liability Companies 8 Other Business Enterprises 9 Mutual Funds Sub Total PT Bank Negara Indonesia (Persero) Tbk  325 646,867,810 3.46871% 42,362 2,080,829,573 11.15806% Adapting Quickly to Face Change 127
  128. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk No, Public Shareholders Total Shareholders Number of Shares Percentage Ownership Foreign Shareholders 10 Foreign Individuals 11 Foreign Business Enterprises Sub Total TOTAL 140 2,891,622 0.01551% 1,493 5,375,741,388 28.82643% 1,633 5,378,633,010 28.84194% 43,995 7,459,462,583 40% BOARD OF COMMISSIONERS AND BOARD OF DIRECTORS SHARE OWNERSHIP COMPOSITION AS OF DECEMBER 31, 2018 BNI Board of Commissioners and Board of Directors share ownership Composition Name Position Number of Shares Percentage Ownership BOARD OF COMISSIONERS Ari Kuncoro President Commissioner / Independent Commissioner 0 0.00% Wahyu Kuncoro Vice President Commissioner 0 0.00% Pataniari Siahaan Independent Commissioner 0 0.00% Revrisond Baswir Independent Commissioner 0 0.00% Ahmad Fikri Assegaf Independent Commissioner 0 0.00% Bistok Simbolon Commissioner 0 0.00% Joni Swastanto Commissioner 0 0.00% Marwanto Harjowiryono Commissioner 0 0.00% Sigit Widyawan Independent Commissioner 0 0.00% Achmad Baiquni President Director 0 0.00% Herry Sidharta Vice President Director 0 0.00% Putrama Wahju Setyawan Director 138,442 0.00% Catur Budi Harto Director 0 0.00% Rico Rizal Budidarmo Director 0 0.00% Anggoro Eko Cahyo Director 153,526 0.00% Adi Sulistyowati Director 324 0.00% Bob Tyasika Ananta Director 82,891 0.00% Endang Hidayatullah Director 51,368 0.00% Tambok P, Setyawati Director 24,880 0.00% Dadang Setiabudi Director 0 0.00% BOARD OF DIRECTORS Remarks: The Board of Commissioners and Board of Directors do not have indirect ownership in BNI shares. 128 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  129. Company Profile LIST OF SUBSIDIARIES AND /OR ASSOCIATED ENTITIES SUBSIDIARIES Name Business Field Share Ownership Year of Establishment Operational Status Total Assets (Rp Million) Domicile PT Bank BNI Syariah Sharia Banking 99,94% 2010 Operating 41,040,203 Jakarta PT BNI Multifinance Consumer Finance 99,99% 1983 Operating 1,322,611 Jakarta PT BNI Securites Brokerage and underwriter, include securities trading, including acting as a guarantor and investment advisor 75,00% 1995 Operating 869,813 Jakarta PT BNI Life Insurance Life Insurance Services 60,00% 1997 Operating 17,283,191 Jakarta BNI Remittance Remittance Services 100,00% 1998 Operating 4,931 Hongkong A brief description of each Subsidiary is described as follows: PT BANK BNI SYARIAH BNI Syariah was established by Establishment Deed No. 160 dated March 22, 2010. BNI Syariah is a sharia commercial bank resulting from the spinoff of PT Bank Negara Indonesia (Persero) Tbk Sharia Business Unit (“UUS BNI”) from PT Bank Negara Indonesia Tbk (“BNI Bank”). The establishment was approved at the Bank BNI Extraordinary General Meeting of Shareholders on October 5, 2009. The separation was pursuant to Bank Indonesia Regulation No. 11/10/PBI/2009 concerning Sharia Business Units. The establishment was conducted with Bank Indonesia licenses, through two stages, namely approval of the principle license and the business license. On February 8, 2010, the Bank obtained the principle license from Bank Indonesia to conduct the spinoff of UUS BNI, based on letter No. 12/2/DpG/ Dpbs. The separation of UUS BNI was confirmed through Separation Deed No. 159 dated March 22, 2010. A deposit of capital, as stated in the deed of incorporation, was made by the founder for the effective spin-off on June 19, 2010. On May 21, 2010, the Bank obtained a business license from Bank Indonesia pursuant to the Governor of Bank Indonesia Decision No. 12/41/KEP.GBI/2010. With the separation becoming effective on June 19, 2010 the Bank first started its business activities. The Bank operated as a foreign exchange bank starting on July 9, 2010 based on a Copy Letter of the Deputy Governor of Bank Indonesia Decision No. 12/5/KEP.DpG/2010 dated July 9, 2010. The Bank’s purpose and objective as a Sharia commercial bank resulting from the separation, was to carry out banking business based on sharia principles, in accordance with the provisions in the prevailing laws and regulations. On December 29, 2017, BNI as the parent company injected an additional capital investment of Rp1 trillion into BNI Syariah, for large business growth to increase sharia-based businesses that have large growth potential. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 129
  130. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk BNI Syariah continuously improves its network services, and pays attention to sharia compliance to ensure all BNI Syariah products have been tested by the Sharia Supervisory Board and comply with applicable sharia rules. In terms of information technology, BNI Syariah, as a subsidiary of PT Bank Negara Indonesia (Persero) Tbk, is supported by the joint use of advanced information technology systems with ISO 9001 2008 certification. BNI Syariah’s business operations are supported by competent human capital. Currently BNI Syariah has 4,973 employees (including 1,816 outsourced employees), with the competency development process continuously being conducted so that every employee becomes the best in their field. To operate its business, as of December 31, 2017 BNI Syariah operated 3 Regional offices, 68 Branch Offices, 202 SubBranch Offices, 15 Cash Offices, 23 Mobil Mobile Services, and 52 Payment Points. In addition, BNI Syariah customers can also utilize the Sharia Channelling Office (SCO) network spread across 1,490 outlets throughout Indonesia that will continue to grow in line with asset growth. The Bank’s head office is located at Gedung Tempo Pavilion 1 Jl. H.R Rasuna Said Kav. 11, Jakarta. The PT Bank BNI Syariah Board of Commissioners and Board of Directors composition is based on the AGMS minutes deed No.104 dated April 27, 2018 and is as follows: Board of Commissioners President Commissioner Independent Commissioner Commissioner : Fero Poerbonegoro : Rizqullah : Imam Budi Sarjito * * Not yet effective / currently undergoing the OJK fit and proper test process PT BNI MULTIFINANCE BNI Multifinance was established on April 8, 1983 based on Notarial Deed by Kartini Muljadi, S.H., No. 21. BNI Multifinance under the name of PT BNI-AMEX Leasing is a cooperation between PT Bank Negara Indonesia (Persero) Tbk. (BNI) and American Express Leasing Corporation (AMEX). The Company’s name has been amended several times with the last one to PT BNI Multifinance, being notarized by deed No. 103 dated June 27, 1994. The Company commenced its commercial operations in 1983. The company is engaged in funding Investments, Working Capital, Multipurpose and Operating Leases. Its business activities are supported by reliable human resources (the number of employees as at December 31, 2018 was 111 people), and operates 7 branch offices in Medan, Lampung, Bogor, Semarang, Surakarta, Yogyakarta and Surabaya as well as points of sales in Bandung. The head office is located at BNI Life Insurance Building 5th Floor, Jalan Aipda KS. Tubun No. 67, Jakarta. The PT BNI Multifinance Board of Commissioners and Board of Directors composition is based on AGMS minutes deed No. 05 dated September 04, 2018 and is as follows Board of Commissioners President Commisioner Commisioner : Rosa de Lima Dwi Mutiari : Retno Murwani Board of Director Direktur Utama Director of Business Director of Finance and Operational : Hasan Gazali Pulungan* : Linda Saragih : Fajar Agustianto *effective undergoing the OJK fit Board of Directors President Director : Abdullah Firman Wibowo Director of Consumer Business : Dhias Widhiyati Director of Finance and Operational : Wahyu Avianto Director of Compliance : Tribuana Tunggadewi Dewan Pengawas Syariah Chairman Member 130 Adapting Quickly to Face Change and proper test process since January 22, 2019 : K.H Ma’ruf Amin : Hasanudin PT Bank Negara Indonesia (Persero) Tbk
  131. Company Profile PT BNI SEKURITAS BNI Sekuritas (BNI Sekuritas) was established based on notarial deed No. 22 on April 12,1995 in Jakarta. The deed was amended by deed No. 39 by the same notary dated May 3, 1995. As per the Company Articles of Association, the Company’s business activities include securities trading, including brokerage and underwriting and other activities associated with these activities by observing Market Supervisory Agency capital and Financial Institution (Bapepam- LK) and other statutory laws and regulations in force. BNI Sekuritas obtained a license as a securities broker, underwriter of stocks and investment manager from the Chairman of Bapepam-LK through decree No. KEP-19/PM/1995, No. KEP-020/PM/1995 dated August 8, 1995 and No. KEP-07/PM-MI/1995 dated October 23, 1995, which were transferred to PT BNI Asset Management by decree No. Kep480/BL/2009 dated December 31, 2009. To implement independence of investment managers by Bapepam-LK No. V.D.11 an annex to the Chairman of Bapepam-LK decree No. Kep-480/BL/2009 dated December 31, 2009 on Investment Manager Guidelines, the Company completed the separation / division of business (spin-off ) of the business operations division for investment management by forming a new group called PT BNI Asset Management. The establishment process was approved at the BNI Sekuritas Extraordinary General Meeting of Shareholders on March 1, 2011, with ownership of 99.99%. In mid 2011, the BNI Sekuritas ownership structure was strengthened by the joining of a strategic investor, namely SBI Sekuritas Co. Ltd., Japan to participate in the company, so the composition of BNI Sekuritas ownership till now is 75% owned by PT Bank Negara Indonesia (Persero) Tbk. and 25% owned by SBI Sekuritas Co. Ltd. As a company registered with the Financial Services Authority (OJK), BNI Sekuritas is licensed as an underwriter, securities broker, and mutual fund selling agent. As at 31 December 2018, BNI Sekuritas business operations were conducted by 279 professional employees, who provided services to customers through 16 branch offices and 51 Investment Galleries. PT BNI Sekuritas Head Office is located at Sudirman Plaza Indofood Tower, 16th Floor, Jl. Jendral Sudirman Kav. 76-78, Jakarta 12910, Indonesia The PT BNI Sekuritas Board of Commissioners and Board of Directors composition is based on GMS minutes deed No. 11 dated June 28, 2017 and is as follows: Board of Commissioners Commissioner : Suhendry Hafni Independent Commissioner : Ryosuke Hayashi Board of Directors President Director Director Director : Adiyasa Suhadibroto : Reza Benito Zahar : Geger Nuryaman Maulana PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 131
  132. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk PT BNI LIFE INSURANCE BNI Life was originally established under the name “PT BNI Life Insurance Jiwasraya” based on Deed No. 24 dated November 28, 1996 in Jakarta. On November 26, 2004, the Company changed its name to PT BNI Life Insurance, which was endorsed by the Minister of Justice and Human Rights of the Republic of Indonesia through No. C-31600 HT.01.04.TH,2004 dated December 29, 2004. In accordance with the Articles of Association , the Company’s scope of activities is conducting business in life insurance including life insurance business with Islamic principles. The Company obtained a license as a life insurance company based on the Ministry of Finance of the Republic of Indonesia Number 305/KMK.017/1997 dated July 7, 1997. The Company also obtained a license to open a branch office with Islamic principles based on the Ministry of Finance of the Republic of Indonesia No. KEP-186/KM.6/2004 dated May 19, 2004. The Company commenced commercial operations in 1997. In early May 2014, Sumitomo Life Insurance Company (Sumitomo Life) officially became one of BNI Life’s shareholders. The equity participation amounted to Rp4.2 trillion with a 40% ownership interest in BNI Life, which was realized in September 2014. Sumitomo Life is one of the largest insurance companies in Japan. Floor, Unit 42, Denpasar/Jl Raya Puputan No. 108 B Renon, Palembang/Palembang Icon Mall, 2nd Floor, Unit 70). The address of BNI Life headquarters is Centennial Tower Lt. 9, Jl. Gatot Subroto Kav 24-25, South Jakarta. The PT BNI Life Insurance Board of Commissioners and Board of Directors composition is based on the GMS minutes deeds No. 35 dated October 9, 2018 and No.105 dated December 28, 2018 and is as follows: Board of Commissioners President Commissioner/ Independent Commissioner Commissioner Independent Commissioner Independent Commissioner Board of Directors President Director Director of Finance Director Director : Parikesit Suprapto : Darwin Suzandi : Kazuhiko Arai : Husain Abdullah : Henry Cratein C. Suryanaga : Shadiq Akasya : Eben Eser Nainggolan : Hidenobu Ito : Naruyoshi Kuwata SYARIAH SUPERVISORY BOARD The strategic cooperation with Sumitomo Life Insurance accelerated business growth and provided huge space to gain future business opportunities. As proof of Sumitomo Life Insurance’s seriousness in the BNI Life business development, they have placed representatives in BNI Life management as Commissioners, Directors, and professional experts. Chairman Member Member : Dr. (HC) K.H. Ma'ruf Amin : Ir. Agus Haryadi, AAAIJ, FIIS, ASAI : Prof. Dr. H. Utang Ranuwijaya, MA BNI Life offers various insurance products such as life, health, education, investment, pension and sharia insurance. BNI Life’s business operations are supported by human resources competent in the insurance field. Currently BNI LIFE has 833 employees with competencies that continues to be developed to provide the best service to customers. To operate its business, as of December 31, 2018 BNI Life Insurance operates 7 (seven) service offices (Jakarta/Jl Aipda KS Tubun No.67, Bandung/Cihampelas Walk, GFNo 28-29), Semarang/Thamrin Square, Jl MH Thamrin No.5, Yogyakarta/ Jogja City Mall Level 1 Unit 40, Surabaya/Grand City Mall, 2nd 132 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  133. Company Profile BNI REMITTANCE LIMITED (BNI REMITTANCE) BNI Remittance Limited (BNI Remittance) is a BNI subsidiary was founded by BNI Hong Kong on November 19, 1996, based on Certificate of incorporation No. 574748 under the name “High Motivation Company”, and changed its name to BNI Nakertrans Ltd in 1997. To further optimize its business activities in accordance with the rules of the local authorities, after a comprehensive business assessment, it was decided to separate the BNI Nakertrans Ltd management from BNI Hong Kong as well as change the name to BNI Remittance Ltd, in 2009. BNI Remittance is currently registered as a Money Service Operator with register number 12-08-00768 and subject to Hong Kong Custom and Excise Department. To conduct its business, BNI Remittance manages outlets spread across three areas of Hong Kong, namely Keswick Main Office in Hong Kong Island, Tsuen Wan Branch Office and Yuen Long Branch Office in New Territories and Hung Hom Branch Office in Kowloon. BNI Remittance Central Office is located at Flat/RM5 on G/F, Nos 1-7 Keswick Street, Causeway Bay, Hong Kong, Besides providing services through these outlets, BNI Remittance collaborates with BNI in its financial inclusion program, providing financial access through the widest possible digital services for Indonesian Migrant Workers (PMI) in Hong Kong. Since the beginning of 2015, customers can more freely carry out financial transactions through 6 BNI ATM machines in Hong Kong with the same service features as ATM machines in Indonesia including cash withdrawals, balance checks, transfers between BNI accounts and other banks, credit / ticket purchases and bill payments. In mid 2017, BNI Remittance introduced a Mobile Banking service in Hong Kong to further strengthen its effective and efficient digital banking services for customers to manage their finances. The BNI Remittance Board of Commissioners and Board of Directors composition is based on GMS minutes deed No.0574748 dated 31 July 2016 and is as follows: Board of Director Director : Eko Kristianto ASSOCIATED ENTITIES Nama Bidang Usaha Kepemilikan Saham Tanggal dan Tahun Pendirian Status Operasi Domisili PT Sarana Bersama Pengembangan Indonesia Investments 8.00% 1981 Operating Jakarta PT Swadharma Nusantara Pembiayaan Financing 7.35% 1992 Operating Jakarta PT Bursa Efek Indonesia Stock Exchange 1.20% 1977 Operating Jakarta PT Kustodian Sentral Efek Indonesia Securities Settlement 2.50% 1988 Operating Jakarta PT Pemeringkat Efek Indonesia Securities Rating 0.64% 1994 Operating Jakarta PT Bank Mizuho Indonesia Financial Services 1.00% 2003 Operating Jakarta PT Bank Sumitomo Mitsui Indonesia Financial Services 0.52% 2004 Operating Jakarta PT PANN Pembiayaan Maritim Financing 48.4% 1974 Operating Jakarta PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 133
  134. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk BNI GROUP STRUCTURE Negara Indonesia Public 60% 40% 75,00% 100% 99,99% Sekuritas 1995 Kiriman Uang 1997 Pembiayaan 1983 60,00% Asuransi Jiwa 1996 0,06% 99,94% Perbankan Syariah 2010 99,9% 17,5% PT BNI Asset Management 2011 PT Penyelesaian Transaksi Elektronik Indonesia (PTEN) 2017 1,20% 7,35% PT Bursa Efek Indonesia (IDX Pembiayaan 1993 0,14% 1,00% 8,00% 1,00% 0,52% 48,4% Pemeringkat Efek 1994 Lembaga Penyelesaian Efek1988 Investasi 1981 Jasa Keuangan 2003 Jasa Keuangan 2004 Pembiayaan PT Sarana Bersama Pengembangan Indonesia 0,50% 1,50% As of 2018, the Company did not have any Joint Venture Companies or Special Purposes Vehicles (SPV). 134 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  135. Company Profile SHARE ISSUANCE CHRONOLOGY Initial Public Offering (IPO) On 28 October 1996, BNI undertook an initial public offering of 1,085,032,000 Class B shares with a par value per share of Rp500 (full amount) and offering price per share of Rp850 (full amount) to the public in Indonesia. The shares began trading on the Jakarta and Surabaya Stock Exchanges (currently Indonesia Stock Exchange or IDX) on 25 November 1996. Limited Public Offering I On 30 June 1999, BNI undertook a Limited Public Offering I (“LPO I”) through the issuance of pre- emptive rights of 151,904,480,000 Class C shares with a par value per share of Rp25 (full amount). Each holder of 1 share was entitled to buy 35 new shares for Rp347.58 (full amount) per share. As a result of LPO I, BNI increased its capital by 683,916,500 Class C shares to the public on July 21, 1999 and the LPO I listed in the Jakarta and Surabaya Stock Exchanges (currently IDX). On April 7, 2000 and June 30, 2000, BNI also issued 151,220,563,500 Class C shares to the Government of Indonesia through the recapitalization program under Government Regulation No. 52 year 1999. Recapitalization On March 30, 2000, the Minister of Finance approved BNI’s recapitalization amounting to Rp61.8 trillion, which was Rp9 trillion higher than the amount stated in the Government Regulation No. 52 year 1999. In connection with the increase in the recapitalization amount, which was approved in the Government Regulation No. 32 year 2000, BNI issued an additional 44,946,404,500 Class C shares without pre-emptive rights. Limited Public Offering II On July 30, 2007, the Extraordinary General Shareholders’ Meeting approved the issuance up to 1,992,253,110 new Class C shares through Limited Public Offering II with a par value per share of Rp375 (full amount). Each owner of 20 old shares whose name was registered in the BNI Shareholders List as of August 9, 2007 at 16.00 WIB was entitled to 3 pre-emptive rights where each right entitled the owner to buy a new share at a price of Rp2,025 (full amount) per share. From the Limited Public Offering II, BNI raised Rp747,094 additional share capital and Rp3,287,218 additional paid-in capital with Rp195,280 shares issuance costs. The initial trading took place on August 13, 2007 at the Jakarta Stock Exchange and Surabaya Stock Exchange (currently IDX). Limited Public Offering III On November 25, 2010, at the Extraordinary General Shareholders’ Meeting, the shareholders decided, among other matters, to increase the issued and paid-up capital through a limited public offering with preemptive right (LPO III) to shareholders for the issuance of 3,374,715,948 new Class C shares with a par value per share of Rp375 (full amount), with an offer price of Rp3,100 per Preemptive Right that could be traded inside and outside the Indonesia Stock Exchange (IDX) from December 10, 2010 to December 16, 2010, taking into account the applicable provisions in the capital market sector. From the LPO III, BNI obtained Rp1,265,519 additional share capital and Rp8,950,869 additional paid-in capital, net of shares issuance costs. On July 20, 2001, BNI’s capital was reduced by 1,965,701,500 Class C shares in connection with the refund of excess recapitalization funds to the Government of Indonesia. The refund was approved by the shareholders at the Extraordinary General Shareholders’ Meeting held on 25 June 2001. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 135
  136. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Names of Stock Exchanges where the Company’s shares are listed All BNI shares are listed on the Indonesia Stock Exchange. BNI Share Issuance Chronology Date Description Shares Nominal Value Shares Offering Rate Number of Shares ............... November 1996 Initial Public Offering (IPO) Series-A @Rp500 - Series -B @Rp500 850 1 4,340,127,999 Total Capital Issued and Paid June 1999 Rights Issue (1:35) 4,340,128,000 Series-A @Rp500 - 1 Series -B @Rp500 850 4,340,127,999 Series -C @Rp25 347,58 Total Capital Issued and Paid June 2000 Issuance of new shares without pre-emptive rights Series-A @Rp500 - 1 Series -B @Rp500 850 4,340,127,999 Series -C @Rp25 347,58 Total Capital Issued and Paid July 2001 Repayment of excess amount in Government Bonds December 2003 Series-A @Rp500 - 1 Series -B @Rp500 850 4,340,127,999 Series -C @Rp25 347,58 13 August 2007 Series-A @Rp7,500 - 1 Series -B @Rp7,500 12,750 289,341,866 Series -C @Rp375 5,213.7 August 2010 Series-A @Rp7,500 - 1 Series -B @Rp7,500 12,750 289,341,866 Series -C @Rp375 2,025 10 December 2010 Total Capital Issued and Paid 136 Adapting Quickly to Face Change 14,984,598,643 15,273,940,510 Series-A @Rp7,500 - 1 Series -B @Rp7,500 12,750 289,341,866 Series -C @Rp375 2,025 Total Capital Issued and Paid Rights Issue (110,473:500,000) 12,992,345,533 13,281,687,400 Total Capital Issued and Paid Divestment of Republic of Indonesia Shares to BNI ex green shoe 194,885,183,000 199,225,311,000 Total Capital Issued and Paid Rights Issue (20:3) 196,850,884,500 201,191,012,500 Total Capital Issued and Paid Reverse Stock Split (15:1) 151,904,480,000 156,244,608,000 14,984,598,643 15,273,940,510 Series-A @Rp7,500 - 1 Series -B @Rp7,500 12,750 289,341,866 Series -C @Rp375 3,100 18,359,314,591 18,648,656,458 PT Bank Negara Indonesia (Persero) Tbk
  137. Company Profile BOND ISSUANCE CHRONOLOGY Bank BNI also issued capital debt instruments in the form of Medium Term Notes (MTN) through a limited offer called “BNI Subordinated MTN I Year 2018” with a write down feature that can be calculated as a component of capital, which was registered at the Financial Services Authority supervision administration with an effective date of June 8, 2018 for a total principal amount of Rp100 billion. On June 22, 2017, BNI obtained an effective statement from OJK through letter number S-349/D.04/2017 to issue Sustainable Bonds I BNI Phase I 2017 (“Bonds”). The value of bonds issued amounted to Rp 3 trillion, for a period of 5 years, with a coupon of 8% per annum that will be paid quarterly. The BNI Bonds were issued on July 11, 2017 and listed on the Indonesia Stock Exchange on July 12, 2017. The first coupon payment to the bondholders was made on October 11, 2017. Acting as Underwriters were PT BNI Sekuritas, PT Mandiri Sekuritas, PT Bahana Sekuritas, PT Danareksa Sekuritas, PT Indo Premier Securities and PT BCA Sekuritas. Acting as Trustee was PT Bank Rakyat Indonesia (Persero)Tbk. Based on POJK No. 07/2017 and Regulation No.IX.C.11, in the framework of the issuance of this Bond, BNI has obtained a rating for long-term debt from PT Pemeringkat Efek Indonesia (“Pefindo”) for the period April 25, 2017 until April 1, 2018 in accordance with their letter No. RC-393/PEF-DIR/IV/2017 dated 25 April 2017, with an idAAA rating (Triple A). BNI will perform the issued bond rating annually as long as the obligations on such securities have not been paid off. On 2018, BNI also issued capital debt instruments in the form of Medium Term Notes (MTN) through a limited offer called “BNI Subordinated MTN I Year 2018” with a write down feature that can be calculated as a component of capital, which was registered at the Financial Services Authority supervision administration with an effective date of June 8, 2018 for a total principal amount of Rp100 billion. The issuance of the Subordinated MTN purpose was to fulfill OJK Regulation No. 14/POJK.03/2017 article 24 and article 37 concerning Recovery Plan, where systemic banks are required to have capital debt instruments no later than December 31, 2018. The BNI Subordinated MTN I Year 2018 was offered at a fixed interest rate of 8.00% p.a. for a period of 5 (five) years. Arrangers for the issuance of the Subordinated MTNs were BNI Sekuritas, Danareksa Sekuritas, and Mandiri Sekuritas. The Legal Consultant was Hanafiah Ponggawa & Partners. The notary was Ir. Nanette Cahyanie, SH. The Indonesian Central Securities Depository (KSEI) acted as the Paying Agent. In the framework of issuing this Subordinated MTN, the Company received a national ranking idAA (Double A) from PT Pemeringkat Efek Indonesia. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 137
  138. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Name of the Exchange Where the Company’s NCD is Listed All BNI’s NCDs have been listed on the Indonesia Stock Exchange BNI Bond Issuance Chronology Description Issued Date Effective Date Tenor Currency Number of Bonds Offer Price Maturity Date Loan Rates Payment Status Rating Interest Rate Trustee Payment Status Global Bond April 27, 2012 - 5 Years USD 500,000,000 98.89 April 27, 2017 4.125% p.a Lunas - BB (S&P) HSBC BNI Sustainable Bonds I Phase I Year 2017 July 11, 2017 June 22, 2017 5 Years IDR 3,000,000,0000 100.00 July 11, 2022 8.00% p.a Not Yet Paid idAAA (Pefindo) idAAA (Pefindo) BRI Tabel kronologi Medium Term Notes (MTN) Description Issued Date Effective Date Tenor Currency Value (million) Maturity Date Discount Rate Payment Status Ranking 2018 MTN Subordinated I BNI Year 2018 August 10, 2018 - 60 months Rp 100,000,000 August 10, 2023 8.00% Not Yet Paid idAA Trustees 2017 * PT Bank Rakyat Indonesia (Persero) Tbk. *Obligasi baru diterbitkan di tahun 2018. 138 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  139. Company Profile Bond Interest Payments Chronology The Global Bond has an annual interest of 4 .125% on the principal amount of the loan. This interest is paid by the Company every 6 (six) months with the maturity date of the bond interest payment falling on October 29, 2012. Global Bond Interest Payment Chronology Interest Number- Date of Interest Payment Interest Payment Status 1. October 29,2012 Paid Off 2. April 29, 2013 Paid Off 3. October 28, 2013 Paid Off 4. April 28, 2014 Paid Off 5. October 27, 2017 Paid Off 6. April 27, 2015 Paid Off 7. October 27, 2015 Paid Off 8. April 27, 2016 Paid Off 9. October 27, 2016 Paid Off 10. April 27, 2017 Paid Off BNI Bond Funds Usage Realization Results Type of Public Offering Effective Date in trillion Rupiah Result of Public Offering Value Amount of Public Offering Results BNI Sustainable Bonds phase I of 2017 June 22, 2017 PT Bank Negara Indonesia (Persero) Tbk  Rp3 Cost of Public Offering Rp 0.0074 Funds Usage Plan Net Ekspansi Kredit Total Rp 2,992 Rp 2,992 Rp 2,992 Realization of Funds Usage Credit Expansion Rp 2,992 Total Remaining Funds from Public Offering Rp 2,992 Adapting Quickly to Face Change - 139
  140. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk OTHER SECURITIES ISSUANCE AND/OR LISTING CHRONOLOGY In 2017, the Company issued a NCD for a maximum of Rp3 trillion with an issuance realization of Rp2.7 trillion, in several series. Arrangers for the issuance of the BNI NCD were Danareksa Sekuritas, BNI Sekuritas, Mandiri Sekuritas, and BCA Sekuritas. Legal Consultant used was Hanafiah Ponggawa & Partners. Notary used was Fathiah Helmi, SE. PT Kustodian Sentral Efek Indonesia (KSEI) acted as Paying Agent. The NCD issuance was a Company strategy to increase rupiah liquidity. After issuing this NCD, the Bank received a national ranking for Negotiable Certificates of Deposit (NCD) from PT Pemeringkat Efek Indonesia (PEFINDO): idAAA (Triple A). Stock Exchange the Company’s NCD is listed All BNI NCDs are listed on the Indonesia Stock Exchange BNI Other Securities Issuance Chronology Description Issued Date Effective Date Tenor Mata Uang Value (million) Maturity Date Discount Rate Payment Status Rating Trustee 2018 2017 NCD Phase I NCD Phase I Series A - 6 month Rp 390.000 December 16, 2016 7,00% Paid Off - - NCD Phase I Series B - 9 month Rp 20.000 March 16, 2017 7,20% Paid Off - - - 370 days Rp 42.000 June 23, 2017 7,55% Paid Off - - - 18 month Rp 415.000 December 15, 2017 7,75% Paid Off - - NCD Phase I Series E - 24 month Rp 1.231.000 June 15, 2018 8,25% Paid Off - - NCD Phase I Series F - 36 month Rp 925.000 June 14, 2019 8,40% Not Yet Paid Off - - - 370 days Rp 225.000 October 2, 2017 7,20% Paid Off - - - 18 month Rp 390,000 March 26, 2018 7,60% Paid Off - - - 7,90% Paid Off - - - NCD Phase I Series C NCD Phase I Series D June 16, 2016 - - NCD Phase II NCD Phase II Series A NCD Phase II Series B NCD Phase I I Series C September 27, 2016 NCD Phase II Series D - - 24 month Rp 770.000 September 26, 2018 - 36 month Rp 815.000 September 26, 2019 8,10% Not Yet Paid Off - - - - 370 days Rp 2.195.000 March 15, 2018 7,55% Paid Off - - - - 18 month Rp 350.000 September 3, 2018 7,90% Paid Off - - - - 24 month Rp 150.000 February 28, 2019 8,05% Not Yet Paid Off - - - - 36 month Rp 5.000 February 24, 2020 8,35% Not Yet Paid Off - - - NCD Phase III NCD Phase III Series A NCD Phase III Series B NCD Phase III Series C NCD Phase III Series D 140 March 10, 2017 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  141. Company Profile NAME AND ADDRESSES OF INSTITUTIONS AND /OR SUPPORTING PROFESSIONS TRADING AND STOCK LISTING INFORMATION PT Bursa Efek Indonesia Gedung Bursa Efek Indonesia, Tower 1 Jl. Jend. Sudirman Kav. 52-53 Jakarta 12190, Indonesia Tel : (62-21) 5150515 Fax : (62-21) 5154153 Website : www.idx.co.id Email : listing@idx.co.id PUBLIC ACCOUNTANT OFFICE Purwantono, Sungkoro & Surja Indonesia Stock Exchange Building Tower 2, 7th Floor Jl. Jend. Sudirman Kav. 52-53 Jakarta 12190, Indonesia Tel : (62-21) 52895000 Fax : (62-21) 52894100 Website: www.ey.com/id SECURITIES RATING AGENCIES Standard & Poor‘s 30 Cecil Street Prudential Tower 17th Floor Singapore 049712 Tel : (65) 6438 2881 Website : www.standardandpoors.com Moody‘s Singapore Pte Ltd 50 Raffles Place #23-06 Singapore Land Tower 048623 Tel : (65) 6398 8300 Fax : (65) 6398 8301 Website : www.moodys.com PT Fitch Ratings Indonesia Prudential Tower Lt. 20 Jl. Jenderal Sudirman Kav. 79 Jakarta Selatan 12910 Tel : (62-21) 5795 7755 Fax : (62-21) 5795 7750 Website : www.fitchratings.com SECURITIES ADMINISTRATION BUREAU PT Datindo Entrycom Jl. Hayam Wuruk No. 28, Jakarta 10120 Tel : (62-21) 3508077 Website: www.datindo.com Email: corporatesecretary@datindo.com CUSTODIAN PT Kustodian Sentral Efek Indonesia Gedung Bursa Efek Indonesia, Tower 1, Lantai 5 Jl. Jend. Sudirman Kav. 52-53 Jakarta 12190, Indonesia Tel : (62-21) 5152855 Fax : (62-21) 52991199 Website : www.ksei.co.id Email : helpdesk@ksei.co.id NOTARY Fathiah Helmi, S.H. Graha Irama Lantai 6-C Jl. HR Rasuna Said Kav 1-2 Bl X-1 Kuningan Timur, Setia Budi Jakarta 12950 Tel : (021) 529 07304, (021) 529 07305, (021) 529 07306 Fax : (021) 526 1136 Email : fhchozie@gmail.com PT Pemeringkat Efek Indonesia (Pefindo) Panin Tower - Senayan City, 17th Floor Jl.Asia Afrika Lot.19 Jakarta 10270, Indonesia Tel : (62-21) 7278 2380 Fax : (62-21) 7278 2370 Website : www.pefindo.com PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 141
  142. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk PENGHARGAAN DAN SERTIFIKASI Penghargaan 142 Award Name Rated 1 Digital Brand Wealth Management Conventional General Bank Event: Digital Brand Awards 2018 Organizer: Infobank & isentia Date April 25, 2018 Award Name Best e-Commerce 2017 Event: Card Center Manager Organizer: VISA Date September 19, 2018 Award Name Information & Communication Sector Event: IT Governance Award 2018 Organizer: Forum TI BUMN Date Desember 24, 2018 Award Name The 2018 Treasury & Cash Management NonFI in Indonesia Event: Global Finance Worlds Best Treasury and Cash Management Provider Awards 2018 Organizer: Global Finance Date January 22, 2018 Adapting Quickly to Face Change Award Name Best Millenial Segment Solution Event: MasterCard Awards Organizer: MasterCard Date December 7, 2018 Award Name Best Remittances Provider in Southeast Asia 2017 Event: Best Deal & Solution Award 2017 Organizer: Alpha Southest Asia Date February 13, 2018 PT Bank Negara Indonesia (Persero) Tbk
  143. Company Profile Award Name Corporate Strategic Partner (CSP) Event: Half Day Seminar 2018 Wealth Management Digitalization of Chance or Threat Organizer: Certified Wealth Managers’ Association (CWMA) Date April 5, 2018 Award Name Conventional General Bank Credit Card Event: 7th Digital Brand Awards 2018 Organizer: Infobank & isentia Date April 25, 2018 Award Name The Most Popular Bank for Mortgage Products Event: Rumah 123 Real Estate Awards 2018 Organizer: Rumah123.com Date April 26, 2018 Award Name Rated A for Learning & Development Strategy Event: HR Excellence Award 2018 Organizer: SWA & Universitas Indonesia Date May 7, 2018 Award Name Rated A for HR Transformation Event: HR Excellence Award 2018 Organizer: SWA & Universitas Indonesia Date May 7, 2018 Award Name Rated A for Compensation and Benefit Strategy Event: HR Excellence Award 2018 Organizer: SWA & Universitas Indonesia Date May 7, 2018 Award Name Rated 1 Satisfaction (ATM) Event: Satisfaction, Loyalty, Engagement Awards 2018 Organizer: Infobank dan Marketing Research lndonesia (MRI) Date May 17, 2018 Award Name Rated 1 Overall Event: Satisfaction, Loyalty, Engagement Awards 2018 Organizer: Infobank dan Marketing Research lndonesia (MRI) Date May 17, 2018 Award Name General Champion Porseni BUMN 2018 Event: Porseni BUMN 2018 Organizer: BUMN Date May 5, 2018 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 143
  144. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Award Name The Best Government Bank in Service Excellence Event: Banking Service Excellence Awards 2018 Organizer: Infobank dan Marketing Research lndonesia (MRI) Date June 5, 2018 144 Award Name Successfully Implementing Corporate Transformation Event: Anugerah Manajemen Indonesia 2018 Organizer: SWA & PPM Manajemen Date July 18, 2018 Award Name Top KPR (People’s Mortgage 2018 Event: Top Bank 2018 Organizer: Business News Date August 10, 2018 Award Name The Best Performance Bank Event: Bisnis Indonesia Financial Award 2018 Organizer: Bisnis Indonesia Date August 27, 2018 Award Name 1st Best Call Center Bank Umum Event: Banking Service Excellence Awards Organizer: Infobank dan PT Rintis Sejahtera Date August 30, 2018 Award Name 1st Best CRM (Cash Deposit Machine) Event: Banking Service Excellence Awards Organizer: Infobank dan PT Rintis Sejahtera Date August 30, 2018 Award Name 1st Best Transaction Growth as Acquirer Bank Event: Transaction Banking Awards 2018 Organizer: Infobank dan PT Rintis Sejahtera Date August 30, 2018 Award Name 1st Best Phone Banking General Bank Event: Banking Service Excellence Awards Organizer: Infobank dan PT Rintis Sejahtera Date August 30, 2018 Award Name 2nd Best Collecting Agent Event: 23rd Infobank Award Organizer: Infobank Date August 30, 2018 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  145. Company Profile Award Name The Remittance Product and Service of The Year Event : The Asian Banker Excellence in Retail Financial Service Awards Organizer: The Asian Banker International Date August 30, 2018 Award Name Best Bank SimPel/SimPel iB Implementation Event: FIN OJK EXPO 2018 Organizer: Otoritas Jasa Keuangan Date September 14 – 15, 2018 Award Name Bank Innovative SimPel Implementation Event: FIN OJK EXPO 2018 Organizer: Otoritas Jasa Keuangan Date September 14 – 15, 2018 Award Name Best ICT Implementation in Sales & Marketing Event: Indonesia Best eMark Award Organizer: Telkom University & SWA Date September 26, 2018 Award Name BNI Emerald Event: Service Quality Award 2018 Organizer: Service Excellence & Service Quality Monitoring Date October 17, 2018 Award Name Best Beneficiary Event: ATM Bersama Awards 2018 Organizer: Artajasa Date November 6-8, 2018 Award Name 2018 Best lll KUR Distribution Event: KUR Organizer: Kementerian Koordinator Bidang Perkekonomian Republic Indonesia Date November 22, 2018 Award Name Best MSME Support Bank (Bank BUKU 3 & 4) Event: BI Award Organizer: BI Date November 27, 2018 Award Name Peserta Sistem BI-RTGS dan BI-SSSS Terbaik Kelompok Bank BUKU 3 & 4 Event: BI Award Organizer: BI Date November 27, 201 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 145
  146. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Award Name Best Bank Offices for Managing Cash Deposits in All Indonesian Areas Included the Remote, Outermost, and Nearest Areas Event: BI Award Organizer: BI Date November 27, 201 Award Name Best Innovative Acquiring Event: MasterCard Awards Organizer: MasterCard Date December 7, 2018 146 Adapting Quickly to Face Change Award Name The Top 50 Companies for 2018 Event: Best of The Best Awards 2018 Organizer: Forbes Indonesia Date November 29, 2018 Award Name Best Affluent Debit Card Program Event: MasterCard Awards Organizer: MasterCard Date December 7, 2018 Award Name Best Affinity Debit Card Program Event: MasterCard Awards Organizer: MasterCard Date December 7, 2018 Award Name Most Creative Acquisition Campaign Event: MasterCard Awards Organizer: MasterCard Date December 7, 2018 PT Bank Negara Indonesia (Persero) Tbk
  147. Company Profile Award Name Best State Owned Enterprise Event : The 10th IICD Corporate Governance Conference and Award Organizer: AEI, Perbanas, PT Citra Negeri Amanah Date December 10, 2018 Award Name Top 50 Big Capitalization Public Listed Company Event: The 10th IICD Organizer: Indonesian Institute for Corporate Directorship (IICD) Date December 10, 2018 Award Name Best Service Cash Management Event: EUROMONEY Market Leader Real Estate 2018 Organizer: EUROMONEY Date December 28, 2018 Award Name Most Trusted Company Based on Corporate Governance Perception Index (CGPI) Event: Good Corporate Governance Award 2018 Organizer: SWA & IICG Date December 19, 2018 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 147
  148. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Sertifikasi Certification Name Quality Management Systems Organizer: SAI Global Date January 11, 2018 - January 10, 2021 Certification Name ISO 9001:2015 Provision of In House Learning and e-Learning/Digital Learning for BNI Employees Organizer: SGS Date March 9, 2017 – January 18, 2019 Certification Name Information Technology (IT Security Management) Organizer: SGS Date September 14, 2018 Certification Name SNI ISO 9001:2015 Satisfactory Surveillance Audits) Organizer: SGS Date November 5, 2018 148 Adapting Quickly to Face Change Certification Name Tier lll Design Organizer: Uptime Institute Certified Date September 2018 Certification Name Information Technology (IT) Operation Services Organizer: SGS Date 9 September 2018 – 26 September 2019 Certification Name SNI ISO 9001:2015 Banking Operations for Guarantee Letter, Real Time Gross Settlement (RTGS) & Remmittance Services Organizer: SGS Date November 5, 2018 - November 5, 2021 Certification Name Tier lll Facility Organizer: Uptime Institute Certified Date December 31, 2018 PT Bank Negara Indonesia (Persero) Tbk
  149. Company Profile NAMES AND ADDRESSES OF SUBSIDIARIES , ASSOCIATED ENTITIES, BRANCH OFFICES AND OVERSEAS REPRESENTATIVES AND REGIONAL OFFICES SUBSIDIARIES Subsidiary Office Subsidiary Office Address/Tel/Fax/Website PT Bank BNI Syariah Gedung Tempo Pavilion 1 Jl. HR. Rasuna Said Kav. 11 Kuningan, Jakarta 12950 Tel.: (021) 29701946 Fax.: (021) 29667935 Email: info@bnisyaria PT BNI Multifinance Gedung BNI Life Insurance Lantai 5 Jl. Aipda K.S. Tubun No. 67 Petamburan, Jakarta Pusat 10260 Hotline: (021) 290 22555 Fax. (021) 290 22146 www.bnimultifinance.co.id PT BNI Securities Sudirman Plaza Indofood Tower Lantai 16 Jl. Jend. Sudirman Kav. 76 - 78 Jakarta 12910 Tel./Call Center: (021) 2554 3946 Fax.: (021) 5793 5831 Email: bnisec@bnisecurities.co.id www.bnisecurities.co.id Address/Tel/Fax/Website PT BNI Life Insurance BNI Life Tower Lantai 21 The Landmark Center Jl. Jend. Sudirman No. 1 Jakarta 12910 Tel.: (021) 2953 9999 Fax.: (021) 2953 9998 www.bni-life.co.id Email: customer-care@bni-life.co.id Customer Care: (021) 5021 7626 SMS Center: 0811117626 BNI Remittance BNI Remittance Limited Flat/RM5 on GF, Nos 1-7 Keswick Street, Causeway Bay Hong Kong Tel.: +852 28908082 Fax.: +852 28908182 ASSOCIATED ENTITIES Associated Entity Office Address Tel/Fax/Website PT Sarana Bersama Pengembangan Indonesia (“SBPI”) Setiabudi 2 Building, Suite 502A, Jl HR Rasuna Said, Kav. 62 Kuningan, Jakarta, 12920 - PT Kustodian Sentral Efek Indonesia (“KSEI”) Gedung Bursa Efek Indonesia Tower 1, Lt.5 Jl. Jend. Sudirman Kav. 52-53, Jakarta, 12190 Telp : (62-21) 515 2855 Fax : (62-21) 5299 1199 Call Center : (62-21) 0800 186 5734 Website: www.ksei.co.id PT Pemeringkat Efek Indonesia Panin Tower - Senayan City, 17th Floor Jl. Asia Afrika Lot.19 Jakarta 10270, Indonesia Tel: (62-21) 7278 2380 Fax: (62-21) 7278 2370 Website: www.pefindo.com PT Bank Mizuho Indonesia Sinarmas Land Plaza Tower 2, Jl. M.H. Thamrin No.51, Jakarta Pusat 10350 Tel : (62-21) 3925222 Website : www.mizuhobank.co.id PT Bank Sumitomo Mitsui Indonesia Menara BTPN Lantai 35-37, Jalan Dr. Ide Anak Agung Gde Agung Kav. 5.5-5.6, Kuningan Timur Jakarta Selatan 12190 Tel : (62-21) 80862500 Website : www.smbc.co.id PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 149
  150. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk OVERSEAS BRANCH OFFICES, SUB BRANCH OFFICES, REPRESENTATIVES OFFICES AND REGIONAL OFFICES OVERSEAS BRANCH OFFICES Overseas Branch Office Address/Tel/Fax/Website Singapore Branch Office 39 Robinson Road #01-02, 02-02 and 06-01/04 Robinson Point Singapore 068911 Tel.: +65 6225 7755 Fax.: +65 6225 4757 Hong Kong Branch Office G/F Far East Finance Center, 16 Hartcourt Road Hong Kong Tel.: +852 25299871, 28618600 Fax.: +852 28656500 Tokyo Branch Office Kokusai Bld 1st Floor 3-1-1 Marunounchi Chiyoda-Ku Tokyo 100-0005, Japan Tel.: +81 3 3214 6565, 3214 5621 Fax.: +81 3 3212 6428, 3201 2633 London Branch Office 30 King Street, London EC2V 8AG Tel.: +44 (0) 20 7776 4646 Fax.: +44 (0) 20 7776 4699 New York Branch Office One Exchange Plaza 5th Floor Broadway New York NY. 10006 USA Tel.: +1 212 943 4750 +1 212 943 4760 Fax.: +1 212 344 5723 Seoul Branch Office 8th Floor Wise Tower,6-4, 5-ga Namdaemun-ro, Jung-gu Seoul Tel.: +82 2-6386-8046 OVERSEAS SUB BRANCH OFFICES Overseas Sub Branch Office Osaka Sub Branch Office Address/Tel/Fax/Website Nakanoshima Festival Tower 17th Floor 2-3-18 Nakanoshima Kita-ku Osaka 530-0005, Japan Tel.: +81 6470 83823 Fax.: +81 6470 83823 OVERSEAS REPRESENTATIVES OFFICES Overseas Representative Office Yangon Representative Office 150 Adapting Quickly to Face Change Address/Tel/Fax/Website BNI Yangon Office 3rd Floor Room #0303A Sakura Tower 339 Bogyoke Aung San Road Kyauktada Township – Myanmar PT Bank Negara Indonesia (Persero) Tbk
  151. Company Profile REGIONAL OFFICES Regional Office Address /Tel/Fax/Website Medan Regional Office Jl. Pemuda No. 12, Lantai 4 Medan 20151 Tel.: (061) 4567110, 4567002 Fax.: (061) 4567105, 4515754 Padang Regional Office Jl. Dobi No. 1, Lantai 3 Padang 25138 Tel.: (0751) 890005-08 Fax.: (0751) 890010-11 Palembang Regional Office Jl. Jend. Sudirman No. 132 Palembang 30126 Tel.: (0711) 361961-65, 321046 Fax.: (0711) 361966, 374160 Bandung Regional Office Jl. Perintis Kemerdekaan No. 3, Bandung 40117 Tel.:(022) 4240431-39, 4240534 Fax.:(022)4240432-4214926-4213107 Semarang Regional Office Jl. Letjen. MT. Haryono No. 16, Semarang 50122 Tel.: (024) 3556747, 3556746 Fax.: (024) 3547686, 3520636 Surabaya Regional Office Jl. Jend. A. Yani No. 286, Gedung Graha Pangeran Lt. 3-4, Surabaya 60292 Tel.: (031) 8292820 - 26 Fax.: (031) 8292805, 8292841 Makassar Regional Office Jl. Jend. Sudirman No. 1 Lt.3, Makassar 90115 Tel.:(0411)3620355-56,3621926 Fax.: (0411) 3619562, 3625395 Denpasar Regional Office Jl. Raya Puputan Renon No. 27 - Lantai 2, Renon Denpasar 82265 Tel.: (0361) 263304 - 08 Fax.: (0361) 227874, 263319 Banjarmasin Regional Office Jl. Lambung Mangkurat No. 30, Banjarmasin 70111 Tel.: (0511) 3353689, 3357063 Fax.: (0511) 3354409, 3357066 Jakarta Senayan Regional Office Jl. Jend. Gatot Subroto No. 55, Jakarta Pusat 10210 Tel.: (021) 2500025, 5706057 (Hunting) Fax.: (021) 2500033 Manado Regional Office Jl. Dotulolong Lasut No. 1 Manado 95122 Tel.: (0431) 868019, 862777 Fax.: (0431) 851852/865458 Jakarta Kota Regional Office Jl. Lada No. 1 - Jakarta 11110 Tel.: (021) 6901131- 2601090,2601148 Fax.: (021) 6901131, 6901182,2601165, 2601179 Jakarta BSD Regional Office Gedung BNI Kantor Wilayah Jakarta BSD, Lt.7 Kav. Sunburst Lot.1-5 Jl. Pahlawan Seribu Lengkong Gudang BSD City, Kota Tangerang Selatan, Banten. Tel.: (021) 80826860 Fax.: (021) 29514074 Jakarta Kemayoran Regional Office Jl. Lada No.1 Lt.2, Jakarta 11110 Tel.: (021) 2601177 Fax.: (021) 2601165 Papua Regional Office Jl. Kelapa II Entrop, Kota Jayapura, Papua 99224 Tel.: (0967) 5355311, 522354 Fax.: (0967) 533316 Yogyakarta Regional Office Jl. Trikora No.1, Yogyakarta 55122 Tel: (0274) 376287 Fax: (0274) 2872414 Malang Regional Office Jl. Jend. Basuki Rahmat No.75-77, Malang 65179 Tel: (0341) 3611945-47 Fax: (0341) 324565, 354767 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 151
  152. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk INFORMATION AVAILABLE ON THE WEBSITE Home About Us Services Contact Us Get Started In accordance with the OJK regulation No.8/POJK.04/2015 regarding the issuers or public company websites, BNI’s company website includes important information on shareholders, the company group structure, financial performance analysis, financial statements of the last 5 years and the profiles of the Board of Commissioners and Board of Directors. The information presented on the website is updated regularly. Home News, promotions, events and basic loan rates Personal Contains information on deposits, debit card loans, retirement savings, bancassurance Business Contains information on business, international and treasury banking Wealth Contains information on service products, promotions and BNI’s priority banking programs such as BNI Emerald 152 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  153. Company Profile Company Contains information About BNI : 1. Vision and Mission 2. Awards 3. Corporate Culture 4. Organizational Structure 5. Commissioners Structure 6. Directors Structure 7. Information of Secretary to the Board of Commissioners Governance 1. Guidelines and Policies 2. General Meeting of Shareholders (GMS) including : a. GMS notices b. GMS call c. GMS summary results and minutes 3. Information of Committees below the Board of Commissioners 4. Guidelines and Rules the Board of Commissioner, the Board of Director and Governance integrated. 5. Whistle Blowing Reporting System (WBS) 6. Code of Ethics 7. Articles of Association 8. Patriot Acts Certification and AML, Governance Report, and 9. The annual report the implementation of Good Corporate Governance and integrated governance. 3. 4. 5. 6. b. Dividend Policy c. Rating Report d. Analyst Coverage Stock Performance, including: a. Share Price b. Chronology of Share Listing c. Shareholder Structure Investor News and Calendar, including: a. Announcements to Investors b. Investor Calendar c. BNI Dividend Schedule and Announcement Investors and Related Institutions Contacts Corporate Social Responsibility, including: a. A description of the BNI Sharing Program, which consists of: Program Form and Scope b. BNI Go Green Program description c. Kampoeng BNI Program description, and d. KAMI Bersama BNI Program E-Banking Contains information on BNI ATMs, BNI SMS Banking, BNI Internet Banking, BNI Mobile Banking, BNI Phone Banking, O-Branch, Agent46, TapCash, Online Debit, UniQu, BNI Ipay and BNI Smartpay. Contact Contains information on Branch Locations, Global Network and BNI Contacts Information on Investor Relations: 1. Reports and Presentations including: a. Annual Report b. Sustainability Report c. DPLK BNI Report d. Consolidated Financial Statement (audited) e. Financial Statements Quarter f. Financial Statements Monthly g. PKBL Report h. Corporate Presentation 2. Corporate Financial Performance, including: a. Financial Highlights PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 153
  154. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk EDUCATION AND/OR TRAINING FOR THE BOARD OF COMMISSIONERS, BOARD OF DIRECTORS, COMMITTEES, CORPORATE SECRETARY, AND INTERNAL AUDIT UNIT BOARD OF COMMISSIONERS’ COMPETENCY DEVELOPMENT During 2018, BNI’s Board of Commissioners attended various competency improvement programs, such as training, workshops, conferences and seminars, as per the following table: Tabel Pengembangan Kompetensi Dewan Komisaris Name Ari Kuncoro President Commissioner / Independent Commissioner Competency Development / Training Material Time and Place Type of Training and Organizer 1st Roundtable on Southeast Asian Economic and Trade April 17, 2018 Washington DC Center for Strategic & Interntaional Studies (CSIS) CSIS Global Leaders Forum July 23, 2018 Washington DC Center for Strategic & Interntaional Studies (CSIS) Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018 Jakarta BNI Corporate University “Key Risk Management Challenges in 2018” September 27 – 28, 2018 Makassar Bankers Association for Risk Management (BARA) Wahyu Kuncoro Vice President Commissioner “Risk Management on Credit Process” November 6 – 7, 2018 Yogyakarta Peak Pratama Indonesia Revrisond Baswir Independent Commissioner "Executive Risk Management Refreshment Program" July 2 – 9, 2018 Dusseldorf, Frankfurt & Bern, Jerman Lembaga Pengembangan Perbankan Indonesia (LPPI) Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University "Executive Risk Management Refreshment Program" July 2 – 9, 2018 Dusseldorf, Frankfurt & Bern, Jerman Lembaga Pengembangan Perbankan Indonesia (LPPI) Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University Pataniari Siahaan Independent Commissioner Ahmad Fikri Assegaf Independent Commissioner Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University Sigit Widyawan Independent Commissioner Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University “Key Risk Management Challenges in 2018” September 27 – 28, 2018 Makassar Bankers Association for Risk Management (BARA) Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University “Key Risk Management Challenges in 2018” September 27 – 28, 2018 Makassar Bankers Association for Risk Management (BARA) Bistok Simbolon 154 Position Commissioner Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  155. Company Profile Name Joni Swastanto Marwanto Harjowiryono Position Competency Development / Training Material Commissioner Commissioner Time and Place Type of Training and Organizer Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University “Key Risk Management Challenges in 2018” September 27 – 28, 2018 Makassar Bankers Association for Risk Management (BARA) "Executive Risk Management Refreshment Program" July 2 – 9, 2018, Dusseldorf, Frankfurt & Bern, Jerman Lembaga Pengembangan Perbankan Indonesia (LPPI) “Key Risk Management Challenges in 2018” September 27 – 28, 2018 Makassar Bankers Association for Risk Management (BARA) BOARD OF DIRECTORS’ COMPETENCY DEVELOPMENT During 2018, BNI’s Board of Directors attended various competency improvement programs, such as training, workshops, conferences and seminars, as per the following table: Board of Directors’ Competency Development Name Achmad Baiquni Herry Sidharta Position President Director Vice President Director Competency Development/Training Material Time and Place Type of Training Organizer Opening Assesment KPKU January 29, 2018 Jakarta Meeting KPKU High Level International Conf New Growth Models in a Changing Global Landscape March 27, 2018 in Fairmont Jakarta Conference IMF Discovery and Dream workshop in the framework of preparing the BNI Corporate Plan 2019-2023 April 12, 2018 Jakarta Workshop Gedung BNI Kantor Pusat BNI dan MC Kinsey Discovery and Dream workshop in the framework of preparing the BNI Corporate Plan 2019-2023 April 30, 2018 Jakarta Workshop Gedung BNI Kantor Pusat BNI dan MC Kinsey Design Workshop in the framework of preparing the BNI Corporate Plan 2019-2023 May 21-22, 2018 Jakarta Workshop BNI & MC Kinsey Workshop Delivery in the framework of preparing the BNI Corporate Plan 2019-2023 June 06, 2018 Jakarta Workshop BNI Digital leadership forum August 07, 2018 Jakarta Workshop BNI Business Meeting BNI Semester II 2018 August 09-10, 2018 Jakarta Workshop BNI Speaker at the Pancasila entrepreneurship Festival August 13, 2018 Jakarta Meeting Universitas Pancasila Refreshment APU PPT August 30, 2018 Jakarta Refreshment BNI Level V Risk Management Certification Program September 24, 2018 Jakarta Refreshment BSMR Book launch and review “Turbulence in Indonesian Sport” November 15, 2018 Jakarta Meeting Kementerian Pemuda dan Olah Raga Corporate Governance Perception Index November 19, 2018 Jakarta Meeting BNI PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 155
  156. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Name Putrama Wahju Setyawan Catur Budi Harto Anggoro Eko Cahyo 156 Position Director of Corporate Business Director of Small Business & Network Director of Finance Competency Development/Training Material Time and Place Type of Training Organizer Book launch and review “Turbulence Sport in Indonesia” November 15, 2018 Jakarta Meeting Kementerian Pemuda dan Olah Raga Corporate Governance Perception Index November 19, 2018 Jakarta Meeting BNI Discovery and dream workshop in the framework of preparing the BNI corporate plan 2019-2023 Thursday April 12, 2018 Jakarta in BNI Building Head Office, 32 floor Workshop BNI dan MC Kinsey Update BSMR V April 12, 2018 Jakarta Risk Culture and Strategic Trend In Indonesian Banking BSMR Design Workshop in the framework of preparing the BNI corporate plan 2019-2023 June 6, 2018 Jakarta in BNI Head Office Workshop BNI REN Division Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018 Jakarta BNI Building Head Office 25 floor Sosialisasi BNI Divisi BNV National Startup Agritech Conference 2018 February 6, 2018 Jakarta Convention Hall ICE –BSD City Conference Himpunan Alumni IPB Talk Show Creative Santri Kreatif Preneure Indonesia March 6, 2018 Jakarta Bengkel Kreatif Hello Indonesia, Tangerang Forum Nahdatul Ulama (NU) Speaker: Refinement Training for Small Segments and KUR 2018 & Supervision of WBN Regional Office March 16, 2018 Bandung, Bandung Regional Office Forum Internal BNI Speaker: Small Segment Refreshment and Grain Absorption Program March 19, 2018, Surabaya, Surabaya Regional Office Forum Internal BNI Half Day Meeting CWMA 2018 April 5, 2018 Jakarta Meeting CWMA Speaker: Preparation Workshop for the Pilot Tea Plantation Development Plan April 9, 2018, Jakarta, Coordinating Ministry for Economic Affairs Workshop Coordinating Ministry for Economic Affairs Discovery and dream workshop in the framework of preparing the BNI corporate plan 2019-2023 April 12, 2018 Jakarta Workshop BNI and McKinsey Speaker: Opening of the HNS and HCS Workshop April 20, 2018, Bogor, Novotel Bogor Workshop Internal BNI FGD Digital Economy Challenges in Indonesia March 12, 2018, Jakarta, Coordinating Ministry for Economic Affairs, Jl. Medan Merdeka Barat No. 7 Meeting National Economic and Industrial Committee of the Republic of Indonesia Meeting “Optimizing Momentum, Strengthening Structure” Accompanied by the 2017 Indonesian Economic Report Book Launch Jakarta, March 28, 2018, Function Room, Gedung Thamrin Lantai 4 BI Meeting Bank Indonesia Meeting on Digital Economy Trends: Era of Electronic Transactions, Opportunities and Challenges dari Harian Bisnis Indonesia April 4, 2018, Jakarta, The Westin Hotel Kuningan Meeting Bisnis Indonesia As resource at Coffee Break with Joint Chiefs of Police regarding "Skimming" April 10, 2018, Jakarta, Gedung Promoter Polda Metro Jaya Meeting Kapolda Metro Jaya Discovery and dream workshop in the framework of preparing the BNI corporate plan 2019-2023 Thursday April 12, 2018 Cakrawala Room 32 Floor Workshop BNI As resource at the "Building a New Era of Indonesian Payment Systems" Event April 25, 2018, Jakarta, Grand Hyatt Hotel Meeting Artajasa Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  157. Company Profile Name Rico Rizal Budidarmo Adi Sulistyowati Bob Tyasika Ananta Position Director of Treasury and International Director of Institutional Relations Director of Risk Management Competency Development /Training Material Time and Place Type of Training Organizer Conference JP Morgan ASIA January 11-12, 2018 Singapore Conference JP Morgan Daiwa Investment Conference Tokyo 2018 March 7 9, 2018 Tokyo Conference Daiwa Workshop Design Corporate Plan 2018 with McKinsey April 12, 2018, BNI Head Office Jakarta Workshop BNI and McKinsey Discovery and dream workshop in the framework of preparing the BNI corporate plan 2019-2023 April 12, 2018 Jakarta Workshop BNI REN Division _ MC Kinsey CSIS-BNI Roundtable on U.S Southeast Asia Financial and investment Relations April 17, 2018 Washington DC Conference CSIS High Level Discussion Forum CSIS-BNI July 23, 2018 Washington DC Conference CSIS Business Meeting Semester II 2018 August 9-10, 2018, Gedung BNI Pejompongan Jakarta Meeting REN Division Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, BNI Head Office Jakarta Workshop PPATK Digital Leadership Forum September 7, 2018, BNI Head Office Jakarta Workshop BNI Certification Training Treasury Level Advance September 8, 2018, Hotel Pulman Jakarta Training Lembaga Sertifikasi Profesi Perbankan Indonesia Economy and Investment Outlook 2019 December 12, 2018 Hongkong Workshop INT Division & Bisnis Indonesia As resource at the Development of Transmigration Areas at the Ministry of Villages January 30, 2018 Jakarta Meeting Ministry of Villages FGD Implementation of superior products in rural areas with the Ministry of Villages partnership pattern January 31. 2018 Jakarta FGD Ministry of Villages SPAN Socialization with TNI AU January 31, 2018 Jakarta Meeting TNI AU As resource at the Ministry of Education and Culture Natonal Meeting March 14, 2018 Jakarta Meeting Ministry of Education and Culture SPAN Socialization with Ministry of Defence March 7, 2018 Jakarta Meeting Ministry of Defence Discovery and dream workshop in the framework of preparing the BNI corporate plan 2019-2023 April 12, 2018 Jakarta Workshop BNI and McKinsey National Employment Meeting April 25, 2018 Jakarta Meeting Ministry of Social Affairs KEIN Meets The CEO "Managing Economic Potential 2018" January 17, 2018 Jakarta Meeting KEIN KPKU BUMN Executive Briefing "Socialization of Indonesian Payment System Association Provisions (KASPI)" January 24, 2018 Jakarta Meeting Ministry of SOEs Panel Discussion & Book Launch Bpk Aswin Wirjadi "Game Changing" January 26, 2018 Jakarta Workshop Aswin Wirjadi Meeting Indonesia Outlook 2018 February 6, 2018 Jakarta Meeting Indonesia Outlook Banking Industry Financial Prospects & Digital Challenges by Bpk Agus DW Martowardjojo February 21, 2018 Jakarta Meeting PERBANAS PERBANAS PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 157
  158. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Name 158 Position Competency Development/Training Material Time and Place Type of Training Organizer ASEAN Financial Innovation Network March 7, 2018 Jakarta Workshop ASEAN Financial Innovation International Leadership Meeting "Transformational Leadership in the Next Era: Issues, Challenges, and Strategy" March 8, 2018 Bali Meeting - Bank Indonesia Bank Indonesia Business Forum: Corporate Financing through Purchasing Corporate Bonds March 19, 2018 Jakarta Meeting Business Forum 2018 Retail Banking Forum March 21, 2018 Jakarta Meeting Retail Banking Forum Meeting Virtual Currency: What and how is the risk for the wider community March 26, 2018 Jakarta ISEI - Meeting ISEI The Power of Collaboration Koran SINDO March 27, 2018 Jakarta SINDO Meeting SINDO Discovery and dream workshop in the framework of preparing the BNI corporate plan 2019-2023 April 12, 2018 Jakarta Workshop BNI and McKinsey Annual Bankers Gathering May 15, 2018, Pacific Place Jakarta Workshop PERBANAS Book Launch and Discussion Financial stability - Challenges in financial system stability amid global and domestic developments May 18, 2018, Bank Indonesia Jakarta Meeting Governor BI PWC Survey : Digital Banking in Indonesia 2018 July 10, 2018, The Westin Jakarta Meeting PwC The Indonesia Green Finance Roundtable "The Role of Government Facilities & Innovative Finance Instruments" July 23, 2018, Sahid Sudirman Center Jakarta International Meeting SMI Workshop Early Warning System Konglomerasi Keuangan July 27, 2018 Jakarta Workshop OJK BARa Risk Forum August 1, 2018, Mandiri Club Jakarta Meeting BARa The 3rd Asia Pasific Research in Social Science and Humanities (APRiSH) Convention & Innovation in Disruption Era August 15, 2018, JS Luwansa Jakarta International Meeting UI Meeting Refreshment APU PPT August 30, 2018, BNI Head Office Jakarta Meeting PPATK BNI Talk "Banking On The Millenial Perspective" September 4, 2018, BNI Head Office Jakarta Workshop BNI Program SESPIBANK Overview Bank Strategic Management September 13, 2018, LPPI Kemang Jakarta Meeting LPPI Assessor Refreshment Test September 27 28, 2018 LSPP Fatmawati Jakarta Refresher LSPP Meeting FGD "Assessing Potential Financing Scheme of PV Solar Rooftop Installation in Housing and Commercial Buildings" October 10, 2018, Double Tree Hilton Hotel Jakarta Meeting Ministry of Energy and Mineral Resources Business Forum: Outlook Indonesian Economy in Political Year 2019 Jakarta, October 24, 2018, BNI Head Office Workshop BNI REN Division Public Discussion Meeting Financial System Policy Response to Recent Economic Developments November 1, 2018, Gedung Juanda – Aula Jakarta Meeting Ministry of Finance Meeting Indonesian Risk Management Outlook 2019 Achieving High Performance Amid political Risk November 6, 2018, Pullman Hotel Jakarta Meeting LPPI Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  159. Company Profile Name Endang Hidayatullah Position Director of Compliance Competency Development /Training Material Time and Place Type of Training Organizer IAEI Meeting "Building the Economy through Islamic Banking Inclusion" November 15, 2018, IAIN Sultan Amai Gorontalo Gorontalo Meeting IAEI Meeting SGDs in the Industry 4.0 Era December 7, 2018, Bappenas / PPN Ministry Jakarta Meeting Bappenas / PPN Ministry Economic OMeeting utlook 2019 - Banking Business in the Digital Age: Risk and Mitigation December 10, 2018, Plaza Mandiri Jakarta Meeting IBI BSMR Level 5 March 30, 2018 Jakarta Sertification BSMR Workshop Discovery & Dream Corporate Plan BNI 2018 April 12, 2018 Jakarta Workshop BNI and McKinsey Meeting "The Active Role of Banking Compliance Safeguard Stability through Prevention of Terrorism Funding" June 26, 2018, Hotel Fairmont Jakarta Meeting Banking Compliance Director Communication Forum Workshop " Legal Issues related to the development of digital economy in Indonesia" July 24, 2018, Hotel Bidakara Jakarta Workshop Business and Bankruptcy Law Forum Training FKDKP 2nd generation 2018 August 1-2, 2018, Hotel Aston Makassar Training Banking Compliance Director Communication Forum Business Meeting Semester II 2018 August 9-10, 2018, BNI Pejompongan Jakarta Business Meeting BNI REN Division Rakerda Serikat Pekerta DPD WJY with the theme How to be a great leader August 25, 2018 Bogor Working Meeting SP BNI Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018 Jakarta Meeting BNI BNV Division National Convention Workshop Draft Indonesian National Work Competency Standards (RSKKNI) for General Banking September 26, 2018, Hotel Pullman Central Park Jakarta Workshop OJK Socialization of Achievements and Direction of Implementation for the Financial Conglomerate’s Integrated Regulatory and Oversight Functions November 15, 2018, Hotel JS Luwansa Jakarta Socialization OJK Sharing Session with the theme Digital Leadership in Millennial Era November, 22 23, 2018, Hotel The Rinra Makassar Sharing Session Forum Human Capital Indonesia (FHCI) Sharing session with the theme Driving Business Agility in Discruptive Era November 29, 2018, Ballroom Grha BNI Lt. 25 Jakarta Sharing Session Prasetiya Mulya Executive Learning Institute KPK Coordination Meeting with Banking, Insurance and KSEI Partners November 29, 2018 Jakarta Working Meeting KPK International Business Integrity Confrence (IBIC) 2018 December 4-5, 2018 Jakarta Converence KPK Awards Presentation Bringing About CG Changes: Opportunitites and Challenges for Directors December 10, 2018, Hotel Le Meridien Jakarta Award Event Indonesian Institute for Corporate Directorship (IICD) PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 159
  160. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Name Tambok P. Setyawati Dadang Setiabudi 160 Position Director of Retail Business Director of Information Technology & Operational Competency Development/Training Material Time and Place Type of Training Organizer Refresher BSMR April 2, 2018 Jakarta Refresher LSPP Workshop Discovery and Dream Corporate Plan BNI 2018 April 12, 2018 Jakarta Workshop BNI and McKinsey Workshop HNS and HCR 2018 April 19, 2018 Bogor Workshop BNI Business Forum Food and Beverage Industry in the framework of 4.0 Industrial Revolution May 2, 2018 Jakarta Workshop BNI Workshop Transactional Banking Solutions 2018 May 28, 2018 Jakarta Workshop Tourism Business Forum July 25, 2018 Jakarta Workshop BNI Business Meeting BNI Semester II 2018 August 9-10, 2018 Jakarta Workshop BNI Refresher APU PPT August 30, 2018 Jakarta Refresher BNI The Thousand National Indonesian Women's Organizations and ICW Congress September 14, 2018 Yogyakarta Workshop Ministry of SOEs Cyber security and Banking Technology from the User and IT Perspective September 26, 2018 Jakarta Workshop BNI and JP Morgan Media Workshop: Special Card Product Programs and Innovations IMF – WB Annual Meeting 2018 October 4, 2018 Jakarta Workshop BNI Grand Launch of CNBC Indonesia and CEO Summit October 10, 2018 Bali Workshop BNI Financial Institutions Expo (Fin Expo) October 27, 2018 Jakarta Workshop Bank Indonesia Meeting: Payment Gateway October 31, 2018 Jakarta Meeting BI Workshop Road Map Retail Banking Sector until 2023 November 2, 2018 Jakarta Workshop BNI Workshop BSL Division November 10, 2018 Jakarta Workshop BNI Knowledge Sharing: IT Strategic Plan (ITSP) BNI November 14, 2018 Jakarta Workshop BNI Consumer Sales Workshop SLN Division 2019 November 28, 2018 Jakarta Workshop BNI Sharing Session with Prasetiya Mulya Executive Learning Institute: Bpk. Ruben Saragih, MM., MA. November 29, 2018 Jakarta Workshop BNI REI National Working Meeting 2018 December, 2018 Bali Workshop Real Estate Indonesia Retail Banking Sector Workshop 2018 December 7-8, 2018 Jakarta Workshop BNI As a Resource Universitas Padjajaran golden accounting birthday with the theme "disruptive technology and innovation February 2, 2018 BANDUNG Aula Graha Sanusi Unpad Bandung UNPAD UNPAD Level 5 Risk Management Certification Body February 17, 2018 Jakarta GARP BSMR Exclusive Invitation to plug and play fintech dan insurtech March 5 -6, 2018 Singapore PlUG And PLAY PlUG And PLAY Award from iCiO " THE MOST INNOVATIVE CIO 2018" March 7, 2018 The Ritz Carlton Pasific Place Jakarta iCiO Award 2018 iCiO Pertamina Digital Expo January 25-27, 2018, Pertamina Office Jakarta Meeting Pertamina Discovery and dream workshop in the framework of preparing the BNI corporate plan 2019-2023 April 12, 2018 Jakarta Workshop BNI and McKinsey EXPO 2.0 April, 2018, Djakarta Theatre XXI Ballroom Jakarta PlUG And PLAY PlUG And PLAY Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  161. Company Profile Name Position Competency Development /Training Material Time and Place Type of Training Organizer Blockchain The Next Digital Revolution in Every Industry March 7, 2018 The Ritz Carlton Jakarta Pasific Place Jakarta CTI SUMMIT 2018 CTI As a Resource Infobank Digital Leadership Forum Digital Mastery for Business Leader Tranformation in Disruption Era May 8, 2018, Hotel Grand Sahid Jaya Meeting Infobank Sharing Session with LKPP Utilization of marketing opportunities for SOE products through E-Catalog May 16, 2018 Jakarta Sharing Session KBUMN Receiving award Raked I in the category E-Banking at the banking services excellence award 2018 event June 5, 2018, Hotel Shangrilla, Jakarta Awards Infobank Irving Fisher Committee Internasional Meeting on Big Data July 26, 2018, Nusa Dua Bali Meeting Bank Indonesia Refresher APU Oleh PPATK August 30, 2018 Jakarta Socialization BNI FGD Operational Back Office strengthening back office, operational risk awareness and future challenges September 7, 2018, Hotel Pullman Jakarta FGD BI Digitization in the Business Era September 14, Ballroom Bidakara Grand Savoy Bandung Meeting UNPAD Indonesian Banking Award (Rated 1 the best digital banking services) September 26, 2018, Hotel JS Luwansa Kuningan Tempo Group Jakarta Banking Awards Tempo Group Annual Meeting 2018 IMF World Bank Group October 2018 Bali Annual Meeting IMF EXPO October 16, 2018, Soehanna Hall The Energy Building Jakarta PlUG And PLAY PlUG And PLAY F5 Networks International Technology Center Seattle October 19-20, 2018 Seattle USA Meeting F5 Oracle Open World October 22-26, 2018 San Fransisco Annual Convention Oracle Joint communication plan for developing report integration November 1, 2018 Jakarta Meeting BI Speaker at IBEX 2018 November 15, 2018, Hotel Fairmont Senayan Jakarta Meeting PERBANAS OJK 7th National Meeting November 13, 2018 Jakarta Meeting OJK PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 161
  162. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk SENIOR EXECUTIVE VICE PRESIDENT COMPETENCY DEVELOPMENT During 2018, members of Executive Vice Preseident attended various competency improvement programs, such as training, workshops, conferences and seminars, as per the following table: Name Yuddy Renaldi Ronny Venir 162 Position SEVP Remedial & Recovery SEVP Commercial Banking Adapting Quickly to Face Change Competency Development / Training Material Time and Place Type of Training Organizer BSMR Level 5 February 17, 2018 Jakarta Certification BSMR Sharing Session THEME: "Indonesia Post Commodity Bonanza and Its Implications in the Banking Sector" May 18, 2018 Jakarta Workshop BNI Sharing Session & Competency Improvement in Facing Legal Problems May 28, 2018 Jakarta Workshop BNI University Workshop "Anti Money Laundering Refreshment" August 30, 2018 Jakarta Workshop BNI Workshop Cyber Security & Banking Technology September 26, 2018 Jakarta Workshop BNI Discovery and Dream Workshop in the Context of BNI's 2019-2023 Corporate Plan Preparation April 12, 2018 Jakarta Workshop Gedung BNI Kantor Pusat BNI Head Office Building Providing guidance on "Profitability Optimization Through Portfolio Management and Risk Awareness", To Business Management Group Leaders & Credit Risk Managers " May 7, 2018 Jakarta Workshop BNI Briefing on Transactional Banking Solutions Workshop 2018 May 28, 2018 Jakarta Workshop BNI Workshop "Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector" August 30, 2018 Jakarta Workshop BNI University DDI 2018 Refreshment Assessment September 5, 2018 Jakarta Refreshment PT DDI Examiner in the SVP and VP Brevet Credit Comprehensive Exams October 3, 2018 Jakarta Speaker at the WJK SP DPD Leadership Development Program October 13, 2018 Jakarta Workshop BNI Speaker at the Shipping Industry Training event for the Middle Credit Center (SKM). November 24, 2018 Batam Workshop BNI BNI PT Bank Negara Indonesia (Persero) Tbk
  163. Company Profile AUDIT COMMITTEE COMPETENCY DEVELOPMENT During 2018 , members of the Audit Committee attended various competency improvement programs, such as training, workshops, conferences and seminars, as per the following table: Audit Committee Competency Development Name Position Pataniari Siahaan Competency Development / Training Material Chairman Time and Place Type of Training and Organizer "Executive Risk Management Refreshment Program" July 2 – 9, 2018, Dusseldorf, Frankfurt & Bern, Jerman Lembaga Pengembangan Perbankan Indonesia (LPPI) Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University August 30, 2018, Jakarta BNI Corporate University Ahmad Fikri Assegaf Member Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” Donnaria Silalahi Member - - - Lungguk Gultom* Member - - - *) has served as a Member of the Audit Committee since January 2, 2018 NOMINATION AND REMUNERATION COMMITTEE COMPETENCY DEVELOPMENT During 2018, members of the Nomination and Remuneration Committee attended various competency improvement programs, such as training, workshops, conferences and seminars, as per the following table: Nomination and Remuneration Committee Competency Development Name Position Period Ari Kuncoro Chairman September 13 December 31, 2018 Competency / Training Development Material Time and Place Type of Training and Organizer 1st Roundtable on Southeast Asian Economic and Trade April 17, 2018 Washington DC Center for Strategic & Interntaional Studies (CSIS) CSIS Global Leaders Forum July 23, 2018 Washington DC Center for Strategic & Interntaional Studies (CSIS) Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University “Key Risk Management Challenges in 2018” September 27 – 28, 2018 Makassar Bankers Association for Risk Management (BARA) Wahyu Kuncoro Member September 13 December 31, 2018 “Risk Management on Credit Process” November 6 – 7, 2018 Yogyakarta Peak Pratama Indonesia Revrisond Baswir Member September 13 December 31, 2018 "Executive Risk Management Refreshment Program" July 2 – 9, 2018 Dusseldorf, Frankfurt & Bern, Jerman Lembaga Pengembangan Perbankan Indonesia (LPPI) Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University "Executive Risk Management Refreshment Program" July 2 – 9, 2018 Dusseldorf, Frankfurt & Bern, Jerman Lembaga Pengembangan Perbankan Indonesia (LPPI) Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University Pataniari Siahaan Member 13 September - 31 Desember 2018 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 163
  164. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Name Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Sigit Widyawan Position Member Member Member Member Period Competency / Training Development Material September 13 December 31, 2018 September 13 December 31, 2018 September 13 December 31, 2018 September 13 December 31, 2018 Time and Place Type of Training and Organizer Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University “Key Risk Management Challenges in 2018” September 27 – 28, 2018, Makassar Bankers Association for Risk Management (BARA) Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University “Key Risk Management Challenges in 2018” September 27 – 28, 2018, Makassar Bankers Association for Risk Management (BARA) "Executive Risk Management Refreshment Program" July 2 – 9, 2018 Dusseldorf, Frankfurt & Bern, Jerman Lembaga Pengembangan Perbankan Indonesia (LPPI) “Key Risk Management Challenges in 2018” September 27 – 28, 2018, Makassar Bankers Association for Risk Management (BARA) Compliance Forum: “Anti Pencucian Uang dan Pencegahan Pendanaan Terorisme di Sektor Jasa Keuangan” August 30, 2018, Jakarta BNI Corporate University “Key Risk Management Challenges in 2018” September 27 – 28, 2018 Makassar Bankers Association for Risk Management (BARA) Reny Wiriandhani Anggota September 13 December 31, 2018 - - - Efita Praharani Anggota September 13 December 31, 2018 Pengetahuan Dasar di Bidang Dana Pensiun October 26, 2018 Jakarta Lembaga Sertifikasi Profesi Dana Pensiun RISK MONITORING COMMITTEE COMPETENCY DEVELOPMENT During 2018, members of the Risk Monitoring Committee attended various competency improvement programs, such as training, workshops, conferences and seminars, as per the following table: Risk Monitoring Committee Competency Development Name Revrisond Baswir Bistok Simbolon Joni Swastanto 164 Position Chairman Member Member Adapting Quickly to Face Change Period January 1, December 31, 2018 1 Januari – 31 December 2018 Competency / Training Development Material Time and Place Type of Training and Organizer “Executive Risk Management Refreshment Program” July 2 – 9, 2018 Dusseldorf, Frankfurt & Bern, Jerman Lembaga Pengembangan Perbankan Indonesia (LPPI) Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University “Key Risk Management Challenges in 2018” September 27 28, 2018, Makassar Bankers Association for Risk Management (BARA) Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University “Key Risk Management Challenges in 2018” September 27 28, 2018, Makassar Bankers Association for Risk Management (BARA) PT Bank Negara Indonesia (Persero) Tbk
  165. Company Profile Name Position Period Competency / Training Development Material Time and Place Type of Training and Organizer Irwan Rinaldi Member 1 Januari – 31 Desember 2018 - - - Kartika Siwi Member Desember 2018 - - - INTEGRATED GOVERNANCE COMMITTEE COMPETENCY DEVELOPMENT During 2018, members of the Integrated Governance Committee attended various competency improvement programs, such as training, workshops, conferences and seminars, as per the following table: Integrated Governance Committee Competency Development Name Revrisond Baswir Joni Swastanto Position Chairman Member Period January 1 December 31, 2018 January 1 December 31, 2018 Competency / Training Development Material Time and Place Type of Training and Organizer “Executive Risk Management July 2 – 9, 2018 Dusseldorf, Frankfurt & Bern, Jerman Lembaga Pengembangan Perbankan Indonesia (LPPI) Refreshment Program” August 30, 2018, Jakarta BNI Corporate University Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University “Key Risk Management Challenges in 2018” September 27 – 28, 2018, Makassar Bankers Association for Risk Management (BARA) Krisna Wijaya Member Januari 1 - June 26, 2018 - - - Parikesit Suprapto Member December 13 –31 2018 Banking Risk Management Level 2 May 15, 2018, Jakarta Sertifikasi - Lembaga Sertifikasi Profesi Perbankan Risk Control Self Assesment in Insurance Industry & Key Risk Indicators November 29, 2018, Jakarta Sekolah Tinggi Manajamen Asuransi Trisakti (LPMA – STPA Trisakti) Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University A Half Day Training “Risk Management” November 29, 2018, Jakarta Lembaga Pengembangan Manajemen Asuransi Sekolah Tinggi Manajamen Asuransi Trisakti (LPMA – STMA TRISAKTI) Workshop Pra-Ijtima’ (Annual Meeting) Syariah Supervisory Board Islamic Financial Institutions 2018 Insurance and Sharia Pension Funds October 4, 2018, Jakarta Dewan Syariah Nasional Majelis Ulama Indonesia January 1 December 31, 2018 Traing Refreshment Risk Management April 7, 2018, Jakarta BSMR Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University January 1 December 31, 2018 - - - Utang Ranuwijaya Rizqullah Hasanuddin Member Member Member January 1 December 31, 2018 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 165
  166. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Name Rosa Lima Dwi Mutiari Eddy Siswanto Suhendry Hafni Setyowati Position Member Member Member Anggota Period January 1 December 31, 2018 January 1 December 31, 2018 December 13 –31 2018 1 Januari – 31 Desember 2018 Competency / Training Development Material Time and Place Type of Training and Organizer Nasional Seminar "Banking Financing Companies" May 8, 2018, Jakarta APPI & OJK National Seminar "Financing Industry in the Capital Market" June 26, 2018, Jakarta APPI dan OJK Financing Company Risk Management Sertification December 11, 2018, Jakarta BSMR Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University New Paradigm in Infrastructure Financing (the 2018 IMF-World Bank Annual Meetings) October 9, 2018, Tanjung Benoa, Bali IMF dan Kementerian Keuangan RI. Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University Compliance Forum: “Anti Money Laundering and Prevention of Terrorism Funding in the Financial Services Sector” August 30, 2018, Jakarta BNI Corporate University Workshop Assesor (Update Tool Assesment Process) November 2, 2018, Jakarta Lembaga Sertifikasi Profesi Perbankan (LSPP) - - - CORPORATE SECRETARY COMMITTEE COMPETENCY DEVELOPMENT During 2018, the Corporate Secretary did not attend external training. However, Corporate Secretary attended seminars as a resource person at the following: 1. West Java Province Regional Financial Stability Discussion Forum on November 15, 2018, held by Bank Indonesia in Jakarta, 2. Intelligence Analysis on the Effects of National Economic Development on National Security, on December 12, 2018 in West Java organized by the Indonesian National Army (TNI). 166 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  167. Company Profile INTERNAL CONTROL UNIT COMPETENCY DEVELOPMENT During 2018 , BNI’s Internal Control Unit attended various competency improvement programs, such as training, workshops, conferences and seminars, as per the following table: Internal Control Unit Competency Development Competency Development / Training Material Auditor Refresher (concerning Internal Audit and BNI’s business / organization development) Place January and March 2018 Training Internal Control COSO January 2018 Training Design Thinking January 2018 Training Report Writing January 2018 Training Improving Self Confidence March 2018 Seminar “Quo Vadis BUMN” by the Ministry of SOEs April 2018 Seminar "Leadership as a Role Model for Culture Building and the Fraud System” July 2018 Workshop "Anticipating OTT in Corruption Crime" July 2018 National Conference III - 2018: "The Role of Internal Auditors in Improving Governance, Risk and Control in a Disruptive Era" August 2018 Sharing Vision CITPE (Certified IT Procurement Expert) August 2018 Workshop "Investigative Interview Skills" August 2018 National Conference II - 2018 at The Trans Resort Bali: "Nurturing Agile Internal Auditors in Disruptive Times" August 2018 Workshop "Effective Fraud Mitigation" August 2018 Workshop "Affect on the The Procurement of Goods / Services Audit Related to the Rising Number of Irregularities in the Procurement Process" August 2018 Workshop "Fraud Prevention and Detection: Forensic Data Analytics Approach" October 2018 Workshop "Urgency and Application of Financial Audit and Tax Examinations in the BUMN and BUMD Environment" October 2018 National Conference X IAIB - 2018: "Fostering an Innovative Internal Auditing as a Key Element in Innovative Banking" November 2018 Workshop "Mobile Forensic Investigation Course" November 2018 CITPE Training and Certification (Certified IT Procurement Expert) November 2018 IT Governance, Risk Management, Assurance & Cyber Security Summit November 2018 Audit Training Digital Banking, Future of Internal Audit in Digital Era, Workshop December 2018 Sharing Session “Driving Business Agility in the Disruptive Era” December 2018 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 167
  168. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Management Discussion And Analysis 170 ECONOMIC AND INDUSTRY REVIEW 174 OPERATIONAL REVIEW 232 FINANCIAL REVIEW 293TAX 296 TRANSFER PRICING DOCUMENT 299 FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA) 301 OTHER MATERIAL INFORMATION 168 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  169. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 169
  170. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk ECONOMIC AND INDUSTRY REVIEW In the middle of an Indonesian economic situation that did not change significantly in 2018, coupled with the increasingly depressed Rupiah against the US Dollar, BNI again proved its consistency and continued to make a positive contribution to the country. Net profit rose by 10.3% compared to 2017, mainly due an increase in income including interest and sharia income, both of which are the main driving forces of our banking operations. 170 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  171. Analisis & Pembahasan Manajemen PEREKONOMIAN GLOBAL The continuing conditions in the United States (US) remain a major concern. The trade war intensity between the United States and China not only caused tensions between the two countries directly, but also affected the trading partners of the United States and China. The trade war began when US President Donald Trump expressed his desire to impose tariffs on Chinese goods exported to the US. The tariffs reached more than US$500 billion covering 1,300 categories of imported goods including shipping parts, batteries, flat screen televisions, medical, satellite and military equipment. In return, China will also impose tariffs on US products including aluminum, airplanes, cars, pork products and soybeans1. The number and types of goods subject to tariffs continues to change as negotiations are continuing between both countries, so that the trade war does not expand. The US is arguing that that they are doing this to reduce its trade balance deficit in an effort to bolster the US economy. During 2018, the US central bank Federal Reserve interest rate policy caught the world’s attention. The Fed raised the benchmark interest rate 4 (four) times, each by 25 bps (basis points), so that it currently stands at 2.50% 2. The increases took place in March, June, September and December 2018 following US inflation increasing above 2%, and the unemployment rate reaching 3.9% 3. The US unemployment rate in 2018 touched its lowest in 49 years when it reached 3.7% in October 20184. Lower unemployment increased disposable income and US spending, which in turn triggered US inflation. During 2018 it was consistently above 2%, and in June and July 2018 reached its highest level of 2.9% 5 due mainly to the improving public spending capabilities. Inflation stagnated towards the end of the year due to a decline in energy prices and this was considered not too worrying. Employment absorption was trending higher and helped push down the unemployment rate. As a country whose growth depends on public consumption, a low unemployment rate will further encourage the momentum for economic growth. The US economy in 2018 increased each quarter, reaching 2.6% (YoY) in Q1, rising to 2.9% (YoY) in Q2, then 3% (YoY) in Q36 , and finished the year at 3.1% (yoy). This increase was supported by the public purchasing power improvement and the large-scale infrastructure development policies of President Trump. To encourage development, President Trump plans to issue more US Treasury to finance development, which will add to their attractiveness, and encourage investors to buy the US Treasuries as a minimal risk investment instrument. In the European region, the Eurozone (EZ) economy’s improvement, marked by improving inflation, pushed the European Central Bank to reduce its stimulus to buy securities. The amount of bond purchases, originally valued at € 30 billion per month, was reduced to € 15 billion per month in June 2018 and will be terminated at the end of December 20187. The bond purchase scheme has lasted for a decade since the European debt crisis occurred in 2010. This decision on termination does not necessarily mean an acceleration of the monetary tightening policy as PT Bank Negara Indonesia (Persero) Tbk  happened in the US. The economic & political conditions of the European Zone are more unique, with some EZ members having their own problems. Dramatic power struggles in Italy between the populist camp and pro-European Union (EU) lawmakers have resulted in the failure of the new coalition government. This raises concerns over the Italian economy, considering that the country has the third largest economy in Europe. 36% of Italy’s debt is owned by foreign investors and is equivalent to 135% of Italy’s Gross Domestic Product (GDP) or €2.3 trillion8. Developments in France also contributed negatively with demonstrations against rising fuel prices, higher taxes and cost of living becoming serious problems. The cost of diesel fuels has increased by 23% in the last 12 months, reaching €1.5, the highest price since the 2000s9. The number of problems in the EZ has resulted in the region’s economic growth stagnating. In the first quarter of 2018, it only grew 2,4% (YoY), lower than the fourth quarter - 2017 of 2.7%. Then it remained stable at 2.2% (YoY) in the second quarter - 2018 before falling to 1.6% ( YoY) in quarter III – 201810 and returned lower to reach 1.2% (yoy) in Q4 - 2018. Turning to China, the US-China trade war caused the Chinese economy to contract in 2018. After growing moderately 6.8% (YoY) in the first quarter – 2018, China’s economy slowed to 6.7% (YoY ) in the second quarter - 2018 and continue to decline to 6.5% (YoY) in the third quarter - 2018 and carrying 6.4 (yoy) revenues by percent or lower during the fourth quarter in 2018.11. The tariff war with the US has meant China’s export performance has been depressed, as the US is China’s main export destination market. Currently, several trade agreements are being negotiated between the two countries, to reduce the impact of the trade war, especially concerning the tariffs on the export goods of both countries. Another impact that put pressure on the Chinese economy was the relocation of factories from China to other countries. This strategy was so to ensure production and sales continued to run normally, and could still be exported to the US, as the trade war applied to China only. The slowing economic growth was also caused by China’s growing level of domestic debt worries. As a result of its high debt, the Chinese government plan is to tighten lending. However, the impact could also depress economic growth. In Japan, the negative interest rate policy has not consistently helped Japan’s economic growth. After contracting 1.3% (YoY) in Q1, it grew 1.5% (YoY) in Q2 - 2018 but fell to 0.1% (YoY) in Q3 – 2018, and in Q4 - 2018 was stagnated at 0%12. Japanese inflation continued to improve leaving behind the era of deflation in 2016, and the era of low inflation in 2017. In 2018 Japanese inflation was closer to 2%. Japanese inflation reached its highest in February 2018 at 1.5%, while overall inflation in 2018 was 0.3%13. While core inflation remained relatively low. These conditions encourage the BOJ to keep its benchmark interest rate at -0.10%. Beradaptasi dengan Cepat Menghadapi Perubahan 171
  172. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk INDONESIAN ECONOMY In 2018, the Indonesian economy grew moderately and reached 5.18% (YoY) by quarter IV-2018. In the first quarter 2018 the economy grew 5.06% (YoY) and then increased to 5.27%(YoY) and 5.17% in the second quarter - 201814. The high growth in the second quarter was supported by an increase in household expenditure that grew 5.14%, contributing 55.43% to the Indonesian economy15. In lll - 2018, growth in household expenditure was 5.01% and 5.08%16 however the Indonesian economy continued to grow aided by the largest Asian Games, the 2018 Asian Games. The negative impact caused by the CAD lead BI to be pre-emptive and ahead of the curve towards its benchmark interest rate, in this case through BI’s 7 days Repo Rate which increased by 175 bps (base points) in 2018. Within the country, other than the widening CAD, BI was focused on the trade balance deficit. Cumulatively, Indonesia’s trade balance deficit reached US$8.57 billion, way below the trade surplus of US$ 11.84 billion in 2017. Indonesia’s exports in 2018 reached US180.06 billion, a growth of 6.65%, while imports reached US$188.63 billion, a growth of 20.15%.20 Indonesian inflation throughout 2018 was at the level of 3.13%17, which is within the BI target range of 3.5 ± 1% in 2018. The controlled inflation was influenced by low core inflation and lower volatile food inflation, while price inflation was relatively well maintained. BI’s success in maintaining inflation cannot be separated from its function of joint coordination with the Government both at the central and regional levels. Until the end of 2018, inflation was maintained helped by the decline in world oil prices. 1 Press Release US Trade Representatives, menyangkut data Perdagangan Amerika Serikat dan China 2 US Federal Reserve menyangkut data suku bunga acuan Amerika Serikat (Fed Fund Rate) 3 US Bureau Labor Statistic 4 Ibid 5 Ibid 6 US Bureau of Economic Analysis 7 European Central Bank 8 CNBC: Italy Crisis Heres What You Need to Know, 30 Mei 2018 9 Reuters: French “Yellow Vest” Protest in Their Thousand for Fifth Saturday, 15 Desember 2018 10 Eurostat 11 National Bureau of Statistic of China 12 Economy and Social Research Institute of Japan 13 Japan Ministry of Internal Affairs and Communication 14 Biro Pusat Statistik 15 Ibid 16 Ibid 17 Ibid 18 Bank Indonesia 19 Badan Koordinasi Penanaman Modal (BKPM) One serious problem in 2018 was the current account deficit (CAD). The CAD ratio to GDP trended higher in 2018. In quarter I - 2018, CAD reached 2.17% of GDP, then increased to 3.02% in the second quarter – 2018, to grow to 3.37% of GDP in the third quarter - 201818. Indonesia’s GDP CAD in Q4 -2018 reached 3.57% wider than in previous quarters. Import growth had sharply surpassed export growth and led to an increasingly large trade balance deficit. In addition, the export and import services balance sheet also experienced an ever-increasing deficit. However, Foreign Direct Investments (FDI) in 2018 continued to increase despite the heavy capital outflows in the stock market and capital market. The continual to growth in Indonesian investments demonstrated confidence in the Indonesian economy. Indonesian investments in 2018 grew by 4.11% from the previous year, with Q4 - 2018 investments reaching Rp185.9 trillion, Making it the highest quarter in 2018. Investments in Q3 - 2018 reached Rp173.8 trillion, lower than Rp176.3 trillion in Q2 – 2018, and Rp185.3 trillion in Q1- 201819. The need to address the widening CAD, and its negative impact on the rupiah exchange rate, has become an immediate focus for the Government. 172 Beradaptasi dengan Cepat Menghadapi Perubahan  Biro Pusat Statistik 20 PT Bank Negara Indonesia (Persero) Tbk
  173. Analisis & Pembahasan Manajemen INDONESIA’S BANKING INDUSTRY DEVELOPMENT AND BANK BNI’S POSITION As of November 2018, bank lending had grown by 12.7% (YoY) higher than 8.2% in December 2017. For funding, third party funds collected by banks as of November 2018 grew by 7.2% lower than 9.4% in December 2017. The growth slowdown in third party funds impacted banking asset growth and by November 2018 had reached 9.1%, or lower than 9.8% in December 2017. Compared with the banking industry and its peers group, BNI growth was higher both for assets and for funding. Compared to the November 2018 period for the industry and peers groups, as of December 2018, BNI’s loans had grown 16.2%, while BNI’s funds had grown 12.1% higher, and as a result BNI’s assets grew by 14.0%, again higher than the industry and peers group. BNI Position Based on Asset Growth, Loans Disbursed and TPF (Bank Only) Bank Assets (%) Loans Disbursed (%) Industri Funds from Third Parties (%) 9.1 12.1 7.2 BBRI 15.1 15.0 14.7 BMRI 9.7 13.9 8.3 BBCA 8.1 18.8 6.9 BBNI 14.0 16.2 12.1 Source: for peers data - Bank Indonesia Monthly Bank (LBU) Report as of September 2018 BNI Position compared to Peers based on Loan Growth (%) BNI Position compared to Peers based on Asset Growth (%) 15.1 14.0 9.1 9.7 18.8 15.0 13.9 16.2 12.1 8.1 BBRI BMRI BBCA Industri BBRI BBNI BMRI BBCA Industri BBNI BNI Position compared to Peers based onThird Party Funds Growth (%)) 14.7 12.1 8.3 6.9 BBRI PT Bank Negara Indonesia (Persero) Tbk  BMRI BBCA 7.2 Industri BBNI Beradaptasi dengan Cepat Menghadapi Perubahan 173
  174. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk OPERATIONAL REVIEW BNI conducts its business and activities in the banking sector in accordance with the Articles of Association as set forth in Deed No. No. 52, May 22, 2018. Its main activities are: 1. Raising funds from the public in the form of deposits such as demand deposits, time deposits, savings deposits, and / or other equivalent; 2. Granting loans; 3. Issuing debt instruments; 4. Buying, selling, or guaranteeing, at its own risk, as well as for the interest and the order of clients (money orders including bills accredited by the Company as a Bank whose validity period does not take longer than is customary in the trading of such documents); 5. Debt instruments and other trade paper whose validity period does not take longer than is customary in the trading of such documents; 174 Beradaptasi dengan Cepat Menghadapi Perubahan  6. 7. 8. 9. 10. 11. 12. 13. 14. State treasury paper and Government Guarantee Letters; Bank Indonesia Certificates (SBI); Bonds; Futures Trading in accordance with the laws and regulations; Other securities instruments with a maturity in accordance with the laws and regulations); Transferring money, both for its own interest, or the interest of the customer; Placing funds on, borrowing funds from, or lending funds to other banks, either by using mail, telecommunications facilities as well as with performance notes, checks, or other means; Receiving payment for securities and performing calculations with or among third parties; Providing a place to store goods and securities; PT Bank Negara Indonesia (Persero) Tbk
  175. Analisis & Pembahasan Manajemen 15. Conducting care for the interests of other parties pursuant to a contract; 16. Placing funds from customer to other customers in the form of securities that are not listed on a stock exchange; 17. Providing financing and/or performing other activities, including activities based on sharia principles, in accordance with the provisions stipulated by competent authorities; 18. Conducting factoring, credit card business and trusteeship; 19. Conducting foreign currency activities by complying with the provisions stipulated by the authorities; 20. Conducting equity participation in banks or other companies in the financial sector; 21. Conducting temporary capital investments to address the consequences of credit failure, including financing failure based on Islamic principles, subject to retracting ownership interests in accordance with the provisions stipulated by competent authorities; 22. Acting as a founder of the pension fund and pension fund manager in accordance with the provisions of the laws and regulations; 23. Conducting financial services, commercial banking, and other investment banking; 24. and performing other activities commonly conducted by the bank that are not contrary to legislation. In addition to the main business activities, the Company provides supporting business activities to optimize the utilization of available resources to support the main business activities, as long as it is not contrary to the laws and regulations. Selain kegiatan usaha utama tersebut, Bank dapat melakukan kegiatan usaha penunjang dalam rangka optimalisasi pemanfaatan sumber daya yang dimiliki untuk mendukung kegiatan usaha utama sepanjang tidak bertentangan dengan peraturan perundangundangan. PT Bank Negara Indonesia (Persero) Tbk  BUSINESS DEVELOPMENT STRATEGY 2018 In line with the Company’s Vision and Mission, BNI strives to make the best contribution to encouraging economic growth and development for the welfare of society as a whole. It is implemented through coordination and cooperation with other institutions from countries, governments, individuals, communities, fellow financial companies, and other private entities. In addition to its contribution to the nation and the State, BNI seeks to assert its existence by striving to become one of the major players in the financial sector, especially banking, through comprehensive financial services to all banking customers, and value added benefits to all stakeholders: customers, investors, employees, and the financial industry. BNI’s short-term plan was based on its long-term plan, taking into account the most recent internal and external factors. During 2018, BNI has succeeded in carrying out its plans with four main themes, namely Selective, Digitalize, Market Penetration, and Organization Capabilities. SELECTIVE 1. Enhancing business for customers in ministries, institutions, state-owned enterprises, and corporations through comprehensive financial solutions. a. Focusing on priority financing in the infrastructure sector, manufacturing industry and financing in other sectors. b. Increasing TPF and State Budgets (Ministries and Institutions), SOEs, Private Corporations and Debtor Funds. c. Optimizing financing through the acquisition of selective corporate bonds. 2. Increasing Medium business in priority industries in accordance with regional potential. a. Undertaking customer Take over in selective industries and optimizing the value chain of Corporate customers. b. Improving Credit quality by restructuring and phasing out bad loans through securitization. c. Expanding funds in regional institutions, regional governments, and BUMD, as well as debtor funds. 3. Strengthening Small businesses through optimizing Supply Chain Financing for Corporate Customers, community / business centers, and supporting government programs. a. Expanding Credit through outlets and digital-based optimization. b. Expanding Credit by optimizing value chain and supply chain financing from Corporate debtors. c. Expanding Credit through linkage financing. Beradaptasi dengan Cepat Menghadapi Perubahan 175
  176. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk d. Optimizing the government programs role as a basis for growth. 4. Increasing CASA with digital business models focusing on Closed Loop Transaction and optimizing customer transactions. a. Optimizing the use of debtor demand deposits and maintaining the ratio of demand deposits to debtors’ KMK. b. Developing closed loop transactions for Corporate and Commercial customers and their supply chains through utilization of product and service solutions. DIGITALIZE Strengthening the consumer business in collaboration with business partners and providing financial transaction solutions with a focus on e-commerce and the millennial generation. a. Developing digital channel acquisitions. b. Working on potential millennial through digital enhancement. c. Focusing e-commerce through feature development and strategic partnerships. d. Improving customer engagement through the development of a personal credit card management application. MARKET PENETRATION 1. Improving outlet performance by strengthening market penetration for both deposits and loans. a. Developing the office networks organically and inorganically and supporting digital branches. b. Optimizing outlets to support the business target’ achievement. c. Improving outlet performance and productivity. d. Improving efficiency initiatives and work processes. e. Optimizing Agen46 to expand the network and to achieve small and consumer business performance. 2. Increasing subsidiaries’ market share through increased synergy, digital development and inorganic growth. a. Strengthening the comprehensive Risk Culture and Risk Management through integrated risk management. b. Increasing synergy with BNI Group. c. Developing Digital and improving Financial Inclusive. d. Strengthening the Subsidiaries’ HC to improve Cross Utilization. e. Strengthening Subsidiary Companies through Corporate Action and Unorganic Growth 176 Beradaptasi dengan Cepat Menghadapi Perubahan  ORGANIZATION CAPABILITIES 1. Optimizing organizational capabilities to support business achievement a. Increasing employee productivity b. Improving the effectiveness and efficiency of business processes c. Developing the IT to support the business The strategy for 2018 has generally been implemented well. BNI’s loan growth grew above the industry average growth, driven by the growth in the corporate segment’s loans, focusing on the infrastructure and processing sector. For the medium segment, the loan increase was supported by optimizing the Corporate customer value chain and customer take overs from selective industries based on regional potential. Loan growth in the small segment was the result optimizing the value chain and supply chain financing and maximizing our role in government programs (KUR). In addition, support came from additional channels, namely agen46 and digital-based lending to facilitate loan applications. Loan growth above the industry average is carried out by following the principle of prudence so that Non-Performing Loans (NPL) can be maintained, and has decreased and produced relatively high returns. The increase in the consumer business was accomplished by selling BNI Griya, BNI Fleksi, Credit Cards and other credit by working on the potential millennials through digital development. To grow the digital business and to work on the potential millennials, BNI has launched a QR-based mobile payments including, Yap!, Cinta chat, and BNI Call application (1500046 Virtual Assistant). To provide a better user experience for customers, BNI has opened 8 (eight) digital branches. The strategy for increasing TPF focuses on closed loop transactions to ensure all customer transactions stay within BNI. The closed loop transactions for Corporate and Commercial customers, together with their supply chains, was developed by utilizing product and service solutions, one being by increasing cash management transactions. In addition, to increasing customer transactions through e-commerce, several feature and strategic partnerships have been developed. PT Bank Negara Indonesia (Persero) Tbk
  177. Analisis & Pembahasan Manajemen OVERVIEW OF OPERATIONS PER BUSINESS SEGMENTS Bank BNI’s operating segments comprises: Corporate; Commercial and Small; Consumer and Retail; Treasury and International; Head Office; Subsidiaries. CORPORATE Corporate segment activities include corporate customer loans, deposits and other transactions. LOANS The Bank BNI 2018 Corporate segment loans strategy, productivity, business prospects and achievement strategies are described as follows. CORPORATE SEGMENT LOANS EXPLANATION BNI”s Corporate segment handles loans of over Rp300 billion for individual customers and group customers in State-Owned Enterprises, and large National and Multi-National Enterprises in Indonesia. CORPORATE SEGMENT LOANS 2018 STRATEGIES BNI’s short-term plans follow the long-term plans after taking into account the latest internal and external factors. During 2018, BNI carried out its plans as follows. 1. Loan expansion focusing on financing upstream to downstream government infrastructure projects for corporations and SOEs. a. Increasing new borrowers and optimizing the existing borrowers focusing on infrastructure projects. b. Increasing new borrowers and optimizing the existing borrowers in other priority sectors. 2. Increasing middle segment loans focusing on prospective industries. a. Acquisitions through Corporate Borrowers Supply Chain Financing. b. Selectively taking over new borrowers from Bank Book III and Book IV in line with priority sectors. c. Optimizing existing borrowers facilities based on merit. CORPORATE SEGMENT LOAN PRODUCTIVITY IN 2018 BNI’s loan portfolio continues to be well diversified and covered BNI’s priority sectors. The following lists the 10 (ten) major individual and group debtors business sectors at the end of 2018. Tabel Daftar Sektor Usaha 10 (Sepuluh) Debitur Besar Individual Individual Debtors Large Trading and Retail Total (Rp million) 12,599,313 Other Financial Intermediaries (Non Bank) Other than Leasing 4,063,915 Government Administration and Economic and Social Policy 3,207,737 Cigarettes 2,661,670 Electricity 2,354,596 Coal Trading 2,082,439 Electricity 1,726,776 Telecommunication Services 1,592,559 Large Trading and Retail 1,350,497 Ship Building and Repairing Industry Total PT Bank Negara Indonesia (Persero) Tbk  904,382 32,543,883 Beradaptasi dengan Cepat Menghadapi Perubahan 177
  178. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk 10 major group business sectors Group Debtors Jumlah (Rp juta) Electricity 13,614,539 Oil and Gas Mining 10,845,192 Pulp Industry, Paper and Cardboard / Paper Board, Agribusiness and Food, Financial Services, Real Estate and Developer 10,820,499 Oil Palm Plantations, Financial Services, Automotive, Telecommunications Services, Food and Beverage 9,584,752 Telecommunication Services 8,618,945 Toll Road Building 7,722,691 Other Civil Buildings, Building Construction 7,688,815 Palm Oil Plantations, Rubber Plantations, and Other Gum Producers, Sugar Industry and Sugar Processing 6,943,903 Fertilizer industry 6,865,002 Palm Oil Plantations 6,326,393 Total 89,030,733 Total corporate segment loans reached Rp222.9 trillion in 2018, an increase of 18.6% or Rp44.1 trillion compared to Rp188.0 trillion in 2017. Based on type of loans disbursed in 2018, the majority of corporate loans were Working Capital Loans, which accounted for 58.2% of the total, or Rp152.9 trillion, while the remaining 41.8% or Rp109.9 trillion were Investment Loans. The Corporate segment loan growth is shown in the following table: Corporate Segment Loansi 2018 Product (Rp Billion) 2017 (%) (Rp Billion) Growth (%) (Rp Billion) (%) Investment Loans 109.903 41,8% 94.052 43,0% 15.851 16,9% Working Capital Loans 152.925 58,2% 124.706 57,0% 28.220 22,6% 262.828 100,0% 218.758 100,0% 44.070 20,1% Total CORPORATE LOAN BUSINESS PROSPECTS AND STRATEGIES Business prospects are still promising and Corporate loans are projected to grow 15% in the manufacturing, oil palm plantations, other business services sectors. Based on this the corporate segment has adopted the following strategies for 2019: 1. IIncreasing loans in the Manufacturing, Plantation, Infrastructure, Tourism and other business services sectors. 2. Optimizing value chains and transactional banking from customers so as to increase fee-based income. 3. Maintaining loan quality through prudent loan financing processes and monitoring borrowers, especially those that included on the watchlist. 4. Speeding up the business processes. THIRD PARTY FUNDS / SAVINGS Bank BNI Corporate Segment Third Party Funds / Savings 2018 productivity, business prospects and achievement are presented as follows: EXPLANATION OF CORPORATE SEGMENT TPF The Corporate Segment (Business Banking) Third Party Funds (TPF) covers a number of deposit funds and operational activities, owned and / or managed by institutional customers (Ministry, SOE, Non Banking Financial Institutions, Universities. Institutional customers in the form of national, multinational companies, BUMN, BUMD, Hospitals, Ministries and other Government Institutions). In recent years fintech-based companies have emerged, also with substantial funds. Business Banking TPF include Savings, Deposits or Giro, based on the customer needs. Products are offered to selected institutions in packages tailored to their needs. 178 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  179. Analisis & Pembahasan Manajemen CORPORATE SEGMENT TPF STRATEGY IN 2018 In line with BNI’s strategy to achieve quality asset growth and a good level of profitability through an optimal funding structure, in 2018 BNI took the initiative to increase customer business solutions through the following initiatives: 1. Focusing on 20 (twenty) Ministries and Institutions, 23 (twenty three) Major SOEs, various educational institutions, Regional Governments and Hospitals, and other financial, oil and gas and corporate service institutions. 2. Increasing BNI’s role in public services, especially the central government program. 3. Optimizing electronic-based solutions in managing Tax Revenues and Non-Tax Receipts. 4. Improving corporate transaction solutions through e-channel payment services, receipts and management of customer financial information. 5. Increasing fee-based income with innovative operational service solutions in various industrial sectors. 6. Optimizing value chain and supply chain using Financial Supply Chain Management solutions to encourage the growth of low-cost funds. 7. Cross selling transactional services and bank guarantees to customers. CORPORATE SEGMENT TPF PRODUCTIVITY 2018 Corporate Segment TPF Productivity is presented as follows: Corporate Segment Total Funds Description 2018 (Rp trillion) 2017 Composition (%) (Rp trillion) Growth Composition (%) (Rp trillion) (%) Giro 148 53.2% 125 52.0% 23 18.1% Deposits 113 40.5% 103 42.6% 10 10.6% Savings Total 18 6.4% 13 5.4% 5 36.2% 279 100.0% 241 100.0% 38 15.6% Total Corporate Segment Deposits in 2018 reached Rp279 trillion, an increase of 15.6% or Rp38 trillion compared to Rp241 trillion the previous year, due to: 1. Increased deposits from the state budget (ministries and institutions), state-owned enterprises, private corporations and debtor funds. 2. Expanded institutional funds, LGs, BUMDs and Debtors. 3. Increased CASA with digital business models that focus on closed loop transactions and optimization of customer transactions Corporate Segment Total Accounts Description 2018 (Account Units) Giro Savings Composition (%) (Account Units) Growth Composition (%) Account Units (%) 323,834 50.2% 285,840 44.3% 37,994 13.3% 21,061 3.3% 18,678 2.9% 2,383 12.8% Deposits Total 2017 299,886 46.5% 82,337 12.8% 217,549 264.2% 644,781 100.0% 386,855 60.0% 257,926 66.7% Total BNI Corporate Segment Accounts in 2018 reached 644,781, an increase of 66.7% or 257,926 accounts compared to 2017. CORPORATE SEGMENT TPF PROSPECTS OF AND STRATEGIES The Corporate Segment TPF prospects include: 1. The potential from the total State 2019 Budget of Rp2,461 trillion is large, and BNI aims to capture Rp389 trillion of the funds distributed. 2. Potentially large corporate business and its derivatives. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 179
  180. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk The 2019 strategic plan for the corporate segment includes: 1. Capturing the business potential from the 2019 state and regional budget funds (20 Ministries and Institutions, Hospitals, Educational Institutions and Regional Governments) 2. Increasing the Corporate Customer Derivation Business (SOE, Non Banking Financial Institution, Universities and Other Private Corporations) 3. Optimizing Debtor Funds by encouraging central and corporate debtor financial activities to use cash management services. 4. Developing system solutions and transactions based on customer needs. 5. Acquiring new customers. OTHER TRANSACTIONS Bank BNI Corporate Segment other transactions 2018 productivity, business prospects and achievement are presented as follows: EXPLANATION OF CORPORATE SEGMENT OTHER TRANSACTIONS IN 2018 The feature products BNI offers to Corporate Segment customers include BNI Cash Management products where customers can independently manage their corporate financial cash flow more regularly and monitor them online. BNI Cash Management products include many features, including: transfer overbooking, transfers between banks, both domestic and international, online tax payments, virtual accounts for collection, billing payments, and supply chain financing. These cash management transactions will help grow TPF and indirectly maintain BNI’s liquidity. The main Cash Management application provided by BNI for customers is BNIDirect. It is an secure website application that can be accessed from anywhere, anytime, and using any media. The BNIDirect website can be accessed via https: //bnidirect.bni. co.id using computers or cellphones, through the flexible and easy to install BNIDirect Mobile. CORPORATE SEGMENT OTHER TRANSACTIONS STRATEGIES IN 2018 During 2018, BNI followed strategies to increase cash management transactions, including: 1. Maintaining and acquiring SOE/Corporation Customers that have a significant ecosystem. 2. Researching and identifying potential revenue (PNBP) and expenditure flow in top 10 Ministries/Institutions in order to provide business solutions. 3. Exploring and identifying corporate customers derivative businesses and value chains to provide close loop transaction solutions. 4. Expanding the scope of transaction access to the commercial customer segment by optimizing the potential of BNI debtors in each region. CORPORATE SEGMENT OTHER TRANSACTIONS PRODUCTIVITY IN 2018 In 2018 the number of cash management account units reached 118,359 accounts, an increase of 25.46% compared to 94,341 accounts in 2017. This was due to the BNI’s success in maintaining their corporate customers’ trust, so they remain committed to using BNIDirect as their transaction tool. Total Cash Management Accounts Description 2018 (Account Units) Cash Management 2017 Composition (%) 118,359 100 (Account Units) 94,341 Growth Composition (%) 100 (Account Units) 24,018 Composition (%) 25.46 During 2018, BNI successfully increased its presence as the bank of choice for customers through its efficient, effective, safe and reliable cash management services. This resulted in total integrated cash management services transactions through BNIDirect growing 15.0% to 21.28 million transactions with a value of Rp1,605 trillion, providing fee-based income growth of 11.7% to reach Rp521 billion in 2018. 180 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  181. Analisis & Pembahasan Manajemen BNIDirect Transactions Description 2018 2017 Composition Total Transactions (million Rupiah) 21.28 18.7 15.0% Nominal Transactions (trillion Rupiah) 1,605 1,295 23.9% 590 528 11.7% 65,675 52,594 24.9% Fee Based Income (billion Rupiah) Total Users The performance improvements above were the result of several strategic initiatives in 2018. These included BNI succeeding in increasing its penetration of banking transactional services in the corporate customer segment (including SOE and Government), and expanding its presence in the commercial customer segment by optimizing BNI’s potential borrowers in each region. BNI also succeeded in gaining and building public services trust through its efficiency and transparency of bureaucracy within various government ministries and agencies. These included electronic real-time online tax payment through BNI e-Tax, and payment of customs and import of goods through BNI e-PIB, payment for passports, online land tax payments through e-PBB, and participation in various BumDes government programs. BNI’s cash management solutions succeeded in helping customers by delivering increasingly efficient business processes so as to increase the customers’ productivity. The electronic solutions built also helped create efficient work processes within BNI so as to improve services for customers. The increase in the value chain with financial supply chain transactions has begun to show good potential. As in previous years, BNI’s banking transactional services gained numerous awards in 2018, including: 1. Best Treasury and Cash Management in Indonesia 2018 from Global Finance Magazine. 2. Best Cash Management Solution In Southeast Asia 2018 from Alpha Southeast Asia Magazine. 3. Best Overall Cash Management in Indonesia 2018 based on a survey by Euromoney Magazine. PT Bank Negara Indonesia (Persero) Tbk  CORPORATE SEGMENT OTHER TRANSACTIONS PROSPECTS AND STRATEGIES 2019 is a political year and the prospects for increasing BNI Cash Management transactions is still wide open, especially in the digital segment, through cooperation with fintech companies whose transaction activities synergize with BNI cash management. For the ministry and agency segments, there are big opportunities to optimize the state budget funding for central and regional government projects. The regional SOE and private segments are predicted to be somewhat restrained at the beginning of the year, but the belief is they will continue to grow with good prospects, if the right products/solutions are chosen. After looking at the potential for 2019 and learning from the experiences in 2018, BNI Cash Management will improve by following different business strategies than the previous year. They include: 1. Acquiring new customers by focusing on potential high transaction customers. 2. Penetrating on BNI customers who have not yet used transactional solutions. 3. Increasing the number of active customers who use cash management transactions. 4. Increasing the number of features used by BNI customers. Beradaptasi dengan Cepat Menghadapi Perubahan 181
  182. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk CORPORATE SEGMENT INCOME AND PROFITABILITY Corporate Segment Income and Profitability is presented as follows: Tabel Pendapatan dan Profitabilitas Segmen Korporasi Description Interest income and Sharia income-net *) 2018 2017 (Rp million) (Rp million) 12,813,111 Growth (Rp million) 12,428,601 (%) 384,510 3.1% Premium income -net 3,376,656 2,803,803 572,853 20.4% Allowance for impairment losses Other operating income (1,431,145) (2,107,854) 676,709 (32.1%) Other operating expenses (5,541,492) (4,166,494) (1,374,998) 33.0% 9,217,130 8,958,056 259,074 2.9% Operational profit Income (expense) non-operating-net Income before tax expense 21 (7) 28 (400.0%) 9,217,151 8,958,049 259,102 2.9% Total assets 258,869,706 215,887,752 42,981,954 19.9% Total liabilities 270,621,130 248,980,052 21,641,078 8.7% *) including internal transfer pricing components between operating segments In 2018 the Corporate segment Interest income and Sharia income-net reached Rp12.8 trillion, an increase of 3.1% compared to Rp12.4 trillion in 2017. Operational profit in 2018 reached Rp 9.2 trillion, an increase of 2.9% compared to Rp 9 trillion the previous year. Both these increases were due to the Corporate segment loan growth of 20.1%, increased total funds of 18%, and the BNI Direct transaction fee based income increase of 11.7%. COMMERCIAL AND SMALL The Commercial and Small Segments include loans, customer deposits and other transactions for small to medium scale customers. COMMERCIAL LOANS Bank BNI Commercial Segment Loans in 2018 productivity, business prospects and achievement are presented as follows: EXPLANATION OF COMMERCIAL SEGMENT LOANS BNI’s Commercial Segment (Medium Segment) provides loans between Rp15 billion and Rp300 billion to individual customers and group customers. COMMERCIAL SEGMENT LOANS IN 2018 To pursue profit growth through increased interest income from loan expansion, the Commercial Segment business strategies included: 1. Targeting the leading industries and key players. 2. Acquisition ex borrowers (win back) in leading industry sectors 3. Pipeline Management 4. Financing national and government projects 5. Value chains and corporate supply chains Related to quality improvement, the Commercial Segment established a team to focus on handling & managing loans at risk (restructuring collectability 1, Pre NPL and NPL). Substantial additional income comes from fee-based income, and looks at potential transactions from existing borrowers, and the value chain of the entire lending business. In addition, it is also always implanted that the Commercial Segment business is not only limited to loans, but also all business transactions that can be offered to borrowers. 182 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  183. Analisis & Pembahasan Manajemen 2018 achievements 1. Expansion through the acquisition of other Bank borrowers with a proven past performance by looking at potential economic sectors. 2. Joint loans at risk monitoring and handling by establishing a dedicated SRM-RM specifically. COMMERCIAL SEGMENT LOANS PRODUCTIVITY IN 2018 In 2018, BNI’s Commercial segment Loans grew 6.4%, compared to overall bank lending of 7.2%, and average BNI loan disbursement growth of 16.2%. The BNI Medium Segment covers all major Indonesian cities through 33 (thirty three) Medium Loan Centers. Segment Growth (Medium) 74,731 70,261 61,330 51,147 2015 2016 2017 2018 The Medium Segment lending included Working Capital Loans that contributed Rp48.3 trillion or 64.6%, while the remaining Rp26.5 trillion or 35.4% were for Investment Loans. 31.4% of the Commercial Segment Loans were for the restaurant and hotel trade sector, followed by 26.2% for the industrial sector. The following shows the breakdown of Commercial) Segment lending by sector: Tabel Penyaluran Kredit Segmen Komersial (Menengah) Berdasarkan Sektor 2018 Sector Trading, Restaurant and Hotel 2017 (Billion Rp) Composition (%) 23,497 31.4% (Billion Rp) Pertumbuhan Composition (%) 23,220 33.0% (Billion Rp) 277 YoY (%) 1.2% Mining 2,007 2.7% 1,947 2.8% 60 3.1% Industry 19,585 26.2% 20,285 28.9% (701) (3.5%) Agriculture 3,622 4.8% 3,173 4.5% 449 14.1% Construction 7,787 10.4% 6,977 9.9% 809 11.6% Transportation, Warehousing, and Communication 7,940 10.6% 6,307 9.0% 1,633 25.9% 456 0.6% 624 0.9% (167) (26.8%) 7,082 9.5% 5,870 8.4% 1,212 20.6% Electricity, Gas and Water Business Services Social Services Total 2,755 3.7% 1,857 2.6% 898 48.4% 74,731 100.0% 70,261 100.0% 4,470 6.4% In line with the government policy direction, namely equitable development, the commercial segment focused on government strategic industries, especially transportation, warehousing and communications, and enhancing the communities’ economic welfare through growth in the agricultural sector. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 183
  184. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk In addition, for quality business growth, growth was directed towards businesses with the potential to continue growing without being affected by disruptions, such as social services, by significantly increasing lending in these areas in 2018. Internally BNI’s Commercial Segment continued to make improvements in order to focus on achieving profits, and improvements were made in the human resources, technology and business processes. Human resources improvements included increasing loan officers’ skills through hard and soft skills programs, as well as quickly ensuring the number of officers matched the increasing business needs. On the technology side, the Commercial Segment developed automation fund systems so that business processes run faster and are more agile. COMMERCIAL SEGMENT LOANS PROSPECTS AND STRATEGIES In 2019, the Commercial Segment will continue focusing on the Corporate supply chain, business process improvements, and loan quality improvements. BNI has set a series of target achievement strategies including: 1. Expanding selectively in priority sectors and in potential regions 2. Focusing on the major players in the priority sectors of each region 3. Supply chain for selected corporate, by maximizing the potential value chain of Corporate and commercial borrowers. 4. Developing digital capabilities by digitizing processes and monitoring a. Digitizing loan applications b. Utilizing Big Data 5. Improving loan quality through comprehensive monitoring and management of loans at risk. 6. Increasing synergy and business potential by encouraging closed loop transactions, increasing CASA through cross selling, including cash management and customer value chains. 184 Beradaptasi dengan Cepat Menghadapi Perubahan  SMALL LOANS Bank BNI Small Segment Loans in 2018 productivity, business prospects and achievement are presented as follows. EXPLANATION OF SMALL SEGMENT LOANS BNI’s Small Segment (Medium Segment) provides loans up to Rp15 billion to individual customers and group customers. SMALL SEGMENT LOANS STRATEGIES IN 2018 These positive achievements in 2018 can be seen in the many developments carried out by BNI, including optimizing outlets as point of sales, transforming the digital-based loan management, focusing on clustering patterned financing, and optimizing supply chain financing for corporate customers. BNI as a state-owned bank is an agent for development, and BNI’s commitment can be seen in its support of government programs, especially those related to community welfare improvements through its provision of loans to MSMEs. Activities carried out by BNI included: 1. Social Forestry Helping communities around the PT Perhutani forest to grow crops using forest land to improve their welfare. BNI also provides funding through its KUR program to make it easier for farmers to obtain capital through installment schemes adjusted to the planting season. Loans disbursed to 3,170 farmers amounted to Rp18.8 billion. In addition, BNI through other SOEs, assisted in normalizing post-flood damaged irrigation / waterways for 6 (six) villages covering a total area of about 1,265 ha and 1,1 Km of village roads. 2. Planting season controls This activity is a form of BNI’s participation in the government’s program to increase agricultural production so as to achieve food self-sufficiency. The purpose of this activity is to oversee the 2018/2019 OKMAR planting season, and BNI’s involvement includes providing cheap, easy financing, together with assistance and offtakers for food crops farmers in various regions in Indonesia, in synergy with the SOEs “Present for the Country’ and the Ministry of Agriculture. PT Bank Negara Indonesia (Persero) Tbk
  185. Analisis & Pembahasan Manajemen The activities include: a. Distributing farm cards in accordance with the Definitive Plan for Group Needs (RDKK) b. Distributing KUR Tani c. Planting agricultural commodities d. Providing CSR, seed and alsintan to support the program’s continuation e. Grain absorbency and other commodities by cooperating with other SOEs as Offtakers (to absorb the farmers’ crops) as a form of SOE synergy. 3. Rejuvenation of People’s Palm Oil Funding palm oil farmers in collaboration with the Palm Oil Plantation Fund Management Agency (BPDP KS) to improve their welfare. 4. Financing coffee farmers in Garut and Malang This funding is BNI’s support to increase the production and welfare of coffee farmers to enable exports. 5. Financing salt farmers BNI’s participation to increase national salt production by financing salt farmers, currently running in Sumenep, Indramayu and Kupang. The total funding given by BNI through CSR and KUR to 320 salt farmers reached Rp7.3 billion. SMALL SEGMENT LOAN PRODUCTIVITY Small Segment Loan Growth is presented as follows. Small credit growth per product type 2018 Product Outstanding (Rp billion) KUR 2017 NPL (%) 20.289 Outstanding (Rp billion) 0,7% Outstanding Loan Growth (%) NPL (%) 14.194 1,9% 42,9% Non KUR 45.774 2,0% 42.285 3,0% 8,3% Total 66.063 1,6% 56.479 2,7% 16,9% In 2018, the small segment recorded a faster growth of 16.9%, compared to the previous year. Small loans as of December 31, 2018 reached Rp66.0 trillion an increase of Rp9.6 trillion over the previous year. In small segment NPL credit quality also improved with the NPL ratio decreasing from 2.7% in 2017 to 1.6% in 2018. During 2018 BNI also distributed people’s business loans (KUR) amounting to Rp15.9 trillion to 147,691 borrowers. Of this 54% is for the production sector that includes the agricultural, industrial and services sectors. In addition, BNI also plays a role in supporting the Government’s MSMEs and people’s economy program in developing through the Social Forestry program, Farmer Entrepreneurship, Farmer Cards, People’s Palm Oil Rejuvenation and the movement to protect the growing season. Based on economic sector, the majority of small segment loans were disbursed to the restaurant and hotel trade sector with 57.4%, followed by the manufacturing and agriculture sector, and the hunting and farming facilities sector with 10.8% and 9.9% respectively. Small Segment Loan Disbursements by Sector 2018 2017 Growth 20172018 Composition NPL 2018 NPL 2017 (Billion Rp) (Billion Rp) (%) (%) (%) (%) Economic Sector Industry 7,109 5,388 31.9% 10.8% 1.4% 2.6% 37,896 34,697 9.2% 57.4% 1.9% 2.8% Agriculture 6,541 4,227 54.7% 9.9% 1.0% 2.1% Business Services 6,131 5,369 14.2% 9.3% 1.6% 3.0% Trading, Restaurant and Hotel PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 185
  186. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk 2018 2017 Growth 20172018 Composition NPL 2018 NPL 2017 (Billion Rp) (Billion Rp) (%) (%) (%) (%) Economic Sector Transportation, warehousing, and communication 1,848 1,583 16.7% 2.8% 1.0% 2.9% Construction 2,670 2,347 13.8% 4.0% 2.2% 2.4% Electricity, Gas and Water 100 70 42.9% 0.2% 0.0% 0.3% Mining 313 227 37.9% 0.5% 0.2% 0.9% 3,454 2,571 34.3% 5.2% 1.2% 2.8% 66,063 56,479 16.9% 100% 1.6% 2.7% Social Services Total SMALL SEGMENT LOANS PROSPECTS AND STRATEGIES Small loan financing opportunities are still wide open, given the number of MSMEs in Indonesia that has reached ± 58 million people. BNI’s small segment works on this large financing potential through an outlet network and through digital channels. Continuing the positive performance trend in 2018, BNI’s Small segment is optimistic in achieving its 2019 targets through the following strategies: 1. Growth strategy a. Optimizing supply chain financing from customers and corporate borrowers. b. Establishing the government programs as the basis for growth c. Increasing the synergies with SOEs to accelerate loan growth in the production sector d. Focusing financing in business centers using clustering patterns e. Improving digital-based loan processes 2. Loan quality strategy a. Improving risk management through an improved early warning system. b. Improving the collection management system. c. Intensifying the collection of KUR claims SMALL SEGMENT INCOME AND PROFITABILITY Commercial and Small Segment Income and Profitability is presented as follows. Commercial and Small Segment Income and Profitability 2018 2017 (Rp Million) (Rp Million) Description Interest income and Sharia income-net *) Premium income -net Other operating income Growth (Rp Million) 8,571,831 6,807,866 - - 1,763,965 (%) 25.9% 1,306,501 1,159,012 147,489 12.7% Allowance for impairment losses (3,787,622) (2,306,273) (1,481,349) 64.2% Other operating expenses (2,547,390) (2,702,085) 154,695 (5.7%) 3,543,320 2,958,520 584,800 19.8% Operational profit Income (expense) non-operating-net Income before tax expense Total assets Total liabilities 184 22 162 736.4% 3,543,504 2,958,542 584,962 19.8% 135,308,561 121,160,933 14,147,628 11.7% 14,658,291 121,311 14,536,980 11,983.2% *) including internal transfer pricing components between operating segments 186 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  187. Analisis & Pembahasan Manajemen In 2018 interest income and sharia income -net for the Commercial and Small segments reached Rp8.6 trillion, an increase of 25.9% compared to Rp6.8 trillion in 2017. The operating profit in 2018 reached Rp3.5 trillion, an increase of 19.8% compared to Rp3.0 trillion the previous year. This increased Profitability was due to the 42.9% growth in People’s Business Loans (KUR) disbursed, and growth in loan disbursed to the agricultural economy sector. CONSUMER AND RETAIL The Consumer and Retail business segment includes consumer financing loans including mortgage loans, credit cards and other transactions for consumer customers, and includes loans given to retail individuals. LOANS Bank BNI Consumer and Retail Segment Loans in 2018 productivity, business prospects and achievement are presented as follows. EXPLANATION OF CONSUMER AND RETAIL SEGMENT LOANS Consumer and Segment loan products consist of mortgages, credit cards, payrolls, auto loans and others. 1. Mortgages BNI Griya is a loan facility intended for individuals wanting to own residential properties, apartments, shops / houses and villas, both new or second-hand. This facility can also be used to purchase plots of land, developing, renovating, refinancing, takeovers, top ups through the BNI Griya Multiguna program. 2. Credit Cards Credit Cards are consumer loan products with the large market share in the industry. BNI Credit Card products includes: a. Regular Credit Card: BNI Visa Silver, BNI Mastercard Silver, BNI Visa Gold, BNI Mastercard Gold and BNI JCB Gold. b. Premium Credit Card: BNI Style Titanium, BNI Visa Platinum, BNI JCB Precious, BNI Mastercard World and BNI Visa Infinite. c. Credit Card Co-Branding: BNI-Garuda, BNI-LOTTE Mart, BNI-Bank Sumsel Babel, BNI-Bank BJB, BNI-Bank DKI, BNI-Pertamina and BNI Ferrari. d. Affinity Credit Card: Kartu Universitas, Kartu Ikatan Alumni, and Kartu Komunitas. e. Corporate Credit Card: BNI Visa Corporate Card Gold, BNI Visa Corporate Card Platinum and BNI American Express Business Card. f. Private Label Credit Cards: BNI Travelling Card, BNI Gasoline Card, BNI Health Card and BNI Distribution Card. g. BNI Cash Card: a revolving loan without collateral that can be converted into fixed installments, and can only be used to make cash withdrawals at an ATM or Teller. 3. Payroll Loan BNI Fleksi: a BNI Unsecured Loan available to active employees and retirees who channel their salaries and retirement benefits through BNI. 4. Others BNI Instan, a loan product guaranteed by BNI Deposits, Savings and Current Accounts. CONSUMER AND RETAIL SEGMENT LOANS, PRODUCTIVITY, PROSPECTS AND, STRATEGY ACHIEVEMENT FOR 2018 Consumer and Retail Loan Performance Description Mortgage 2018 2017 (Rp billion) (Rp billion) 40,753 Growth (Rp billion) (%) 37,066 3,687 9.9% Payroll Loan 23,744 17,687 6,057 34.2% Credit Card 12,558 11,635 923 7.9% 2,680 5,057 (2,377) (47.0%) 79,735 71,445 8,290 11.6% Others Subtotal Consumer and Retail Loans in 2018 reached Rp79.7 trillion, an increase of 11.6% from Rp71.4 trillion in 2017. Consumer loans increased in 2018 to Rp8.3 trillion. Payroll Loans is still the main driver in consumer loan growth, and grew 34.2%, supported by optimizing the Corporate Segment and institutions database. Consumer loan growth was also supported by ease of processes and digital marketing (BNI DigiLoan). PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 187
  188. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk BNI Griya BNI Griya is a loan facility intended for individuals wanting to own residential properties, apartments, shops/houses and villas, both new or second-hand. This facility can also be used to purchase plots of land, developing, renovating, refinancing, takeovers, top ups through the BNI Griya Multiguna program. BNI Griya Strategy for 2018 The 2018 BNI Griya distribution strategy, focused on Selected Partners (including the millenials segment), and Selected Developers, as well as Existing Customers. In the primary property market segment, BNI Griya expanded cooperation with Developers throughout Indonesia and provided ease of use and speed in the loan application process for prospective borrowers who bought new property from the BNI selected developer. In the secondary property market segment, BNI Griya cooperated with a number of Property Agents, as well as conducted joint gatherings to increase the number of BNI Griya applications, especially for the purchase of secondhand properties. BNI Griya lending is focused on customers with fixed income, and optimizes the role of branches, especially in large cities, to speed up the credit process. In addition to acquiring new borrowers, loan distribution is also achieved through the Top Up credit facility program for existing customers meeting certain criteria. BNI Griya lending is also carried out in synergies with Business Banking (Corporate, Commercial and Retail) and subsidiaries, segment directors, business owners, and employees of BNI institutional partners, including providing loans for construction developers. In 2018 BNI Griya disbursed facilities in the form of light and fixed interest rates for the first 4 (four) years, providing certainty regarding installments to the borrowers. BNI also marketed a housing finance program for the Milenials segment through BNI Griya Gue with attractive features, including lighter installments at the beginning of the loan that gradually increased based on projected future increases in income. For BNI’s joint venture partners, the instant approval program provided fast approval to simplify the BNI Griya loan application documents. BNI also participated in distributing the Housing Financing Liquidity Facilities (FLPP) program for low-income communities (MBR), in collaboration with the Ministry of Public Works and Public Housing. BNI Griya Awards in 2018 1. Top Bank 2018 (Top Mortgages (People’s Housing Loans) 2018)) 2. Rumah 123 Real Estate Awards 2018 (The Most Popular Bank for Mortgage Products) 188 Beradaptasi dengan Cepat Menghadapi Perubahan  BNI Griya Productivity BNI Griya portfolio disbursed in 2018 amounted to Rp40.8 billion, an increase of 9.9% compared to Rp37.1 billion in 2017. Total BNI Griya increased to Rp37.1 trillion in 2018. The BNI Griya distribution in 2018 focused on the primary property market segment in cooperation with Developers, while the secondary property market segment was through Property Agent channels and outlet optimization. Tabel Produktivitas BNI Griya Description 2018 2017 Growth (Rp billion) (Rp billion) (Rp billion) BNI Griya 40,753 37,066 3,687 (%) 9.9% BNI Griya Prospects and Strategy BNI Griya 2018 growth of 9.9% (YoY). In 2019 BNI Griya’s projection is quite optimistic and is expected to grow close to 12.0%. BNI Griya marketing strategies for 2019 include: 1. Focusing on potential fixed income customers: HLB, BIN, LMC1, LMC2, and Non Fixed Income customers: Emerald customers and Existing Borrowers by working on the potential chain business through synergy with Business Banking (Corporate, Commercial and Retail) and with subsidiaries to provide potential for Consumer Banking, especially by targeting segments for directors, business owners, institutional employees and collaborating partners. 2. Optimizing all branch networks / outlets throughout Indonesia as BNI Griya marketing channels, as well as increasing the ease and speed of the BNI Griya process, including increasing cooperation with property business partners including Developers and Property Agents 3. Marketing BNI Griya to the Millenials segment as follows: a. Digitizing the loan application process and strengthening BNI Griya marketing through strategic partnerships with online property media. b. Optimizing Big Data (crawling from Business Directory, Higher Education, Market Place, and Social Media) to obtain data on qualified Griya Millenials. c. Massive online and social media campaigns focused on providing education to the Millennial segment regarding the importance of having a home early on. PT Bank Negara Indonesia (Persero) Tbk
  189. Analisis & Pembahasan Manajemen BNI Fleksi BNI Fleksi is a BNI Unsecured Loan product available to active employees and retirees who channel their salaries and pension benefits through BNI. BNI Fleksi 2018 Strategy During 2018 BNI Fleksi focused on expanding to low risk customers (SOE, PNS, selected institutions, Taspen PrePension and Pensioners/Asabri/Dapen SOE), in addition to the Fleksi payroll program with acquisition strategies through cross selling to selected Fleksi payroll customers/borrowers (selected company) through the customer payroll base. BNI Fleksi Productivity BNI Fleksi grew 34.2% to Rp23.7 trillion, from Rp17.7 trillion in 2017, and was dominated by the increased Payroll Loans to SOE customers, Ministries, Government Agencies, Selected Companies. Tabel Produktivitas BNI Fleksi Description BNI Flexi The increase in the number of payroll accounts during 2018 saw the potential for an increase in BNI Fleksi in cooperation with several SOE, government ministries/agencies, and selected private companies. Various BNI Fleksi programs were carried out during 2018, including the ease of BNI Fleksi applications that can be submitted at any of the nearest BNI branches or digitally, with a fast processing time. The increase in BNI Fleksi’s portfolio was also the result of channeling loan facilities to pensioners through BNI Fleksi Pension (BFP). This product is a loan facility for prospective pensioners who will retire up to a maximum of 5 (five) years ahead, with an attractive loan limit, up to a maximum of up to Rp500 million, for a period of up to 15 (fifteen) years, with a competitive interest rate. The distribution to BNI Fleksi Pension prospective pensioners was carried out in cooperation with several pension institutions, including Taspen and Asabri and SOE institutions, as well as with fronting agents. The increase in BNI Fleksi was also supported by the flexible marketing channels including ATMs, Mobile Banking, SMS Banking, as well as the accelerated 1 (one) day SLA loan process, simplification of documents and ease of process. 2018 2017 Growth (Rp billion) (Rp billion) (Rp billion) 23,744 17,687 6,057 (%) 34.2% BNI Fleksi Prospects and Strategies BNI’s Payroll Loan growth is the key driver for potential borrowers, and also the increasing productivity age and millennial generation are potential borrowers for BNI Fleksi’s growth in 2019. To increase BNI Fleksi’s loan expansion in 2019, the strategy will be to focus on Selected Partners and Existing Customers, including: 1. Penetrating potential payroll customers (SOE, ASN, TNI POLRI, and corporate customers employees, and conducting managed cooperation with SOEs and Ministries 2. Focus on Pre-retirement Employees and Pension institutions including Taspen Asabri and SOE Pension Funds. 3. Developing digitized products and utilizing data analytics and implementing programs for providing short-term loans for FleksI borrowers, especially payroll, non-payroll customers and millenials. 4. Increasing loyalty programs for active customers in selected partners through communication and activity / event media, as well as ease of additional top up / facility. 5. Developing ease and monitoring for the loan process through digitalization, and optimizing the role of branches as office channeling. 6. Developing BNI Fleksi features to accommodate the needs of Pre-Permanent Employees. In 2019 BNI Fleksi expansion and acquisition will focus on low-risk government institutions employees. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 189
  190. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Credit Card Credit cards are a means of payment using a card that can be used by individuals or corporations to make payments for obligations that arise such as shopping transactions, and cash withdrawals. Credit cards are one of the consumer loan products. 2018 Credit Card Strategy In 2018, BNI Card Business with a “Start from the Card” tagline focused on increasing BNI Credit Card Portfolios and increasing Fee Based Income. Portfolio enhancements involved increasing credit card acquisition penetration from a captive database, and focusing on acquisition in the Business Banking managed Selected Companies. To increase sales volume in 2018, BNI carried out the following strategies: 1. Working on potential millennials through Digital Enhancements with the development of payments using a QR Code using the Yap application. 2. Collaborating with strategic e-commerce merchants with usage programs, either through discount programs / price discounts, installments or BNI Rewards Point redemption. 3. Increasing sales volume penetration outside Jakarta by increasing credit card promo programs at local merchants through discount programs, cashback, BNI Rewards Point and installments. 4. Increasing acquisitions with digital channels via e-forms. 5. Increasing Corporate Card acquisitions for Selected Companies based on managed Business Banking. 6. Cooperating with the Ministry of Home Affairs, Ministry of Foreign Affairs, Ministry of Communication and Information, Ministry of Industry, Ministry of Law and Human Rights, Ministry of Transportation, Ministry of Religion, Corruption Eradication Commission and various other Government Agencies. 7. Launching BNI Affinity Ikanas STAN Credit Card. 8. Developing a Credit Card Management Application to increase Customer loyalty. 2018 Credit Card Productivity Credit Card Performance Description Transaction Value Fee Based Income Outstanding 190 2018 (Billion Rp) 2017 (Billion Rp) Growth (%) 38,924 34,970 11.3% 1,558 1,389 12.1% 12,558 11,635 7.9% Beradaptasi dengan Cepat Menghadapi Perubahan  2018 Credit Card Performance The growth in card number and increase in credit card sales volumes, through e-commerce penetration programs, and the introduction of new products, increased BNI Credit Card sales volumes at the end of 2018 to Rp38,924 billion, or an increase of 11.31% compared to 2017, while credit card outstandings in 2018 amounted to Rp12,558 billion, an increase of 7.9% compared to 2017. During 2018, BNI organized attractive programs for BNI Credit Card holders, and developed new products to expand the market for BNI Credit Card users including: 1. Continuing to work with favored e-commerce merchants such as Traveloka, Tokopedia, Bukalapak, Blibli, Tiket. com, Shopee, Garuda, Agoda, JD.id, Lazada and other favorite e-commerce merchants, in the form of regular, tactical, 0% installment, and BNI Rewards Point redemption programs. 2. In addition to collaborating with e-commerce merchants, the continuity program is still ongoing for other favored merchants by adding 0% installments, discount programs, vouchers, and redemption points at The Duck King, Sushi Tei, Bakerzin, Shaburi, Kintan, Pepperlunch, Pizza HUT, Excelso, Accor Group Hotels, The Body Shop, Lotte Mart, Electronic City, Erafone, iBox, Best Denki, ACE Hardware, Informa, Toys Kingdom, Ranch Market, Farmer Market, Gramedia and other merchants. 3. Became a credit card pioneer whereby points can be redeemed at online merchants such as Garuda Indonesia, Tokopedia, Blibli, Sepulsa, Dinomarket and blanja.com. 4. Participated in various major events such as the Java Jazz Festival, Japan Travel Fair, Inacraft, Garuda Online Travel Fair (GOTF), Mommy and Me, Mid Night Sales Ramadan Senayan City, Cool Japan Travel Fair, Indonesia Maternity and Baby Expo, The Crazy Toys Sale and other big events. 2018 Credit Card Awards In 2018 Credit Cards received several awards, including: 1. First Ranked Conventional Commercial Bank Digital Brand Credit Cards at the Infobank 7th Digital Brand Awards. 2. The Best E-Commerce 2017 from Visa. 3. Second Ranked Conventional Commercial Bank Digital Brand at the Infobank 7th Digital Brand Awards. 4. Promising Company In Branding Campaign “Silver Winner” from BUMN Marketeers Awards 2018. 5. Promising Company In Strategic Marketing “Bronze Winner” from BUMN Marketeers Awards 2018. PT Bank Negara Indonesia (Persero) Tbk
  191. Analisis & Pembahasan Manajemen Credit Card Prospects and Strategies In 2019, in line with the digitalization development, credit card usage in the community will increase, resulting in an increase in the credit card business prospects. To capture these opportunities the BNI Credit Card business will focus on several strategies including: 1. Increasing acquisitions through Captive Data Optimization and Application-Based Digital Acquisition Development. 2. Strengthening e commerce transaction penetration by focusing on top strategic partners, and developing features. 3. Focusing on promotion and communication with merchants in the “leisure experience” category including travel, dining and entertainment. 4. Developing a new business Commercial Card in collaboration with Fintech and Supply Chain Financing. 5. Increasing regional sales volume contributions through regional wisdom programs. 6. Optimizing the Big Data capability through enhanced customer propensity models. 7. Increasing customer loyalty, by developing the Personal Credit Card Digital dashboard application further. 8. Launching new BNI Credit Card products and features. To support the 2019 strategies, several acquisition programs will be carried out: 1. Increasing acquisitions through Captive Data optimization. 2. Placing Direct Sales In Branches. 3. Collaborating with the Big Partner Database. BNI Instan BNI Instan Total Accounts BNI Instan or Cash Collateral Credit (C3), is a is a loan facility product for BNI customers guaranteed by deposits in the form of BNI Savings / Deposits / Giro, or guaranteed by Indonesian Retail Bonds (ORI) purchased at BNI or other Banks, or at Securities Companies as selling agents and stored in the Sub Registry accordingly to the provisions. BNI Instan Strategy in 2018 BNI Instan Expansion during 2018 focused on providing facilities to existing customers and accelerating bookings through managed institutions, SOE Corporations, Ministries, Universities and exiting customers and selected partner employees using digital enhancement support. BNI Instan features were developed by allowing collateral in the form of individual bonds in addition to ORI. BNI Instan Productivity in 2018 In 2018 BNI Instan products decreased by 59.3% (YoY), the BNI Instan portfolio in 2018 amounted to Rp925 billion, down from Rp2.3 trillion the previous year. BNI Instan products are used as a support strategy for funds retention and to increase overall consumer loan growth. Product BNI Instan 2018 (account units) 1,904 2017 (account units) 2,115 Growth (%) (9.98%) In 2018 the total number of BNI Instan accounts reached 1,904 accounts, down 9.9% compared to 2,115 accounts the previous year. BNI Instan Prospects and Strategies BNI Instan is still the driving force for third party fund retention, and focuses on Accelerating bookings through managed institutions, SOE corporations, Ministries and Universities as well as existing customers and selected employees with the support of digital enhancements, as well as developing BNI Instan features. THIRD PARTY FUNDS Bank BNI Consumer and Retail Segment Third Party Funds in 2018 productivity, business prospects and achievement are presented as follows: BNI Instan Performance Product BNI Instan 2018 (Billion Rp) 2017 (Billion Rp) 925 2,275 Growth (%) (59.3) In 2018 the number of BNI Instan accounts/reached 1,904, a decrease of 9.9% compared to 2,115 accounts the previous year. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 191
  192. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk EXPLANATION OF CONSUMER AND RETAIL SEGMENT TPF Consumer Banking Third Party Fund products include savings and deposit products. Deposito BNI Deposito is a time deposit with attractive interest rates in various currencies (IDR/USD/SGD/JPY/HKD/EUR/GBP/AUD). SAVINGS BNI Savings products consist of: 1. Tabungan Plus (Taplus), a savings account that provides PLUS services with various features and benefits. 2. Taplus Bisnis, a savings product intended for businesses and non-businesses, both individuals and nonindividuals, equipped with features and amenities that provide convenience and flexibility to support business ventures. 3. TAPPA (Taplus Pegawai/ Member), a savings account for Employees/Members of a Company/Organization/ Association / Professional Organizations cooperating with BNI as a means of savings, with an Employee / Member identity card. 4. Taplus Muda, a savings product catering for young people with ages ranging from 15 to 25 years that can be submitted individually or as a Co-Brand with Universities that cooperate with BNI. 5. Taplus Anak, a savings product to help teach children to save from an early age, intended for children under 17 years old. 6. Emerald Saving, a savings product for the Emerald customer segment 7. BNI Dollar, a deposit product denominated in foreign currencies (USD/SGD/AUD) with more stable and secure exchange rates providing convenience for transactions. 8. Tapenas, a term savings to help realize future financial planning goals with more certainty and security. 9. Simpanan Pelajar, savings for students in early childhood, kindergarten, elementary, junior high, senior high school, Madrasah (MI, MTs, MA) or equivalent issued nationally by banks in Indonesia, with simple requirements and simple and interesting features, in the context of financial education and inclusion to encourage a culture of saving early. 10. Tabunganku, a savings product for individuals with easy and light requirements issued jointly by banks in Indonesia to foster a culture of saving and to improve the welfare of society. 11. BNI Pandai, a savings product for individuals with easy and light requirements issued by BNI with the characteristics of a Basic Savings Account (BSA) that can be opened throughout BNI branch offices or through agents. 12. Tabungan Indonesia Pintar (PIP), a Student Savings (Simpel) account, a government welfare aid program handled through BNI. CONSUMER AND RETAIL - TPF SEGMENT STRATEGY IN 2018 SAVINGS STRATEGIC The various choices of savings products offered by BNI are tailored to the customers’ needs at every stage of their life. During 2018 the consumer segment TPF strategy was conducted towards dominant/selected customer relationships. TPF growth optimization also focused on increasing the number of closed loop transactions through Digital Services, and merchant optimization, which had an impact on increasing sustain funds. Taplus In 2018, BNI Taplus was present to enliven the world “2018 Asian Games” by adding variants to its the Asian Games debit card for the Indonesian people and became the official savings card for volunteers at the event. In terms of product development, by looking at the market where many people who do not want to get savings interest, BNI Taplus added a choice of products by issuing savings without savings interest. As the core savings product with the largest portfolio, BNI Taplus plays an important role in achieving TPF growth. This year, to enhance customer engagement with BNI, BNI Taplus introduced a major program, BNI Taplus Surprise aimed at gathering fresh funds from individual customers, with direct prizes as a form of appreciation. Taplus Bisnis In an effort to increase transactional banking, BNI innovated the savings products sharing features and benefits for the entrepreneurial segment to enable monitoring financial or business transaction flow. The entrepreneurial segment is a target market that is taken seriously and BNI Taplus Bisnis is being offered to make it easy for entrepreneurs to transact with banks. Special program that target the entrepreneurial segment include the Taplus Bisnis acquisition program through the Lively Entrepreneurship program, the Merchant Reward program, BNI Taplus Bisnis-KUR Retail Bundling, collaboration with strategic partners, Business Center Program, and acquisition of BNI Taplus Bisnis Sahabat Agen 46. In 2018, Taplus Bisnis growth focused on increasing closed loop transactions, inline with business processes through increased entrepreneurial segment transactions, including increasing the number of merchant transactions, and optimizing merchant management in all branches / outlets. Payroll 192 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  193. Analisis & Pembahasan Manajemen In an effort to increase low-cost fund collection (CASA), especially by increasing savings balances, BNI has been marketing BNI Taplus and BNI TAPPA products specifically for customer employees, and companies/institutions who are BNI Customers/Borrowers in the Business Banking sector (Corporate , Commercial, and Retail). The BNI payroll company employees receive various benefits including BNI KTA Fleksi loan facilities with competitive interest rates, and BNI KPR Griya fast processing. In addition, BNI payroll customers can also enjoy debit shopping promos in the form of discounts or cashback, products bundling with other savings products such as taplus kids and tapenas, loyalty payroll programs and promo info on smartphones after installing BNI Experience apps from the Play Store. The loyalty payroll programs implemented in 2018 in 60 selected companies aims to increase payroll customer loyalty across the regions. Taplus Anak and Taplus Muda In 2018, BNI Taplus Anak returned to at least 100 (one hundred) schools spread nationwide in collaboration with CIA Magazine (Creativity in Action) during the BNI Taplus Anak and 2018 Asian Games campaigns. One feature that drew the attention of the schools visited by BNI and the CIA Magazine was the BNI Taplus Anak Debit Card and BNI Taplus Muda design made especially for the 2018 Asian Games. These Debit Cards not only function as an ATM and Debit card, but also function as BNI Tapcash (electronic money). In the schools, knowledge about BNI and the many benefits of saving from an early age was given, and the CIA Magazine team introduced the Asian Games in a fun way, including the Asian Games’ history, participating countries, and mascot philosophy. In the schools visited by BNI other activities offered included BNI-Edupatrol products, which provides enormous benefits for Schools, Parents and Students. To complement the school’s financial management needs, the BNI-Edupatrol offer is very effective when bundled with the BNI Taplus Anak and BNI Taplus Muda. We also fully understand the current market trends, and one of the popular start-ups for the nation’s children this year is the Ruangguru Application, and we collaborated with Ruangguru for regular programs and tactical programs during Ramadhan and Eid al-Fitr. In 2018, BNI Taplus Muda also presented many activities aimed at increasing engagement with the millennial community. We collaborated with partners who have expertise in millennial activities, including BNI Java Jazz Festival 2018 (Java Promosindo), SkyRun 2018 (Labschool), Sky Avenue (Labschool), Cravier (Labschool), I Loop Run (Telkomsel) , UI-Half Marathon (ILUNI UI), Yellow ILUNI Program (ILUNI UI), and ITB Half-marathon (ITB Alumni). In addition, we also carried out several programs that are close to millennial hobbies including the Sketch Your Card program which is a design competition for the BNI Taplus Muda debit card. We also collaborated with Telkomsel to organize the BNI PT Bank Negara Indonesia (Persero) Tbk  Taplus Muda program with 2GB extra Telkomsel quota prizes. At the end of 2018, BNI Taplus Anak was present to support the Young Singers Concert called “Naura” in Bandung and sponsored the Indonesia Maternity, Baby, and Kids Expo 2018 (IMBEX) event at JCC Jakarta City. Tapenas BNI Tapenas is a time savings account used by customers’ future planning, to help realize their financial plans in a more secure and safe way. BNI Tapenas provides free customer life insurance protection and is BNI’s commitment to providing more certainty for customers to achieve their future plans. During 2018, there were several BNI Tapenas promotions, including a bundling program between BNI Tapenas and other BNI Savings products, including Taplus Anak, Taplus Bisnis, and Taplus Pegawai. The BNI Tapenas promotion program gave away free direct prizes to Customers including Precious Metals and the latest Samsung and Iphone flagship gadgets. In addition, to make BNI Tapenas account opening easier, BNI developed a new channel enabling opening through BNI Mobile Banking, providing practicality so that Customers opening BNI Tapenas do not have to go to the BNI outlets. Government and Financial Inclusion Programs In addition to general customers, BNI savings products have basic saving account characteristics that are also used to support government programs in terms of channeling government aid funds to support the financial inclusion programs such as: 1. BNI Student Savings for Smart Indonesia Program (PIP) from the Ministry of Education and Culture, and the Ministry of Religion. 2. BNI Pandai for the Family Hope (PKH) and Non-Cash Food Aid (BPNT) programs from the Ministry of Social Affairs, as well as social assistance programs that use regional budgets in several provinces. 3. BNI Pandai and TabunganKu for the Farmer Card Program from the Ministry of Agriculture. 4. BNI Pandai and KUSUKA Card (Marine and Fisheries Business Players) from the Ministry of Maritime Affairs and Fisheries. 5. BNI Pandai for Mekaar PNM Program, a program for underprivileged mothers who are customers of PNM. 6. Special Non-Individual Savings as a subsidy program for Farmer Groups (Poktan) from the Ministry of Agriculture. 7. BNI Pandai, TabunganKu, BNI Simpel for waste saving/ movement programs which is a combination of environmental education and financial inclusion. 8. BNI Smart for E-retribution programs for markets in several provinces. Beradaptasi dengan Cepat Menghadapi Perubahan 193
  194. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk DEPOSITO STRATEGY Deposito is a customer investment instrument where customers can place funds with a variety of options and competitive interest rates. Through digitalization BNI has made it easier for customers to hold deposits, where they can safely, quickly and easily open their own deposit accounts through internet and mobile banking features. It is hoped that digitalization will meet the needs of the millennia segment and customers looking for convenience during their various busy activities. CONSUMER AND RETAIL SEGMENT TPFR PRODUCTIVITY Consumer and Retail segment TPF productivity is presented as follows: Total Third Party Fund Accounts Description 2018 (Account Units) Savings Deposits TOTAL 2017 Composition (%) 43.181.705 (Account Units) 99.0% Growth Composition (%) (Account Units) 99.0% 10.384.517 32.797.198 (%) 31.7% 364.988 1.0% 337.216 1.0% 27.840 8.2% 43.546.693 100.0% 33.134.405 100.0% 10.412.357 31.4% The increase in savings accounts in 2018 included an acquisition program involving payroll cooperation with Companies/ Institutions, especially those who are BNI Customers/Borrowers in the Business Banking sector (Corporate, Commercial and Retail), and through school to school and campus to campus acquisition programs, and the 2018 Government Programs with several Government Ministries and Institutions such as the Program Bantuan Sosial non tunai, Program Indonesia Pintar (PIP) and Program Simpanan Pelajar (Simpel). Total Third Party Funds Description 2018 (Million Rp) Tabungan Deposito TOTAL 2017 Composition (%) 189,708,216 73.0% (Million Rp) Growth Composition (%) 169,812,480 73.0% (Million Rp) 19,895,737 (%) 11.7% 68,486,923 27.0% 62,807,329 27.0% 5,919,426 9.5% 258,195,139 100.0% 232,619,809 100.0% 25,815,163 11.1% In line with the increase in the number of accounts, total third party funds at the end of 2018 reached Rp238.2 trillion, or an increase of 11.1% compared to 2017, due mainly to savings increasing by 11.7 % to Rp189.7 trillion, deposits increasing by 9.5% to Rp68.5 trillion. Awards related to the Savings in 2018 as follows: 1. Innovative Simpel Implementation Bank (FIN OJK EXPO 2018) 2. The Best Bank for Simpel / Simpel iB Implementation (FIN OJK EXPO 2018) 3. Top Brand 2018 Category Installment Savings: BNI Tapenas. 4. Top Brand 2018 Category Child Savings: BNI Taplus Anak. 5. Reader Choice Award Mother and Baby Indonesia, Education Savings Category. 194 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  195. Analisis & Pembahasan Manajemen PERFORMANCE PROSPECTS AND STRATEGIES Savings Products Prospects and Strategies Economic growth is expected to increase by 5.3% in 2019 which will have an impact on the potential for deposits growth which is expected to grow between 9.0% to 10%. BNI is committed to seeing the growth of its special savings continuing above the industry, by continually increasing digital transactions, strategic partnerships, and developing business models, thus BNI’s savings are expected to grow by 24%. The focus for increasing deposits, especially CASA, will focus on the entrepreneurial, employees, and millennial savings sectors, through increased acquisitions, closed loop transactions, and increasing e-channel transactions both POS and e-commerce, and optimizing the role of Agen46, with strategic policies focusing on: 1. Entrepreneurship: Acquiring and increasing Tabungan Bisnis balances through merchant transaction activities and EDC optimization both with activation and enhancement of e-channel transactions, and collaborating with the Business Centers, as well as optimizing the Agent 46 role. Increasing Tabungan Bisnis balances through a customer and debtor financing and management program. 2. Employees: a. Increasing Payroll balances and accounts through acquisition and loyalty programs to selected companies, and payroll customer retention programs, as well as utilizing payroll applications for acquisitions. Payroll program sales through bundling payroll with BNI Fleksi or BNI Griya and various e-channel facilities and usage debit programs. 3. Millennials: a. Increasing Millennial segment Savings through formal and non-formal approaches with education institutions and first jobbers and massive acquisitions through the School to School program (Ayo menabung Bersama BNI), Campus to Campus (Level 3 Taplus Muda), Social Media Activation and Cross Selling Products through customer service officers, and collaborating with the Ministry of Education and Culture, or Ministry of Religion to channel the Program Indonesia Pintar (PIP). To attract customers from this generation, BNI will develop saving education activities for digital transactions. PT Bank Negara Indonesia (Persero) Tbk  4. Increasing customer preferences and customer experience and enhancing BNI’s image in transactional banking, through education and activation of e-channel facilities, massive usage debit programs or e-channel transactions. 5. Developing digital applications for convenient acquisition channels and transactions; and opening a digital account through a smartphone and pening digital accounts through the EDC Android machine. 6. Developing Digipoin, a loyalty program in the form of reward points, for BNI savings customers by actively adding savings balances, e-channel transactions and debit cards. Deposit Products Prospects and Strategies Deposits are still one of the safer placement instruments for customers, and can also be used as collateral for loans. Growth in consumer deposits is expected to grow by 23%. The strategy to gain Deposits in 2019 will be focused on increasing digital transactions, and bundling with Savings, Tapenas products marketing DEBIT CARD BUSINESS EXPLANATION OF CONSUMER AND RETAIL SEGMENT CARD BUSINESS BNI continues to maintain its position as one of the leading banks in the credit card business and continues to develop its debit card business. BNI debit cards come in many choices with typical Indonesian batik designs including BNI Silver Debit Cards, BNI Gold Debit Cards, BNI Platinum Debit Cards and BNI Emerald World MasterCard Cards (especially for priority customers). In addition, BNI is continuing to expand its cooperation with non-profit communities with its Affinity Debit Cards, and with business communities with its Co-brand Debit Cards including Ferrari by BNI, LotteMart Wholesale Debit Card, Garuda Debit Card, Multimart Debit Cars and Indogrosir Debit Cards and others. Beradaptasi dengan Cepat Menghadapi Perubahan 195
  196. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk 196 DEBIT CARD STRATEGIES IN 2018 To increase BNI 2018 Debit Card usage the following strategies were conducted: 1. Conducting a campaign program that included increasing customer transactions habits (cash less customers). 2. Increasing the debit card transaction frequency, in an effort to establish a usage experience and brand awareness, as well as increasing customer loyalty through an attractive activation program and usage program. DEBIT CARD PRODUCTIVITY IN 2018 The BNI Debit Card Strategies implemented in the BNI Debit Card flagship program during 2018 included: 1. 2018 National Promos Debit card promotion programs throughout 2018 at merchants where customers routinely conduct transactions including Supermarkets, Convenience Stores, Department Stores and Restaurants. Collaborating with favorite merchants to establish and increase public awareness of the benefits of debit cards as a substitute for cash. 2. BN’s I 2018 debit card flagship program included Supermarkets / Convenience Stores, Restaurants, Bookstores, Cinemas and leading Home Furnishing promos. The BNI debit card promos were carried out in collaboration with BNI’s leading E-Commerce in collaboration with favorite amusement rides. 3. 2018 Local Promos BNI Debit Card also cooperated with local merchants in the areas outside the Jabodetabek area to get closer to BNI Debit cardholders located close by. Partnership collaboration with several business communities is also being increasingly enhanced, especially with loyalty programs and activations. 4. Co-Brand Promo Programs with the intention of providing appreciation not only to BNI customers but also BNI business partners. For Cobrand Garuda BNI debit cardholders, customers can receive Triple Miles per transaction using the kartu#debit Cobrand Garuda BNI card. The LotteMart Wholesale Co-brand debit card program provides monthly cashback for every customer transaction at LotteMart Wholesale. For BNI BNIIndogrosir debit cardholders BNI provides additional benefits when customers use their BNI-Indogrosir debit cards. In 2018, BNI’s debit card sales volume growth in 2018 reached 21.7% (YoY), higher when compared to 20.1% (YoY) in 2017. This is driven by the 24.9% increase in the number of BNI debit cards transactions in 2018 compared to 2017. Beradaptasi dengan Cepat Menghadapi Perubahan  Tabel Kinerja Pertumbuhan Kartu Debit 2018 Transaction Debit Improvement Growth 2018 (YoY) Growth 2017 (YoY) Sales Volume 21.7% 20.1% Number of Circulating Cards 39.8% 41.0% Card transaction 24.9% 19.6% Frequency 33.3% 26.5% BNI Debit Card Awards in 2018, included 1. Best Millennial Segment Solution (MasterCard Award 2018) 2. Best Innovative Acquiring for QR (MasterCard Award 2018) 3. Best Affluent Debit Card Program (MasterCard Award 2018) 4. Most Creative Acquisition Campaign (MasterCard Award 2018) DEBIT CARD PROSPECTS AND STRATEGIES In 2019, sales volume growth focused on the following strategies: 1. Increasing customer preferences and customer experience and increasing debit card transactions through usage debit programs for both POS and e-commerce transactions, while focusing on the Top 10 Merchant. 2. Increasing customer debit card usage in collaboration with merchants and e-commerce in accordance with market developments and millennial generation behavior. 3. Increasing the number of Debit Cards transactions through attractive activation programs and usage programs, including promo programs for customers optimizing online and offline media, and also as communication and updating programs / campaigns. DEBIT CARD OR CO BRAND FEATURE DEVELOPMENT There are several plans in 2019 for developing debit card features to improve security and convenience for customers in conducting transactions, including: 1. Collaboration between BNI Debit Card brand and selected institutions 2. Development of the 3D secure debit card master 3. Development of a B-secure feature for the Private Label Debit Card e-commerce transactions, to support the National Payment Gateway (GPN) program PT Bank Negara Indonesia (Persero) Tbk
  197. Analisis & Pembahasan Manajemen CONSUMER AND RETAIL SEGMENT INCOME AND PROFITABILITY The Consumer and Retail Segment income and profitability is presented as follows: Consumer and Retail Segment Income and Profitability Description Interest income and Sharia income-net *) Premium income -net Other operating income 2018 2017 (Rp million) (Rp million) Growth (%) (Rp million) 10,775,890 9,558,035 1,217,855 12.7% - - - - 6,580,492 5,875,743 704,749 12.0% Allowance for impairment losses (1,285,949) (1,538,979) 253,030 (16.4%) Other operating expenses (8,941,323) (8,961,270) 19,947 (0.2%) 7,129,110 4,933,529 2,195,581 44.5% Operational income Non-Operating (Expense)/Income-Net Income before tax expense Total assets Total liabilities 14,074 16,352 (2,278) (13.9%) 7,143,184 4,949,881 2,193,303 44.3% 78,206,547 69,216,585 8,989,962 13.0% 259,917,921 237,864,259 22,053,662 9.3% *) termasuk komponen internal transfer pricing antar segmen operasi In 2018 Interest income and Sharia income-net in the Consumer and Retail segment reached Rp10.8 trillion, an increase of 12.7% compared to Rp 9.6 trillion in 2017. While the Consumer and Retail segment operational profit in 2018 reached Rp7.1 trillion, an increase of 44.5% compared to Rp5.0 trillion the previous year. TREASURY AND INTERNATIONAL The Treasury and International segment treasury activities including foreign exchange transactions, money markets, capital markets and fixed income, including international banking business and overseas branch supervision. TREASURY Bank BNI Treasury Segment 2018 productivity, business prospects and achievement strategies are presented as follows: EXPLANATION OF TREASURY SEGMENT BNI Treasury products are classified into transactional products, investment products, and hedging products. TRANSACTIONAL Transactional product consists of Forex-TOD, Forex-TOM, Forex-SPOT, and Forex-Bank Notes. Details regarding transactional products are described as follows: 1. Forex - TOD Foreign exchange trading where the transaction agreement and transaction settlement are carried out on the same day. PT Bank Negara Indonesia (Persero) Tbk  2. Forex - TOM Foreign exchange buying and selling where transaction settlement is carried out 1 (one) working day after the date of the transaction agreement. 3. Forex – SPOT Foreign exchange buying and selling where transaction settlement is carried out 2 (two) working days after the date of the transaction agreement. 4. Forex - Bank Notes Transactions involving the exchange of physical ownership of the currency (banknotes) involved in the transaction. Can be distinguished by; a. Banking Transactions Banknote deposits or withdrawals from customer accounts with the same currency. Revenue for branches is fee income in lieu of exchange. b. Trading Transactions Buying or selling banknotes. Branch revenue is from foreign exchange differences. Beradaptasi dengan Cepat Menghadapi Perubahan 197
  198. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk INVESTMENTS Treasury investment products consist of Deposit on Call (DOC), Money Market Account (MMA), and retail bonds. Details regarding investment products are described as follows. 1. Deposit on Call (DOC) a. Placement of funds for a minimum period of 3 days up to 30 days. b. The interest rate is based on interbank interest rates. c. Can be withdrawn at any time. d. Minimum placement Rp100 million or USD 75 thousand. 2. Money Market Account (MMA) a. Placement of funds for a minimum period of one day up to 1 year. b. b. The interest rate is based on interbank interest rates. c. Can be withdrawn at any time. d. Minimum placement Rp1 billion or USD 100 thousand. 3. Retail Bond Bonds are evidence of indebtedness by the issuer, which will be repaid at maturity in accordance with the terms and conditions previously established. Bond transactions that can be made between the Treasury Division and Individual Clients for transactions include: a. In the primary market including corporate bonds and nonretail government bonds. b. In the secondary market including corporate bonds, retail government bonds, c. Non-retail government, and other countries’ government bonds 4. Depo Swap A Depo Swap is an investment product in foreign currency with a maximum rate of return with the principal investment placement guaranteed 100%. Depo Swap is a combination of forex transactions in the form of FX Swap and deposit. In this transaction the customer converts their forex currency into other foreign currencies and reconverts the forex currency in the future for the tenor at exchange rates established at the start of the transaction agreement. The foreign exchange gain on foreign exchange transactions (forex gain) becomes the optimal return on the customer’s investment fund placement. 5. Market Linked-Dual Currency Investment (ML-DCI) ML-DCI is a structured product that is a combination of foreign exchange savings products and FX Options. This product provides a high return when compared to conventional savings products as it combines savings products linked to exchange rate movements. This product has non-capital protected characteristics / does not guarantee the principal investment. 198 Beradaptasi dengan Cepat Menghadapi Perubahan  HEDGING 1. Currency Forward Sale and purchase of foreign currencies where settlement is carried out more than two business days after the transaction date. The exchange rate used for this forward transaction takes into account forward points. 2. Domestic Non-Deliverable Forward (DNDF) Standard foreign exchange against rupiah derivative transactions (plain vanilla) is Forward transactions with fixing mechanisms carried out in the domestic market. The fixing mechanism is a transaction settlement mechanism without the movement of principal funds by calculating the difference between the Forward transaction rate and the reference rate on a certain date specified at the fixing date. 3. Currency Swap ‘Buy and Sell’ transactions for one currency against another currency that is carried out simultaneously with the same counterparties. 4. Currency Option Agreement to provide a right and not an obligation of the seller (option writer) to the buyer (option holder) to buy or sell a certain amount of nominal currency in the foreseeable future at a predetermined price (strike price) on or before the specified time (expiry date). 5. Interest Rate Swap (IRS) Agreement between two parties to exchange a series of fixed interest payments (fixed rate) in one currency with a series of fluctuating interest payments (variable rate) in the same currency (or vice versa), without the exchange of principal loans 6. Cross Currency Swap (CCS) An agreement between two parties to exchange principal and interest payments in different currencies. The exchange loan principal uses the exchange rate at inception. 7. Call Spread Option A Structured Product with a combination of 2 Currency Option transactions i.e. Buy Call Option (purchase with the right to purchase a particular currency) and Sell Call Option (sale with the right to purchase a particular currency), for the same nominal amount and Time Period, but with different strike prices for each Buy Call Option and Sell Call Option. The CSO transaction must be made through Dynamic Hedging with the aim that hedging executors are not exposed to exchange rate risk due to market rates beyond the Sell Call Option strike price. Dynamic Hedging is executed by performing several CSO transactions in accordance with the number of market rate frequencies exceeding the Sell Call Option strike price, and the CSO with dynamic hedging as part of the initial CSO transaction in one unit. PT Bank Negara Indonesia (Persero) Tbk
  199. Analisis & Pembahasan Manajemen TREASURY SEGMENT STRATEGY IN 2018 In 2018, the Treasury segment strategies included the following: 1. Increasing the capacity and capability of outlet staff to fit the business needs in order to beat the competition. 2. Managing Securities Portfolios actively whilst maintaining risks through both primary and secondary markets. 3. Managing the Bank’s Net Open Position to maximize FX gain 4. Developing FX and Fixed Income Market product warehousing to meet customer needs. 5. Participating actively in close loop transaction programs through business units and subsidiaries. 6. Marketing strategies both above / below the line to increase brand image and market penetration. 7. Managing short-term liquidity by utilizing facilities determined by Bank Indonesia through GMW Averaging and other instruments 8. Developing and implementing digital treasury applications according to customer needs. TREASURY SEGMENT PRODUCTIVITY The following relates to BNI forex transactions performance against interbank based on transaction volume and profit. Forex Gain by Volume and Profit Growth: Product 2018 2017 Pertumbuhan (%) BASED ON VOLUME (IN USD MILLION) SPOT FORWARD SWAP CCS, IRS Total 68,586 66,963 2.4 1,259 1,301 (3.2) 52,547 77,720 (32.4) 839 311 169.8 123,231 146,295 (15.8) 433,036 813,901 (46.8) BASED ON PROFIT (IN MILLION RP) FOREX GAIN Forex Gain VSpot transaction volume increased by 2.4% as the bank’s business activities increased. While on a volume basis, forward transactions experienced a slight decline, caused by a change in the hedging pattern of customers who preferred hedging instruments through Cross Currency Swaps and Interest Rate Swaps. The CCS and IRS transaction volume in 2018 reached US$839 million, an increase of 169.8% compared to US$311 million in 2017. Swap transaction volumes decreased, in line with the declining liquidity market conditions in 2018. In 2018, BNI’s Forex gain declined in the midst of volatile market conditions, and the rupiah exchange rate weakening against the dollar, which touched Rp15,238 per US dollar. Nonetheless, BNI was still able to record a gain in forex profits of Rp433.04 billion in 2018, supported by increased customers, easy access to domestic and international markets, and competitive prices and reliable human resources. PT Bank Negara Indonesia (Persero) Tbk  Capital Gain - Interbank Trading In 2018, Bond trading transaction volumes rose 27.22% from Rp82.49 trillion in 2017 to Rp104.94 trillion. However, the transaction profit decreased 30.17%, from Rp81.47 billion to Rp56.89 billion. This was partly influenced by the increase in the Fed Fund benchmark interest rate (Fed Fund Rate) in 2018 that put pressure on the market. It increased by 1.00% during 2018, from 1.50% in January 2018 to 2.50% in December 2018. Together with the Fed Fund Rate movement, BI also increased the BI 7 Days Reverse Repo by 1.75 bps during 2018, which at the beginning of January 2018 stood at 4.25%, and by the end of December stood at 6.00%. In addition, increased global uncertainty due to trade war between the US and China, and the crises in Argentina and Turkey, also contributed to a negative sentiment in the market. Beradaptasi dengan Cepat Menghadapi Perubahan 199
  200. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Capital Gain - Interbank Trading Volume and Profit Growth Product Obligasi Trading 2018 2017 Growth Volume Profit Volume Profit Volume Profit (Rp billion) (Rp billion) (Rp billion) (Rp billion) (%) (%) 104,935 57 Capital Gain - Bonds and Securities By Q4 - 2018 outstanding securities had reached Rp.88.8 trillion, the majority of which were placed in government bonds, an increase of 14.9% from the position last year. Although the majority are placed in government bonds and BI instruments, BNI continued to diversify into several corporate bonds as a form of yield enhancement within the measured risk limits and corridors. 82,485 82 27 (30) In the midst of the volatile bond market conditions in 2018, BNI recorded fee-based profits from the sale of securities of Rp539 billion, from mitigation processes carried out, especially related to market risk for hedging transactions. Capital Gain-Bonds and Securities Growth by Volume and Profit Product Bonds and Securities 2018 2017 Volume Profit Volume Profit Volume Profit (Rp billion) (Rp billion) (Rp billion) (Rp billion) (%) (%) 63,946 539 TREASURY SEGMENT PROSPECTS AND STRATEGIES To reach the 2019 targets, the following strategies will be implemented: 1. Managing liquidity through DPK and FNK instruments optimally to encourage growth in the bank’s business 2. Developing customers for all treasury products 3. Increasing the capacity and capability of outlet staff in line with growing business needs 4. Managing Securities Portfolios actively whilst maintaining risks in the both primary and secondary markets 5. Managing the Bank’s Net Open Position to maximize FX gains 6. Optimizing excess liquidity management for instruments that provide the best return (yield) while taking into account daily liquidity conditions 7. Making BNI a one stop for financial solutions 8. Expanding market segments for institutions and product segments 9. Promoting Treasury products and activities. 10. Developing and implementing treasury digital applications based on customer needs 11. Developing an agile TRS organizational structure based on business needs 200 Growth Beradaptasi dengan Cepat Menghadapi Perubahan  110,088 718 (42) (25) INTERNASIONAL Bank BNI International Segment 2018 productivity, business prospects and achievement are presented as follows : EXPLANATION OF INTERNATIONAL SEGMENT The International Segment offers Financial Institution business Services in the Overseas and the Domestic Branch Offices including banking products including BNI Smart Trade, Remittance, International Desk, Custody, and Trustee. OVERSEAS BRANCH OFFICES Overseas Branch Offices (OBO) Products and Services include: LOAN PRODUCTS In accordance with BNI’S Road Map, as a business bridge between Indonesia and the world, the loan products offered by the OBO focus on facilitating Indonesian companies in developing their business overseas, including: 1. Local Loan A loan facility offered by the OBO to Indonesian business groups or counterparties for their overseas Indonesian companies, either bilaterally or syndicated. The types of loans offered are Working Capital Loans, Investment Loans and term loans. PT Bank Negara Indonesia (Persero) Tbk
  201. Analisis & Pembahasan Manajemen 2. Offshore Loan A loan facility provided by the OBO to domestic debtors to finance working capital short-term needs, as well as to finance the procurement of capital goods for the purpose of rehabilitation, modernization and expansion to be completed in the medium or long term. 3. Trade Loan A facility provided by the OBO based on Trade Finance transactions conducted by Indonesian business groups or counterparties for overseas Indonesian companies. 5. 6. Third Party Fund Products OBO with full banking licenses, such as Singapore, Hong Kong, Tokyo and Seoul, can collect third party funds from local customers through OBO products including Savings, Deposits, and Current accounts. Details relating to overseas third-party fund products include: 1. Savings Deposit service developed to accommodate the needs of individual customers. 2. Giro Deposit service for individuals and corporate customers to meet the needs of operational activities with checking facilities as an attraction. 3. Deposits Funding service with maturities ranging from 1 month to 12 months, owned by the OBO, providing a special rate in each OBO, according to the license owned, to selective customers. Products and Services The products and services offered by all OBO include. 1. Export Letter of Credit Where the bank receives the original LC including preadvice and amendments from: a. Issuing Bank to be forwarded to the Beneficiary Second Advising Bank b. First Advising Bank to be forwarded to the Beneficiary 2. Opening Import Letter of Credit A bank activity to open LC (master LC) including Preadvice and amendments (amendment LC) as a guarantee of conditional payment on the basis of instructions or requests from Applicants or in its own name. 3. Confirming Letter of Credit A bank activity to ensure payments of a LC and advise amendments upon request or appointment by the Opening Bank as required under the LC. 4. Standby Letter of Credit (SBLC) A bank activity to execute Standby Letter of Credit (SBLC) transactions, s subject to UCPDC or ISP, covering: a. Publishing SBLC b. Extending SBLC c. Confirming SBLC PT Bank Negara Indonesia (Persero) Tbk  7. 8. 9. d. Transferring SBLC e. Cancelling SBLC f. Realizing SBLC g. Un-used SBLC Inward Bill Collection An activity for: a. The Collecting Bank to instruct collection from the Remitting Bank to the Presenting Bank, or b. The Presenting Bank to instruct collection from the Remitting Bank. Outward Bill Collection An activity as Remitting Bank to send commercial documents, or accompanied by financial documents (draft/promissory note), and to instruct collection to the Presenting Bank, or through overseas Collecting Bank, for submission to the Drawee on the basis of payment or acceptance. Bank Guarantee Bank guarantees issued on behalf of customers such as for the establishment of the company, employment contracts, etc. for full cover or by using an existing credit facility. Remittance Is a written order at the request of an individual or legal entity (ordering customer or institution) to a remitting bank/ institution, to send a sum of money to another designated party (beneficiary customer or institution). Financial Institution business services Financial Institution business products and services include the following Business to Business (B2B) services: a. Bank Guarantee Under Counter (BGUC) The issuance of Bank Guarantees based of request and with a sure guarantee from the correspondent bank (The Instructing Party). b. Bank to Bank Financing – Refinancing A derivative for a trade finance transaction where BNI provides financing on bills held by Bank correspondents for trade finance transactions. c. Bank to Bank Financing-Trade Advance Financing Refinancing by BNI for the Issuing Bank, in the form of payment for LC / SKBDN, or non-LC / SKBDN, to the Nominated Bank. d. Bank to Bank Financing-Forfaiting Purchasing the right to collect Banker’s Acceptances (B/A) held by the Bank as a Correspondent Nominated Bank (forfaitee) in respect of L/C or SKBDN transactions with discount without recourse. e. Risk Participation Is the partial transfer of risk owned by an applicant bank to BNI in a funded or unfunded form that is related to trade transactions agreed upon between the applicant bank and other banks. Beradaptasi dengan Cepat Menghadapi Perubahan 201
  202. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk International Banking Services The International Segment offers Financial Institution business Services in the Overseas and the Domestic Branch Offices including BNI Smart Trade, Financial Institutions, Remittances, International Desks, Custody, and Trustees. Bni Smart Trade BNI Smart Trade is classified as a trade product, trade service, and trade finance. Details of the Smart Trade-related products are described as follows: BNI Smart Trade Trade Product Trade Service Trade Financing Letter of Credit Open Negotiation SKBDN Advising Discounting Bank Garasi Realization Refinancing Doc Collection Settlement Bills Payment Trade Products 1. Letter of Credit Letter of Credit is a guarantee of payment instruments issued by the bank (Issuing Bank) to recipients (Beneficiary) which is subject to Uniform Customs and Practice for Documentary Credits (UCP). 2. Domestic Letter of Credit A Domestic Letter of Credit is a guarantee of payment instruments issued by the bank (Issuing Bank) to recipients (Beneficiary), which is subject to Bank Indonesia Regulations and is used for domestic trade transactions. 3. Bank Guarantee A Bank Guarantee is a guarantee of payment instruments issued by the bank to guarantee recipients (Beneficiary) if the guaranteed party is in breach of contract (tort). Bank Guarantees are subject to Bank Indonesia Regulations or Uniform Rules for Demand Guarantee (URDG) or International Standby Practices (ISP). 4. Documentary Collection Documentary Collection is a payment system for world trade conducted through banking services in the form of undocumented bills subject to Uniform Rules for Collections (URC). Trade Services Trade Services is a trade business that provides services to customers to receive products/services in the framework of trade transactions, or export/import and domestic trade. Trade services include: 3. Realization 1. Open Realization is a service to deliver/submit trade Opening is a service for the issuance of an instrument documents to the recipient of the documents as the (L/C, SKBDN, Bank Guarantee), which ensures certainty importer/purchaser, with agreed conditions. of payment, or underwrites contract performance, by 4. Settlement the beneficiary with the conditions agreed upon by the Settlement is a service to settle trade transactions parties to the agreement. in the form of transaction payments that have been 2. Advising implemented or agreed. This trade service transaction Advising is a delivery service such as verification of the makes payments to the exporters/sellers via bank validity/correctness of an L/C, SKBDN, Bank Guarantee transfers. transmitted by overseas and domestic correspondent banks for delivered to the recipient/beneficiary. 202 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  203. Analisis & Pembahasan Manajemen Trade Financing Trade Financing is a business managed by the International Division to provide financing to customers for trade/ commercial transactions with instruments in the form of L/C, SKBDN, Documentary Collection, Bills Payment, and Invoices or bills. Trade financing includes. 1. Negotiation Negotiation is the receiving of draft payments drawn by the beneficiary to a bank on the basis of documents presented and declared in accordance with the terms and conditions of the LC/SKBDN/SBLC with sight tenor. 2. Discounting Discounting is the receiving of draft payments drawn by the beneficiary with a bank on the basis of documents presented and declared in accordance with the terms and conditions of the LC/SKBDN/SBLC with since tenor. 3. Refinancing Refinancing is the takeover of financing in the form of payments secured by an issuance L/C or SKBDN. Financing in the form of refinancing can be carried out at the time of initial opening or when approaching the due date for payment. 4. Bills Payment Bills Payment is financing for exporters/sellers and importers/buyers on the basis of a documentary collection/open account transaction. Financial Institution Products and Services Financial Institution business products and services include the following Business to Business (B2B) services: 1. Bank Guarantee Under Counter (BGUC) The issuance of Bank Guarantees based of request and with a sure guarantee from the correspondent bank (The Instructing Party). 2. Bank to Bank Financing – Refinancing A derivative for a trade finance transaction where BNI provides financing on bills held by Bank correspondents for trade finance transactions. 3. Bank to Bank Financing-Trade Advance Financing Refinancing by BNI for the Issuing Bank, in the form of payment for LC / SKBDN, or non-LC / SKBDN, to the Nominated Bank. 4. Bank to Bank Financing-Forfaiting Purchasing the right to collect Banker’s Acceptances (B/A) held by the Bank as a Correspondent Nominated Bank (forfaitee) in respect of L/C or SKBDN transactions with discount without recourse. PT Bank Negara Indonesia (Persero) Tbk  5. Bank to Bank Financing-Term Loan Facility Bank Granting of credit facilities to other banks either with the status of BUMN, BUSN, BUMD, or Branch Offices of Foreign Banks domiciled in Indonesia. 6. Risk Participation Is the partial transfer of risk owned by an applicant bank to BNI in a funded or unfunded form that is related to trade transactions agreed upon between the applicant bank and other banks. Remittance Remittance is a written order at the request of individuals or legal entities (ordering customer or institution) to a remitting bank/institution, to transfer money to another designated party (beneficiary customer or institution). Types of remittance includes: 1. Incoming Fund Transfer or Incoming transfer (ITR) or Incoming remittances Remittances from individuals or legal entities through overseas remitting banks in foreign currency/rupiah, or through domestic banks, especially for foreign currency, addressed to BNI as the recipient bank, for recipients’ benefit whose names are designated in the remittance, either as BNI customers or non-customers in the country. The ITR transaction code in BNI is S06. BNI Wesel PIN is a Remittance/Incoming Transfer (ITR) service from overseas, that can be exchanged for cash (without an account) in BNI outlets and BNI paying agents such as Pos Indonesia, Alfamart, and pawnshops. Disbursements are made through a correct PIN number and valid identity cards (KTP/SIM/ Passport). 2. Outgoing Fund Transfer (OTR) or Outgoing remittances Unconditional written order from BNI at the request of a customer and/or for BNI’s benefit addressed to the correspondent bank to pay a certain amount of money to a specified person/entity (beneficiary). Includes foreign currency remittances to correspondent banks at home and abroad. The OTR BNI transaction code is S10. BNI remittances can be received on the same day (same day service) with time limits (cut off time) determined by each currency. BNI also has multi currency remittances services that can be received in 125 types of currency from 160 countries. Beradaptasi dengan Cepat Menghadapi Perubahan 203
  204. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk International Desk 1. Loan The International Desk Unit provides loan services in the form of IDR or offshore loans in USD and JPY currencies and Open Account Financing (OAF) for International Corporate Clients in Indonesia with competitive interest rates based on Stand by LC (SBLC), guaranteed by international banking / financial institutions. For granting these loans or Open Account Financing (OAF) scheme, the International Desk coordinates with the Credit units (LMC, SKM, SKC). 2. Third Party Funds Cooperation with branches in providing services for opening Savings, Current Accounts and Deposits for Customers, and foreign and International corporations in Indonesia. 3. Cash Management In collaboration with Transaction Banking Services Division (TBS), marketing BNI Cash Management products to International corporate customers in Indonesia 4. Credit Card In cooperation with the Business Card Division (BC) offers personalized credit cards to foreign individuals as well as International corporations. Custody Based on Law no. 8/1995, custodian and other assets related to securities and other services, including receiving dividends, interest and other rights, completing securities transactions, and representing the account holders as our customers. BNI Custodial Services offers the following. 1. Custody Services a. Storage, management and administration of securities, either script or scriptless, on the Indonesian Stock Exchange. b. Storage, management and administration of securities issued by the government such as Government Securities (SUN), Indonesian Retail Bonds (ORI), Shariah Securities (SBSN). c. Storage, management and administration of securities in the international market registered at Euroclear as one international Depository institution. 2. Fund Services Transaction process services up to the net asset value calculation (balance sheet, profit / loss, portfolio reports) for Mutual Funds, Fund Management Contracts (KPD) and Unit Link. Services provided include Fund Accounting/ Fund Administration, monitoring, reporting and publication. 204 Beradaptasi dengan Cepat Menghadapi Perubahan  3. Trustee and Agency a. trustee Acting as a party representing the interests of debt securities, including: i. Compiling trusteeship contracts with issuers. ii. Monitoring issuers for fulfillment of their obligations. iii. Submitting reports and information disclosure. iv. Organizing Bondholders General Meeting (RUPO). b. Security Agent Administration of assets guaranteed by a party based on an agreed agreement. c. Paying Agent Processing payments in accordance with agreements for activities related to capital market transactions such as payment of coupons / interest, dividends, principal bonds or other debt securities and payment services for sale / purchase and others. d. Escrow Agent Managing, monitoring and controlling escrow accounts (special accounts) in accordance with agreements. Trustee Trust is a bank business in the form of care for the management of settlor’s property (owning parties who entrust their property to be managed by the Trustee / Bank) based on a written agreement between the Bank as Trustee with the Settlor for the benefit of the Beneficiary. Based on Otoritas Jasa Keuangan regulation (POJK) No.27/POJK.03/2015 concerning Bank Custody Management (Trust) as amended by POJK No. 25/POJK.03/2016, Trustees can act as: 1. Paying Agent 2. Investment Agent 3. Borrowing Agent Trustees not only serve corporate clients, individual customers, but now Trustee customers. Based on POJK No 25/ POJK.03/2016. This is a relaxation of the rules to support the tax Amnesty program. PT Bank Negara Indonesia (Persero) Tbk
  205. Analisis & Pembahasan Manajemen INTERNATIONAL SEGMENT STRATEGIES IN 2018 To make BNI a major player in the international trade and payment business for the banking industry in Indonesia, a number of strategies were followed during 2018. These strategies proved to be effective in boosting international business growth, especially trade finance income that grew by 25.9% (YoY ). Thanks to the support of the 6 (six) BNI OBO, in Singapore, Hong Kong, Tokyo, Seoul, London and New York and the 1 (one) Representative Office in Yangoon the OBO assets grew 28.8% (YoY) while OBO deposits grew 45.9% (YoY). INTERNATIONAL SEGMENT PRODUCTIVITY, PROSPECTS AND STRATEGIES The following relates to OBO productivity, prospects and strategies and Domestic International Banking Services. OVERSEAS BRANCH OFFICES (OBO) The Overseas Branch Office (KCLN) total assets for 2018 are shown as follows: Tabel Kinerja Asset KCLN Description Local Loan 2018 (Rp million) 39,918,309 Composition (%) 53.1% 2017 (Rp million) 30,734,174 Composition (%) Growth (%) 52.6% 29.9% Others Assets 35,317,273 46.9% 27,682,505 47.4% 27.6% Total Assets 75,235,582 100% 58,416,679 100% 28.8% KCLN’s total assets experienced a significant increase, with the total assets for all KCLN reaching Rp75.2 trillion, an increase of 28.8% compared to Rp58.4 trillion the previous year. This was mainly due to an increase in loan, trade finance and securities transactions. KCLN total loans in 2018 experienced a significant increase, with KCLN successfully booking loans amounting to Rp39.9 trillion, an increase of 29.9% compared to Rp30.7 trillion the previous year. The KCLN loans disbursed focused on Indonesia related business, especially for companies conducting export or import activities with Indonesia. OBO Third Party Fund Products OBO funds deposited in 2018 included local loan customers and OBO local trade. In addition, the optimizing the accounts of the Indonesian Embassy / Indonesian Consulate in each OBO country was also carried out. Tabel Jumlah Dana Pihak Ketiga KCLN Description Savings 2018 (Rp million) Composition (%) 2017 (Rp million) Composition (%) Growth (%) 629,243 12.1% 94,409 2.7% 566.5% Giro 3,049,350 58.7% 2,630,979 73.9% 15.9% Deposits 1,513,345 29.1% 833,078 23.4% 81.7% 5,191,938 100% 3,558,461 100% 45.9% Total During 2018, total OBO deposits amounted to Rp5.2 trillion. The main contribution came from the 4 (four) OBO holding full branch status that were able to carry out retail transactions, namely: Singapore, Tokyo, Hong Kong and Seoul. To continue to increase OBO deposits in 2019, increasing the number of local loan customers and OBO local trade will be the main strategy, in addition to increasing retail deposits. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 205
  206. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk OBO Services With a loan expansion strategy emphasizing local loans, and by exploring the business potential of Indonesian customers or companies that will and have expanded overseas, as well as optimizing business potential / transactions that generate KCLN fee-based income, the KCLN income in 2018 was as follows: Overseas Branch Offices Income 2018 Composition 2017 Composition Growth (Rp million) (%) (Rp million) (%) (%) Keterangan Net Interest Income 895,117 76.9% 879,585 77.9% 1.8% Recurring FBI 269,636 23.1% 249,641 22.1% 8.0% 1,164,753 100% 1,129,226 100% 3.1% Total Net interest income in 2018 amounted to Rp895.1 billion, an increase of 1.8% compared to Rp879.6 billion the previous year, mainly due to Loan Interest Income and Trade Finance. KCLN recurring fees increased by 8.0% to reach Rp269.6 billion trillion compared to Rp249.6 billion in 2017. The biggest growth in KCLN’s recurring fee came from remittance and trade services. This was supported by an increase in TKI remittances and corporate customer activities at the KCLN, and KCLN expansion activities both in services to business people in each country and trade refinancing transactions INTERNATIONAL BANKING SERVICES Domestic international banking income from trade finance, remittances, financial institutions, custody, trustee and the international desk in 2018 grew by 25.7% (YoY). Domestic International Banking Income Type of Income 2018 (Rp billion) Fee Based Income Interest Income Total 1,594 2017 Composition (%) 62.8% (Rp billion) 1,303 Growth (%) Composition (%) 64.5% 22.4% 943 37.2% 716 35.5% 31.8% 2,538 100% 2,018 100% 25.7% BNI’s trade finance services and products dominated the domestic international banking business income. The strategies followed to enable trade business income growth in 2018 to grow by 22% included the following: 1. Exploring potential SBLC / Demand Guarantee issuance transactions, especially from borrowers engaged in infrastructure. 2. Collaborating with Guarantee Companies to work on customers who do not have a non cash loan ceiling, especially for import transactions. 3. Improving the “close loop transactions” strategy by providing competitive pricing to increase the number of new customers. 4. Exploring the potential needs for trade transactions for suppliers of BUMN Karya and other potential customers. 5. Synergizing with business units to explore the potential for non-Cash Loan utilization that has not been optimized In addition, in 2018 the financial institution’s business also recorded encouraging growth. Correspondent banks, both in Indonesia and abroad, increasingly became more confident in channeling their business through BNI. This can be seen from the 26% increase in interbank transactions, and the 64% (YoY). increase in the number of transactions slips. With these increases, the financial institution transaction income increased by 64% (YoY). 206 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  207. Analisis & Pembahasan Manajemen The remittance business is also quite large, and contributes to the domestic international banking business income. During 2018, remittance income grew by 16%, supported by two main products, namely incoming and outgoing transfers. Incoming transfer transactions saw significant growth from Malaysia and other countries such as Taiwan and Qatar. In addition, in 2018 BNI Mobile Remittance (BNI More) products in Singapore were launched as a digital-based money transfer to Indonesia facility for Indonesian Migrant Workers (PMI) in Singapore. To improve the international banking business, correspondents’ trust of is an important asset for BNI. To maintain correspondent relationships, BNI actively communicates with correspondent banks as well as expands the scope of good transactions, by exploring the potential for new cooperation with BNI’s current correspondent banks, as well as by expanding relationships with banks that are not yet a BNI correspondent bank. TREASURY AND INTERNATIONAL SEGMENT INCOME AND PROFITABILITY The Treasury and International segment income and profitability is shown as follows: Treasury and International Segment Income and Profitability Description Interest income and Sharia income-net * Premium income -net Other operating income Allowance for impairment losses Other operating expenses Operational income Non-Operating (Expense)/Income-Net Income before tax expense 2018 2017 (Rp million) (Rp million) 2,086,897 Growth (Rp million) 1,860,111 (%) 226,786 12.2% - - - - 2,950,936 3,213,069 (262,133) (8.2%) (145,055) (73,992) (71,063) 96.0% (1,947,361) (2,035,563) 88,202 (4.3%) 2,945,417 2,963,625 (18,208) (0.6%) 2,697 (1,356) 4,053 (298.9%) 2,948,114 2,962,269 (14,155) (0.5%) Total assets 275,552,690 246,499,835 29,052,855 11.8% Total liabilities 103,149,183 74,321,428 28,827,755 38.8% *) termasuk komponen internal transfer pricing antar segmen operasi In 2018 Treasury and Financial Institutions Interest income and Sharia income-net amounted to Rp2.1 trillion, an increase of 12.2% compared to Rp1.9 trillion in 2017. Whereas the Treasury and Financial Institutions segment operating profit in 2018 amounted to Rp3.0 trillion, a decrease of 0.6% or Rp18.2 billion from the previous year. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 207
  208. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk SUBSIDIARIES In 2018 BNI Subsidiaries posted a positive performance with a total profit of Rp648 billion, a decrease of (10.36%) compared Rp723 billion in 2017, with a profit contribution of 4.29% of BNI’s profit. 208 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  209. Analisis & Pembahasan Manajemen The development of community and corporate needs for financial services is growing, both in quality and quantity, requiring banks to provide integrated financial services. With authority limitations, banks are unable to meet all of their stakeholders needs for financial services so there is a need to involve subsidiaries. As one of the major banks in Indonesia, the role of BNI and BNI’s Subsidiaries, as BNI Group, in the financial industry occupies a very strategic position. To this end, BNI continues to improve its synergy with the subsidiaries so as to provide comprehensive financial services under one umbrella to customers. Strategic alliances and synergies between the subsidiaries and the BNI parent company have been built to improve services, so as to contribute optimally to all BNI stakeholders. In accordance with the applicable banking industry regulations, BNI manages its subsidiaries through equity investments in subsidiaries engaged in the financial sector. By the end of 2018, BNI owned shares in 10 subsidiaries. The majority ownership in some of the subsidiaries is intended to establish a strategic alliance to deliver added value to BNI customers. While minority stakes are held for the purpose of complying with OJK and BI policies / regulations, as well as to establish business cooperation with BNI partners. The subsidiary companies where BNI acts as the majority shareholder are: PT Bank BNI Syariah (99.94%), PT BNI Life Insurance (60.0%), PT BNI Sekuritas (75.0%), PT BNI Multifinance (99, 9%) and BNI Remittance Ltd. (100.0%). While, the minority share ownerships are PT Sarana Bersama Pengembangan Indonesia (8.0%), PT Pemeringkat Efek Indonesia (0.14%), PT Kustodian Sentral Efek Indonesia (1.0%), PT Bank Mizuho Indonesia (1.0 %), and PT Sumitomo Mitsui Indonesia (0.5%). In 2018 BNI Subsidiaries posted a positive performance with a total profit of Rp648 billion, a decrease of 10.36% compared Rp723 billion in 2017, with a profit contribution of 4.29% of BNI’s profit. BNI Subsidiaries Profit Performance Name of Subsidiaries 2018 (billion Rp) 2017 (billion Rp) 2016 (billion Rp) 2015 (billion Rp) Growth 2017-2018 (%) BNI Syariah 416.06 306.69 277.37 228.5 35.66% BNI Life 177.16 377.80 183.95 160 (53.11%) BNI Sekuritas 22.06 10.60 12.34 38.9 108.11% BNI Multifinance 32.06 27.10 7.41 (12.3) 18.30% BNI Remittance Total 0.69 0.73 0.21 (0.5) (5.48%) 648.04 722.92 481.28 414.6 (10.36%) For 2019 BNI has several strategies for business development to improve financial performance, business growth, customer satisfaction, and the position of Subsidiaries against their peers group and the industry, including: • Increasing Subsidiaries asset growth through corporate actions • Increasing the BNI Group synergy • Digitizing the Subsidiaries products and services PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 209
  210. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk PT BANK BNI SYARIAH (BNI SYARIAH) DESCRIPTION, PRODUCTIVITY, INCOME, AND PROFITABILITY In 2018, BNI Syariah managed to record a positive performance by achieving net profit after tax of Rp416 billion, an increase of 35.66% from Rp307 billion in 2017, and reached 102.23% of the 2018 target of Rp406 billion. BNI Syariah total assets amounted to Rp41,040 billion, or 106.19% of the 2018 target of Rp38,648 billion. The asset achievements were driven by financing and deposits, which grew by 20.30% and 20.82% respectively. Financing in 2018 amounted to Rp28,386 billion, or 104.82% of the 2018 target, with the largest growth coming in commercial financing at 56.9%. Deposits in 2018 amounted to Rp35,496 billion or 107.07% of the 2018 target. BNI Syariah’s financial performance during 2018 is shown in the following table: PT Bank BNI Syariah Financial Performance 2018 Description Balance Sheet Category (Rp million) Investments Placements with BI Placements with other banks Growth (Rp million)   Assets (Rp million)   (%)     41,040,203 34,827,144 6,213,059 17.84% 12,327,502 10,617,970 1,709,532 16.10% 4,554,393 5,113,798 (559,404) (10.94%) 327,022 328,739 (1,716) (0.52%) 7,446,086 5,175,433 2,270,653 43.87% 28,386,197 23,596,718 4,789,479 20.30% 18,201,807 16,580,149 1,621,658 9.78% Qardh Receivables (Sharia credit cards) 1,564,282 1,479,877 84,405 5.70% Financing 8,274,741 5,475,003 2,799,738 51.14% 345,366 61,689 283,678 459.85% 35,496,519 29,379,291 6,117,228 20.82% 8,835,445 5,970,787 2,864,658 47.98% 26,661,074 23,408,505 3,252,570 13.89% 4,244,484 3,812,000 225,798 5.92% 3,836,743 3,384,295 452,448 13.37% Income from Fund Distribution 3,567,329 3,174,648 392,682 12.37% Murabahah Margin 2,212,338 2,090,204 122,134 5.84% Securities Financing Murabahah / Salam / Istishna Receivables (sale and purchase contract) Ijarah Third Party Funds Wadiah Deposits Funds Unrestricted Investing Funds (Mudharabah Muthlaqah) Equity Profit or Loss Category Operating income Ijarah Leases     12,244 57,054 (44,810) (78.54%) Mudharabah Profit Share 123,307 172,440 (49,133) (28.49%) Musyarakah Profit Share 498,757 336,154 162,603 48.37% 38,826 6,718 32,108 477.94% Other TPF Income 148,678 152,051 (3,373) -2.22% From Other Banks 533,179 360,027 173,152 48.09% From Bank Indonesia Other operating income Profit share for investors unrestricted From Third parties non bank From Bank Indonesia From Other Banks 210 2017 269,413 209,647 59,766 28.51% 1,007,841 967,942 39,900 4.12% 1,007,227 963,727 43,501 4.51% - - - 614 4,215 (3,601) (85.43%) Operating income after profit share distribution 2,828,901 2,416,353 412,548 17.07% Expenses (Inc.) allowance for uncollectible accounts 689,828 700,859 (11,031) (1.57%) Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  211. Analisis & Pembahasan Manajemen 2018 Description 2017 (Rp million) Expenses (Inc.) estimated losses on commitments and contingencies Other operational expenses Growth (Rp million) (Rp million) (%) (215) 415 (630) (151.84%) 1,572,949 1,319,906 253,043 19.17% Profit or loss operating 566,339 395,174 171,165 43.31% Profit or loss non operating (16,131) 13,573 (29,704) -218.85% Profit or loss before taxes 550,208 408,747 141,462 34.61% Taxes 134,151 102,061 32,089 31.44% Profit or loss after taxes 416,058 306,686 109,372 35.66% BNI Syariah ROA and ROE in 2018 amounted to 1.42% (up 0.37%) and 10.39% (down -1.03%), with the increase in ROA in line with profit growth, and the ROE declined due to an increase in equity from BNI’s additional capital deposits of Rp1 trillion at the end of December 2017. BOPO in 2018 amounting to 85.37%, a decrease of 2.25% from 87.62% in 2017. There was an increase in NPF of 0.04% from 2.89% in 2017 to 2.93% in 2018. BNI Syariah Financial Ratios Ratio 2018 2017 NPL 2.93% 2.89% ROE 10.39% 11.42% ROA 1.42% 1.05% BOPO 85.37% 87.62% FDR 79.61% 80.21% NIM 7.16% 7.58% CAR 19.15% 20.14% In recognition of its performance in 2018, BNI Syariah received awards from various institutions including: No. Name Rating Category Organizer Date 1 Public Relation Awards The Best Public Relation - Third (No 3 industry) Bank Syariah Marketing magazine January 2018 2 Top Digital Public Relation Award Top Digital Public Relation 2018 (No 1 diindustri) Syariah Banking Trasnco research January 2018 3 Internal Magazine Awards (InMA) Bronze The Best Internal Magazine 2018 (No 3 industry) Private Comp.internal magazine Press Council February 2018 4 Top Brand Award Top Brand (No 3 industry) Top Brand category Sharia bank saving accounts Marketing magazine February 2018 5 Indonesia Employee Engagement Index 2017 Highly Engaged Organization Banking Bisnis Indonesia March 2018 6 Karim Award Best Innovative Banking Karim Consulting April 2018 7 Public Relation Award Most popular in the Media -subsidiaries category Sharia General Bank PR Indonesia magazine April 2018 8 Digital Innovation Award Digital Applications (No.1 industry) Sharia General Bank Warta Ekonomi May 2018 9 Service Excellence Awards Best Performing Satpam (No.1 industry) Bank Umum Sharia InfoBank May 2018 10 Service Excellence Awards Best Performing Overall Minus E-Banking (No.4 industry) Sharia General Bank InfoBank May 2018 11 Service Excellence Awards Best Performing Customer Service (No.4 industry) Sharia General Bank InfoBank May 2018 12 Service Excellence Awards Best Performing Teller (No.5 industry) Sharia General Bank InfoBank May 2018 PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 211
  212. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk No. Name Rating Category Organizer Date 13 Service Excellence Awards Best Performing Telephone (No.3 industry) Sharia General Bank InfoBank May 2018 14 Service Excellence Awards Best Performing Physical Banking Hall (No.2 industry) Sharia General Bank InfoBank May 2018 15 Service Excellence Awards Best Performance Excellent Service (No.3 industry) Sharia General Bank InfoBank May 2018 16 Indonesia Digital Innovation Award Innovative Company in Digital Islamic Service and Applications (No.1 industry) Sharia Banking Warta Ekonomi May 2018 17 23th Infobank Award Best Sharia Bank Assets > Rp 25 Trillion Majalah Infobank August 2018 18 23th Infobank Award Best Sharia Bank (No.2 industry) Assets > Rp 25 Trillion Majalah Infobank August 2018 19 Sharia Investor Award Best Sharia Bank (No.1 industry) Assets > Rp 10 Trillion Majalah Investor August 2018 20 Bisnis Indonesia Financial Award The Most Innovative Sharia Products (No.1 industry) Banking Bisnis Indonesia August 2018 21 Indonesia Banking Award The Most Efficient Bank (No.1 industry) Assets > 10 Trillion Majalah Tempo September 2018 22 Indonesia Banking Award The Most Reliable Bank (No.2 industry) Assets > 10 Triliun Majalah Tempo September 2018 23 Alphasoutheast Asia Award The Best Commercial Bank In Indonesia (No.1 industry) Islamic Bank Alphasoutheast Asia September 2018 24 7th Infobank Sharia Awards The Best Sharia Bank core capital below Rp5 T (No.2 industry) Islamic bank Majalah Infobank September 2018 25 Digital Marketing Award The Best Website - Sharia Bank (No.2 industry) Islamic Bank Majalah Trans n Co September 2018 26 Indonesia Digital Popular Brand The Best KPR Sharia (No.2 industry) Islamic Bank Trans- co October 2018 WORK PLAN FOR 2019 To maintain the growth momentum, BNI Syariah has set the following 2019 business strategies 1. Business Strategy a. Fundraising Strategy by developing the halal ecosystem industry. b. Fund Distribution Strategy with the main focuses being the infrastructure sector and state-owned enterprises. 2. Functional Strategy a. Expanding Islamic banking service coverage to all corners of Indonesia with the priority of selling laku pandai products. b. Micro business transformation for increased productivity. c. Implementation of Data Centers to support IT capacity. d. Setting up transactional infrastructure for Mobile Banking and SMS Banking. e. Managing competency-based human capital. f. Optimizing Cooperation Technical Assistance between BNI and BNI Syariah. 3. Optimizing Synergies (including business and shared services synergy with BNI to BNI Syariah and other BNI Subsidiaries) a. Agency cooperation (Sharia Channeling Outlets/SCO), a synergy by utilizing the main BNI outlet network to provide sharia services. b. Supply/Value Chain Financing for BNI commercial customers. c. Hasanah Card product marketing through the BNI network. d. Hajj Fund Management (Transito) through collaboration of BNI Syariah and BNI by delegating Hajj funds from the BNI Transito branch account to BNI Syariah. e. Use of the Cash Management (BNI Direct) feature by BNI Syariah customers to increase fee-based and management income of BNI Syariah prime customers. f. Use of BNI e-channel facilities by BNI Syariah customers to increase fee-based income. g. Use of BNI remittance and trade finance systems by BNI Syariah customers to optimize international business. 212 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  213. Analisis & Pembahasan Manajemen PT BNI LIFE INSURANCE (BNI LIFE) DESCRIPTION, PRODUCTIVITY, INCOME, AND PROFITABILITY In 2018, BNI Life Insurance posted a net profit after tax of Rp177 billion, a decrease of (52.74%) from Rp375 billion in 2017, or 36.53% of the 2018 target of Rp485 billion. BNI Life total assets amounted to Rp17,283 billion, or 78.54% of the 2018 target of Rp22,006 billion. The decrease in profit to Rp487 billion from Rp1,282 billion in 2017 was mainly due to the (61.99%) decrease in Investment Income in 2018. BNI Life’s financial performance during 2018 is shown in the following table: PT BNI Life Insurance Financial Performance 2018 2017 2016 (Rp million) (Rp million) (Rp million) Description Pertumbuhan (Rp million) (%) Balance Sheet Category Assets 17,283,191 16,304,038 13,069,216 Productive Assets/Investing 14,998,442 14,566,378 11,304,931 432,064 2.97% Obligations 12,080,714 10,952,132 8,162,742 1,128,583 10.30% 5,202,477 5,351,907 4,906,474 (149,430) (2.79%) Total income 6,113,086 6,987,785 5,721,415 (874,699) (12.52%) Gross premium income 5,568,467 5,710,686 4,745,531 (142,219) (2.49%) Net Premium Income 5,510,161 5,577,321 4,635,149 (67,160) (1.20%) 487,255 1,281,910 982,169 (794,655) (61.99%) Non LINK 585,277 774,625 490,299 (189,348) (30.32%) LINK (98,022) 507,285 471,293 (490,263) (122.16%) Equity 979,153 6.01% Profit or Loss Category Investing income Other Income 115,670 128,555 104,097 (12,884) (10.02%) Total Expenses 5,942,440 6,619,399 5,549,709 (676,959) (10.23%) Insurances fee/ claim 4,285,560 5,085,680 4,227,698 (800,120) (15.73%) Acquisition costs 848,154 801,956 655,447 46,198 5.76% Business costs 744,003 669,296 611,074 74,707 11.16% 64,723 62,467 55,490 2,256 3.61% 170,647 368,387 171,706 (197,740) (53.68%) 6,517 6,517 12,244 0 0.00% 177,164 374,904 183,950 (197,740) (52.74%) Non Operational Expenses (income) PROFIT BEFORE TAXES TAXES NET PROFIT BNI Life’s ROA and ROE in 2018 amounted to 1.05% and 3.42% respectively and fell (0.93%) and (2.45%) in line with the decline in profit. BOPO amounted to 97.21%, an increase of 2.48% from 94.73% in 2017, due to the growth in expenses being greater than revenue growth due decreases investment income. BNI Life’s RBC in 2018 amounted to 735.93%, a decrease of 44.82% from 780.75% in 2017 in line with the company’s business growth. BNI Life Financial Ratios Financial Ratios 2018 2017 ROA 1.05% 1.98% ROE 3.42% 5.87% BOPO 97.21% 94.73% 3.25% 8.80% 735.90% 780.75% Total Investment/Investment RBC PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 213
  214. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk This performance was achieved by following the 2018 business strategies, with BNI Life’s focusing on obtaining Regular premium income from the Bancassurance distribution channel, especially in the In Branch units, health premiums from the Employee Benefits distribution channel, improving customer service, and launching new products tailored to the needs of the community. In response to the insurance industry development and to anticipate BNI Life’s business growth in 2018 and the years to come, in 2018 the Regional Branch Manager (RBM) In Branch function was introduced as the regional coordinator, as a BNI Life PIC, working together with BNI branch leaders in selling insurance products and services to BNI Life customers referenced by BNI. To offer more choices to customers, in 2018 BNI Life Insurance launched several product initiatives, including: Basic product BLPM, Pro Illness Care + BLPM, BLPM Pro Hospital and Surgical, Credit Life Insurance (Tenor Expansion) BNI Griya, Multi Credit Protection Insurance, BLife Fixed Protection, BNI Life Prochild, Smart Protection Plus, PA Protection Plus, Maxi Health Protection (Telemarketing), SiMUDA Saving Protection. In 2018 BNI Life again won a number of awards, more than the previous year, including the following: Tabel Penghargaan BNI Life Tahun 2018 No Name Rating Category Organizer Date 1 B-Life Link Dana Cemerlang 2018 Best Link Unit SOE and SOE Subsidiaries Shares 3 Year Period Berita Satu February 22, 2018 2 B-Life Link Dana Cemerlang 2018 Best Link Unit SOE and SOE Subsidiaries Shares 5 Year Period Berita Satu February 22, 2018 3 B-Life Link Dana Cemerlang 2018 Best Link Unit SOE and SOE Subsidiaries Shares 7 Year Period Berita Satu February 22, 2018 4 B-Life Link Dana Cemerlang 2018 Unit Link Terbaik SOE and SOE Subsidiaries Fixed Income 3 Year Period Berita Satu February 22, 2018 5 B-Life Link Dana Cemerlang 2018 Best Link Unit SOE and SOE Subsidiaries Fixed Income 5 Year Period Berita Satu February 22, 2018 6 Indonesia Sharia Finance Award 2018 Top 5 Customer Choice Sharia Business Unit in Life Insurance 2018 Warta Ekonomi April 30, 2018 7 Service Quality Award 2018 Excellent Total Service Quality Satisfaction Life and Health Insurance 8 Best Insurance Award 2018 Best Life Insurance 2018 Insurance with Assets between Rp 10 Trillion - Rp 25 Trillion Investor July 24, 2018 9 Insurance Award 2018 Insurance Rating "Very Good" Yearly Financial Performance for 2017 Infobank June 26, 2018 10 Best Insurance Award 2018 Best Syariah 2018 Syariah Life Insurance with Assets between Rp200 billion - Rp1 trillion Investor August 23, 2018 11 Financial Award Highly Committed Company Social Responsibility Bisnis Indonesia August 27, 2018 12 The Best Contact Center Indonesia 2018 The Best Contact Center Operations"Gold" Contact Center 13 Sharia Award 2018 Syariah Rating " Very Good " Yearly Financial Performance for 2017, Sharia Business Unit (UUS) Infobank September 26, 2018 14 Indonesia Insurance Consumer Choice Award 2018 Best Financial Performance Top 5 Best Consumer Choice Insurance Company, Between Assets Rp10-25 trillion Warta Ekonomi September 27, 2018 June 10, 2018 August 3, 2018 2019 WORK PLAN 1. Focusing on selling profitable products and increasing the number of policies. 2. Optimizing investment returns and performance in the Link Fund Units. 3. Optimizing captive markets. 4. Increasing the premium ratio. 5. Regional sales integration strategy. 6. Increasing sales quality and productivity. 7. Increasing the human capital productivity. 8. Improving business processes through digital. 9. Maintaining the effectiveness and efficiency of OPEX. 214 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  215. Analisis & Pembahasan Manajemen PT BNI SEKURITAS (BNI SEKURITAS) DESCRIPTION, PRODUCTIVITY, INCOME, AND PROFITABILITY At the end of 2018, BNI Sekuritas managed to record a net profit of Rp22 billion, an increase of 102.25% from Rp10.99 billion in 2017, reaching 28.2% of the Rp78.25 billion target, operating income in 2018 amounted to Rp253 billion an increase of 9.23% from to Rp232 billion in 2017. The main source of income came from investment management fees (through BNI Asset Management as a Subsidiary of BNI Sekuritas) with a contribution of Rp93 billion or 36.48% of the total operating income of BNI Sekuritas, brokerage commissions amounted to Rp80 billion or 31.72% and Investment Banking Fee amounted to Rp.42 billion or 16.68%. BNI Sekuritas total equity brokerage transaction in 2018 amounted to Rp59.5 trillion, a decrease of 0.84% from Rp58.9 trillion in 2017. The Online transactions reached Rp28.2 trillion against the total Regular transactions of Rp31.2 trillion. The number of active BNI Sekuritas customers in 2018 reached 66,995 customers, up 15% from 58,238 in 2017. In 2018, BNI Sekuritas won awards as “The Most Active Security Company” from KSEI on January 24, 2018, and as the Innovative Company in Digital Investment Services from Warta Ekonomi. BNI Sekuritas’ financial performance are shown in the following table: PT BNI Sekuritas Financial Performance 2018 Description 2017 (Rp million) Balance Sheet Category   Growth (Rp million)   (Rp million)   (%)   Assets 869,813 1,212,406 (342,594) (28.26%) Obligations 383,600 760,124 (376,524) (49.53%) Equity 486,213 452,282 33,931 7.50% 253,641 232,217 21,423 9.23% 80,453 79,023 1,430 1.81% Profit or Loss Category Revenue Brokerage commissions Investment management fees 92,536 111,531 (18,995) (17.03%) Brokerage Comm. From Fix Income Activities 18,583 10,538 8,045 76.35% Fees from Inves. Banking Activities 42,310 30,657 722 954 (232) (24.35%) Increase/(decrease) on net asset value of mutual funds Interest Revenue from Fund Separation and Bonds and Dividends Gain (Loss) on trading of marketable securities –net Margin and Overdue Revenue Other Operating expenses Other Revenue 8,422 4,521 3,902 86.31% (21,734) (45,985) 24,251 (52.74%) 28,960 38,300 (9,340) (24.39%) 3,389 2,679 221,097 210,303 10,794 5.13% 19,198 14,686 4,512 30.72% Interest and Other Financial Expenses (15,747) (15,311) (435) (2.84%) Total Revenue 272,839 246,904 25,935 10.50% Total Expenses 236,844 225,615 11,228 4.94% 35,995 21,498 14,497 67.44% (13,930) (10,588) (3,342) 31.57% 22,064 10,910 11,075 102.25% Profit / Loss before Tax Tax Profit / Loss after Tax BNI Sekuritas’ 2018 ROA was 3.56%, an increase of 1.99% from 1.57% in 2017, with the 2018 ROE reaching 4.72%, an increase of 2.70% from 2.02% in 2017 due to the increase in profit. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 215
  216. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk PT BNI MULTIFINANCE (BNI MULTIFINANCE) PT BNI Sekuritas Financial Ratios Financial Ratios ROA ROE BOPO 2018 2017 (%) (%) 3,56% 1,57% 4,72% 2,02% 87,17% 90,56% 2019 WORK PLAN For 2019, BNI Sekuritas will continue its strategy to achieve better performance with the following strategies. 1. Increasing synergy and collaboration with BNI Group. 2. Expanding its Equity business with a focus on institutional customers both domestic and foreign. 3. Expanding the Investment Banking business with a focus on SOE and Corporate clients. 4. Expanding the DCM’s business with a focus on synergy with BNI. 5. Increasing the implementation of GCG, risk awareness and sense of efficiency 6. Expanding the Online Trading business by increasing and developing application features. 216 Beradaptasi dengan Cepat Menghadapi Perubahan  DESCRIPTION, PRODUCTIVITY, INCOME, AND PROFITABILITY As of December 2018 BNI Multifinance posted a positive performance with a net profit of Rp32 billion, an increase of 21.06% from Rp26,480 billion in 2017, reaching 95.72% of the Rp33 billion 2018. Assets amounted to Rp1,322 billion, an increase of 45.36% from Rp907 billion in 2017, reaching 95.7% of the Rp1,382 billion 2018 target. Asset growth was driven by financing growth of 50.51% from Rp764 billion in 2017 to Rp1,151 billion in 2018 in line with the growth of liabilities (loans) of 61.98% from Rp610 billion in 2017 to Rp988 billion in 2018. Investment/lease financing grew by 98.74% making up 64.97% of the total financing portfolio. BNI Multifinance 2018 performance was focused on investment financing (commercial) in the form of commercial vehicles, heavy equipment for BNI referral customers, repeat orders for BNI Multifinance customers and financing of four-wheel vehicle ownership through the Car Ownership Program (COP) for those segments including government officials, employees corporations, as well as employees of the BNI Business Group, as well as 4-wheeled Vehicle Operating Leases for BNI and the Group. The company conducted consumer financing (multi products and BNIMF OTO) with a focus on BNI and BNI Group employees and also started financing factoring with a focus on selective flow risk customers to maintain a healthy portfolio. PT Bank Negara Indonesia (Persero) Tbk
  217. Analisis & Pembahasan Manajemen BNI Multifinance’s financial performance is shown as follows: BNI Multifinance Financial Performance Description 2018 2017 Growth (Rp million) (Rp million) (Rp million) (%) Balance Sheet Category Assets Deposits Financing 1.322.611 912,422 414.638 41.02% 234 42,734 (42.500) -99.45% 1.151.045 772,621 386.283 44.46% Leases 747.798 382,388 371.522 87.11% Consumer Financing 221.855 254,527 (32.298) -2.79% Factoring 181.329 135,706 47.059 12.91% CKPN Financing Obligations Equity (12.652) (3,854) (8.549) 204.74% 987.926 609,905 378.021 57.35% 334.686 302,517 32.358 8.10% Profit or Loss Category Operational Income 174.477 114,861 59.616 51.90% Leases 84.110 42,609 41.501 97.40% Leases Operations 28.631 30,481 (1.849) -6.07% Consumer Financing 37.714 17,794 19.921 111.95% Factoring 24.021 23,978 43 0.18% 2.875 1,793 874 60.40% Total Operational Income 177.352 116,654 60.431 52.03% Total Operational Expenses 137.808 82,218 55.506 67.61% 11.543 2,777 8.517 315.58% 138 2,093 (1.965) -93.41% Other Operational Income CKPN Expenses Other Income (Expenses) Profit before Tax 39.682 36,529 2.959 8.63% Tax (7.625) (9,473) 2.231 -19.51% Profit after Tax 32.057 27,056 5.190 18.49% PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 217
  218. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk BNI Multifinance’s 2018 ROA was 3.45%, a decrease of (0.98%) from 4.43% in 2017, while 2018 ROE reached 10.08%, an increase of 2.69% from 4.43% in 2017 due to profit growth. BOPO reached 77.63%, an increase of 5.44% from 72.19% in 2017. 2018 NPL reached 1.18%, an increase of 0.86% from 0.32% in 2017. 2018 DER reached 2.85, an increase of 0.83 from 2.02 in 2017 in line with the increase in loans as a source of funding for financing business expansion. BNI Multifinance Financial Ratios Financial Ratios 2018 NPL 2017 1.18% 0.32% ROA 3.45% 4.43% ROE 10.08% 7.39% (Operational expenses/Operational income) 77.63% 72.19% 2.85 2.02 (Debt Equity Ratio) (times) The BNI Multifinance improved performance received awards from various parties, including the following: No. Award Rating Category Event Date 1 Human Capital Award IV - 2018 Gold/ 6 - Large Multifinance Company Non Tbk Economic Review, Indonesia Human Capital Award May 2018 2 14 th Multifinance Awards 2018 Very Good Financial Performance for 2017 infobank July 2018 3 Indonesia Enterprise Risk Management AwardIII-2018 Rating -1/ GOLD Multifinance Company Non Tbk Economic Review, Indonesia August 2018 4 Best Multifinance Company 2018 Best in Indonesia 2018 Multifinance Company Assets 500B - 1 T (Anak Perusahaan BUMN) Economic Review, IPMI, Perbanas Institute September 2018 5 6 th Indonesia Multifinance Best Multifinance Award 2018 Company in Indonesia 2018 Multifinance Company Assets 500B - 1 T Economic Review, Indonesia October 2018 WORK PLAN 2019 In order to minimize risk in 2019, BNI Multifinance’s business focus is similar to the previous year, and includes: 1. Focusing on selective low risk customers. 2. Focusing on commercial financing (commercial vehicles, heavy equipment, etc.), BNI referral customers and BNI repeat multifinance customers. 3. Focusing on leading sectors such as manufacturing and infrastructure supporting industries. 4. Consumer financing to run with the target markets of BNI and COP Non-BNI (SOE and SOE Subsidiaries) as well as multipurpose products and OTO BNIMF for BNI Group employees. 5. Increasing fee-based income. 6. Enlarging the company’s assets through organic and unorganic financing growth by increasing multipurpose / consumer financing. 7. Pioneering Financing Digitization to accelerate the financing process. 218 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  219. Analisis & Pembahasan Manajemen BNI REMITTANCE LIMITED (BNI REMITTANCE) DESCRIPTION, PRODUCTIVITY, INCOME, AND PROFITABILITY BNI Remittance managed to record a positive performance and recorded a profit of Rp693 million, a decrease of 5.22% from Rp731 million in 2017. Total assets in 2018 amounted to Rp4.9 billion, a decrease of (46.01%) from Rp9.12 billion in 2017. Total remittance transactions during 2018 reached 212.7 thousand slips, an increase of 22.6% compared to 173.5 thousand slips the previous year. Conventional Teller transactions reached 77.8 thousand slips, while electronic transactions through BNI ATMs reached 134.9 thousand. The 2018 performance was achieved by increasing remittance services, one being through the cooperation between BNI and local Money Service Operators (MSO) with a wider outlet network, especially for BNI’s remittance services throughout Hong Kong. During 2018 there were collaborations with 2 (two) local MSOs, namely BEST Remittance with more than 40 (forty) effective outlets in July 2018, and Uniforex with more than 100 (one hundred) outlets in December 2018. During 2018, BNI Remittance organized marketing-based programs including: savings balance improvement program, ATM and Mobile Banking utilization, and customer get customer program, and BNI digital (E-Form) account opening applications. Through the KAMI program with BNI, BNI Remittance is also actively conducting capacity building for Indonesian Migrant Workers (PMI) in Hong Kong. The PMI’s enthusiasm for increased capacity, as well as widening networks among migrant workers, the banking sector and other related parties, can be seen in the number of participants present at the training held. The training was conducted in two stages, namely soft skills training in the form of entrepreneurial seminars and hard skills training in the form of skills practice classes. BNI Remittance’s financial performance is shown as follows: BNI Remittance Financial Performance Description 2018 2017 Growth (Rp million) (Rp million) (Rp million) (Rp million) Balance Sheet Category Total Assets 4,931 9,119 (4,187) (45.92%) Fixed Assets 410 858 (447) (52.15%) 3,615 4,861 (1,246) (25.63%) 906 3,400 (2,494) (73.36%) Total Obligations 1,048 3,816 (2,768) (72.53%) Current Liabilities 1,048 3,816 (2,768) (72.53%) Current Assets Other Assets Other Liabilities Total Equity - - - 3,883 5,303 (1,420) (26.77%) 11,614 10,133 1,481 14.62% 3,204 3,411 (207) (6.1%) Profit or Loss Category Income Commision Earned Exchange gain/Loss 3,079 2,264 815 36.0% Other Commission 5,332 4,458 874 19.6% Expenses 10,922 9,402 1,520 16.2% - Operational Expenses 10,922 9,402 1,520 16.2% 693 731 (38) 693 731 (38) Profit before Tax Tax Profit after Tax PT Bank Negara Indonesia (Persero) Tbk  (5.22%) (5.22%) Beradaptasi dengan Cepat Menghadapi Perubahan 219
  220. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk BNI Remittance’s ROA and ROE in 2018 amounted to 14.07% and 17.88%, respectively increasing by 6.05% and 4.09% from 8.02% and 13.79% in 2017. BOPO increased to 94.04% in 2018 from 92.79% in 2017. BNI Remittance Financial Ratios Rasio 2018 2017 (%) (%) ROA 14.07% 8.02% ROE 17.88% 13.79% BOPO 94.04% 92.79% 0.270 0.720 DER WORK PLAN 2019 In general, the company’s strategy in 2019 will remain in line with the previous year, focusing on programs that involve customers directly, including: 1. Customer Awareness Increasing synergy with parent companies and fellow subsidiaries to conduct above the line and below the line marketing programs that actively involve customers through communities in Hong Kong. 2. Customer Experience Collaborating with the parent company to enhance the experience of BNI customers in Hong Kong through programs that lead to digital banking, including: -- Optimizing the use of ATMs, especially for non-cash service features. -- Optimizing the use of Mobile Banking. -- Optimizing the use of E-Forms for opening BNI accounts. 3. Customer Loyalty Initiating programs to increase customer loyalty, especially focusing on sustainable capacity-based programs. MARKETING ASPECT MARKETING STRATEGY 2018 is the year for BNI’s inauguration as a Digital Financial Institution. In line with this spirit, BNI from the marketing side must be able to align corporate brand communications with products that will become champions in 2018, especially digital-based ones. To support this alignment in 2018 BNI uploaded a corporate brand communication with the Campaign Theme: Let ‘s Make a Digital Leap as BNI is Digital. This theme wants to provide an explanation or promises customers and the wider community that with/through BNI’s digital banking products, they can receive convenience, comfort, opportunities, and also improve the economy of the Indonesian people in general. Digital banking products that become champions in 2018 were not only corporate banking products but also included BNI’s retail banking and non-banking products delivered by BNI Subsidiaries. This integration is expected to increase BNI’s perception as a digital financial institution. In terms of marketing, for digital banking products, customer experience became a reality through the theme outlined in the corporate campaign strategy. The message is that BNI through digital banking products and services develops in such a way that it will provide the best life experience. BNI believes that a good customer experience not only meets the needs but also satisfies the wants of its users. To explain BNI’s changes from conventional banking to digital financial institutions, BNI introduced the theme of ‘Change’ with the intention of inviting Indonesian customers and communities to meet digital disruption and assess it as an opportunity to accelerate the achievement of a better life. This message is consistently seen in the campaign message boards, and BNI instills it in its corporate brand communication. In the hope that the Indonesian people will change their attitude/ways to banking and transactions towards digital. For example in festival promos, made with the aim of participating in celebrating with all customers and the public on any national or religious day with BNI digital product promos. This is hoped will increase the awareness mentioned above as well as help increase usage as BNI is always present at special customer moments. 220 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  221. Analisis & Pembahasan Manajemen Likewise, BNI’s way of delivering messages, has now intensified through the use of digital media such as BNI Online and Social Media. Followers in December 2018 amounted to 1,184,748 in Twitter @BNI, 152,365 in Instagram @ bni46, and 330,044 in Facebook BNI. Information relates to promotions (period, coverage area and other provisions) for each BNI product such as Savings, Griya, KUR, BNI Credit Card, BNI Debit Card, promos on the use of electric banking, and the promotion of subsidiaries that can be accessed by the public through BNI’s promotional micro sites, including bnidigideal.com. However, to maintain BNI’s reach, it also retains some conventional media such as, Above The Line, Below The Line, Out of Home. CAMPAIGN REALIZATION PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 221
  222. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk To realize BNI’s change to become a Digital Financial Insitution and BNI Digital, a moment of truth came at the beginning of 2018 with the YAP product launch which was a pioneer of QR payment using three source of funds (electronic money, debit cards and credit cards). With these three source of funds, digitizing payments made by BNI became unique, ‘without top up’, where many similar products only have one source of funds. This is in accordance with the spirit of BNI wanting to improve customer experience. YAP’s customer experience has been implemented in every Iconic Event. One being Java Jazz, where for the 14th (fourteen) time, BNI again participated as one of the main supporters of this international-scale jazz event. It started at the BNI Java Jazz Festival 2018 pre-event, namely Java Jazz on The Move x Yap Fest. Differently to previous years, Java Jazz on The Move in 2018 was held outside the BNI office so that the public could participate in the event. BNI Java Jazz on The Move 2018 successfully became the biggest pre-event of the Java Jazz Festival and acquired many new YAP users!, and contributed to the BNI is Digital campaign that it is always relevant to millennials. In addition, at the 2018 Java Jazz music event, YAP! was introduced throughout for Java Jazz transactions, ranging from food trucks, food courts to merchandise purchases. YAP! complemented the use of the TapCash card which has been used as the main payment transaction tool at the event. In 2018, BNI again became a bank partner in the Inacraft event, mainly participating in providing financial transaction services during the event, such as the use of YAP !, TapCash, and Electronic Data Capture (EDC) machines for all Inacraft tenants. Providing these services is a realization of the message of change, namely changing customer transaction habits from cash to cashless. Aside from being a payment tool, visitors were also brought into the digital customer journey where visitors could use YAP! and TapCash as an Inacraft entrance ticket at a special price. The presence of BNI Digital Branch services also facilitated visitors and customers to try BNI’s digital account opening services. 222 Beradaptasi dengan Cepat Menghadapi Perubahan  Other BNI products that were present to strengthen BNI’s branding during Inacraft 2018 included BNI’s People’s Business Credit (KUR) for financing MSMEs, BNI Taplus and various types of promotions for using Credit Cards and BNI Debit Cards. BNI also supported the opening of BNI Taplus accounts with the National Payment Gate Card (GPN), with BNI’s EDC already able to receive GPN Cards. To manifest the digital spirit that provides more benefits, are more efficient, easier and can be reached by all BNI customers, in 2018, were changes brought by BNI to the Travel Fair. In previous years, BNI’s support for travel fair activities was always conducted offline, but this year BNI collaborated with Garuda Indonesia to hold an Online Travel Fair (GOTF 2018). At GOTF, BNI customers and the general public could see various domestic and international ticket offers through digital channels (websites and applications) and could enjoy special promos provided through e-commerce transactions using BNI Debit Cards, BNI Credit Cards and of course yap! The customer journey and customer digital experience could also be seen in the BNI Digimudik 2018 program where registration was online. This year, customers could register online to get a seat quota directly from their mobile phone through the official BNI site or BNI Digimudik micro site. In addition, participants could validate their departures by making transactions using applications in all Jabodetabek Area BNI Branch Offices. This program is BNI’s way to maximize its acquisition program in an effort to increase deposits and also is part of BNI’s concern to help the government overcome transportation problems. In accordance with the targets set by the Ministry of SOEs, as well as being part of the 72nd BNI Anniversary, BNI helped 7,500 travelers with executive AC buses, trains and planes. Besides being a loyalty program for BNI customers, in the BNI DigiMudik 2018 program, BNI also provided free homecoming facilities for santri and pesantren employees. Digital itself is certainly closely related to millennials, so BNI also participates in supporting events with a target audience of millennialls such as the 90’s festivals or art performances held by high schools or on campus. These include Cravier, which is held by one of the secondary schools, where all of the sales and entry transactions use BNI’s digital products, TapCash and YAP !. Likewise with the Jazz Goes To Campus event and other concerts attended by BNI as sponsors. PT Bank Negara Indonesia (Persero) Tbk
  223. Analisis & Pembahasan Manajemen Besides participating in sports activities such as; ITB Marathon, UI Marathon, Plataran X-Trail and support for the BNI Taplus volley team in Proliga, to digitize sports, BNI also supported the BNI Virtual Run 2018. In this event, running activities are generally carried out in a limited area, but now they are conducted jointly through digital platforms such as mobile applications, where the participants involved can run for a specified period. The BNI high light product in this activity is YAP! which became the media for registering the race. The highlight of BNI’s support for national and even international sports was its participation in the 2018 Asian Games. In the biggest event in Asia, BNI appeared as the only “Official Prestige Digital Banking Partner”. BNI support included digital transactions through online and cashless ticket sales for events using Debit Cards, Credit Cards, TapCash and YAP! and also through BNI EDC in all aspects of sales during the 2018 Asian Games, as well as provided money changer services that were not only limited to the 2018 Asian Games venue. BNI also supported athletes and officials to the Asian Games by issuing VA Debit Cards to channel pocket money and as a transaction tool for foreign athletes so they could still enjoy transactions during their stay in Indonesia. BNI’s support for the cashless society is a manifestation of BNI’s Digital transformation. In addition to facilitating banking transactions during the 2018 Asian Games, BNI also contributed through philanthropic programs for athletes who have been instrumental in making Indonesia famous on the world sports scene. Athletes such as Ellyas Pical, Djunaedi Abdillah, Yustedjo Tarik, Tati Soemirah and Lely Sampoerna were featured on special edition TapCash cards, which were sold in the Indonesian Sport Legend edition of the card as a form of BNI respect and appreciation. In addition to targeting the mass segment, BNI also continues to pay attention to the affluent segment and supported the 2018 Indonesian Masters at the end of 2018. BNI’s participation in international golf tournaments is in line with its mission of advancing Indonesian sports and providing opportunities for young Indonesian golfers to play internationally. In line with the Emerald customer products and services which are currently being addressed to the ‘young mass affluent’ Emerald BNI customers, the digital spirit remained relevant to the ‘young mass affluent’ in this event. PT Bank Negara Indonesia (Persero) Tbk  ACHIEVEMENT During 2018 BNI received various awards including the following: 1. Top Brand 2018 Banking and Finance categories: a. Junior Savings - BNI Taplus Anak b. Tabungan Berjangka - BNI Tapenas 2. 2. BUMN Marketeers Awards 2018: a. Bronze Winner - Promising Company in Strategic Marketing b. Silver Winner - Promising Company in Branding Campaign 3. 3. Indonesia Banking Awards (IBA) 2018: a. Most Reliable Bank b. Best Bank in Digital Services c. Diversity of the Board OPERATIONAL DISCIPLINE TO IMPROVE PRODUCTIVITY STRATEGIC FOCUS TO IMPROVE PRODUCTIVITY Still based on the vision of forming a highly skilled, knowledgeable, and positive attitude in BNI sales, during 2018 BNI continuously built and instilled the habits and character of a strong Sales Culture. The pattern of sales activities conducted were accompanied by monitoring on a daily basis the discipline of operationalization, which is a pattern of sales execution which is summarized in the Sales Activity & Performance Management (SAPM) application, with the aim of reaching a predetermined number of targets. All of these matters create operational rhythms that have an impact on BNI achieving its strategy and business growth. The focus strategy is also conducted through Key Performance Indicators (KPI) with a strategy focus, and in 2018 the KPI referred to efforts to achieve product sales targets with large yield margins. Using the strategy focus pattern, saw an increase in the achievement per sales in 2018, as the types of products receiving special attention in relation to their profitability saw a large yield margin, which grew 15.4% compared to 2017, as the following tables and graphs show: Beradaptasi dengan Cepat Menghadapi Perubahan 223
  224. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk BNI Fleksi Average Booking Subject BNI Fleksi Average booking achievement per sales per month 2018 (Rp million) 2017 (Rp million) 2016 (Rp million) 732,9 635,2 563,9 BNI Fleksi Average Booking Rp732.9 Rp635.2 Rp635.2 2016 2018 2017 Other focus strategies were also followed for the main products, resulting in an increase in the achievement per sales in 2018 compared to 2017, which grew by 22.0%, as the following tables and graphs show: BNI Griya Average Booking Subject BNI Griya Average Sales Booking per Month 2018 (Rp million) 2017 (Rp million) 2016 (Rp million) 1,471.2 1,206.0 934.8 BNI Griya Average Booking Rp1,471.2 Rp1,206.0 Rp934.8 2016 224 2017 Beradaptasi dengan Cepat Menghadapi Perubahan  2018 MARKETING STRATEGIES FOR PRODUCTIVITY IMPROVEMENT 1. Sales Productivity Improvement Strategy a. Optimizing sales management through the application of Sales Activity & Performance Management (SAPM) b. Coaching and Mentoring and periodic knowledge transfer to Sales and Supervisor Sales. c. Giving potential Leads and monitoring, both for funding and lending d. Sales Motivation Program for both acquisition and retention 2. Savings Improvement Strategies a. Increasing savings expansion by managing business banking customers from the business value chain and ecosystem b. Expanding BNI’s savings expansion through Millennial acquisition c. Expanding and Acquiring BNI Savings through entrepreneurial and employee segments. 3. BNI Fleksi Booking improvement strategy a. Improving BNI Fleksi bookings through databases of existing Selected Partners payroll, especially Business Banking customers with their value chain and business ecosystem. b. Increasing Fleksi bookings with a Business to Business (B2B) mechanism to COEs and Ministries c. Acquiring BNI Fleksi through Digital Channels d. Acquiring BNI Fleksi by maximizing potential customers from the Pre and Full Retirement BNI Pension Fund (BFP) 4. BNI Griya Booking Improvement Strategy a. Improving BNI Griya bookings through Primary Market, including Business Banking customers with the value chain and business ecosystem. b. Improving BNI Griya bookings through Secondary Markets c. Maximizing BNI Griya distribution Leads through the application of Sales Activity and Performance Management (SAPM) d. Expanding BNI Griya bookings by supporting the Government Programs through the Housing Financing Liquidity Facility (FLPP) 5. Credit Card improvement strategy a. Enhancing Credit Cards in Business Banking with the value chain and business ecosystem. b. Increasing Credit Cards through the Millennial segment c. Acquiring Credit Cards through Canvasing and Event Exhibitions d. Acquiring Credit Cards by maximizing BNI Staff Capacity e. Optimizing Data for Upselling to Existing Card Holders f. Expanding Credit Card acquisitions through the Partner Websites PT Bank Negara Indonesia (Persero) Tbk
  225. Analisis & Pembahasan Manajemen 2019 WORK PLAN The 2018 operational rhythm became a pattern of work that will be further enhanced and optimized in 2019, by adjusting to the things that became lessons learned and developments that occurred in the previous period. One of the adjustments based on business development will be an effort to move sales to an orientation towards transactional-related strategies, including optimizing BNI’s digital-based transactional banking features, together with a strategy design basis that is both intensified and extensified by referring to providing comprehensive financial solutions through a value chain, close loop transaction and formation business ecosystem. MARKET SHARE Market share analysis is classified based on total assets, third party funds that have been collected, and the amount of loans disbursed by the Bank. Market Share Description Total Assets Industry (Billion Rp) BNI (Billion Rp) Total Third Party Funds 2017 8,068 2016 7,388 6,730 809 709 603 Market Share 10.0% 9.6% 9.0% Industry (Billion Rp) 5,630 5,289 4,837 579 516 436 BNI (Billion Rp) Total Loans Disbursed 2018 Market Share 10.3% 9.8% 9.0% Industry (Billion Rp) 5,358 4,782 4,413 BNI (Billion Rp) Market Share 513 441 393 9.6% 9.2% 8.9% Comparison of Financial Ratios with Commercial Bank Industry Average CAR (%) BOPO (%) Industry 23.0% 23.2% 22.9% BNI 18.5% 19.3% 19.4% Industry 77.9% 78.6% 82.2% BNI 70.1% 70.5% 73.6% 2.6% 2.5% 2.2% ROA (%) Industry 2.8% 2.8% 2.7% LDR (%) Industry 94.8% 90.0% 90.7% BNI 88.8% 90.0% 90.4% BNI Sources: Indonesia Banking statistics Per December 2018 PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 225
  226. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Grafik Pangsa Pasar BNI Dibandingkan Industri 2018 Total Assets 10.3% Total Third Party Funds 10.4% Total Assets 9.6% 2017 Total Third Party Funds 9.8% 90.4% 226 9.8% 89.6% 89.7% Total Loans Disbursed 90.2% Total Loans Disbursed 9.2% 90.2% 90.8% MARKET SHARE BASED ON ASSETS During the last three years from 2016 to 2018, BNI has succeeded in placing its position as one of the important players in the Indonesian banking world. One of the indicators for the continued increase in BNI’s market share based on assets that reached 10.0% in 2018 compared to 9.0% and 9,6% in 2016 and 2017. The increase was due to BNI’s success in collecting public funds and managing them as the company’s financial assets. MARKET SHARE BASED ON LOANS DISBURSED Unlike the double-digit market share of assets and third party funds, BNI’s market share based on loans reached 9,6%. This achievement in 2018 is still better than 2017 and 2016, which were recorded at 9.2% and 8.9% respectively. This is one of BNI’s continuing growth strategies, together with better quality to maintain business continuity in the future. MARKET SHARE BASED ON THIRD PARTY FUNDS Amid the weakening Indonesian third party fund market due to external macroeconomic conditions, BNI proved its consistency to survive and continued to increase third party funds so that it could compete with its competitors in national banking. This was evidenced by the BNI’s increasing market share of third party funds that reached 10,3% in 2018 compared to 9.8% and 9.0% in 2017 and 2016. FINANCIAL RATIOS COMPAIRED TO THE AVERAGE IN THE COMMERCIAL BANKING INDUSTRY The Capital adequacy (CAR) in 2018 reached 18.5%, a decline compared to 2017 and still lower than the industry. Operating expenses per operating income (BOPO) decreased in 2018 by 70.1% compared to 2017 and are still lower than the industry. Return on assets (ROA) was relatively stable at 2.8% in 2018 and higher than industry. In addition, the liquidity level (LDR) decreased by 88.8% in 2018 and is still lower than the industry. Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  227. Analisis & Pembahasan Manajemen 2019 BUSINESS PROSPECTS Global and National Perspectives In 2019, many world institutions agreed that the global economy would be supported by the US and developing countries such as India, ASEAN-5 (especially Indonesia and the Philippines), Brazil and Mexico21. Externally, there is the potential for an FFR increase in 2019 if the American economy continues to grow in accordance with their expectations and if the American inflation reached its target of 2% Many parties believe the Fed will again raise the FFR a maximum of 2 times, or at a minimum once. In addition, the ending of Quantitative Easing (QE) in both Europe and Japan will have an impact by creating a lack of foreign funds entering the Indonesian financial market compared to the previous year. The US and China trade wars will also continue to cause a impact. Any negative impact could cause a decline in the performance of Indonesian exports to China and the United States, which are 2 (two) of its main export destination countries. The potential for factory relocations from China to Indonesia to avoid the tariff war could have a positive impact on the Indonesian economy. The European plans to ban the use of Crude Palm Oil (CPO) biofuel starting in 203022. In addition, India is raising Indonesia’s CPO import duty tariff from 30% to 44%23. The ban on the Indonesian palm oil exports to Europe, and the imposition of tariffs by India, need to be anticipated so as not to harm Indonesia. China’s economic growth, which according to the IMF will slow down to 6.2% in 2019, will also affect Indonesia as China is the Indonesian export main market. Export demand from Indonesia is expected to decline, creating the potential for widening trade balance deficit. Given the problematic global economic growth, the main source of economic growth comes from within the country. In Indonesia, the Government will continue to focus on encouraging public purchasing power through various subsidy programs, with both energy and non-energy subsidies. The Government is also committed to providing social protection and improving the welfare of low-income PT Bank Negara Indonesia (Persero) Tbk  residents through the Program Indonesia Pintar (PIP), Program Keluarga Harapan (PKH), Bantuan Sosial (Bansos) Pangan, Bidikmisi (Cost of Education for Poor Students), Penerima Bantuan Iuran (PBI) for National Health Insurance (JKN) and Ultra Micro Credit24. The government will continue to develop the infrastructure with a breakthrough in creative financing involving the role of state-owned enterprises, and the private sector, through Government Cooperation with Private Companies (PPP) through the availability payment (AP) scheme. There will be 2,007 kilometers of road construction / reconstruction / widening, 4 (four) new airports, 162 thousand hectares of new irrigation systems, 27,607 meters of bridge construction and improvements, 415 km of construction / completion of railway tracks, and 48 dams25. In addition, the Government will continue its KUR interest subsidy worth Rp12 trillion with a KUR distribution target of Rp120 trillion and a 7% interest rate intended for financing the MSME productive sector and TKI26. Fertilizer subsidies using the Tani Card will reach Rp29.5 trillion to support food security towards national food self-sufficiency27. The housing interest subsidy from the Government will reach Rp3.5 trillion for housing loans for Low-Income Communities (MBR) for 100 thousand housing units28. To encourage the Indonesian economy, the Government is targeting a new source of economic growth, namely the Tourism sector. Tourism will be a Government mainstay as it creates foreign exchange quickly together with the large tourism potential in Indonesia. According to the Financial Services Authority (OJK), businesses related to the tourism sector include Star Hotels; Budget Hotels; Other Accommodation Services; Drinks and Food Outlets; Restaurants; Rail Transportation; Non-Passenger Road Transportation; Rivers and Lakes Transportation; Travel Services; Tourism Facilities in Tourism Areas; Libraries, Archives, Museums and Other Cultural attractions29. In 2018, the number of foreign tourists visiting Indonesia was 18 million, an increase from 14 million in 2017, and 12 million in 201630. Beradaptasi dengan Cepat Menghadapi Perubahan 227
  228. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Events happening in 2019 that will affect the Indonesian economy include; 1. Simultaneous Legislative and Presidential Elections, instead of the previous alternate election system. For the first time, Indonesia will hold joint elections on April 17, 2019. Political temperatures are expected to rise ahead of voting. Unlike other countries, generally the elections do not have a negative impact on the economy. However, until the election winners are announced, many parties, especially investors and entrepreneurs, will be waiting before making business decisions. Loan growth in the first quarter - 2019 will be restrained but is expected to increase again after the Legislative Elections (Pileg) and Presidential Elections (Pilpres). 2. In 2019 the 3 (three) year holding period limit for repatriated funds from the tax amnesty conducted by the Government in 2016 will end. This is in accordance with Law No. 11/2016 concerning the Tax Amnesty. To date, these funds had to be placed in investment instruments with a time limit of 3 (three) years within the NKRI financial system. After that, the tax amnesty participants will again have the right for these assets to remain invested in Indonesia or taken back abroad. If there are no attractive investment instruments in the country, there is the potential for the funds to go abroad, if for example they give higher returns. If this happens, there will be an impact on Indonesia’s financial sector and economy. 3. Domestic liquidity conditions are predicted to be tighter due to several reasons. Firstly, higher loan growth compared to deposit growth, reflected in the high loan to deposit ratio (LDR). Based on regulation No. 17/11/PBI/2015, the LDR’s lower limit is set at 78% and the upper limit at 92%. Secondly, the government is increasingly active in issuing retail bonds that can be purchased by individuals so that there is the potential for switching from bank deposits (both deposits and savings) to retail bonds. Currently, the Governmentowned retail bonds consist of Retail Government Bonds (ORI), Retail Sukuk (SR) and Savings Sukuk (ST). The number of Government Securities (SBN) issued in 2019 will reach Rp60 trillion. To facilitate the public, the Government will issue these SBN online with a first come first served system. If liquidity is tightened, there will be competition for deposits between banks. This will affect funds growth in 2019. 4. In line with the Macroprudential Intermediation Ratio (MIR), BI continues to encourage bank lending while expanding funding and financing sources through the issuance of securities. These financing alternatives are a challenge for banks in carrying out the intermediary function. The issued bonds low cost will encourage companies to choose financing through bonds. The national bank lending growth will become a problem if it does not grow as in 2018, which up to December 2018 had grown by 11.97%31. PInternational Monetary Fund World Economy Outlook, Oktober 2018 CNBC Indonesia: Eropa Melarang Biofuel 2030, 18 Juni 2018 23 Market.bisnis.com: India Kembali Kerek Pajak Impor CPO Menjadi 44%, 5 Maret 2018 24 Ibid 25 Ibid 26 Ibid 27 Ibid 28 Ibid 29 Ibid 30 Biro Pusat Statistik 31 OJK 21 22 Macro and Micro Assumptions No Assumption Projected Year 2019 2020 2021 MACRO ASSUMPTION 1 Economy Growth (%) 5.2 – 5.4 5.2 – 5.4 5.3 – 5.5 2 Inflation (%) 3.0 – 4.5 3.0 – 4.0 3.0 – 4.0 14,800 –15,200 14,800 –15,200 14,800 –15,200 5.5 – 6.5 5.5 – 7.0 5.5 – 7.0 10.0 – 12.0 10.0 – 12.0 10.0 – 12.0 8.0 – 10.0 8.0 – 10.0 8.0 – 10.0 3 Rupiah Exchange / US Dollar (Rp) 4 BI 7 Days Repo Rate MICRO ASSUMPTION 228 1 Credit Growth (%) 2 Third Party Fund Growth (%) Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  229. Analisis & Pembahasan Manajemen BNI BUSINESS PROSPECTS BNI’s business prospects are influenced by internal and external factors. In terms of internal factors, BNI’s ability to mobilize and allocate resources and maintain and develop its core capabilities is an important factor in anticipating and taking business opportunities from existing external conditions. External factors that influence BNI are political, economic, social, technological, environmental and regulatory conditions. In general, political conditions are quite conducive to the business world and BNI is always ready to anticipate the dynamics that exist. Social conditions also support development with the existence of demographic maps that show that there is sufficient force for the young generation to be developed and it is estimated that there will be no horizontal and vertical turmoil that significantly disrupts the activation of the real sector. In terms of technology, internet penetration and widespread use of devices have caused changes in customer preferences to meet their needs which has resulted in the disruption of business models in various industrial sectors. In terms of the environment and regulations, efforts to minimize environmental, social and governance risks must be done more transparently through the regulation for sustainable financial implementation in the financial services industry and issuers. The condition of the world economy will have a significant effect on Indonesia’s economy and growth through its trading partners, and transactions will be reflected in Indonesia’s trade balance and balance of payments. The condition of the world economic growth in the short-term is not expected to be much different from the short-term economic period of the previous period (2018). This will be accompanied by several uncertainties in the form of trade competition dynamics between countries, political dynamics between countries, and the implementation of benchmark interest rate policies in developed countries, in addition to the economic growth dynamics in Indonesia’s main trading partners themselves. Although these external conditions will greatly affect BNI in carrying out its functions and achieving its performance targets, the business world offers many excellent growth opportunities in the coming years for companies that are able to adapt to the environment and are agile enough to exploit these opportunities. BNI’s adaptability and agility capabilities have been proven in historical data in recent years. In recent years during moderate economic growth and the financial industry conditions, BNI has been able to grow higher than the industry, as shown in the following table: PT Bank Negara Indonesia (Persero) Tbk  Loan Growth Loan Growth 2018 2017 2016 2015 BNI 15.9% 12.0% 20.9% 17.4% Banking 12.9% 8.2% 7.9% 10.4% From the quarterly structure of Indonesia’s economic growth in 2017-2018, the largest contribution to growth, apart from the Industrial Trade Sector, was from the Processing Industry Sector, Agriculture (including Forestry and Fisheries), Construction, Transportation and Warehousing, and Communication Information with an average growth contribution each of 20%, 13%, 10.5%, 5.5%, and 3.8% respectively. The economic structure is an opportunity for BNI to develop its business, supported by its digital capabilities. BNI’s financing focus will be adjusted to the potential GDP as reflected in the 2018 realization. The largest funding in the BNI Corporate Segment was given to the Manufacturing, Agriculture and Business Services Industry Sectors with a composition of 26%, 15% and 13%. The Business Services Industry Sector was the third highest-growth Industrial Sector after the Information and Communication Industry Sector and the Transportation and Warehousing Industry Sector. During the same period, the BNI Middle Segment provided the largest financing to the Industry, Trade, Manufacturing and Transportation and Warehousing Sectors with a portfolio composition of 31%, 26% and 10% respectively. BNI Small Segment largest financing was in Trade, Manufacturing and Agriculture with a composition of 57%, 11% and 10%. In an effort to always be relevant in the era of technological change, including our efforts to be a pioneer in the use of information technology, and in accordance with changes in customer preferences due to internet penetration and devices, BNI has and will continue to make significant investments in the development of its technology. Information technology applications will be felt by customers, both individuals and business entities or other institutions when using BNI financial services, and are expected to increase engagement with BNI so that they can provide added value not only for BNI but also its customers in the long term. Information technology applications developed include digitizing business processes that will have an impact on improving quality, service speed, process transparency, system interoperability. In addition to process digitalization, platform development and transaction applications that enable interaction between customers both Business to Business (B to B), Business to Customer (B to C), and Customer to Customer (C to C) will be developed so as to increase user experience in every customer trip to BNI. Development of features and applications like Yap! or the cash management system will continue to be carried out appropriately to meet customer needs by optimizing the capabilities of data analytics. Beradaptasi dengan Cepat Menghadapi Perubahan 229
  230. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Support for government programs will continue to be carried out not only because BNI is one of the national agents of development, but also the government program and the whole community as the perpetrators can become BNI’s business potential. Support for cross-sectoral government development strategies such as infrastructure development, tourism, transportation, or agriculture will continue. The business contribution from this will be quite significant for BNI both for financing distribution and for raising funds and fee-based income. Other government programs such as People’s Business Credit, Financial Inclusion, Laku Pandai, and social assistance will improve the quality of economic growth more quickly and sustainably which will ultimately increase BNI’s business as a whole. LONG-TERM STRATEGY 2019-2023 To achieve BNI’s vision of becoming a “Financial Institution that is Superior in Service and Performance”, BNI has prepared a 2019-2023 Corporate Plan with BNI’s aspiration in 2023 “To Become One of the Most Profitable Financial Institutions in Indonesia”. This aspiration will be achieved through the BEYOND Traditional Financial Services strategy, namely: B, “Business Community’s Financial Institution of Choice” Optimizing capabilities to be the business community’s choice. E, “Ecosystem Orchestrator” Orchestrating potential business ecosystems. Y, “Your Preferred Personal Financial Partner” Optimizing services and consumer business solutions to become the main bank for customer transactions O, “Organizationally Ready for The Future” Improving organizational capabilities and human resources to capture new business opportunities. N, “National Agent of Development” Optimizing government programs as a basis for growth. D, “Digital and Data Driven Institution” Optimizing business development that is driven by digital and data analytics. 230 Beradaptasi dengan Cepat Menghadapi Perubahan  2019 BUSINESS DEVELOPMENT STRATEGY After taking into account the world and domestic economic conditions, technological developments in the digital era, changes in customer preferences, policies from the authorities (monetary, banking, and fiscal), and internal business process improvement plans, in 2019, in line with the long-term Corporate Plan 2019-2023, BNI will focus on strengthening core business with digital capabilities. Indicators for this policy include company value for investors, profitability size, investment rate of return, digital transactions, superior service, employee engagement, digital capabilities, and synergy between units and subsidiaries. The business growth will of course take into account good corporate governance, banking prudential principles, regulatory constraints, and the shareholders’ aspirations. In terms of regulatory constraints, BNI intends to follow the regulation directions, including keeping its NPL ratio far below 5% with its Capital Adequacy Ratio (CAR) above the provisions based on the risk profile where BNI is located. Based on shareholder aspirations, BNI financial targets will be better than the previous year‘s achievements and / or higher than the industry average. The financial targets include profitability, market share for both loans and third party funds, and achievement of programs mandated by the government to BNI. In addition, the share value is targeted to be better than in 2019. To achieve these targets, BNI’s strategy in 2019 as outlined in the 2019 BNI Management Policy includes: • Improving the corporate business by providing integrated financial solutions in a business ecosystem. • Increasing mid-sized business productivity focused on corporate customer supply chains, business process improvements, and credit quality improvements. • Increasing small business expansion by digitizing business processes and improving credit quality and supporting national economic equality. • Accelerating consumer business by focusing on customer preferences using data analytics. • Increasing CASA and FBI by increasing digital transactions, strategic partnerships and developing new business models. • Increasing the BNI Group capabilities through increasing synergy, agile organization initiatives, and big data and analytics. PT Bank Negara Indonesia (Persero) Tbk
  231. Analisis & Pembahasan Manajemen PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 231
  232. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk FINANCIAL REVIEW The financial review outlined herein refers to the Financial Statements for the years ended 2018 and 2017 as presented in this Annual Report. The Financial Statements have been audited by the Public Accounting Firm Purwanto, Sungkoro and Surja (Member of Ernst and Young Global) and received a reasonable opinion, in all material respects, the consolidated financial position of PT Bank Negara Indonesia Tbk and its subsidiaries, as of December 31, 2017, as well as the consolidated financial and cash flows for the year then ended, were prepared in accordance with the Indonesian Financial Accounting Standards. 232 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  233. Analisis & Pembahasan Manajemen CONSOLIDATED STATEMENT OF FINANCIAL POSITION Consolidated Statement of Financial Position Description 2018 2017 2016 Growth 2017-2018 (Billion Rp) (Billion Rp) (Billion Rp) (Billion Rp) (%) ASSETS Cash 14,044 11,578 11,168 Current Accounts with Bank Indonesia 35,591 32,701 30,147 2,891 8.8 Current Accounts with other banks - net 13,134 21,335 6,298 (8,201) (38.4) Placements with other banks and Bank Indonesia - net 39,324 28,593 33,662 10,732 37.5 Marketable securities - net 32,044 36,050 23,765 (4,006) (11.1) Securities purchased under agreements to resell 2,466 21.3 - 679 1,665 (679) (100.0) Bills and other receivables - net 24,587 15,701 8,932 8,886 56.6 Acceptances receivables - net 20,295 18,106 14,724 2,189 12.1 179.1 Derivatives receivables - net 605 217 250 388 Loans 512,778 441,314 393,275 71,465 16.2 Allowance for impairment losses on loans disbursed (14,892) (14,524) (16,681) (368) 2.5 86,791 79,849 63,006 6,942 8.7 Government bonds Prepaid taxes 1,624 623 620 1,002 160.9 Prepaid expenses 2,337 2,318 2,411 19 0.8 604 713 57 (110) (15.3) 14.6 14.6 Equity investments - net Other Assets - net 11,900 10,381 6,429 1,519 Fixed Assets - net 26,127 22,805 21,972 3,322 Deferred tax Assets - net 1,676 891 1,332 785 88.2 808,572 709,330 603,032 99,242 14.0 4,160 4,868 3,276 (707) (14.5) 578,775 516,098 435,545 62,677 12.1 Deposits from other banks* 14,233 12,177 10,801 2,056 16.9 Borrowings 52,025 44,722 32,388 7,302 16.3 322 114 411 208 182.9 21,524 2,390 3,765 19,134 800.6 4,417 4,507 4,359 (91) (2.0) 876 971 1,047 (95) (9.8) 498.2 TOTAL ASSETS LIABILITIES,TEMPORARY SYIRKAH FUNDS AND EQUITY LIABILITIES Obligations due immediately Deposits from customers* Derivatives payable Securities sold under agreements to repurchase Acceptances payable Accrued expenses Taxes payable Employee benefits Provisions Other liabilities Securities issued* Subordinated Securities TOTAL LIABILITIES PT Bank Negara Indonesia (Persero) Tbk  481 80 151 401 3,512 4,094 3,503 (582) (14.2) 178 192 156 (15) (7.7) 14,608 14,731 11,149 (122) (0.8) 2,987 3,482 3,482 (495) (14.2) 100 - - 100 - 698,198 608,427 513,778 89,771 14.8 Beradaptasi dengan Cepat Menghadapi Perubahan 233
  234. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Description Deposits from customers Deposits from other banks 2018 2017 2016 (Billion Rp) (Billion Rp) (Billion Rp) Non-controlling interest Total equity attributable to owner of the parent entity (Billion Rp) (%) 26,603 23,350 20,092 3,253 358 494 489 (136) (27.5) Mudharabah Sukuk issued TOTAL TEMPORARY SYIRKAH FUNDS Growth 2017-2018 13.9 - 496 496 (496) (100.0) 26,961 24,340 21,077 2,621 10.8 2,297 2,311 2,097 (14) (0.6) 9,485 9.6 108,077 98,592 87,157 TOTAL EQUITY 110,374 100,903 89,254 9,470 9.4 TOTAL LIABILITIES, TEMPORARY SYIRKAH FUNDS AND EQUITY 808,572 709,330 603,032 99,242 14.0 * included funds syirkah temporar Customer Loan Disbursements and Savings Growth 90.41% 578,775 512,779 516,098 435,545 441,314 88.80% 393,275 85.58% 2016 Simpanan Nasabah 2017 Pinjaman yang diberikan 2018 LDR (Bank Saja) ASSETS In 2018, economic observers and Bank Indonesia projected Indonesia’s economic growth throughout 2018 to be in a range of 5.17% with an inflation rate based on Bank Indonesia’s target of 3.5% where the inflation rate in November 2018 was 3.23% ( yoy). The Indonesian economic structure is still dominated by three main business fields, namely agriculture, forestry/fisheries, and trade. Until the second quarter of 2018, the processing industry had the highest growth of 0.91%, followed by the trade sector at 0.69%, and construction at 0.57%. The increasingly depressed Rupiah against the US Dollar in mid-2018 continued until the end of the year and caused a migration of foreign capital from the Indonesian financial system, with the transaction balance deficit continuing to grow marked by a deficit in the export-import balance that dominated the Indonesian economy throughout 2018. This condition is not inseparable from external factors such as the Fed Fund Rate (FFR) and the American and China trade wars. 234 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  235. Analisis & Pembahasan Manajemen In the midst of external pressure, Indonesia’s economic situation did not change significantly in 2018. BNI’s enthusiasm to continue to grow in the midst of heavy external pressure has been tested again, raising BNI’s awareness that the health level of growth itself is the most important thing in order to continue to survive in the increasingly competitive banking business. BNI continued to maintain this throughout 2018 when considering the business growth of the bank itself, one way by being more selective in choosing the right industrial sector. The era of disruptive economy, which began in 2017, was again a highlight in 2018, and BNI was required to adapt well in terms of technology and service innovation. In 2018, BNI managed to maintain its asset growth in the prospective sectors, reflected by the increase in total assets to Rp99.2 trillion. With the loans disbursed as the bank’s main business contributing 63.4% of total assets in 2018. BNI’s loans grew by 16.2%, higher than last year’s 12.2%. The increase in growth was due to BNI aggressively expanding it’s lending by staying selective, especially regarding asset quality and paying attention to prudential banking principles. The growth was mainly in loans to SOEs which grew by 31.6% and private corporate loans which grew 12.9%, with the largest contribution to the manufacturing industry, restaurant and hotel trade, and business services. Assets 2018 2017 2016 Growth 2017-2018 (Billion Rp) (Billion Rp) (Billion Rp) Description (Billion Rp) 11,578 11,168 Current Accounts with Bank Indonesia 35,591 32,701 30,147 2,891 8.8 2,554 8.5 (8,201) (38.4) 15,039 238.7 10,731 37.5 (5,069) (15.1) (3,997) (11.0) 12,503 52.4 (679) (100.0) (986) (59.2) 56.6 6,867 0.6 21,338 6,300 Placements with other banks and Bank Indonesia 39,325 28,593 33,662 Marketable securities 32,362 36,359 23,856 Securities purchased under agreements to resell 410 (%) 14,044 13,137 21.3 (Billion Rp) Cash Current Accounts with other Banks 2,466 (%) Growth 2016-2017 3.7 - 679 1,665 Bills and other receivables 24,745 15,799 15,701 8,946 Acceptances receivables 20,475 18,271 14,809 2,204 12.0 3,462 23.4 606 217 250 388 179.1 (33) (13.2) Derivatives receivables Loans 512,778 441,314 393,275 71,465 16.2 48,038 12.2 Allowance for impairment losses - Loans (14,892) (14,524) (16,681) (368) 2.5 2,157 12.9 Government bonds 86,791 79,849 63,006 6,942 8.7 16,843 26.7 Equity investments 785 786 57 (1) (0.1) 729 1.274.6 Fixed assets -net 26,127 22,805 21,972 3,322 14.6 832 3.8 Prepaid taxes 1,624 623 620 1,002 160.9 2 0.4 Prepaid expenses 2,337 2,318 2,411 19 0.8 (92) (3.8) Deferred tax assets -net 1,676 891 1,332 785 88.2 (441) (33.1) 11,900 10,381 10,381 1,519 14.6 3,952 - (840) (648) (209) (193) 29.8 (439) 209.9 808,572 709,330 603,032 99,241 14.0 106,298 17.6 Other assets - net CKPN TOTAL ASSETS PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 235
  236. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk CASH AND CURRENT ACCOUNTS WITH BANK INDONESIA Cash and current accounts with Bank Indonesia increased 12.1% from Rp44.3 trillion in 2017 to Rp49.6 trillion in 2018. Current accounts with Bank Indonesia increased by 8.8% when compared to 2017, in line with BNI’s obligation to maintain a Minimum Reserve Requirement (GWM) to meet the central bank’s minimum reserve requirement. BNI is required to have a Statutory Reserves (GWM) in Rupiah for its activities as a public and sharia bank, as well as a GWM in foreign currencies for its activities in foreign currencies. As of December 31, 2017 and 2018, the bank’s MMR was in accordance with PBI No. 20/3/PBI/2018 concerning Statutory Reserves in Rupiah and Foreign Exchange for Conventional Commercial Banks, Islamic Commercial Banks, and Sharia Business Units. Primary GWM is a minimum deposit that must be maintained by a bank in the form of a giro account with Bank Indonesia. Secondary GWM and macroprudential liquidity buffer (MLB) are minimum reserves that must be maintained by banks in the form of SBI, Government Securities (SUN), State Sharia Securities (SBSN), and excess reserves which are excess Rupiah bank account balances from Primary GWM, GWM LFR and Macroprudential Intermediation Ratio (MIR). GWM LFR and RIM are the minimum savings required to be maintained by the Bank in the form of a giro accounts at Bank Indonesia, if the LFR Bank is below Bank Indonesia’s LFR and RIM target (80%), or above BI’s maximum LFR and RIM (92%), and the Bank’s Minimum Capital Adequacy Ratio (KPMM) is less than 14% of BI’s KPMM Credit Incentive. CURRENT ACCOUNTS WITH OTHER BANKS Current accounts with other Banks in 2018 decreased by 38.4% from Rp21.3 trillion in 2017 to Rp13.1 trillion in 2018. This decline was the result of one of BNI’s asset management strategies related to placements in financial assets with potential greater yield such as loans, securities, and government bonds. PLACEMENTS WITH OTHER BANKS AND BANK INDONESIA Placements with other banks and Bank Indonesia increased by 37.5% from Rp28.6 trillion in 2017 to Rp39.3 trillion in 2018, due to BNI’s strategy for managing financial assets and liquidity. MARKETABLE SECURITIES Securities are one of the financial instruments owned by BNI as an alternative to channeling funds other than loans. BNI’s marketable securities investment portfolio decreased in 2018 by 11.0% to Rp32.4 trillion from Rp36.4 trillion in 2017, partly due to the maturity of Bank Indonesia Certificate of Deposit product in 2018. There were two types of securities portfolios that decreased significantly in 2018, namely the Bank Indonesia Deposit Certificate (SDBI) which decreased from Rp11.5 trillion in 2017 to Rp2.0 trillion in 2018 or 82.8%, and Subordinated Bonds which decreased by 34.2% to Rp1.5 trillion in 2018. In addition to these two securities portfolios, there were other securities portfolios that increased in 2018, namely Mutual Funds, Bank Indonesia Securities (SBI), and other Bonds which increased by 47.1%, 36.3 %, and 14.7% compared to 2017. Minimum Reserve Requirements (MSR) 2018 236 2017 2016 GWM - RUPIAH 6.53% 6.57% 6.77% GWM - VALAS 8.01% 8.01% 8.01% Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  237. Analisis & Pembahasan Manajemen Marketable Securities 2018 Description (Billion Rp 2017 (%) (Billion Rp Growth 2017-2018 2016 (%) (Billion Rp (Billion Rp (%) Fair value through profit or loss 7,249 100.0 8,430 100.0 4,719 100.0 -Mutual funds 4,053 55.9 3,981 47.2 2,430 51.5 -Other bonds 2,106 29.1 2,487 29.5 780 16.5 (%) 1,180 (14.0) 3,711 78.6 72 1.8 1,551 63.8 (381) (15.3) 1,708 219.0 (57.9) 441 38.0 55 15.2 11 3.1 100.0 (3,037) (11.3) 9,726 56.9 1,096 6.4 (1,997) 36.3) 10,435 952.4 674 9.3 1,600 19.0 1,159 24.6 -Other debt securities 416 5.7 361 4.3 350 7.4 23,768 100.0 26,806 100.0 17,080 1,983 8.3 11,531 43.0 -SDBI (Billion Rp (%) (926) -Subordinated bonds Available for sale Growth 2016-2017 -SBI 7,505 31.6 5,508 20.5 10,530 61.7 1,997 (5,022) (47.7) -Mutual funds 4,920 20.7 2,119 7.9 889 5.2 2,801 132.2 1,230 138.3 -Other bonds 8,209 34.5 6,555 24.5 3,901 22.8 1,654 25.2 2,654 68.0 137 19.4 42 6.3 (79) (20.5) 387 - -Subordinated bonds 843 3.5 706 2.6 664 3.9 -Other debt securities 308 1.3 387 1.4 - 0.0 Held to maturity 1,345 100.0 1,124 100.0 2,057 100.0 221 197.7 (934) (45.4) Other bonds 1,345 100.0 1,124 100.0 2,057 100.0 221 197.7 (934) (45.4) 32,362 1.0 36,359 1.0 23,856 1.0 (3,997) (11.0) 12,503 52.4 (9) 2.9 (218) 239.3 (4,006) (11.1) 12,285 51.7 Sub Total Allowance for impairment losses. Total (318) (309) (91) 32,044 36,050 23,765 Marketable Securities by Issuer 2018 2017 Growth 2017-2018 2016 Description (Billion Rp Corporations Banks Bank Indonesia Total Allowance for impairment losses Nett (%) (Billion Rp (%) (Billion Rp (%) (Billion Rp Growth 2016-2017 (%) (Billion Rp (%) 16,284 50.3 13,718 37.7 8,952 37.5 2,566 18.7 4,766 53.2 6,590 20.4 5,602 15.4 3,279 13.7 987 17.6 2,324 70.9 9,489 29.3 17,039 46.9 11,626 48.7 (7,550) (44.3) 5,414 46.6 32,362 100.0 36,359 100.0 23,856 100.0 (3,997) (11.0) 12,503 52.4 (318) (309) (91) (9) 2.9 (218) 239.3 32,044 36,050 23,765 (4,006) (11.1) 12,285 51.7 PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 237
  238. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL (REVERSE REPO) Securities transactions purchased with agreements to resell are securities purchase transactions with an agreement to resell the securities purchased at a predetermined time and price. The reverse repo transactions carried out in 2017 amounting to Rp679 billion fell due in 2018, where during 2018 BNI did not conduct any new reverse repo transactions. LOANS DISBURSED The Indonesian economy in 2018 provided several lessons that can be the basis for strengthening synergies in maintaining resilience and boosting economic growth in 2019. Competitiveness and productivity should be improved to encourage growth momentum to a higher level. Indonesia must be able to move from dependence on primary commodity exports to manufacturing, and increase its domestic production capabilities to reduce imports. Infrastructure development is expected to improve connectivity and be directed to promoting regional economic and industrial development. In the context of the manufacturing sector development, BNI, as a state-owned bank, again played an important role in strengthening the government’s strategy that subsequently resulted in an increase in loans to SOEs by 31.6% and loans disbursed to private corporations growing 12.9%, mainly in the manufacturing industry, restaurant and hotel trade, business services and construction. This increase then resulted in an increase in the bank’s main business composition from 62.2% in 2017 to 63.4% in 2018 Loan Composition byType of Debtor 2018 Description Corporate (Billion Rp) 2017 (Billion Rp) % (Billion Rp) % (Billion Rp) % Growth 2016-2017 (Billion Rp) % % 222,910 43.5 188,026 42.6 174,073 44.3 34,884 18.6 13,953 8.0 Medium Commercial 74,731 14.6 70,261 15.9 61,330 15.6 4,470 6.4 8,932 14.6 Small 66,063 12.9 56,477 12.8 50,684 12.9 9,586 17.0 5,793 11.4 11.6 6,376 9.8 29.5 9,497 44.7 Consumer 79,735 15.5 71,445 16.2 65,069 16.5 8,290 International 39,918 7.8 30,734 7.0 21,237 5.4 9,055 Subsidiaries 29,550 5.8 24,369 5.5 20,882 5.3 5,181 21.3 3,487 16.7 Total Loans 512,778 100.0 441,314 100.0 393,275 100.0 71,465 16.2 48,038 12.2 LOANS DISBURSED COMPOSITION The loans disbursed portfolio structure in 2018 was still dominated by the corporate segment at 43.5%, followed by the consumer and medium commercial segments at 15.5% and 14.6% respectively, the small segment at 12.9%, and foreign branches at 7.8%. On a consolidated basis, subsidiaries contributed 5.8% of total loans. The most aggressive growth was in lending to the corporate segment, which rose Rp34.9 trillion or 18.6% from Rp188.0 trillion in 2017 to Rp222.9 trillion in 2018. The small segment also recorded quite aggressive growth increasing Rp9.6 trillion to Rp66.1 trillion in 2018. In addition, the consumer segment lending, as one of the drivers of growth, increased 11.6% or Rp8.3 trillion. Loans disbursed by the BNI’s subsidiaries also grew steadily by 21.3% from Rp24.4 trillion in 2017 to Rp29.6 trillion in 2018. 238 Growth 2017-2018 2016 Beradaptasi dengan Cepat Menghadapi Perubahan  The medium-sized commercial segment recorded growth of 6.4% or Rp.4.5 trillion compared to 2017. This growth was not as aggressive as in 2017, where the medium-sized commercial segment grew 14.6% or Rp8.9 trillion compared to 2016. The 2018 growth followed one of BNI’s strategies to be more selective in lending to this segment given the still large risk. During 2018, there were several commercial segment borrowers who increased their business exposure making them eligible to be managed by the corporate segment. PT Bank Negara Indonesia (Persero) Tbk
  239. Analisis & Pembahasan Manajemen Overseas Branches Loans Disbursed 2018 (Billion Rp) Overseas Branch 2017 (Billion Rp) Growth 2017-2018 2016 (Billion Rp) (Billion Rp) Growth 2016-2017 % (Billion Rp) BNI New York 7,971 6,489 4,268 1,482 22.8 BNI London 6,297 4,148 3,779 2,149 51.8 369 9.8 BNI Tokyo 6,603 3,919 2,708 2,684 68.5 1,211 44.7 BNI Hongkong 7,527 7,032 5,352 495 7.0 1,680 31.3 BNI Singapura 9,108 7,946 4,590 1,161 14.6 3,356 73.1 BNI Seoul Total 2,221 % 52.0 2,285 1,200 540 1,084 90.3 660 122.2 39,789 30,734 21,237 9,055 29.5 9,497 44.7 Overseas Branches Loans Disbursed - Rp Billion 7,971 6,489 6,603 6,297 4,268 4,148 3,919 3,779 2,708 2016 2017 2018 BNI New York 2016 2017 2018 2016 BNI London 2017 2018 BNI Tokyo 9,108 7,527 7,946 7,032 5,352 4,590 2,285 1,200 540 - 2016 2017 2018 BNI Hongkong PT Bank Negara Indonesia (Persero) Tbk  2016 2017 2018 BNI Singapura 2016 2017 2018 BNI Seoul Beradaptasi dengan Cepat Menghadapi Perubahan 239
  240. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Tabel Komposisi Pinjaman berdasarkan Segmen dan Mata Uang 2018 Description (Billion Rp) 2017 (Billion Rp) % Growth 2017-2018 2016 (Billion Rp) % (Billion Rp) % Growth 2016-2017 (Billion Rp) % % Corporate 222,910 43.5 188,026 42.6 174,073 44.3 34,887 18.6 13,953 8.0 Rupiah 181,449 81.4 154,555 82.2 141,044 81.0 26,898 17.4 13,511 9.6 Foreign Currency 41,461 18.6 33,471 17.8 33,029 19.0 7,990 23.9 442 1.3 Medium 74,731 14.6 70,261 15.9 61,330 15.6 4,470 6.4 8,932 14.6 Rupiah 72,292 96.7 67,983 96.8 59,932 96.1 4,310 6.3 9,050 15.4 2,439 3.3 2,279 3.2 2,397 3.9 160 7.0 (119) (4.9) 66,063 12.9 56,477 12.8 50,684 12.9 9,586 17.0 5,793 11.4 17.0 5,791 11.5 Foreign Currency Small Rupiah Foreign Currency 65,937 99.8 56,360 99.8 50,568 99.8 9,578 126 0.2 117 0.2 116 0.2 9 7.5 1 1.0 Consumer 79,735 15.5 71,445 16.2 65,069 16.5 8,290 11.6 6,376 9.8 Rupiah 79,719 100.0 71,380 99.9 65,038 100.0 8,339 11.7 6,342 9.8 16 0.0 65 0.1 31 0.0 (49) (75.4) 34 109.4 39,918 7.8 30,734 7.0 21,237 5.4 9,055 29.5 9,497 44.7 Foreign Currency International Rupiah - 0.0 - 0.0 - 0.0 - - - 0.0 Foreign Currency 39,918 100.0 30,734 100.0 21,237 100.0 9,055 29.9 9,497 44.7 Subsidiaries 29,550 5.8 24,369 5.5 20,882 5.3 5,181 21.3 3,487 16.7 Rupiah 29,367 99.4 24,214 99.4 20,582 98.6 5,153 21.3 3,633 17.7 183 0.6 155 0.6 301 1.4 28 17.9 (146) (48.4) Total Loans 512,778 100.0 441,314 100.0 393,275 100.0 71,465 16.2 48,039 12.2 Total Rupiah 428,765 83.0 374,492 84.9 336,164 85.5 54,273 14.5 38,328 11.4 84,013 16.4 66,822 15.1 57,111 14.5 17,191 25.9 9,711 17.0 Foreign Currency Total Foreign Currency LOANS DISBURSED QUALITY-BANK ONLY Gross NPL ratio in 2018 stood at 1.9%, an improvement compared to 2.3% in 2017. Net NPL stood at 0.8% in 2018, compared to 0.7% in 2017. This result was due to BNI’s strategy to be selective in its expansion in low risk sectors, and as a major player in the region. In addition, BNI also restructured and remedied troubled borrowers who still have the potential for financial and operational improvements. In order to anticipate fluctuating macroeconomic conditions, BNI mitigated the loans disbursed risk by increasing reserves higher than the previous year, which was reflected in the coverage ratio of 152.9% in 2018 compared to 2017 at 148.0%. The collectability of BNI’s loan portfolio is shown in the following table: Loans based on Collectibility Description 2018 (Billion Rp) 2017 (Billion Rp) 2016 (Billion Rp) Growth 2017-2018 (Billion Rp) Current Special Mention 414,371 396,623 20,248 16,845 12,008 3,404 % (Billion Rp) % 0.2 44,748 12.1 0.2 4,837 40.3 Substandard 2,028 1,271 1,594 757 0.6 (323) (20.3) Doubtful 3,009 1,592 839 1,417 0.9 753 89.8 Bad 5,001 7,234 9,212 (2,233) (0.3) (1,978) (21.5) 512,778 441,413 393,275 71,465 0.2 48,039 12.2 Total 240 482,492 68,120 Growth 2016-2017 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  241. Analisis & Pembahasan Manajemen Loans based on Economic Sector 2018 2017 Growth 2017-2018 2016 Description (Billion Rp) (Billion Rp) % (Billion Rp) % (Billion Rp) % Manufacturing 98,034 19.1 82,744 18.7 73,090 18.6 Trade, Restaurant and Hotel 89,751 17.5 76,391 17.3 61,581 15.7 Trade Services 52,575 10.3 42,309 9.6 38,600 9.8 Transportation and Communications 31,351 6.1 25,986 5.9 22,205 5.6 Agriculture 49,185 9.6 46,888 10.6 43,128 11.0 Growth 2016-2017 (Billion Rp) % % 15,289 0.2 9,654 0.1 13,360 0.2 14,810 0.2 10,266 0.2 3,709 0.1 5,365 0.2 3,781 0.2 2,297 0.0 3,760 0.1 Mining 18,301 3.6 11,949 2.7 14,184 3.6 6,352 0.5 (2,236) (0.2) Electricity Gas and Water 24,179 4.7 26,767 6.1 27,006 6.9 (2,587) (0.1) (239) (0.0) Construction 34,474 6.7 27,499 6.2 20,079 5.1 6,975 0.3 7,420 0.4 Social Services 16,033 3.1 12,149 2.8 11,246 2.9 3,884 0.3 903 0.1 Others 98,896 19.3 88,633 20.1 82,156 20.9 10,263 0.1 6,477 0.1 512,778 100.0 441,314 100.0 393,276 100.0 71,465 0.2 48,038 0.1 Total Loans LOANS DISBURSED COLLECTIBILITY LEVEL - BANK ONLY Nominal NPLs recorded a decline from Rp9.4 trillion in 2017 to Rp9.2 trillion in 2018 or a decrease of 2.4%. This shows BNI’s commitment to maintaining the quality of loans disbursed amid aggressive expansion. Loans in the NPL category are dominated by customers in the industrial, trade, restaurant and hotel and mining sectors. The fluctuating economic conditions in 2018 resulted in a number of the borrowers in these sectors becoming NPL. NPL Per Segment (Bank Only) NPL by Segment [%, Rp B] 11,042 9,415 9,228 3.6 3.2 3,0 2.8 2.7 2.8 2.5 2.7 Medium, 2.6 2.3 1.9 Consumer, 2.1 Total NPL, 1,9 Corporate, 1.7 Small, 1,6 2016 PT Bank Negara Indonesia (Persero) Tbk  2017 2018 Beradaptasi dengan Cepat Menghadapi Perubahan 241
  242. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk LOAN WRITE-OFFS AND RECOVERIES - BANK ONLY For borrowers with no potential, both business and operational, BNI has written-off loan assets amounting to Rp7.4 trillion during 2018, lower than the Rp.8.7 trillion in 2017. In its execution, BNI prioritizes bankrupt borrowers and those with legal problems, where maximum efforts have been exhausted. Compared to the total loans disbursed - bank alone, the written-off loan ratio is relatively low at around 1.5%. Whereas the recovery of loans amounted to Rp2.7 trillion with a recovery rate in 2018 of 35.7%, an improvement form 25.4% in 2017. Write Off and Recovery (Bank Only) Write off & Recovery (Bank Only) 8,730 49.7% 35.7% 25.4% 7.447 Keterangan 3,012 2.657 2,220 Hapus Buku Recovery 1,497 Recovery to Write Off Ratio 2016 2018 2017 GOVERNMENT BONDS Government bonds are again an attractive financial instrument with a lower level of risk compared to other similar financial instruments. BNI’s government bonds increased by Rp6.9 trillion or 8.7% to Rp86.8 trillion in 2018 compared to Rp79.8 trillion in 2017. In terms of interest rate composition, government bonds with fixed interest rates still dominate BNI’s portfolio with Government Bond market prices ranging from 76.01% to 122.15% and between 96.70% to 136.51%, as of December 31, 2018 and 2017. As for floating rate bonds, the market price of Government Bonds ranges from 99.55% to 99.87% and between 99.84% to 99.95% as of December 31, 2018 and 2017. Government Bonds 2018 Description (Billion Rp) % Growth 2017-2018 2016 (Billion Rp) % (Billion Rp) % Fair value through profit or loss 3,350 3.9 2,936 3.7 706 1.1 414 Available for sale 60,283 69.4 56,237 70.4 43,660 69.3 Held to maturity 23,158 26.7 20,676 25.9 18,640 29.6 Total 86,791 100.0 79,849 100.0 63,006 Fixed interest rate 80,805 93.1 73,803 92.4 5,961 6.9 6,046 7.6 86,791 100.0 79,849 100.0 Floating Interest Rate Total 242 (Billion Rp) 2017 Beradaptasi dengan Cepat Menghadapi Perubahan  Growth 2016-2017 (Billion Rp) % % 14.1 2,230 315.9 4,046 7.2 12,577 28.8 2,482 12.0 2,036 10.9 100.0 6,942 8.7 16,843 26.7 53,284 84.6 7,027 9.5 20,519 38.5 9,722 15.4 (60) (1.0) (3,676) (37.8) 63,006 100.0 6,942 8.7 16,843 26.7 PT Bank Negara Indonesia (Persero) Tbk
  243. Analisis & Pembahasan Manajemen Government Bonds by Interest Rate 6.9% 2018 93.1% Suku Bunga Mengambang 7.6% 2017 92.4% Suku Bunga Tetap EQUITY INVESTMENT Equity investment comprises shares in non-public companies engaged in financial services for long-term purposes. BNI’s total investment at the end of 2018 was Rp785 billion (gross) with its participation and percentage of ownership detailed as follows: 1. PT Sarana Bersama Pembiayaan Indonesia 8.0% 2. PT Swadharma Nusantara Pembiayaan 7.4% 3. PT Bursa Efek Indonesia 1.2% 4. PT Kustodian Sentral Efek Indonesia 2.5% 5. PT Pemeringkat Efek Indonesia (Persero) 1.9% 6. PT Bank Mizuho Indonesia 1.0% 7. PT Sumitomo Mitsui Indonesia 0.5% 8. PT PANN Pembiayaan Maritim 48.4% FIXED ASSETS Net fixed assets in 2018 grew 14.6% from Rp22.8 trillion in 2017to Rp26.1 trillion. During 2018, management felt that there was no decline in BNI’s fixed assets value during the year due to the carrying cost of fixed assets not exceeding the estimated recoverable value. BNI made a permanent revaluation on September 30, 2018 for land and building assets in Indonesia and abroad with the following details: Book Value before Revaluation Tanah Bangunan Jumlah Book Value After Revaluation Revaluation Profit (Loss) 14,098 15,511 1,414 3,836 5,189 1,353 17,934 20,700 2,766 The Bank’s fixed assets as of December 31, 2018 are insured against the risk of fire and theft with a sum insured of Rp12.1 trillion, an increase from Rp9.6 trillion as of December 31, 2017. Management believes that the sum insured is sufficient to cover possible losses on these assets. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 243
  244. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Fixed Assets Description Land Buildings 2018 2017 2016 Growth 2017-2018 (Billion Rp) (Billion Rp) (Billion Rp) (Billion Rp) Growth 2016-2017 % (Billion Rp) % 15,557 13,857 13,829 1,700 12.3 28 0.2 5,626 4,252 3,850 1,374 32.3 402 10.4 9,136 8,146 976 10.7 990 12.2 Office Equipment and motor vehicles 10,112 Total acquisition cost 31,295 27,245 25,824 4,049 14.9 1,421 5.5 2,714 2,960 2,601 (246) (8.3) 359 13.8 34,009 30,205 28,426 3,803 12.6 1,779 6.3 414 783 546 (370) (47.2) 237 43.5 6,617 5,908 851 12.9 Assets in settlement Total acquisition cost Accumulated depreciation Building Office Equipment and motor vehicles 7,469 Total accumulated depreciation 7,882 7,400 6,454 482 6.5 947 14.7 26,127 22,805 21,972 3,322 14.6 832 3.8 Net book value 12.0 710 OTHER ASSETS Other assets rose 14.6% to Rp11.9 trillion in 2018 compared to Rp10.4 trillion in 2017. These comprise interest receivables from government bonds, customer receivables, foreclosed collateral, customer bills, other receivables and other assets. LIABILITIES Liabilities Description Obligations due immediately Deposits from customers* Deposits from Other Banks* Securities Sold under agreements to repurchase Derivatives payable Acceptances payable Securities issued* Borrowings 2018 2017 2016 Growth 2017-2018 (Billion Rp) (Billion Rp) (Billion Rp) (Billion Rp) 4.160 4.868 3.276 578.775 516.098 435.545 14.233 12.177 10.801 21.524 2.390 3.765 % Growth 2016-2017 (Billion Rp) % (707) (14,5) 1.592 48,6 62.677 12,1 80.553 18,5 2.056 16,9 1.376 12,7 19.134 800,6 (1.375) (36,5) 322 114 411 208 182,9 (297) (72,3) 4.417 4.507 4.359 (91) (2,0) 149 3,4 2.987 3.482 7.227 (495) (14,2) (3.745) (51,8) 52.025 44.722 32.388 7.303 16,3 12.334 38,1 Tax Debt 481 80 151 401 498,2 (70) (46,7) Provisions 178 192 156 (15) (7,7) 36 23,2 Accrued Expenses 876 971 1.047 (95) (9,8) (76) (7,2) Employee benefits Other liabilities Subordinated Securities TOTAL LIABILITIES 3.512 4.094 3.503 (582) (14,2) 591 16,9 14.608 14.731 11.149 (122) (0,8) 3.582 32,1 100 - - 100 100,0 - - 698.198 608.427 513.778 89.771 14,8 94.649 18,4 * includes temporary syirkah funds 244 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  245. Analisis & Pembahasan Manajemen Deposits From Customers Banking liquidity was an issue during 2018. This is seen in the growth of the banking industry loans being higher than the growth in customer deposits, with the industry Loan to Deposit Ratio (LDR) being above 90%. During this tight banking liquidity, BNI was able to show encouraging growth in customer deposits during 2018. Transactional services based on digital banking became BNI’s main weapon in driving this growth. In addition, to collect cheap funds BNI continued enhancing its partnerships with institutions or institutional customers, both private, state-owned and government. During 2018, customer deposits rose by Rp62.7 trillion or 12.1% to Rp578.8 trillion from Rp516.1 trillion in 2017. Giro grew by 18.2% or Rp26.1 trillion from Rp143.2 trillion in 2017 to Rp169.3 trillion in 2018. Savings products also recorded aggressive growth of Rp23.8 trillion from Rp182.3 trillion in 2017 to Rp206.1 trillion. Deposit products grew 6.7% or Rp12.8 trillion to Rp203.4 trillion during 2018. This growth was not as aggressive as the growth of demand deposits and savings products due to BNI’s strategy to focus on funding sourced from CASA. This strategy resulted in an improvement in BNI’s CASA ratio from 63.1% in 2017 to 64.8% in 2018. This condition also led to a decrease in the cost of customer deposits (Cost of Funds) by 0.2% from 3.0% in 2017 to 2.8% in 2018. Customer Deposits from Including Temporary Syirkah Funds 2018 2017 Pertumbuhan 2017-2018 2016 Description (Billion Rp) (Billion Rp) % (Billion Rp) % (Billion Rp) % Pertumbuhan 2016-2017 (Billion Rp) % % Deposits 169,274 29.2 143,162 27.7 122,652 28.2 26,112 18.2 20,510 16.7 Rupiah 126,924 21.9 108,729 21.1 92,024 21.1 18,195 16.7 16,705 18.2 Foreign Currency Savings Rupiah Foreign Currency 42,350 7.3 34,433 6.7 30,628 7.0 7,917 23.0 3,805 12.4 206,056 35.6 182,295 35.3 158,662 36.4 23,761 13.0 23,633 14.9 191,133 33.0 168,616 32.7 146,446 33.6 22,517 13.4 22,170 15.1 14,923 2.6 13,679 2.7 12,216 2.8 1,244 9.1 1,463 12.0 49,873 15.3 44,142 15.7 35.4 12,803 6.7 36,411 23.6 30.1 6,506 4.0 32,451 24.7 23,033 5.3 6,297 23.3 3,960 17.2 100.0 453,545 100.0 62,677 12.1 80,533 18.5 85.4 369,668 84.9 47,218 10.7 71,326 19.3 14.6 65,877 15.1 15,459 20.6 9,228 14.0 Total Demand Deposits and Savings 375,330 64.8 325,457 63.1 281,315 64.6 Deposits 203,445 35.2 190,641 36.9 154,230 Rupiah 170,155 29.4 163,649 31.7 131,198 33,290 5.8 26,992 5.2 578,775 100.0 516,098 488,212 84.4 440,994 90,563 15.6 75,104 Foreign Currency Total Deposits Rupiah Foreign Currency TEMPORARY SYIRKAH FUNDS Temporary syirkah funds are investments using mudharabah mutlaqah, whereby the fund owner (shahibuh maal) gives freedom to the fund manager (mudharib/BNI Syariah) to manage the investments with profit sharing according to an agreement. Temporary syirkah funds consist of mudharabah savings and mudharabah time deposits. Temporary syirkah funds cannot be classified as liabilities, as BNI Syariah is not required to return the initial funds amount, except due to ignorance or default that incurred losses. On the other hand, temporary syirkah funds cannot be classified as equity as it has its own due period and the funds owner does not have the same ownership rights as those of shareholders with voting rights and rights over profits derived from current assets and other non-investment accounts. Temporary syirkah fund owners receive profit sharing rewards according to the specified ratio. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 245
  246. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk NEGOTIABLE CERTIFICATE DEPOSIT (NCD) To support the Rupiah funding liquidity and strengthen its structure and composition, BNI issued scriptless Rupiah Negotiable Certificates of Deposit (NCD) in 2017. A total of Rp3.3 trillion NCDs were issued to mature during 2018. The NCDs will be explained more fully in the Other Financial Information Overview. DEPOSITS FROM OTHER BANKS Deposits from other banks are used by BNI as interbank call money facilities. Deposits from other banks in 2018 amounted to Rp13.9 trillion, an increase of Rp2.1 trillion or 16.9% compared to Rp12.2 trillion in 2017. In addition, for funding sources not to be concentrated in short-term funding alone, BNI issues Negotiable Certificates of Deposit (NCDs) which have been marketed through KSEI since 2016. Deposits from Other Banks Description Interbank money market 2018 2017 2016 (Billion Rp) (Billion Rp) (Billion Rp) Growth 2017-2018 (Billion Rp) Growth 2016-2017 (%) (Billion Rp) (%) 8,459 3,352 1,339 5,107 152.3 2,013 150.3 2,152 2,343 1,899 (170) (7.3) 444 23.4 Time deposits 1,323 839 1,877 Negotiable Certificate of Deposit 1,163 Current accounts Other deposits Total 4,248 3,246 484 57.6 (1,038) (55.3) (3,099) (72.7) 1,002 30.9 1,136 1,394 2,439 (585) (34.0) (1,045) (42.9) 14,233 12,177 10,801 2,056 16.9 1376 12.7 SECURITIES ISSUED On June 22, 2017, BNI obtained an effective statement from OJK through letter number S-349/D.04/2017 to issue I BNI Rupiah Phase I Bonds 2017 (“Bonds”).The value of the bonds issued amounting to Rp3.0 trillion, for a period of 5 years, with a coupon of 8% per annum to be paid quarterly. The BNI Bonds were issued on July 11, 2017 and listed on the Indonesia Stock Exchange on July 12, 2017.The first coupon payment to the bondholders was made on October 11, 2017. In 2018, Sukuk Mudharabah issued by BNI Syariah on May 26, 2015 and listed on the Indonesian Stock Exchange with a nominal value of Rp500 billion has matured and been paid off. The Sustainable Bonds are described in the Other Financial Information Overview section. SUBORDINATION SECURITIES On June 8, 2018, BNI obtained an effective statement from OJK through letter number S-3/PB.31/2018 to issue BNI’s Subordinate Medium I Notes in 2018 (“Subordinated MTN”). The value of the Subordinated MTN issued was Rp100 billion, for a 5-year period, with a coupon of 8% per year to be paid quarterly. BNI MTN Subordination was issued with limited offers. The first coupon payment to MTN Subordinate holders was made on November 7, 2018. The proceeds from the issuance of the Subordinated MTN will be used by BNI to strengthen complementary capital (tier 2) and working capital in the context of business development, especially credit and increase the composition of the structure of long-term fund associations, in accordance with OJK Regulation No. 11/POJK.03/2016 concerning Minimum Capital Requirement for Commercial Banks as amended by OJK Regulation No. 34/POJK.03/2016 will be used by the Company to support increased productive assets. 246 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  247. Analisis & Pembahasan Manajemen BORROWINGS Borrowings in 2018 amounted to Rp52.0 trillion, an increase of Rp7.3 trillion or 16.3% compared to Rp44.7 trillion in 2017. This increase was dominated by banker acceptances, which rose by Rp6.9 trillion or 95.4% compared to 2017. Bankers’ acceptances are interbank borrowings by BNI from foreign banks aimed at increasing liquidity with a loan term of 6 months which is one of the BNI’s funding strategies to maintain long-term and short-term composition. Borrowings Growth 2017-2018 2018 2017 2016 (Billion Rp) (Billion Rp) (Billion Rp) Description Ongoing Loans (Billion Rp) Growth 2016-2017 (%) (Billion Rp) (%) 73 75 132 (3) (3.4) (57) (42.9) 1 1 1 - - - - Bilateral loans 37,010 36,823 27,863 187 0.5 8,960 32.2 Banker acceptances 14,182 7,258 4,240 6,924 95.4 3,019 71.2 759 565 152 194 34.4 (165) (22.6) 52,025 44,722 32,388 7,302 16.3 11,757 35.7 Liquidity loans to primary credit cooperatives members Others Total Counterparty Borrowings Counterparty Nominal Time Period Interest Rate Due Date Standard Chartered Bank USD 200 Million 5 Years LIBOR 3 Months + 1.95% September 19, 2019 China Development Bank USD 700 Million 10 Years LIBOR 6 Months + 2.85% December 16, 2025 China Development Bank CNY 1.90 Billion 10 Years SHIBOR 6 Months + 3.30% December 16, 2025 Bank Consortium USD 500 Million 3 Years LIBOR 3 Months + 1.00% December 22, 2019 Bank Consortium USD 500 Million 5 Years LIBOR 3 Months + 1.21% December 22, 2021 Bank Consortium USD 500 Million 5 Years LIBOR 3 Months + 1.2% August 30, 2022 Bank of America USD 40 Million 335 Days LIBOR 3 Month + 0.8% August 12, 2019 CoBank Greenwood Vilage Colorado USD 80 Million 359 Days 2.88%-3.55% December 04, 2019 Sumitomo Mitsui Banking Corporation USD 100 Million 3-6 Months 2.94%-314% March 25, 2019 Societe Generale Paris USD 50 Million 4 Years LIBOR 3 Month + 2.30% December 17, 2018 OBLIGATIONS DUE IMMEDIATELY Obligations due immediately were dominated by BNI’s obligations as an issuer bank (ATM), remittances, check deposit funds, matured time deposits not yet taken by customers, clearing transactions, tax deposits received by BNI as a perception bank, and unsettled temporary deposits. The obligations due immediately in 2018 decreased Rp707 billion or 14.5% compared to 2017. SECURITIES SOLD UNDER AGREEMENT TO REPURCHASE The securities sold with the promise of repurchase is one of BNI’s alternative non-conventional funding sources to manage liquidity. This repo transaction is covered in OJK No.33/SEOJK.04/2015 SE concerning Indonesia’s Global Master Repurchase Agreement. Securities sold under agreement to repurchase amounted to Rp21.5 trillion in 2018, up Rp.19.1 trillion compared to 2017. OTHER LIABILITIES Other liabilities in 2018 amounted to Rp14.6 trillion, a decrease of Rp122 billion compared to Rp14.7 trillion I 2017. Other liabilities included obligations to policyholders, guarantee deposits, interest payable, unrecognized income, reinsurance payable, commission and payables of subsidiaries customer. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 247
  248. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk EQUITY BNI’s total equity in 2018 amounted to Rp110.4 trillion, up Rp9.5 trillion or 9.4% compared to Rp100.9 trillion in 2017, partly driven by the achievement of BNI’s net profit which grew 10.3% in 2018. Together with macroeconomic fluctuations and market pressure, Securities and Government Bonds market prices corrected, and caused a loss of Rp3.9 trillion during 2018 for Mark to Market Securities and Government Bonds classified as Available for Sale. In 2018, BNI revalued the Group’s land and building assets in Indonesia and abroad. In total the increase in carrying value arising from the revaluation of land and buildings has been recorded as “Other Comprehensive Income” and amounted to Rp2.7 trillion. Equity Description Issued and fully paid Capital 2017 2016 (Billion Rp) (Billion Rp) (Billion Rp) (Billion Rp) Growth 2016-2017 (Billion Rp) % % 9,055 9,055 9,055 - 0.00 - 0.00 14,568 14,568 14,568 - 0.00 - 0.00 2,257 2,257 2,257 - - - 14,979 12,283 12,285 2,696 21.9 (2) - (3,914) 22 (1,888) (3,936) (17.706.1) 1,911 - Differences arising from translation of financial statements in foreign currency 85 93 82 (8) (8.9) 11 13.4 Gains (losses) on defined benefit plan actuarial - - - - - - - 71,047 60,314 50,798 10,733 17.8 9,515 18.7 - - - - - - - 108,077 98,592 87,157 9,485 9.6 11,435 13.1 Additional paid in capital Transactions with non-controlling parties Revaluation reserve assets Unrealized Gains (Losses) On Available-For-Sale Marketable Securities And Government Bonds, Net Of Tax Total retained earnings Treasury stock Total equity attributable to owners parent Non-controlling interests Total Equity 248 Growth 2017-2018 2018 Beradaptasi dengan Cepat Menghadapi Perubahan  2,297 2,311 2,097 (14) (0.6) 214 10.2 110,374 100,903 89,254 9,470 9.4 11,649 13.1 PT Bank Negara Indonesia (Persero) Tbk
  249. Analisis & Pembahasan Manajemen CONSOLIDATED PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME STATEMENT Amid the economic situation in Indonesia that did not change significantly in 2018, coupled with the increasingly depressed Rupiah against the US Dollar, BNI again proved its consistency and continued to make a positive contribution to the country by recording a net profit growth of 10.3% compared to 2017, due to the increasing composition of income such as interest and sharia income which was the main driving force for banking operations. Profit and Loss Statement Description Interest income and Sharia income-net Premium income -net Growth 2017-2018 Growth 2016-2017 2018 2017 2016 (Billion Rp) (Billion Rp) (Billion Rp) 35,446 31,938 29,995 3,509 11.0 1,943 6.5 1,712 1,768 1,342 (56) (3.2) 426 31.7 (Billion Rp) (Billion Rp) % % Other operating income 11,613 11,040 9,552 573 5.2 1,488 15.6 Total operating income 48,771 44,745 41,888 4,026 9.0 3,857 9.4 Other operating expenses (21,783) (20,396) (18,106) (1,387) 6.8 (1,590) 8.5 Allowance for impairment losses (7,388) (7,126) (7,853) (262) 3.7 727 (9.3) Operational profit 19,599 17,223 14,229 2,377 13.8 2,993 21.0 221 (57) 74 279 (486.4) (131) (177.0) Income before tax expense Income (expense) non operating-net 19,821 17,165 14,303 2,655 15.5 2,862 20.0 Tax Expense (4,729) (3,395) (2,893) (1,334) 39.3 (502) 17.4 Income for the year 15,092 13,771 11,410 1,321 9.6 2,360 20.7 Profit for the year attributable to: Non-controlling interests Equity holder of the parent entity 77 154 71 (77) (50.3) 83 116.9 15,015 13,616 11,339 1,399 10.3 2,278 20.1 INTEREST INCOME GROWTH INTEREST INCOME AND SHARIA INCOME BNI as a financial institution that functions to channel loans to the community while supporting national economic activities for the success of the government programs, interest income and sharia income are the company’s main sources of income in generating profits other than operating income. Interest income and sharia income increased by 11.0% from Rp31.9 trillion in 2017 to Rp35.4 trillion in 2018, with the largest increase being interest income on loans disbursed that amounted to Rp3.9 trillion. During 2018, the increase in interest income was not only dominated by loans but also supported by the increase in other productive financial assets as a result of BNI’s policy to manage the composition of its financial instruments. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 249
  250. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Interest Income from Productive Assets Description Growth 2017-2018 2018 2017 2016 (Billion Rp) (Billion Rp) (Billion Rp) Loans 42,919 39,184 % (Billion Rp) % 3,735 9.5 2,881 7.9 893 20.8 695 19.3 393 12.4 384 13.8 244 38.8 183 40.7 260 239 55.9 167 64.6 359 457 99.6 100 27.9 43,768 5,961 12.4 4,409 10.1 36,304 Government Bonds and Marketable Securities 5,196 4,303 3,608 Margin, profit sharing revenue and Sharia bonus 3,567 3,175 2,790 Placements with Bank Indonesia and other Banks 874 629 447 Export Bills and other receivables 667 428 Others 916 459 54,139 48,178 Total (Billion Rp) Growth 2016-2017 Interest Income and Shariah Income Composition 9% 9% 7% 2% 1% 7% 1% 1% 2% 2% 2018 2017 79% 81% Margin, pendapatan bagi hasil dan bonus Syariah Pinjaman yang Diberikan Penempatan pada Bank Indonesia dan bank lain-lain Wesel Ekspor dan Tagihan lainnya INTEREST INCOME FROM DISBURSED LOANS The increase in interest income on loans disbursed amounted to 10.0% in 2018 and reached Rp43.1 trillion compared to Rp39.2 trillion in 2017, due to growth in loans disbursed of 16.2% with no increase in the Lending Rate for the loans. During 2018, there was an increase of 7 days repo rate from Bank Indonesia from 4.25% to 6.00% which did not have a direct impact on BNI’s loan portfolio. This is one of BNI’s policies in managing the quality of debtors and supporting the country’s economic activities when macroeconomic conditions are still volatile. 250 Beradaptasi dengan Cepat Menghadapi Perubahan  Lain-lain Obligasi Pemerintah dan lain-lain INTEREST INCOME FROM GOVERNMENT BONDS AND MARKETABLE SECURITIES Government securities and bonds are an alternative for investment placements that can promise higher returns than other productive assets including loans. This was marked by an increase in the securities and government bonds portfolio that increased 2.5% at the end of 2018. The impacted interest income on government bonds and securities which increased 20.8%, from Rp4.3 trillion in 2017 to Rp5.2 trillion in 2018. PT Bank Negara Indonesia (Persero) Tbk
  251. Analisis & Pembahasan Manajemen INTEREST INCOME FROM MARGIN, PROFIT-SHARING REVENUE AND SHARIA BONUS The Sharia business was relatively stable year-on-year and was one of the promising businesses considering the intense Sharia business competition in 2018. Margin Interest Income, Sharia Revenue and Bonus Sharing increased by 12.4% from the previous year . INTEREST INCOME FROM PLACEMENTS WITH OTHER BANKS AND BANK INDONESIA In 2018, revenues from placements with other banks and Bank Indonesia increased by 39.3% from Rp629 billion in 2017 to Rp877 billion in 2018. INTEREST INCOME FROM BILLS AND OTHER RECEIVABLES In 2018 interest income from bills and other receivables rose 55.9% from Rp428 billion in 2017 to Rp667 billion in 2018. INTEREST EXPENSE AND SHARIA EXPENSE Interest expense and Sharia expense increased by 15.1% in 2018, or Rp2.5 trillion from Rp16.2 trillion in 2017 to Rp18.7 trillion. Interest Expense and Sharia Expense Description Customer Deposits and Other Banks Borrowings 2018 2017 2016 (Billion Rp) (Billion Rp) (Billion Rp) Growth 2017-2018 (Billion Rp) Growth 2016-2017 (Billion Rp) % % 13,977 13,230 11,393 747 5.6 1,837 16.1 3,488 1,875 1,231 1,612 86.0 644 52.3 Mudharabah profit sharing expenses 987 919 855 69 7.5 64 7.5 Securities issued 243 216 295 27 12.5 (79) (26.8) 18,696 16,240 13,773 2,455 15.1 2,467 17.9 Total Interest Expenses and Sharia Expenses Composition 1% 5% 19 1% 6% 12% 2018 75% Simpanan Nasabah dan Bank Lain 2017 81% Pinjaman yang diterima Bagi Hasil Mudharabah Efek-efek yang diterbitkan INTEREST EXPENSE ON CUSTOMER AND OTHER BANKS DEPOSITS The increase in interest expense on deposits of customers and other banks in 2018 was in line with the growth of customer deposits. As of the end of 2018, customer deposits increased by 12.1%, and interest expense increased by 5.6% from Rp13.2 trillion in 2017 to Rp13.9 trillion in 2018. To manage the growth in interest expenses, starting from the beginning of the year BNI sought to improve its customer deposit composition by increasing low-cost funds, namely demand deposits and savings, as reflected in the CASA ratio. BNI saw an increase in CASA ratio from 63.1% in 2017 to 65.3% in 2018. This condition caused a decrease in the cost of funds for customer deposits from 3.0% in 2017 to 2.8% in 2018. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 251
  252. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk INTEREST EXPENSE ON BORROWINGS Interest expense from borrowings increased 86.0%, from Rp1.9 trillion in 2017 to Rp3.5 trillion in 2018. This increase is one of BNI’s funding strategies to maintain the composition of short-term and long-term funds. INTEREST EXPENSE ON SECURITIES ISSUED Interest expense on securities issued increased 12.5%, from Rp216 billion in 2017 to Rp243 billion. INTEREST EXPENSE ON PROFIT-SHARING MUDHARABAH Interest expense on profit-sharing Mudharabah increased by 7.5%, or Rp69 billion in 2018 in line with the 10.8% increase in temporary syirkah funds, from 24.3 trillion in 2017 to Rp27.0 trillion in 2018. INTEREST INCOME AND SHARIA INCOME - NET Interest income and sharia income increased by 12.7% in 2018, accompanied by an increase in interest expenses and sharia expenses of 15.1%, resulting in a 11.0% rise in net interest income and sharia income. PREMIUM INCOME - NET BNI Life as one of BNI’s subsidiaries contributes to BNI’s income on a consolidated basis. BNI Life recorded a net premium income of Rp1.7 trillion in 2018, a decrease of 3.2% from Rp1.8 trillion in 2017. This was due to the correction of securities market prices and government bonds which were the investment means of BNI Life to develop its portfolio. OTHER OPERATIONAL INCOME Macroeconomic conditions during 2018 resulted in fluctuations in interest rates and a weakening of the rupiah exchange rate against foreign currencies. This affected the banking industry in general, including BNI, as reflected in the growth of other operating income during 2018 by 5.2% compared to 2017. This growth is far smaller than the growth in 2017 when in rose 10.8% compared to 2016. Other Operating Income Growth 2016-2017 2017 2016 (Billion Rp) (Billion Rp) (Billion Rp) (Billion Rp) Fees and commissions 7,802 6,872 6,085 930 13.5 787 12.9 Recovery of assets written off 1,997 1,732 1,378 265 15.3 354 25.7 12 (38) (43) 50 (131.3) 5 11.9 Gain (loss) on sale of financial assets classified as available for sale 509 720 646 (212) (29.4) 74 11.5 Gain on foreign exchange - net 494 908 685 (414) (45.6) 223 32.5 Others 800 846 801 (46) (5.5) (46) 5.5 11,613 11,040 9,552 106 5,2 1,544 15,6 Description Gain (loss) on financial assets held for trading Total 252 Growth 2017-2018 2018 Beradaptasi dengan Cepat Menghadapi Perubahan  (Billion Rp) % % PT Bank Negara Indonesia (Persero) Tbk
  253. Analisis & Pembahasan Manajemen Other Operating Income Composition 8.2% 6.5% 7.7% 4.4% 0.0% 4.3% 6.9% 0.1% 15.7% 17.2% Provinsi dan Komisi Pemerimaan kembali asset yang Telah dihapus bukukan 2017 2018 62.3% keuntungan (kerugian) dari aset keuangan yang dimiliki untuk diperdagangktan Laba selisih Kurs-neto Keuntungan (kerugian) dari penjualan aset keuangan yang di klasifikasikan tersedia untuk dijual Lainnya 67.2% FEES AND COMMISSIONS Income from BNI’s fees and commissions during 2018 rose by 13.5% from Rp6.9 trillion in 2018 to Rp7.8 trillion. This income in 2018 amounted to Rp930 billion, and was dominated by income from trade finance transactions, account management, business cards, bank guarantees, and ATM fee cooperation revenues. RECOVERY OF ASSETS THAT HAVE BEEN REMOVED Recovery of written-off assets represents income derived from principal deposits that were written off before 2018. The recovery of written-off assets income increased by 15.3% from Rp1.7 trillion in 2017 to Rp2.0 trillion in 2018. GAINS (LOSSES) ON FINANCIAL ASSETS HELD FOR TRADING The financial assets held for trading gain in 2018 amounted to Rp12 billion compared to a loss of Rp38 billion in 2017. GAINS ON THE SALE OF FINANCIAL ASSETS AVAILABLE FOR SALE AND HELD FOR TRADING Gains on the sale of financial assets available for sale decreased 29.4% in 2018 to Rp509 billion from Rp720 billion the previous year. GAIN ON FOREIGN EXCHANGE - NET Net foreign exchange gains decreased by 45.6% to Rp494 billion in 2018, due to the weakening of the Rupiah exchange rate against foreign currencies. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 253
  254. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk OTHER OPERATING EXPENSES Other operating costs increased by 6.8% to Rp21.8 trillion. This single digit growth led to an improvement in the cost to income ratio (CIR) from 43.9% in 2017 to 42.6% in 2018. The same is also evident in the BOPO ratio that dropped from 71.0% in 2017 to 70.2% in 2018. Improving the two ratios is a benchmark for the company’s condition showing that bank operations in 2018 ran far more efficiently compared to 2017. Other Operating Expenses Description Growth 2017-2018 2018 2017 2016 (Billion Rp) (Billion Rp) (Billion Rp) (Billion Rp) Growth 2016-2017 % (Billion Rp) % Salaries and allowances 9,519 9,277 8,834 242 2.6 443 5.0 General and administrative 7,667 6,923 6,212 744 10.8 711 11.4 Promotion Expenses 1,291 1,039 946 252 24.2 93 9.8 10.6 148 20.3 Guarantee premiums Others Total 971 877 729 93 2,336 2,281 2,085 55 2.4 196 9.4 21,783 20,396 18,806 1,387 6.8 1,591 8.5 Other Operational Expenses Composition 2018 44% Beban Gaji dan Tunjangan 46% 35% Umum dan Administrasi 34% 6% Beban Promosi 5% 4% Premi Penjaminan 4% 11% Lain-lain 11% 2017 SALARIES AND BENEFITS EXPENSES Salaries and benefits in 2018 increased by Rp242 billion or 2.6% compared to 2017. GENERAL AND ADMINISTRATIVE EXPENSES General and administrative expenses increased by Rp744 billion or 10.8% compared to 2017. The largest increase occurred in the cost of outsourcing workers, depreciation expenses and telecommunications expenses in line with business growth. PROMOTIONAL EXPENSES Promotional expenses in 2018 increased 24.2% to Rp1.3 trillion compared to Rp1.0 trillion in 2017. BNI’s increase was felt necessary by BNI to increase loyalty and good relations with customers, and were carried out in the form of sponsorship, event management, promotional media and other publications. GUARANTEE PREMIUM EXPENSES Guarantee premium expenses are premiums paid by BNI to the Deposit Insurance Corporation (LPS), and they increased by Rp93 billion or 10.6% in 2018 compared to the previous year. The increase in premiums is in line with the 12.1% increase in customer deposits in 2018. OTHER EXPENSES Other expenses increased by Rp55 billion or 2.4% compared to 2018, and was dominated by contributions to the Financial Services Authority (OJK), card business transaction expenses, fees for third parties cooperations, and PKBL fund costs in accordance with the GMS decision. 254 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  255. Analisis & Pembahasan Manajemen ALLOWANCES FOR IMPAIRMENT LOSSES Other expenses increased by Rp55 billion or 2.4% compared to 2018, and was dominated by contributions to the Financial Services Authority (OJK), card business transaction expenses, fees for third parties cooperations, and PKBL fund costs in accordance with the GMS decision. ALLOWANCES FOR IMPAIRMENT LOSSES The allowance for impairment losses during 2018 increased by 3.7% compared to 2017, from Rp7.1 trillion to Rp7.4 trillion, mainly due to the increase in the coverage ratio from 148.0% in 2017 to 152.9% in 2018. INCOME BEFORE TAX BNI’s income before tax increased from Rp17.2 trillion in 2017 to Rp19.8 trillion in 2018, up 15.5%. TAX EXPENSE BNI’s tax expense increased by 39.3% to Rp4.7 trillion. In accordance with applicable regulations, BNI has complied with the payment requirements of a single tariff of 20%. INCOME FOR THE YEAR As of the end of 2018, BNI’s income for the year increased to 10.3% to Rp15.0 trillion. OTHER COMPREHENSIVE INCOME ITEMS WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS This comprises fixed asset revaluation gains which increased from a loss of Rp3.8 billion to a profit of Rp2.8 trillion in 2018 due to an increase in asset revaluations. In addition, remeasurement of post employment benefits also increased from the previous loss of Rp148.7 billion to a profit of Rp601.4 billion due to adjustments to PSAK 24. ITEMS THAT WILL BE RECLASSIFIED TO PROFIT OR LOSS This comprises adjustments due to the translation of financial statements in foreign currencies which decreased from the previous profit of Rp11.4 billion to a loss of Rp8.3 billion. Also gains from changes in the value of financial assets categorized as available-for-sale decreased from a profit of Rp2.5 trillion to a loss of Rp5 trillion. TOTAL COMPREHENSIVE INCOME BNI’s total comprehensive profit for 2018, after taking into account comprehensive income, amounted to Rp14.2 trillion, a decrease of 8.8% from Rp15.6 trillion in 2017. Comprehensive Income Description Income for the year 2017 2016 (Billion Rp) (Billion Rp) (Billion Rp) 15,092 Other comprehensive loss / income - after tax Comprehensive income for the year Growth 2017-2018 2018 13,771 11,410 (856) 1,847 923 14,236 15,618 12,333 (Billion Rp) Growth 2016-2017 % (Billion Rp) % 1,321,2 9.6 2,360,4 20.7 (2,702,6) (146.3) 924,6 100.2 (1,381,4) (8.8) 3,285,0 26.6 (228,5) (106.6) 141,2 192.9 (1,152,9) (7.5) 3,143,8 25.5 Comprehensive income for the year Attributable to: Non-controlling interests Equity holder of the parent entity (14) 14,250 PT Bank Negara Indonesia (Persero) Tbk  214 15,403 73 12,259 Beradaptasi dengan Cepat Menghadapi Perubahan 255
  256. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT ENTITY The current year’s earnings per share is calculated by dividing the current year’s profit attributable to the owners of the parent entity by the weighted average number of common shares outstanding during the year. The net profit after income tax increased by 10.3% and led an increase in earnings per BNI share from Rp730 per share in 2017 to Rp805 per share in 2018. Tabel Laba Per Saham Dasar (dalam rupiah penuh) 2017 2016 (Billion Rp) (Billion Rp) (Billion Rp) Income for the current year attributable to equity holder of the parent entity Weighted average number of ordinary shares outstanding (shares) Growth 2017-2018 2018 Description Growth 2016-2017 (Billion Rp) % (Billion Rp) % 15,015,118 13,616,476 11,339,743 1,398,642 10.3 2,277,733 20.1 18,648,656,458 18,648,656,458 18,588,205,225 - 0.0 60,451,233 0.3 805 730 610 75 10.3 120 19.7 Earnings per Share CONSOLIDATED CASH FLOW STATEMENT In 2018, cash and cash equivalents increased from Rp92.0 trillion to Rp98.39 trillion, and consisted of net cash outflows from operating activities of Rp4.3 trillion, net cash outflows from investment activities of Rp9.6 trillion, and net cash inflows from funding activities of Rp20.6 trillion. Cash Flow Description 2018 2017 2016 Pertumbuhan 2017-2018 Pertumbuhan 2016-2017 (Billion Rp) (Billion Rp) (Billion Rp) (Billion Rp) (Billion Rp) Net Cash Flows From Operating Activities (4,274) 33,626 15,999 (37,951) Net Cash Flows From Investing Activities (9,612) (23,274) (29,400) 13,663 Net Cash Flows From Financing Activities 20,609 3,245 8,060 17,416 6,723 13,597 (5,341) (6,874) Net Cash Flow 17,627 6,126 (4,815) 18,938 CASH FLOWS FROM OPERATING ACTIVITIES Net cash flows generated from operating activities for 2018 amounted to Rp4.3 trillion. Net cash flow represents the difference between cash inflows and cash outflows. The highest cash inflows were derived from an increase in customer deposits, and an increase in interest income. The highest cash outflows were derived from loan disbursements, interest payments, and other operating expenses. This means that BNI was able to conduct good business processes by utilizing its operational resources such as loans, customer deposits, and paying taxes into cash that has been recognized and obtained. 256 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  257. Analisis & Pembahasan Manajemen CASH FLOWS FROM INVESTING ACTIVITIES Net cash flows released from investment activities for 2018 amounted to Rp9.6 trillion. The highest cash outflows were derived from government bond, securities, and fixed assets purchases This indicates that BNI is still making additional investments and business processes in the form of bonds but has not yet received any cash returns from investments issued during 2018. CASH FLOWS FROM FINANCING ACTIVITIES Net cash flows generated from funding activities for 2018 amounted to Rp20.6 trillion. The highest cash inflows were derived from the increase in loans received and repo debt issued. The highest cash outflows were derived from dividend payments. This means that BNI is still able to obtain cash in the form of funding from loans received that can cover cash out in the form of dividends and others. Du Pont Analysis Net Operating Income Asset Turnover Operating Income 18.74% 2.64% 2.62% 24.75% 12.11% 21.28% 2.53% 10.13% 14.68% )Return On Equity (ROE 16.10% 15.50% 2016 2017 2018 2016 2018 2016 2017 2018 15.60% Other Operating Income + 2016 2017 2017 2018 x Operating Expenses - 15.38% 22.36% 15.11% Leverage 18.52% 592.9% 15.66% 6.16% 583.4% 2016 548.3% 2017 2018 2016 Taxes 2016 2017 2018 39.56% 25.47% - 2017 2018 Allowance for impairment lossess 5.50% 4.54% 2016 2018 19.72% 2016 2017 2018 (13.64%) 2017 PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 257
  258. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk FINANCIAL RATIOS Financial Ratios  Description 2018 (%) 2017 (%) 2016 (%) CAPITAL CAR-Tier I 17.4 17.4 18.3 CAR-Tier II 1.1 1.1 1.1 18.5 18.5 19.4 NPL Nett 0.8 0.7 0.4 NPL Gross 1.9 2.3 3.0 152.9 148.0 146.0 ROA 2.8 2.7 2.7 ROE 16.1 15.6 15.5 5.3 5.5 6.2 BOPO 70.1 71.0 73.6 CIR 42.5 43.9 44.0 88.8 85.6 90.4 85.3 90.4 CAR (Credit Risk, Market, and Operating) ASSETS QUALITY Adequacy of Reserves Ratio on Non Performing Loans Profitabilitas Net Interest Margin Efficiency Liquidity LDR Compliance MSR (Rupiah) Net Open Position 6.5 6.6 6.8 Posisi Devisa Neto 2.0 2.5 3.4 CAPITAL RATIOS CAPITAL ADEQUACY RATIO The capital adequacy ratio (CAR) in 2018 was stable at 18.5%. This stable CAR was due to capital growth in line with the growth of productive assets in 2018. BNI’s CAR ratio is still much higher than that set by Bank Indonesia through POJK No. 11/ POJK.03/2016 concerning Minimum Capital Requirement for Commercial Banks as amended by POJK No. 34/POJK.03/2016, which is a minimum of 9% of RWA for banks with a risk profile rating of 2. ASSET QUALITY RATIOS NPL RATIO There are two main strategies implemented by BNI to manage asset quality, the first strategy is to selectively expand loans given to low risk sectors. The second strategy is to manage troubled borrowers that still have the potential to improve through remedial and restructuring schemes. This strategy improved BNI’s NPL ratio from 2.3% in 2017 to 1.9% in 2018. COVERAGE RATIO To anticipate fluctuating macroeconomic conditions, BNI mitigated the loan disbursement risk by increasing the reserve, compared to the previous year, which was reflected in the coverage ratio increasing to 152.9% in 2018 compared to 148.0% in 2017. 258 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  259. Analisis & Pembahasan Manajemen PROFITABILITY RATIOS LIQUIDITY RATIOS ROA BNI’s return on Assets (ROA) increased to 2.8% in 2018 from 2.7% in 2017, due to the increase in BNI’s potential profits from the increase in productive assets during 2018. LOAN TO DEPOSIT RATIO AND MACROPRUDENTIAL INTERMEDIATION RATIO The loan to deposit ratio (LDR) in 2018 increased to 88.8% compared to 85.6% in 2017. This was due to the Company’s strategy to encourage loan growth supported by sound deposit growth to improve the banking intermediation function while maintaining credit quality. The ratio is still within the range set by Bank Indonesia Regulation No. 15/15/ PBI/2013 dated December 24, 2013 that has been amended several times, most recently by Bank Indonesia Regulation No. 20/4/PBI/2018 concerning Macroprudential Intermediation Ratios and Macroprudential Liquidity Buffers for conventional commercial banks, sharia commercial banks, and sharia business units where the Macroprudential Intermediation Ratio (RIM) ranges from 80% to 92%. ROE Return on Equity (ROE) is a ratio that measures BNI’s ability to produce net income by maximizing its capital, and generating a separate profit for the owners or investors. ROE increased from 15.6% in 2017 to 16.1% in 2018. NIM The Net Interest Margin in 2018 decreased to 5.3% compared to 5.5% in 2017. The decline was due to BNI’s strategy to maintain asset quality by not raising loan interest rates during 2018 even though Bank Indonesia had raised its benchmark interest rate (7 day repo rate) from 4.25% in early 2018 to 6.00% at the close of 2018. EFFICIENCY RATIOS BOPO BOPO ratio (Operating Expenses to Operational Income) improved from 71.0% in 2017 to 70.1% in 2018 due to increases in interest income and other operating income of 12.4% and 3.3% respectively, when compared to 2017. This shows BNI’s ability to generate higher revenue at a more efficient cost. CIR Cost to Income Ratio (CIR) is a ratio that measures the efficiency for the operational expenses to yield optimal income. In 2018 BNI’s CIR improved from 43.9% in 2017 to 42.5%. This improvement illustrates that during 2018 BNI could utilize its resources to the maximum to yield higher income. As of 2018, the RIM ratio stood at 88.8% with total Corporate (Non-Bank) Securities held amounting to Rp1.6 trillion and Corporate Securities issued and purchased by Non-Bank investors amounting to Rp2 trillion. COMPLIANCE RATIOS STATUTORY RESERVES In managing its daily liquidity, BNI endeavors to maintain an optimal liquidity level to support its daily operations and meet Bank Indonesia regulations through Statutory Reserves (SR). As of December 2018, BNI’s Rupiah Statutory Reserves stood at 6.5% and Foreign Currency SR at 8.0%. This liquidity position follows PBI No. 20/3/PBI/2018 concerning Statutory Reserves in Rupiah and Foreign Exchange for Conventional Commercial Banks, Islamic Commercial Banks and Sharia Business Units, and Foreign Exchange for Conventional Commercial Banks, as well as the Board of Governors’ Regulation No. 19/4/PADG/2017 concerning Commercial Banks Statutory Reserves in Rupiah and Foreign Exchange for Conventional Commercial Banks. NET OPEN POSITION As at December 2018, the Net Open Position (NOP) was recorded at 2.0%, a slight decrease compared to 2.5% in 2017. This figure is still far below the maximum amount set by BI in PBI No. 5/13/PBI/2003 concerning the Net Open Position for Commercial Banks, which has been amended several times, with the latest by PBI No. 17/5/PBI/2015, setting it at 20% of capital. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 259
  260. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk OTHER FINANCIAL INFORMATION REVIEW BANK HEALTH LEVEL The Bank’s health level is the result of the Bank’s risks and performance assessments. The BNI Health Level Assessment was carried out using a Risk-Based Bank Rating, both individually and on a consolidated basis. The Bank’s health level is a means for BNI to identify problems early, establish future business strategies, develop and implement corrective actions on weaknesses / existing problems, provides a basis for linking capital with risk, as one of the bases in decision-making and for increasing competitiveness. Whereas for the supervisory authority it is a means for determining the strategy and focus of supervision on the Bank. The Bank’s health level rating looks at the following four (4) factors: 1. Risk Profile Risk Profile as an overall picture of inherent risk in the Bank’s operations. The risk profile assessment is conducted by assessing the inherent risks in the Bank’s activities, and the quality of risk management. 2. Good Corporate Governance (GCG) Good Corporate Governance (GCG) is an assessment of the Bank’s management quality for applying corporate governance principles. 3. Earnings An assessment of profitability factors including a profitability performance evaluation, profitability sources, sustainability, profitability, and profitability management. 4. Capital An assessment on Capital factors including an evaluation of Capital and Capital adequacy management. In assessing capital adequacy, BNI links its capital adequacy to its risk profile. The Bank Rating assessment is reported to the regulator (OJK) every 6 months in June and December. BNI ‘s bank health level assessment result for December 31, 2018 reported a “Healthy” ranking meaning that: a. The Bank’s condition is generally healthy, and it is considered capable of facing significant negative effects from changes in business conditions and other external factors. b. The rating assessment factors (Risk Profile, GCG, Profitability and Capital) are generally good. If there are any weaknesses, they are insignificant. BNI’s risk profile, as one of the factors for the CAR assessment for December 31, 2018, was ranked 2 (low to moderate). BNI’s risk profile ranking based on calculations using the Internal Capital Adequacy Assessment Process (ICAAP), was 9.9%. If coupled with the buffer capital, namely the Conservation Buffer of 1.875%, the Countercyclical Buffer of 0%, and the Capital Surcharge of 1.125%, then the limit for the Minimum Capital Requirement Ratio (MCRR) was 12.9%. In 2018, BNI’s MCRR of 18.5% exceeded the specified minimum limit. 260 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  261. Analisis & Pembahasan Manajemen COMMITMENTS AND CONTINGENCIES BNI has commitments and contingencies. An overview of the Bank’s commitments and contingencies, as stated in its contracts, is as follows: Commitments and Contingencies Description 2018 (Billion Rp) 2017 (Billion Rp) Commitments Payable Unrealized purchases of foreign currency futures 68,881 Others 66,057 510 463 69,391 66,520 Unused Credit facilities to borrowers 54,228 49,963 Outstanding Irrevocable letters of credit 12,455 11,630 Unused Sales of foreign currency futures 68,772 66,018 135,455 127,611 17,434 18,032 4,064 4,705 Total Liability Commitments Total Contingency Commitments Bank guarantees received Interest income in progress Others 194 164 21,692 22,901 Performance bonds 29,755 29,760 Advance payment bonds 10,679 10,832 Standby letters of credit 9,215 8,269 Garansi bank lainnya 7,940 7,124 Bid bonds 4,174 3,481 4 2 Total Contingency Liabilities Guarantees issued: Shipping guarantee Risk sharing Total - - 61,767 59,468 Commitments and contingencies that occur in the normal course of the Bank’s activities that have a credit risk are as follows: Description 2018 (Billion Rp) 2017 (Billion Rp) Bank Guarantees issued Related Party 26,924 23,743 Third Party 35,473 35,725 Related Party 8,152 6,660 Third Party 4,303 4,971 74,223 71,099 Irrevocable letters of credit Total PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 261
  262. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Commitments and contingencies that have a credit risk based on collectibility are as follows: 2018 (Billion Rp) Description Current Special Mention 2017 (Billion Rp) 73,847 68,947 2,317 2,140 Substandard 56 - Doubtful - - Loss 3 12 74,223 71,099 Total Bank BNI has also compiled details related to commitments and contingencies growth as shown in the following table: Growth Description 2018 2017 2016 2017-2018 (Billion Rp) 2016-2017 (%) (Billion Rp) (%) Commitments Payable Foreign currency future purchases not yet paid 68,881 66,057 56,936 2,824 4.3 6,121 10.2 510 463 459 48 10.2 4 0.9 69,391 66,520 57,395 2,872 4.3 6,125 10.1 Unused Customer Loan Facilities 54,228 49,963 54,548 4,265 8.5 (4,585) (8.4) Outstanding Irrevocable L/C 12,456 11,630 10,515 825 7.1 1,116 10.6 Outstanding Spot and Derivitive Sales Position 68,772 66,018 57,065 2,753 4.2 8,952 15.7 135,455 127,611 122,128 7,845 6.2 5,483 4.5 17,434 18,032 18,697 (599) (3.3) (664) 4,064 4,705 4,476 (641) (13.6) 229 5.1 194 163 142 31 19.0 21 14.7 21,692 22,901 23,315 (1,209) (5.3) (414) (1.8) Others Total Commitments Payable Commitment Liabilities Total Commitments Payable Contingent Receivables Bank Guarantee Received - Interest Income in Progress Others Total Contingent Receivables Contingent Liabilities (3.6) - Bank Guarantee issued 61,767 59,468 54,295 2,299 3.9 5,173 9.5 Total Liabilitas Kontijensi 61,767 59,468 54,295 2,299 3.9 5,173 9.5 Total commitment liabilities in 2018 increased by 6.2% compared to 2017, mainly due to the increase in loan facilities to customers not yet drawn down of 8.5%. Contingent receivables in 2018 decreased by 5.3% compared to 2017, and was dominated by a 13.6% decrease in Interest Income in progress. However, contingent liabilities increased by 3.9% compared to 2017, due to the increase in bank guarantees issued. Broadly speaking, the commitment and contingency fluctuations are in line with loan growth, as borrowers are increasingly using the many BNI products and services with competitive features. GUARANTEED BANK ASSETS In 2018, there were no guaranteed Bank assets. 262 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  263. Analisis & Pembahasan Manajemen DERIVATIVES AND HEDGING FACILITIES BNI conducts derivative transactions both for the benefit of the Bank and the interests of the Customers. As of December 31, 2018, BNI conducted USD-IDR Cross Currency Swap (CCS) transactions for a total asset value of US$120 million. In addition to CCS transactions, BNI also engages in Interest Rate Swap (IRS) transactions with a total asset values as of December 31, 2018 amounting to USD1,862.0 million. CCS and IRS transactions are conducted after taking into account market and the portfolio conditions, in anticipation of currency and interest rates movements that could potentially harm the bank. When conducting its business, BNI transacts in derivative financial instruments such as foreign currency forward contracts, foreign currency swaps, interest rate swaps, and spot transactions to manage exposure to market risks, such as currency risk and interest rate risk. Derivative financial instruments are recognized in the consolidated statements of financial position at fair value. Any increase in the fair value of a derivative contract is recorded as an asset, when it has a fair value, and a liability when it is negative fair value. Derivative receivables and liabilities are classified as financial assets and liabilities measured at fair value through profit or loss. Gains or losses arising from changes in fair value are recognized in the consolidated statements of income. The fair value of derivative instruments is determined based on discounted cash flows and pricing models, or prices provided by the brokers’ quoted price for other instruments with similar characteristics. Foreign currency forward contracts, cross currency swaps, and cross currency swap and swap rates are conducted for financing and trading purposes. In addition, in its business, BNI conducts derivative financial instruments transactions such as foreign currency forward contracts, foreign currency swaps, interest rate swaps and spot transactions for financing, trading and hedging purposes. Claims and Liability Derivatives By Type and Currency 2018 Instrument Fair Value Notional amount foreign currency Derivative Commitments Derivative Liabilities (full amount) (Rp million) (Rp million) Exchange Related Forward contracts - buy USD 239,031,000 2,565 (26,092) USD 466,832,415 84,598 (2,594) CYN 12,100,000 312 - EUR 59,068,329 2,699 (12,776) JPY 600,492,755 5,752 - USD 734,914,068 8,415 (220,572) GBP 500,000 - (36) 4,700,000 165 - EUR 2,900,000 1,259 (44) GBP 3,500,000 36 (336) Forward contracts – sell Foreign currency swaps - buy Foreign currency swaps - sell AUD CYN JPY 20,688,068 33 - 1,050,862,321 1,512 (29) HKD 423,790,330 - (531) USD 683,686,726 298,097 (15,686) Spot foreign currency - buy PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 263
  264. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 2018 Instrument Fair Value Notional amount foreign currency Derivative Commitments (full amount) (Rp million) Derivative Liabilities (Rp million) USD 119,225,000 - (16,305) EUR 2,300,000 - (40) EUR 2,800,000 79 - JPY 6,600,000 3 - Spot foreign currency - sell SGD 100,000 6 - USD 108,691,079 14,956 - 8,550,000 5 (3,834) 23,550,000 3,605 (1,355) 1,862,000,000 156,187 (1,303) 120,028,426 24,964 (20,495) 605,248 (322,028) Foreign currency options – buy USD Foreign currency options – sell USD Related to Interest Rates Swap interest rates USD Related to Exchange Rate and Interest Rates Foreign currency and interest rate swaps USD TOTAL Claims and Liability Derivatives By Type and Currency Tahun 2017 Instrument Notional amount foreign currency (full amount) Fair Value Derivative Commitments (Rp million) Derivative Liabilities (full amount) Exchange Related Forward contracts - buy USD 62,957,000 547 (1,339) 7,796,500 - (1) 199,540,743 856 (1,731) EUR 22,786,049 3,468 (850) USD 677,118,232 7,815 (45,827) AUD 4,400,000 - (570) CNY 26,045,766 326 - EUR 6,967,492 847 (743) Forward contracts – sell JPY USD Foreign currency swaps - buy Foreign currency swaps - sell GBP 9,000,000 - (1,406) USD 1,473,201,692 72,995 (9,860) HKD 9,500,000 - (177) Spot foreign currency - buy 264 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  265. Analisis & Pembahasan Manajemen Tahun 2017 Notional amount foreign currency (full amount) Instrument Fair Value Derivative Commitments (Rp million) Derivative Liabilities (full amount) EUR 220,000 11 - USD 33,500,000 232 - 5,000,000 - (105) 110,000,000 29,015 110,000,000 - (29,015) 110,403,244 23,092 (17,708) 1,775,000,000 77,680 (4,488) 216,884 (113,820) Spot foreign currency - sell USD Foreign currency options – buy USD Foreign currency options – sell USD Related to Exchange Rate and Interest Rates Foreign currency and interest rate swaps USD Interest rates swaps USD Total Receivables and Derivatives Liability by Relationships Keterangan (in million Rupiah) 2018 2017 Tagihan derivatif Pihak berelasi Mata uang asing 56,341 27,361 Pihak ketiga Mata uang asing Total 548,907 189,523 605,248 216,884 41,234 30,630 Liabilitas derivatif Pihak berelasi Mata uang asing Pihak ketiga Mata uang asing Total 280,794 83,190 322,028 113,820 Based on research and evaluation results by the Bank’s management, all derivatives receivable on December 31, 2018 and 2017 were classified as current. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 265
  266. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk IMPACT OF INTEREST RATE CHANGES ON THE BANK PERFORMANCE Beginning in Q1 2018, Bank Indonesia has raised the benchmark interest rate, or the 7-Day Reverse Repo Rate, by 25 basis points due to the pressure on Indonesia’s economic stability from the increase in the Fed Fund Rate, and the increased global uncertainty due to changes in American policy and a number of other geopolitical risks. Bank Indonesia again raised its benchmark interest rate in Q2 and Q3 by a further 25 basis points as a pre-emptive step to strengthen economic stability, especially exchange rate stability against the Fed Fund Rate forecast and increased risks in global financial markets. This impacted the national banking system condition, which was experiencing significant pressure due to the decline in net interest margin (NIM). BNI itself took pre-emptive steps in response to the Bank Indonesia’s benchmark interest rate increase by not raising lending rates, after considering that healthier growth was more important in maintaining the company’s financial assets stability, while at the same time sustaining and encouraging national economic activities in the midst of increasingly competitive business. This resulted in a decline in BNI’s NIM in 2018 to 5.3% compared to 5.5% in 2017 FEE BASED INCOME GROWTH ACCELERATION BNI’s Fee based income in 2018 amounted to Rp9.6 trillion, an increase of 3.3% from Rp9.3 trillion in 2017. The increase was dominated by 4 (four) banking activities including Account Maintenance, Card Business, ATM, and Trade Finance. The increase in fee-based income from Account Maintenance services grew by 10.0% from Rp1.5 trillion in 2017 to Rp1.7 trillion in 2018. Card Business services grew by 9.1% from Rp1.3 trillion in 2017 to Rp1.4 trillion in 2018. ATM services increased by 3.5% or Rp41 billion compared to 2017. In line with the increases in these three services, Trade Finance services also grew by 18.5% from Rp1.0 trillion in 2017 to Rp1.2 trillion in 2018. Fee-based Income Growth  Description Recurring Fee Non Recurring Fee Total 2018 (Billion Rp) 9,379 2017 (Billion Rp) 8,441 2016 (Billion Rp) Growth 2017-2018 (%) Growth 2016-2017 (%) 7,598 11.1 11.1 236 867 576 (72.8) 50.6 9,615 9,308 8,174 3.3 13.9 CAPITAL STRUCTURE AND RISK MANAGEMENT PRACTICES CAPITAL STRUCTURE MANAGEMENT POLICY ON CAPITAL STRUCTURE During 2018 there were corporate actions related to capital additions or changes in the regulatory or accounting treatment of capital, namely the issuance of a Medium Term Note (MTN) of Rp100 billion in the framework of the Recovery Plan. BNI looks to maintain a minimum capital composition or structure that does not violate the minimum limits set Otoritas Jasa Keuangan (OJK) as the banking regulator. CAPITAL STRUCTURE To fulfill its capital requirements in accordance with Basel III, BNI recorded RWA, after loan risk, market risk, and operational risk of Rp563.44 trillion in 2018, an increase of 9.5% compared to December 2017. The RWA increase was in line with BNI’s aggressive asset growth of 14.0% in 2018. Given the importance of capital structure in supporting business expansion, BNI is committed to managing a healthy capital structure to support maximum business growth. 266 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  267. Analisis & Pembahasan Manajemen Capital Adequacy Ratio (CAR) - Bank Only  Description 2018 (Billion Rp) Core Capital Supplementary capital 2017 (Billion Rp) 2016 (Billion Rp) 98,014 89,765 79,645 6,240 5,542 4,634 Total Core Capital and Supplementary Capital 104,254 95,307 84,278 Risk Weighted Assets (RWA) for Credit Risk 491,758 450,706 378,716 68,484 61,393 54,098 Risk Weighted Assets (RWA) for Market Risk 3,198 2,378 2,540 Core Capital Ratio 17.4% 17.5% 18.3% Capital Adequacy Ratio for Credit Risk and Operational Risk 18.6% 18.6% 19.5% Capital Adequacy Ratio for Credit Risk, Operational Risk and Market Risk 18.5% 18.5% 19.4% Risk Weighted Assets (RWA) for Operational Risk Capital Component - Bank Only • Core Capital Core capital is the Bank’s capital comprising the main core capital and additional core capital in accordance with Otoritas Jasa Keuangan Regulation (POJK) concerning “Minimum Capital Requirements for Commercial Banks”. BNI’s core capital grew 9.2% from Rp89.7 trillion to Rp98.0 trillion in 2018. This increase was in line with the increase in current year’s profit in 2018 to Rp14.5 trillion. • Supplementary capital (maximum 100% of core capital) Supplementary capital (referring to bank capital) consists of general reserves for productive assets. BNI’s supplementary capital rose 12.6% from Rp5.5 trillion in December 2017 to Rp6.2 trillion in December 2018, due to additional PPAs (Asset Allowances) formed on loans disbursed with current status, and the issuance of Subordinated MTN recognized as supplementary capital in August 2018. 19.4% 18.3% 18.5% 18.5% 17.4% 17.4% CAR Minimum 9,0% Tier 1 Minimum 6,0% 2016 2017 TIER 1 2018 CAR RISK MANAGEMENT PRACTICES The Bank Rating assessment is reported to the regulator (OJK) every 6 months in June and December. BNI ‘s bank health level assessment result for December 31, 2018 reported a “Healthy” ranking meaning that: a. The Bank’s condition is generally healthy, and it is considered capable of facing significant negative effects from changes in business conditions and other external factors. b. The rating assessment factors (Risk Profile, GCG, Profitability and Capital) are generally good. If there are any weaknesses, they are insignificant. BNI’s risk profile, as one of the health level assessment factors for December 31, 2018, was ranked 2 (low to moderate). As a result and according to calculations using the Internal Capital Adequacy Assessment Process (ICAAP), the minimum CAR based on risk profile was 9.9%. If added with buffer capital, namely Conservation Buffer 1.875%, Countercyclical Buffer 0% and Capital Surcharge 1.125%, then the Minimum Capital Adequacy Ratio limit (KPMM) was 12.9%. In 2018, BNI’s KPMM of 18.5% exceeded the specified minimum limit. Details regarding the capital structure and risk management are presented separately in the Annual Report. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 267
  268. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk ABILITY TO PAY DEBT AND LOAN COLLECTIBILITY ABILITY TO PAY DEBT Up to 2018, BNI’s liquidity and solvency levels were good, showing BNI’s ability to meet all maturing obligations in a timely manner, whether for payment of principal debt or interest expense. Here are the banking financial ratios for measuring BNI’s liquidity and solvency: ABILITY TO PAY SHORT-TERM DEBT (BANK LIQUIDITY) At the end of 2018, BNI’s liquidity level, measured by the Loan to Deposit Ratio, increased 3.2% to 88.8% compared to 85.6% in 2017, due to the rapid loan growth compared to third party funds growth. The liquidity level is still within OJK’s tolerance levels of 85% to 92%. The LDR calculation did not take into account non-conventional funding such as the issuance of Negotiable Certificate Deposits (NCDs) and long-term Bilateral Loans that are used by BNI to fund its loan expansion. ABILITY TO PAY LONG-TERM DEBT (BANK SOLVENCY) In terms of solvency, BNI’s capital adequacy ratio is relatively stable and did not experience significant change in 2018, standing at 18.5%. This indicates that BNI’s capital structure is sufficient to offset loan risk, market risk, and operational risk, as the ratio is higher than the minimum capital adequacy ratio set by BI. LOAN COLLECTIBILITY The non-performing loans (NPL) ratio in 2018 was 1.9%, down 0.4% from 2017. This was due to the growth in quality loans to the State-Owned Enterprises (SOE) sector, and shows a fundamental improvement in the development of loan quality as a whole. LOANS DISBURSED RESTRUCTURING Restructuring is carried out for borrowers who still have business prospects and is selectively carried out, based on the ability of the borrowers. Total restructured loans at the end of 2018 amounted to Rp29.2 trillion, down 4.0% compared to the previous year, with the following details: 1. Restructured Loans with extended maturity amounted to Rp3.5 trillion, down 36.9% from the previous year. 2. Restructured Loans with extended maturity and reduced interest rates amounted to Rp11.6 trillion, down 2.4% from the previous year. 3. Restructured Loans with extended maturity, reduced interest rates, and other restructuring amounted to Rp14.1 trillion, up 8.6% from the previous year. As of December 31, 2018, restructured loans based on collectibility, and classified as current, stood at 40.4%, with special mention at 42.9%, and non-performing loans (NPLs) at 16.7%. By currency, 82.3% of the restructured loans were in Rupiah, while the remainder were in US$. By designation, as of December 31, 2018, restructured loans for Working Capital Loans stood at 57.6%, Investment Loans at 36.8%, and Consumer Loans at 5.6%. By segment, as of December 31, 2018, restructured loans for Corporate stood at 46.3%, Middle at 33.9%, Small at 14.2%, and Consumer at 5.6%. By sector, in 2018, restructured loans were dominated by Manufacturing that stood at 27.2%, restaurant and hotel business at 24.2%, service business at 13.3%, mining business at 8.0%, Agriculture at 7.0%, and the remainder evenly spread across other business sectors. 268 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  269. Analisis & Pembahasan Manajemen Restructured Loans based on Category Restructuring Category 2018 Extension of loan maturity dates 2017 2016 3,521 5,577 5,285 Extension of loan maturity dates and reduction of interest rates 11,583 11,872 11,400 Extension of loan maturity dates, reduction of interest rates and other restructuring programs 14,095 12,977 14,748 Total 29,199 30,426 31,433 Allowance for impairment losses (5,253) (5,367) (4,084) Net 23,945 25,060 27,349 Restructured Loans based on Collectibility Quality 2018 2017 2016 Current 11,790 17,530 21,719 Special Mention 12,537 8,684 6,773 Substandard 1,472 876 858 Doubtful 2,236 489 117 Loss Total 1,164 2,847 1,965 29,199 30,426 31,433 Restructured Loans based on Business Sector – Bank Only Sektor Usaha Business Services Social Services 2018 2017 2016 3,483 2,900  2,849 252 265  325 Construction 1,309 1,065  2,097 Others 1,468 2,038  1,592 514 376  468 1,753 1,752  3,667 Electricity, gas and water Transportation, Warehousing and Trading Restaurant and Hotel 6,286 6,433 5,100 Manufacturing 1,829 2,726  6,175 Mining 7,097 6,171  2,719 Agriculture Total PT Bank Negara Indonesia (Persero) Tbk  2,096 4,319  4,437 26,089 28,044 29,429 Beradaptasi dengan Cepat Menghadapi Perubahan 269
  270. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Restructured Loans based on DesignationType – Bank Only Peruntukan 2018 Working capital loan 2017 2016 15,016 14,058 14,143 Investment loan 9,604 11,948 13,698 Consumer loan 1,468 2,038 1,588 26,089 28,044 29,429 Total Restructured Loans based on Segment – Bank Only Segmen 2018 2017 2016 Consumer 1,468 2,038 1,588 Corporate 12,076 13,297 16,216 Small 3,699 3,775 3,528 Middle 8,845 8,934 8,097 26,089 28,044 29,429 Total RELATED PARTY TRANSACTIONS In the normal course of its business, BNI conducts transactions with related parties through ownership and/or management relationships. All transactions with related parties are conducted in accordance with the agreed upon policies and terms. BNI and its Subsidiaries conduct transactions with related parties as defined in PSAK 7 regarding “Related Party Disclosures” and Bapepam-LK Regulation No. KEP-347/BL/2012 dated June 25, 2012 concerning “Guidelines for the Presentation and Disclosure of Financial Statements of Issuers or Public Companies”, and are defined as: 1. Companies under the control of BNI and its Subsidiaries; 2. Associated companies; 3. Investors who have voting rights, which give them a significant influence; 4. Companies under the control of investors who have voting rights, which gives the investors a significant influence; 5. Key employees and family members; and 6. Entities that are controlled, jointly controlled or significantly influenced by the Government, namely the Ministry of Finance or the Regional Governments who are shareholders of the entity. 270 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  271. Analisis & Pembahasan Manajemen TYPES OF RELATIONSHIP Transactions with related parties are based on the relationship type as shown in the following table: Type of Relationship Relationships as major shareholders The Government of the Republic of Indonesia through the Ministry of Finance Control through the Government of the Republic of Indonesia 1. Adhi Karya and Subsidiaries 58. Kereta Api Indonesia and Subsidiaries 2. Amarta Karya 59. Kertas Kraft Aceh 3. Aneka Tambang and Subsidiaries 60. Kertas Leces 4. Angkasa Pura I and Subsidiaries 61. Kimia Farma and Subsidiaries 5. Angkasa Pura II and Subsidiaries 62. Kliring Berjangka Indonesia 6. ASABRI 63. Krakatau Steel and Subsidiaries 7. ASDP Ferry Indonesia 64. Lembaga Financing Export Indonesia (LPEI) 8. Asuransi Jasa Indonesia 65. LEN Industri and Subsidiaries 9. Asuransi Jasa Raharja and Subsidiaries 66. LKBN Antara 10. Asuransi Jiwasraya 67. Merpati Nusantara Airlines 11. Asuransi Kredit Indonesia and Subsidiaries 68. PAL Indonesia and Subsidiaries 12. Bahana Pembinaan Usaha Indonesia and Subsidiaries 69. PANN and Subsidiaries 13. Balai Pustaka 70. Pegadaian and Subsidiaries 14. Bank Mandiri and Subsidiaries 71. Pelabuhan Indonesia I and Subsidiaries 15. Bank Rakyat Indonesia 72. Pelabuhan Indonesia II and Subsidiaries 16. Bank Savings Negara 73. Pelabuhan Indonesia III and Subsidiaries 17. Barata Indonesia 74. Pelabuhan Indonesia IV and Subsidiaries 18. Berdikari and Subsidiaries 75. Pelayaran Nasional Indonesia and Subsidiaries 19. Bhanda Ghara Reksa and Subsidiaries 76. Pembangunan Perumahan and Subsidiaries 20. Bina Karya 77. Percetakan Negara Republik Indonesia 21. Biofarma 78. Percetakan Uang Republik Indonesia and Subsidiaries 22. Biro Klasifikasi Indonesia 79. Perhutani and Subsidiaries 23. Boma Bisma Indra 80. Perikanan Indonesia 24. BPJS Kesehatan 81. Perikanan Nusantara 25. BPJS Ketenagakerjaan 82. Perkebunan Nusantara III and Subsidiaries 26. Brantas Abipraya 83. Permodalan Nasional Madani and Subsidiaries 27. Bulog and Subsidiaries 84. Pertamina and Subsidiaries 28. Dahana 85. Pertani 29. Damri 86. Perumnas 30. Danareksa and Subsidiaries 87. Perusahaan Gas Negara and Subsidiaries 31. Dirgantara Indonesia and Subsidiaries 88. Perusahaan Listrik Negara and Subsidiaries 32. Djakarta Lloyd and Subsidiaries 89. Perusahaan Pengelola Assets and Subsidiaries 33. Dok and Perkapalan Kodja Bahari 90. Perusahaan Perdagangan Indonesia 34. Dok and Perkapalan Surabaya 91. Pindad and Subsidiaries 35. Garam 92. Pos Indonesia and Subsidiaries 36. Garuda Indonesia and Subsidiaries 93. Primissima PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 271
  272. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Control through the Government of the Republic of Indonesia 37. Hotel Indonesia Natour 94. Pupuk Indonesia Holding Company and Subsidiaries 38. Hutama Karya and Subsidiaries 95. Rajawali Nusantara Indonesia and Subsidiaries 39. IGLAS 96. Reasuransi Indonesia Utama and Subsidiaries 40. Indah Karya 97. Sang Hyang Seri 41. Indofarma and Subsidiaries 98. Sarana Karya 42. Indonesia Asahan Aluminium 99. Sarana Multigriya Finansial 43. Indra Karya 100. Sarinah and Subsidiaries 44. Industri Kapal Indonesia 101. Semen Baturaja 45. Industri Kereta Api and Subsidiaries 102. Semen Indonesia and Subsidiaries 46. Industri Sandang Nusantara 103. Sucofindo and Subsidiaries 47. Industri Telekomunikasi Indonesia 104. Surveyor Indonesia 48. Istaka Karya 105. Tambang Batubara Bukit Asam and Subsidiaries 49. Jaminan Kredit Indonesia 106. Taspen and Subsidiaries 50. Jasa Marga and Subsidiaries 107. Telekomunikasi Indonesia and Subsidiaries 51. Jasa Tirta I 108. Timah and Subsidiaries 52. Jasa Tirta II 109. Varuna Tirta Prakasya 53. Kawasan Berikat Nusantara 110. Virama Karya 54. Kawasan Industri Makassar 111. Waskita Karya and Subsidiaries 55. Kawasan Industri Medan 112. Wijaya Karya and Subsidiaries 56. Kawasan Industri Wijayakusuma 113. Yodya Karya 57. Ministry of Finance Corporate Control Key Management Based on ownership and/or management BNI Pension Fund Asuransi Tripakarta 272 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  273. Analisis & Pembahasan Manajemen TRANSACTIONS Significant transactions with related parties are shown in the following table: Transaction Type Description 2018 2017 (Million Rp) (Million Rp) CURRENT ACCOUNTS WITH OTHER BANKS Bank Mandiri Bank Rakyat Indonesia Total 78,796 1,407,207 112 228 78,908 1,407,434 PLACEMENTS WITH OTHER BANKS AND BANK INDONESIA Bank Mandiri 1,103,975 261,052 Bank Tabungan Negara 538,387 292,534 Bank Rakyat Indonesia 35,222 138,016 - 607,025 1,677,584 1,298,627 LPEI Total SECURITIES Bank Rakyat Indonesia 1,316,320 485,542 Danareksa 930,484 948,009 Bahana Pembinaan Usaha Indonesia 906,213 1,279,920 Bank Tabungan Negara 852,752 163,629 LPEI 827,413 1,784,242 Bank Mandiri 740,081 247,592 Hutama Karya 690,400 - Permodalan Nasional Madani 505,971 300,964 PLN 392,070 40,579 Pegadaian 302,999 1,000 Pelabuhan Indonesia II 285,548 269,225 Waskita Karya 280,484 141,672 Telekomunikasi Indonesia 171,412 1,892 Others 388,082 389,578 8,590,229 6,053,844 Total GOVERNMENT BONDS Government of Indonesia 86,791,402 79,849,452 86,791,402 79,849,452 Waskita Karya 2,773,748 2,372,248 Adhi Karya 2,729,825 2,263,439 Brantas Abipraya 1,511,881 1,240,420 Wijaya Karya 1,118,976 1,033,111 Bank Mandiri 941,616 133,191 Hutama Karya 817,363 728,665 Garuda Indonesia 667,532 - Total EXPORT BILLS AND OTHER RECEIVABLES PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 273
  274. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Description 2018 2017 (Million Rp) (Million Rp) Bank Rakyat Indonesia 402,678 Krakatau Steel 235,672 - Others 508,494 597,035 11,707,785 8,510,551 PLN 1,121,858 1,632,474 Garuda Indonesia 1,078,895 1,530,945 Adhi Karya 811,520 824,332 Pembangunan Perumahan 793,789 432,663 Hutama Karya 530,997 141,396 Pindad 249,080 302,617 Waskita Karya 199,077 - Wijaya Karya 151,949 61,863 Dahana 145,812 73,498 Krakatau Steel 103,992 - LPEI 64,858 15,984 Petrokimia Gresik 63,476 40,485 Nindya Karya 44,448 76,772 Perum Percetakan Negara Republik Indonesia 41,170 15,912 LEN Industri 40,854 42,645 Barata Indonesia 38,662 16,315 Dirganata Indonesia 33,989 40,401 Others 33,625 519,934 5,548,051 5,768,236 46,137 335 8,122 440 Garuda Indonesia - 13,327 PLN - 11,660 Total 142,442 ACCEPTANCES RECEIVABLES Total DERIVATIVES RECEIVABLES Pertamina Krakatau Steel Others 2,058 1,599 56,317 27,361 PLN 14,414,539 18,626,608 Perum Bulog Total LOANS 274 12,599,313 3,815,351 Pertamina 8,888,804 2,251,796 Jasa Marga 7,825,356 5,129,498 Waskita Karya 6,641,236 5,835,011 Telkom 6,191,700 6,228,509 Krakatau Steel 4,583,740 4,131,607 Pegadaian 4,563,915 5,095,844 Semen Gresik 4,300,618 84,912 Petrokimia Gresik 4,108,777 4,360,190 Kementerian Keuangan 3,257,073 2,665,106 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  275. Analisis & Pembahasan Manajemen Description 2018 2017 (Million Rp) (Million Rp) Perkebunan Nusantara III 2,634,126 2,737,673 Perkebunan Nusantara VII 2,222,540 2,165,434 Bukit Asam 1,822,209 2,106,006 Kereta Api Indonesia 1,738,875 1,820,071 Hutama Karya 1,469,190 553,459 Pupuk Indonesia 1,056,335 459,153 Wijaya Karya 1,046,434 1,508,178 Pupuk Iskandar Muda 1,011,972 1,014,000 Rajawali Nusindo 1,108,824 1,094,772 Antam 977,840 - Infrastruktur Telekomunikasi Indonesia 974,873 752,338 Pelabuhan Indonesia I 944,584 461,717 Perkebunan Nusantara XI 924,818 465,949 PAL Indonesia 915,692 888,561 Garuda Indonesia 904,015 1,249,914 Semen Baturaja 863,904 863,904 Angkasa Pura II 700,000 185,985 Permodalan Nasional Madani 679,972 503,328 LEN Industri 638,896 90,267 Pindad 624,403 660,387 Dirgantara Indonesia 589,750 633,703 Pupuk Sriwijaya 561,008 1,066,948 Perum Peruri 541,512 227,765 Perkebunan Nusantara IV 471,189 471,189 Adhi Karya 430,000 249,950 Perkebunan Nusantara V 416,318 513,975 Pos Indonesia 331,861 364,000 Others Total 3,428,721 5,082,440 107,404,932 86,415,499 724,338 724,338 724,338 724,338 87,220,328 87,581,384 243,546 174,696 87,463,874 87,756,080 SHARE INCOME PT PANN Pembiayaan Maritim Total CUSTOMER DEPOSITS Entities controlled by the Goverment of Indonesia Key Management Total DEPOSITS FROM OTHER BANKS Entities controlled by the Goverment of Indonesia 2,968,169 2,246,156 2,968,169 2,246,156 Bank Mandiri 87,503 - Total 87,503 - Key Management BORROWINGS PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 275
  276. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Description 2018 2017 (Million Rp) (Million Rp) SECURITIES ISSUED Bank Rakyat Indonesia 456,854 265,896 Taspen 419,866 - Dana Pensiun BNI 229,927 229,909 Bank Mandiri 148,952 148,941 Others 12,996 229,909 1,268,595 644,746 Bank Mandiri 117,110 271,350 Bank Rakyat Indonesia 100,000 135,675 37,804 - 254,914 407,025 Total BORROWINGS LPEI Total SUBORDINATED SECURITIES Asuransi Tripakarta 24,988 Total 24,988 DERIVATIVE LIABILITIES Bank Mandiri Bank Rakyat Indonesia PLN Others 33,390 11,591 6,913 - - 17,474 931 1,565 41,234 30,630 Pembangunan Perumahan 306,422 184,761 Hutama Karya 280,584 41,963 Pindad 241,525 296,189 Dahana 144,327 76,283 71,483 125,801 Total ACCEPTANCES LIABILITIES Garuda Indonesia Petrokimia Gresik 63,476 40,485 Perum Percetakan Negara Republik Indonesia 41,170 15,912 Wijaya Karya 28,459 26,769 Nindya Karya 14,746 44,350 Krakatau Steel 12,234 60,433 Semen Indonesia 9,821 14,808 Barata Indonesia 8,921 16,315 Cambrics Primissima 5,760 - Boma Bisma Indra 5,620 - LEN Industri 5,573 14,757 Waskita Karya 5,424 12,290 - 118,455 Pertamina Others Total 8,402 71,410 1,253,947 1,160,981 209,056 319,334 209,056 319,334 TEMPORARY SYIRKAH FUNDS – MUDHARABAH CURRENT ACCOUNTS Entities controlled by the Goverment of Indonesia Total 276 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  277. Analisis & Pembahasan Manajemen Description 2018 2017 (Million Rp) (Million Rp) TEMPORARY SYIRKAH FUNDS – Deposits MUDHARABAH Entities controlled by the Goverment of Indonesia Key Management Total 357,052 7,824,499 13,475 18,904 370,527 7,843,403 16,545 9,499 29 23 16,574 9,522 TEMPORARY SYIRKAH FUNDS – MUDHARABAH SAVINGS Entities controlled by Key Management Goverment of Indonesia Total MUDHARABAH SUKUK PUBLISHED Bank Syariah Mandiri - 100,000 Dana Pensiun BNI - 45,000 Bank Rakyat Indonesia Syariah - 68,500 Danareksa - 25,000 Penjaminan Infrastruktur Indonesia - 20,000 Asuransi Tripakarta - 1,000 Total - 259,500 Hutama Karya 3,205,967 3,039,526 Wijaya Karya 2,742,572 2,243,749 Adhi Karya 2,403,442 1,276,520 Pembangunan Perumahan 1,932,559 1,882,482 Pertamina 1,606,975 1,352,499 Rekayasa Industri 1,599,659 1,570,803 Nindya Karya 1,598,651 1,726,262 PLN 1,457,433 806,742 Waskita Karya 1,448,595 1,989,558 Garuda Indonesia 1,372,821 80,295 Telkom 1,350,365 1,477,346 Brantas Abipraya 1,007,708 810,321 Bank Mandiri 891,354 937,064 Petrokimia Gresik 857,687 272,932 Industri Kereta Api 613,723 - LPEI 404,415 1,532,547 Dirgantara Indonesia 280,164 337,725 Kereta Api Indonesia 265,759 1,571 Perum Peruri 255,046 6,580 Perusahaan Gas Negara 246,313 231,016 Barata Indonesia 234,627 34,087 PAL Indonesia 173,127 280,742 LEN Industri 141,693 195,886 Pindad 122,465 14,184 Infrastruktur Telekomunikasi Indonesia 102,274 195,928 98,466 80,724 BANK GUARANTEES ISSUED Rajawali Nusindo Semen Indonesia Others Total PT Bank Negara Indonesia (Persero) Tbk  91,834 90,865 418,883 1,275,440 26,924,576 23,743,394 Beradaptasi dengan Cepat Menghadapi Perubahan 277
  278. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Description 2018 2017 (Million Rp) (Million Rp) LETTERS OF CREDIT PLN 1,328,363 975,941 Kereta Api Indonesia 1,038,299 678,194 Pembangunan Perumahan 850,133 611,572 Industri Kereta Api 766,065 - Krakatau Steel 688,541 339,279 Hutama Karya 633,118 65,275 Pertamina 614,719 635,584 Pindad 544,579 315,440 Pelabuhan Indonesia I 287,648 532,690 Barata Indonesia 241,207 36,595 LEN Industri 146,001 420,885 Semen Gresik 139,734 86,825 Dahana 127,152 148,850 Garuda Indonesia 120,095 26,073 Nindya Karya 119,760 87,740 79,848 73,746 Dirgantara Indonesia 69,782 365,684 Pupuk Iskandar Muda 62,154 28,686 Petrokimia Gresik 50,334 239,582 Semen Indonesia 49,340 - Perkebunan Nusantara V Adhi Karya 46,480 - Wijaya Karya 34,528 25,909 Others 131,956 965,181 Others 8,169,836 6,659,731 372,017 366,540 372,017 366,540 SALARIES AND BENEFITS Salaries, benefits and long-term benefits for the Board of Commissioners, Board of Directors, Audit Committee, Executive Vice President and Senior Vice President Total 278 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  279. Analisis & Pembahasan Manajemen In addition, transactions balances with related parties as of December 31, 2017 and 2018 were as follows: Transactions with Related Parties Description 2018 2017 Assets Current Accounts with other banks 78,908 1,407,434 Placements with other banks 1,677,584 1,298,627 Securities 8,590,229 6,053,845 Government Bonds 86,791,402 79,849,452 Export Bills and other Receivables 11,707,785 8,510,551 5,548,051 5,768,236 56,317 27,361 107,404,932 86,415,498 724,338 724,338 Total assets with related parties 222,579,546 190,055,342 Total consolidated assets 808,572,011 709,330,084 27.5% 26.8% Acceptances Receivables Derivatives Receivables Loans Investments in shares Percentage of total assets with related parties to total consolidated assets Liabilities Customer Savings 87,463,874 87,756,080 Deposits from other bank 2,968,169 2,246,156 Securities issued 1,268,596 644,745 24,988 - Subordinated Securities Securities sold under agreement to repurchase 739,103 - Borrowings 254,914 407,025 Derivatives liabillities Acceptances Liabilities Total liabilities with related parties Total consolidated liabilities Percentage of total liabilities with related parties to total consolidated assets 41,234 30,630 1,253,947 1,160,981 94,014,825 92,245,617 671,237,546 584,086,818 14.0% 15.8% 596,157 8,172,259 - 259,500 Temporary Syirkah Funds Mudharabah savings Mudharabah Sukuk Total temporary Syirkah funds with related parties Total temporary Syirkah funds Percentage of Temporary Syirkah Funds with related parties to total consolidated Temporary Syirkah Funds PT Bank Negara Indonesia (Persero) Tbk  596,157 8,431,759 26,960,676 24,339,962 2.2% 34.6% Beradaptasi dengan Cepat Menghadapi Perubahan 279
  280. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk MATERIAL TRANSACTIONS INFORMATION WITH CONFLICTS OF INTEREST AND/OR TRANSACTIONS WITH AFFILIATED PARTIES During 2018, BNI did not have any material transactions with a conflict of interest. Names of Transacting Parties and the Nature of Affiliate Relationship During 2018, BNI did not conduct material transactions that contained conflicts of interest. Explanation of Fairness of Transactions During 2018, BNI did not conduct material transactions that contained conflicts of interest. Reasons for the Transactions During 2018, BNI did not conduct material transactions that contained conflicts of interest. Realization of Affiliated Transactions in the Last Fiscal Year Period During 2018, BNI did not conduct material transactions that contained conflicts of interest. Company Policy Related to the Transaction Review Mechanism During 2018, BNI did not conduct material transactions that contained conflicts of interest. Compliance with Regulations and Related Provisions During 2018, BNI did not conduct material transactions that contained conflicts of interest. PROHIBITIONS, LIMITATIONS, AND / OR SIGNIFICANT BARRIERS TO TRANSFER FUNDS BETWEEN THE BANK AND OTHER ENTITIES IN THE BUSINESS GROUP In 2018 the total provision of funds to related parties amounted to Rp5.4 trillion. This was still in accordance with the maximum lending threshold based on Bank Indonesia Regulation Number 8/13/PBI/2006 concerning the Legal Lending Limit for Commercial Banks, which set a maximum of 10% of Bank Capital. In 2018, the three highest provision of funds to related parties were to BNI Syariah for Rp2.5 trillion, in the form of bank participations and guarantees, BNI Asset Management for Rp1.8 trillion, and BNI Multifinance for Rp491 billion for participations, loans, and corporate cards. Total Bank Funds Provided For Related Parties Up To December 2018 Description Billion Rp Total exposure to related parties 5,379 Capital 104,254 BMPK (10% of Capital) 10,425 Over (Under) to BMPK (5,046) Total Bank Funds Provided For Related Parties up to December 2018 by Type No 1 280 Related Party BNI Asset Management Type of Funds Provision Securities Beradaptasi dengan Cepat Menghadapi Perubahan  Funds Provision (Billion Rp) 1,814 PT Bank Negara Indonesia (Persero) Tbk
  281. Analisis & Pembahasan Manajemen No Related Party Funds Provision Type of Funds Provision (Billion Rp) 2 BNI Syariah Participations, Bank Guarantees 2,520 3 BNI Multifinance Participations, Loans, Corporate Card 491 4 BNI Life Insurance Participations, Corporate Card, Bank Guarantees 399 5 BNI Sekuritas Participations, Loans, Corporate Card, Bank Guarantees 100 6 BNI Remittance Participations 7 Perseorangan Consumer Loans, Credit Card 10 45 TOTAL FUNDS PROVISION TO RELATED PARTIES 5,379 CAPITAL 104,254 BMPK (10% of Capital) 10,425 SPACE / Over (Under) (5,046) PROPERTY FOR INVESTMENT As of the end of 2018, BNI had no property assets for investment. MATERIAL COMMITMENTS FOR CAPITAL GOODS INVESTMENTS Party Name Tied to The Commitment No Project Vendor Name 1 Penjompongan Building • • PT Pembangunan Perumahan (PP) PT Artefak 2 BSD Building • • • • • • • • • • PT Wika PT Advanced Design Rekragraha Omega Moverindo Sukses Inti Fajar Pratama PT Sari Jati Adhitama PT Indovickers Furnitama PT Kencana Arind Murni PT Alpha Graha Computindo PT Mitrasindo Jayatama PT Ananta Cipta Pratama 3 BNI KC Surabaya Building PT Inti Indah 4 BNI KC PS Mayestik Building • • PT Architeam Design Center PT Tunas Pembagunan 5 BNI KC Kotabaru P. Laut Building • • PT Indah Karya PT Tunas Pembagunan • • • • • • • • • • PT Decorous Mitra Selaras PT Datascrip PT Vivere Multi Kreasi PT Indah Karya PT Protindo Cipta Kreasi Lestari PT Perintis Dinamika Multiniaga PT Swadharma Griyasatya PT Perintis Dinamika Sekatama CV Minda Mandiri Perkasa PT Anugrah Lestari Abadi COMMITMENT PURPOSE BNI material commitments for capital expenditure are outlined in the Bank Business Plan (RBB). CURRENCY All transactions conducted for material capital expenditures are denominated in rupiah. SOURCE OF FUNDS Funds used for capital expenditure is derived from BNI capital that has been budgeted for in the current year. CURRENCY RISK PROTECTION Because all binding transactions and capital expenditures were denominated in Rupiah, BNI does not need to protect against currency risk. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 281
  282. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk VALUE OF COMMITMENTS BNI has capital goods commitments related to the construction of office buildings and the procurement of automation equipment amounting to Rp 2.1 trillion for capital expenditure. BNI has made several material commitments, with material ties as follows: 1. Building Construction Projects a. Continuing construction of the Penjompongan Building in 2017 amounting to Rp421 billion. b. Continuing construction of the BSD Building in 2017 amounting to Rp70.6 billion. c. Purchase of office space at Satrio Tower (Jakarta Senayan Area) amounting to Rp. 71.5 billion. d. Purchase of land and buildings for KC Kelapa Gading amounting to Rp72.8 billion. e. Purchase of land and building of KCP Dewi Sartika amounting to Rp47 billion. 2. 2. IT and e-Banking infrastructure Development a. ATM Cash Recycle Machines (CRM) amounting to Rp 109 billion. b. Electronic Data Capture Machines (EDC) amounting to Rp 81.2 billion. c. Consolidation Server Surrounding amounting to Rp41.7 billion. d. Consolidation Unix platform for the Data Center amounting to Rp14.7 billion. e. E-branch implementation amounting to Rp7.5 billion. f. Service Oriented Architecture (SOA) Enhancement amounting to Rp16.3 billion. g. Core IT Icons Overseas Branches amounting to Rp25.2 billion. SOURCE OF FUNDING Sources of funding for capital expenditure is derived from the remaining investment budget from last year, total amortization expenses last year, and share / percentage of net profit from the preceding financial year. CAPITAL GOODS INVESTMENTS Capital Investment is an expenditure activity used to purchase fixed assets or to add fixed asset value, which is expected to provide future benefit value. TYPE OF INVESTMENT Capital goods investments in 2018 amounted to Rp1.4 trillion, and consisted of automation equipment of Rp742 billion, land purchases and building construction of Rp.478 billion, nonautomated equipment purchases of Rp163 billion and vehicle procurement of Rp42 billion. CAPITAL GOODS INVESTMENT OBJECTIVE The purpose of capital goods investments is to support operational activities, as well as smooth company operations. CAPITAL GOODS INVESTMENT VALUE BNI’S capital expenditure in 2018 amounted to Rp1.4 trillion, similar to last year. Investment in 2018 was dominated by capital goods such as automation equipment used for the IT infrastructure development, network and technology expansion, digital banking development to facilitate customer transactions, and the procurement of ATM, CRM and EDC machines to support the business. 282 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  283. Analisis & Pembahasan Manajemen Details related to capital investments are outlined in the table below: Capital Goods Investment Value 2018 (Billion Rp) Capital Goods Type Buildings 2017 (Billion Rp) 2016 (Billion Rp) 408 802 713 70 150 122 Automation 742 622 848 Non-Automation 163 219 195 Land Vehicles Total 42 25 8 1,425 1,818 1,886 COMPARISON OF TARGET AND REALIZATION 2018 TARGET ACHIEVEMENT The domestic political turmoil and global economic slowdown had an indirect impact on BNI’s growth as a whole, this was predicted by BNI last year and preventive measures had been taken to survive in middle of the rapid flow of competition. By December 2018, BNI’s profit had grown 9.6% to Rp15.0 trillion compared to Rp13.6 trillion in 2017. BNI’s assets grew by 14.0% from Rp709.3 trillion in 2017 to Rp808.6 trillion in 2018, with asset growth bolstered by loan growth of 16.2% to Rp512.8 trillion, followed by the third party funds growth of 12.1% to Rp578.8 trillion, with an LDR of 88.8%. As a form of risk mitigation, BNI increased its coverage ratio from 148.0% in 2017 to 152.9% from 2018. 2018 Strategic Policy 2018 Target Increase business to customers in Ministries, Institutions, SOEs, and Corporations through comprehensive financial solutions Increase medium business in industries based on regional priorities Strengthen small business through optimization of Supply Chain Financing Corporate, Communities/Business Center Customers, to support Government programs Increase CASA with a digital business model focus for closed loop transactions and to optimize customer transactions Strengthen consumer business in cooperation with business partners and provide financial transaction solutions with a focus on e-commerce and the millenial generation. Increase outlet performance by strengthening marketing penetration for TPF and lending Increase subsidiary market share with enhanced synergy, digital development, and inorganic growth.  - ROA : 2.6 - 2.8% - ROE : 16.0 -18.0% - Growth in loans : 15.0 – 17.0% - Coverage Ratio : 150.0 - 153.0% - NPL Gross : 2.3 -2.5% - LDR : 88.0 - 90.0% - DPK Growth : 13.0 – 15.0% - CIR : 42.0 - 44.0% - Service Level : Top 3 Optimizing organizational capacity to support business achievement. In general, as of December 2018, BNI returned a satisfactory performance, as seen in the following key performance achievements: 1. Profitability as measured by ROA reaching its target with a realization of 2.5% - 2.8%. 2. Coverage Ratio reaching its target with a realization of 146-148%. 3. Third Party Fund Growth reaching its target with a realization of 18.0-22.0%. 4. Improved operational efficiency with CIR of 43.9%. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 283
  284. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 2019 PROJECTIONS In terms of business planning for 2019, the Company has prepared a Bank Business Plan (RBB) for 2019 that takes into account current economic conditions, and economic projections for 2019, in both macro and micro terms. The bank’s business plan is described as follows: Assumptions used in preparing projections were as follows: No 2018 Strategic Policy Proyeksi 2019 1 Increase in corporate business by providing integrated financial solutions in a business ecosystem. 2 Increase in productivity of medium businesses focused on corporate customer supply chains, business process improvements, and loan quality improvement. 3 Increase in small business expansion through digitized business processes, improved loan quality and support for national economic equity. 4 Acceleration of consumer business focused on customer preferences by using data analytics. 5 Increase in CASA and FBI through increased digital transactions, strategic partnerships and developing new business models. 6 Increase the BNI Group capabilities through increased synergy, agile organization initiation, and big data and analytics. Return on Assets (ROA) : 2,5% - 2,8% Return on Equity (ROE) : 16,0% - 17,0% Pertumbuhan Pinjaman : 14,0% - 16,0% Coverage Ratio (CR) : 161,0 % - 163,0% Non Performing Loan (NPL) Gross : 1,8% - 2,0% Loan to Deposit Ratio (LDR) : 88,0% - 89,0% Pertumbuhan Dana Pihak Ketiga (DPK) : 16,0% - 17,0% Cost to Income Ratio (CIR) : 42,0% - 43,0% NEGOTIABLE CERTIFICATE DEPOSIT (NCD) TOTAL FUNDS ACQUISITION BNI has issued scriptless Rupiah Negotiable Certificate of Deposits (NCD) in 2016 and 2017 in the following three stages: 1. In the first semester of 2016, BNI issued scriptless Rupiah NCDs for the first time for Rp3.0 trillion, with an initial target of Rp trillion, in 6 tenor series (6 months to 3 years). 2. In the second semester of 2016, BNI issued scriptless Rupiah NCD for Rp.2.2 trillion, with an initial target of Rp1 trillion (oversubscribed). This oversubscription shows the high level of investor confidence and interest in BNI. 3. In the first semester of 2017, BNI issued scriptless Rupiah NCD for Rp2.7 trillion. Issue Phase Date Currency Principal Amount Average Rate 1 June 16, 2016 IDR 3,023 2,598 8.2% 2 September 27, 2016 IDR 2,200 1,877 6.7% 3 March 10, 2017 IDR 2,700 2,483 7.0% FUND BALANCE As of December 31, 2018, the outstanding balance for the NCD funds amounted to Rp939 billion. 284 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  285. Analisis & Pembahasan Manajemen USE OF PUBLIC OFFERING PROCEEDS REALIZATION SUSTAINABLE PUBLIC OFFERING (PUB) On June 22, 2017, BNI received an effective statement from OJK through letter No. S-349/D.04/2017 to issue BNI Rupiah Phase I 2017 Sustainable Bonds (“Bonds”). The value of the bonds issued was Rp3,000,000,000,000 (three trillion Rupiah), for a period of 5 years, with a coupon of 8% per annum, to be paid quarterly. BNI’s bonds were issued on July 11, 2017 and listed on the Indonesia Stock Exchange on July 12, 2017. Information Regardingthe Bonds Offered Bond Name Obligasi Berkelanjutan I BNI Phase I Year 2017 Bond Principal Amount Rp3,000,000,000,000 (three trillion Rupiah) Bid Price 100.00% from Bond Principal Amount Maturity 5 (five) years after date of issuance Trading Unit Rp1 (one Rupiah) or multiples Unit /Trading Rp5,000,000 (five million Rupiah) or multiples Bond Interest Rate 8.00% (eight point zero zero percent) per year. Type of Interest Rate Fixed Interest Payment period Quarterly Interest Date First October 11, 2017 Warranty These bonds are not secured by special collateral, but are secured by all of the Company assets, both movable and immovable property, whether existing or future, that becomes collateral for the Bondholder in accordance with the provisions of Articles 1131 and 1132 of the Civil Code. The Bondholder right is paripassu without any preferential rights with the rights of the other creditor of the Company either present or in the future, except for the rights of the creditor of the Company which are specifically guaranteed with the Company’s assets either existing or future Securities Rating idAAA (triple A) from Pefindo. Bond Settlement Fund (Sinking Fund) The Company does not provide a sinking fund for the bond principal repayment with a view to optimizing the use of the proceeds from the issue in accordance with the planned usage purpose. Repurchase (Buy Back) These bonds have a repurchase (buy-back) option under the terms and provisions of the Trusteeship Agreement. Trustee PT Bank Rakyat Indonesia (Persero) Tbk has been appointed as Trust Agent in the issuance of this Bond in accordance with the provisions contained in the Trustee Agreement USE OF FUNDS PLAN THE PUBLIC OFFERING The proceeds from the Public Offering of Bonds, after deducting the total issuing costs, will be used by the Company for loan expansion in the context of business development. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 285
  286. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk REALIZATION AND INTEREST PAYMENT SCHEDULE PUB Issuance Realization Type of Public Offering Effective Date in trillion Rupiah Public Offering Realization Result Public Offering Total I BNI Phase I 2017 Bond June 22, 2017 Rp 3 Public Offerin Expenses Rp 0,0074 Funds Usage Plan Net Result Credit Expansion Rp 2.992 Rp 2.992 Total Rp 2.992 Funds Usage Credit Expansion Rp 2.992 Total Rp 2.992 Public Offering Residual Funds Public Offering Expenses - Interest Payment Table 286 Interest Bond Interest Payment Date Interest 1 October 11, 2017 8% 2 January 11, 2018 8% 3 April 11, 2018 8% 4 July 11, 2018 8% 5 October 11, 2018 8% 6 January 11, 2019 8% 7 April 11, 2019 8% 8 July 11, 2019 8% 9 October 11, 2019 8% 10 January 11, 2020 8% 11 April 11, 2020 8% 12 July 11, 2 8% 13 October 11, 2020 8% 14 January 11, 2021 8% 15 April 11, 2021 8% 16 July 11, 2021 8% 17 October 11, 2021 8% 18 January 11, 2022 8% 19 April 11, 2022 8% 20 July 11, 2022 8% Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  287. Analisis & Pembahasan Manajemen SUBORDINATED MTN BNI issued Subordinated Medium Term Notes (MTN) with the aim of strengthening its supplementary capital (tier 2) and working capital in the context of business development, especially for loan disbursements, and increasing the composition structure of long-term funding, in accordance with OJK Regulation No. 11/POJK.03/2016 concerning Minimum Capital Requirement for Commercial Banks as amended by OJK Regulation No. 34/POJK.03/2016. This Subordinated MTN is not guaranteed by any special collateral, including not guaranteed by the company or subsidiaries, the Republic of Indonesia or other third parties, and is not included in the bank guarantee program in the deposit insurance agency, in accordance with applicable laws and regulations, and following the provisions in Article 19 Paragraph (1) point f in pojk no. 11/pojk.03/2016 and is a subordinated liability of the company, in accordance with the provisions of the Subordinate MTN issuance agreement. The rights of Subordinated MTN holders are junior to the rights of other corporate creditors. DESCRIPTION OF SUBORDINATION MTN OFFERED The Subordinated MTN was issued in the amount of Rp 100,000,000,000.00 (One Hundred Billion rupiahs) with a coupon payment period of 8% p.a every 3 months (quarterly), based on the interest calculation of 30/360 with a tenor of 5 years. Name : Medium Term Notes Subordinasi I BNI Tahun 2018 Principal Amount : Rp100,000,000,000 (one hundred billion Rupiah) Bid Price : 100.00% from MTN Subordinasi principal value Maturity : 5 (five) years from date of issue Bond Interest Rate : 8.00% (eight point zero zero percent) per annum. Type of Interest Rate : Fixed. Interest Payment Period : Quarterly. First Interest Payment Date : November 10, 2018. Warranty : This Subordinated MTN is not guaranteed by any special collateral, including not guaranteed by the company or subsidiaries, the Republic of Indonesia or other third parties, and is not included in the bank guarantee program in the deposit insurance agency, in accordance with applicable laws and regulations, and following the provisions in Article 19 Paragraph (1) point f in pojk no. 11/pojk.03/2016 and is a subordinated liability of the company, in accordance with the provisions of the Subordinate MTN issuance agreement. The rights of Subordinated MTN holders are junior to the rights of other corporate creditors at the time of liquidation in accordance with the applicable laws and regulations. Securities Rating : PT Bank Negara Indonesia (Persero) Tbk  AA (double A flat) ) from PT Pemeringkat Efek Indonesia (Pefindo). id Beradaptasi dengan Cepat Menghadapi Perubahan 287
  288. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk GENERAL BOND OFFER (GLOBAL BOND) USE OF PUBLIC OFFERING PROCEEDS REALIZATION TOTAL ACQUISITION FUND On April 27, 2012, through the BNI London Branch, BNI issued bonds with a nominal value of US$500 million that will mature on April 27, 2017. The bonds may be repaid in whole, but not in part, for the principal with deferred interest and unpaid interest, if any, at the option of the bonds issuer at any time in the event of certain changes that could affect taxes in Indonesia. The bonds were issued at a price of 98.89% equivalent to US$494.4 million and were registered with the Singapore Exchange Securities Trading Limited (SGX-ST). From the total amount received of US$494.4 million, a total of US$400 thousand was used for the cost of issuing the bonds. On November 25, 2010, at the Extraordinary General Meeting of Shareholders (EGMS), the Shareholders decided to approve an increase in BNI’s issued and fully paid capital through a Limited Public Offering III (PUT III) with the issuance of Preemptive Rights (HMETD) amounting to 3,374,715,948 new C Series shares with a nominal value of Rp375 (full amount) of each share. The Preemptive Rights can be traded inside and outside the Indonesia Stock Exchange (IDX) from December 10, 2010 to December 16, 2010, taking into account the applicable provisions in the capital market sector. FUNDS USE PLAN The net proceeds from the bonds issuance will be used by the Bank as an additional source of funding for the Bank’s overseas branches, and for the Bank’s general funding purposes. These bonds were a direct, unconditional obligation (subject to the terms and conditions below), without guarantee from the Bank, and were rated as pari passu (unless there were certain legal provisions requiring preference), and were equivalent to unsecured liabilities that from time to time remain unpaid. There is no negative covenant in the Company’s trustee contract with HSBC for the issuance of the Global Bond securities, which would limit the Company from conducting a Sustainable Public Offering of Rupiah Sustainable Bonds. The company always adheres to the debt terms and conditions, where semi-annual coupon payments are always made by the Company on time. TOTAL EXTENSION OF FUNDS From the PUT III, BNI obtained additional paid-in capital of Rp1,265,519 million and additional net shares after deducting the issuance costs of shares, amounting to Rp245,231 million. FUNDS USE PLAN Funds sourced from the Rights Issue III were used for: 1. 80% for corporate, medium-sized businesses, small businesses and consumer loans 2. 15% for infrastructure development in information technology, outlets, ATMs and others 3. 5% for the development of subsidiaries, namely BNI Life, BNI Syariah, BNI Securities and BNI Multi Finance. FUNDS BALANCE As of December 31, 2018, the proceeds from the Rights Issue III amounted to zero or in other words 100% of the funds had been disbursed. FUNDS BALANCE This debt matured on April 27, 2017. INTEREST PAYMENT SCHEDULE OF BONDS The interest rate of 4.13% per annum was paid every six months on April 27 and October 27 each year, starting on October 27, 2012. 288 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  289. Analisis & Pembahasan Manajemen AGM AGREEMENT DATE FOR AMENDMENT TO THE USE OF FUNDS There has been no change in the use of funds from BNI Rights Issue III. Actual Use of Funds from Limited Public Offering III Realization of Funds Usage from Limited Public Offering III Net Value of Public Offering Result Realization (net of expenses) Rp10,216,388,163,029 Realization of founds usage About 80% is used for Corporate, Medium Enterprise, Small Business and Consumption distribution per December 31, 2014 Per 31 Desember 2014 Rp 8,173,110,530,423 About 15% is used for infrastructure development in information technology, outlets, ATMs and others Per 31 Desember 2014 Rp1,532,458,224,454,- About 5% is used for the development of subsidiaries, they are BNI Life, BNI Syariah, BNI Sekuritas and BNI Multi Finance Per 31 Desember 2014 Rp510,819,408,152,- Residual Fund Usage Nihil DIVIDEND POLICY DIVIDEND DISTRIBUTION POLICY The annual dividend policy is determined through the approval of the General Meeting of Shareholders. TOTAL DIVIDENDS DISTRIBUTED In 2018, BNI distributed dividends from the Company’s net profit of Rp4,765,766,513,174.80 or Rp255.555488 per share, or 35% of the Company’s net income in 2017. PENGUMUMAN DAN PEMBAYARAN DIVIDEN Announcement and Payment of Dividend Fiscal Year Total Dividend (billion Rupiah) Dividend Per Share (Rupiah) 2017 4,765,76 255.555488 2016 3,968,56 2015 2,266,64 Date of Announcement Dividend Payment Date 35% of 2017 net income March 20, 2018 April 20, 2018 212.806849 35% of 2016 net income March 20, 2017 April 20, 2017 122.533827 25% of 2015 net income 5 March 14, 2016 April 13, 2016 PT Bank Negara Indonesia (Persero) Tbk  Pay Out Ratio Beradaptasi dengan Cepat Menghadapi Perubahan 289
  290. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk MANAGEMENT AND/OR EMPLOYEE SHARE OWNERSHIP PROGRAM (ESOP/ MSOP) PROGRAM OBJECTIVES The employee bonus program is a program where Bank shares are granted to employees who meet certain criteria and requirements as stipulated in the Program Implementation Guidelines. The purpose of this employee share bonus program is: 1. To establish long-term employee retention. 2. To motivate employees to provide their best performance. 3. To increase employees’ sense of belonging to the Bank. TOTAL ESOP OR MSOP SHARES AND REALIZATION Taking into account point 4, letter a, number 3, of Regulation No. XI.B.2 jo. Article 9 of the OJK Regulation No. 2/POJK.04/2013, a share buyback may be diverted / used for the an Employee Stock Option Plan or employee Stock Purchase Plan, and the Company conducted a Disclosure of Information on May12,2016 stating that they will conduct the transfer of Series C shares through a buyback Shareholding Program, for the Company’s Management and Employees, in the form of Bonus shares (hereinafter referred to as “Bonus Shares Program “). Supervision of the Shares Bonus Program is carried out by the Company’s Board of Directors and reported at the Company’s General Meeting of Shareholders closest to the implementation of the program. The bonus shares allocation to members of the Board of Directors, and the Board of Commissioners, is in accordance with the Minister of State-Owned Enterprises Regulation No. Per-04/MBU/2014 concerning Guidelines for Determination of Board of Directors, Board of Commissioners and Board of Trustees of State Owned Enterprises, and was conducted after the Company obtained approval from the General Meeting of Shareholders / Ministry of SOEs. Based on the Minutes of AGMS No. 8 dated March 10, 2016, the allocation of bonus shares to members of the Board of Directors and Board of Commissioners was carried out after obtaining the approval of the Minister of SOEs. Allocation of the first phase for employee was completed in 2016, and employees entitled to be participants in the Bonus Share Program, were permanent employees as at October 30, 2016 (Disclosure date). Employees declared eligible for vesting were notified by email, or other communication media, which contained confirmation of the bonus shares entitlement and the vesting date. The vesting conditions were determined as follows: 1. Not undergoing cases and / or being subject to sanctions according to the applicable 
Bank Personnel Regulations; 2. Has not terminated their employment relationship on their own accord; or 3. Has not ended their employment relationship due to low performance. As of December 2018, 35,349,718 shares have been vested to 20,289 employees. TIME PERIOD The share bonus allocation will be conducted over 3 (three) years between 2016 - 2018, with periodic vesting of stock. 1. The terms for the share bonus allocation and vesting requirements for employees covers other performance and administrative requirements based on internal company requirements. 2. Vesting will be conducted periodically based on position level at the end of January, April and July 2017 - 2019. EMPLOYEE OR MANAGEMENT REQUIREMENTS The Bonus Shares Program became part of the remuneration pursuant to the Ministry of State Owned Enterprises Decree No. Per-04/MBU/2014 concerning Guidelines for Determination of Board of Directors, Board of Commissioners and Board of Trustees of State Owned Enterprises, in the form of long-term rewards where the shares repurchased were allocated to: 1. Employees as a bonus for achievement of company performance, and 2. Members of the Board of Directors, and the Board of Commissioners as part of the bonus for the fiscal year concerned. Ministry of SOE Letter No. S-574/MBU/D5-06/2018 dated June 5, 2018 fixed the determination Long Term Incentive (LTI) at 10% of the Board of Directors and Board of Commissioners Tantiem for Fiscal Year 2017. LTI is given in the form of shares deferred for three years or until the end of the term of office. This provision is not given to Independent Commissioners, where LTI is given in cash where the payment is deferred for three years or until the end of the term of office. 290 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  291. Analisis & Pembahasan Manajemen EXERCISE PRICE Referring to the Financial Services Authority Regulation (OJK) No. 02/POJK.04/2013 dated August 23, 2013 concerning Repurchase of Shares Issued by Issuers or Public Companies in Significantly Fluctuating Market Conditions, and No. 5/SEOJK.04/2017 concerning Revocation of SEOJK No. 22/SEOJK.04/2015 concerning Conditions Other than Significantly Fluctuating Market Conditions in the Implementation of Share Buy Back Issued by Issuers or Public Companies, BNI conducted repurchases of Company’s shares that had been issued and listed on the Indonesian Stock Exchange (Buy Back) .BNI appointed PT BNI Sekuritas as the institution conducting the repurchase of the Company’s shares to purchase shares over a period of three months, starting from November 2, 2016 to December 28, 2016. The number of shares bought back was equal to 0.8% of the issued and fully paid, or 150,537,500 shares. The Company’s repurchased shares amounted to Rp749,979,275,500.00 (maximum of 750 billion rupiah) and the average Buyback price amounted to Rp4,982.00 per share. After the Company shares repurchase, the Company conducted a Disclosure of Information on October 30, 2016. These repurchased shares were redistributed to employees who met the criteria, with an exercise price of Rp4.982,00 per share. LOANS BASIC LENDING RATE Bank Indonesia requires all Commercial Banks conducting conventional business activities in Indonesia report and publish their Basic Lending Rate (BLR) in Rupiah. This was in accordance with POJK No. 6/ POJK.03/2015 concerning Transparency and Publication of Bank Reports as amended by POJK No. 32/ POJK.03/2016 and Bank Indonesia Regulation Number 7/6/PBI/2005 concerning Transparency of Bank Product Information and Use of Customer Personal Data (State Gazette of the Republic of Indonesia of 2005 Number 16, Supplement to the Republic of Indonesia State Gazette Number 4475). The application of information transparency on prime lending rates (PLR) is one of the efforts to provide clarity to customers and enable customers to weigh the benefits, costs and credit risk offered by the Company. In addition, the PLR also seeks to improve good governance and encourage healthy competition in the banking industry, including through the creation of better market discipline. The PLR is also required as an indicator of the loan interest rate to be applied to customers applying for loans from the Company. In such cases, BNI always republishes its PLR, in accordance with the reference rate movement stipulated by Bank Indonesia. In general, the PLR is calculated based on 3 (three) components, namely Cost of Funds for Loans arising from customer fund raising activities, operating expenses incurred for fund raising activities, and lending and profit margin components set by the Company in its lending activities. The PLR calculation does not take into account the risk premium component of the borrower, which depends on an assessment of the risk of each borrower. Therefore the loan interest rate charged to the borrower is not necessarily the same as the PLR. BNI are required to report PLR calculations to Bank Indonesia on a monthly basis, and periodically publish them in the wider media. The PLR calculation applies to corporate loans, retail loans, microcredit, and consumer loans (mortgages and non-mortgages). Bank Indonesia submits the classifications for corporate loans, retail loans and consumer loans (mortgages and non-mortgages) based on internal criteria used by the bank. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 291
  292. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk When determining the PLR, the Company always considers the changing regulatory policies. In 2016, OJK issued Letter No.S18/D.03/2016 concerning Maximum Interest Rates. In the letter, OJK also submitted a directive to lower lending rates gradually until they reached single digits by the end of 2016. Related to this, the Company was committed to lowering its loan interest rate incrementally, which can be seen in the PLR ratio in 2016 and the average PLR in 2015 as follows: (% per year)   Prime Lending Rate Based on Business Segment Corporate Loans Suku Bunga Dasar Kredit (Prime Lending Rate) Retail Loans Micro Loans 9,95 N/A 9,95 Consumer Loans KPR Non KPR 10,50 12,50 SIGNIFICANT CHANGES IN THE BANK AND BANK GROUP IN THE CURRENT YEAR There were no significant changes that occurred in the Bank and the Bank Group up to December 2018 that affected BNI’s financial position. INVESTMENTS, EXPANSIONS, DIVESTMENTS, ACQUISITIONS, OR DEBT AND CAPITAL RESTRUCTURING MATERIAL INFORMATION INVESTMENTS During 2018, BNI did not engage in investment activities. EXPANSIONS During 2018, BNI did not engage in expansion activities. DIVESTMENTS During 2018, BNI did not engage in divestment activities. ACQUISITIONS During 2018, BNI did not engage in acquisition activities. DEBT AND CAPITAL RESTRUCTURING During 2018, BNI did not engage in debt and capital restructuring activities. 292 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  293. Analisis & Pembahasan Manajemen TAX CONTRIBUTION TO THE STATE BNI’s contribution to the State includes fulfilling its obligations as a taxpayer, and as a tax collector. As a taxpayer, the largest contribution is to fulfill its corporate tax obligations. As a tax collector, BNI plays an active role in deducting taxes on all taxable items. BNI is always on time in paying its tax obligations for Corporate Tax, Employee Income Tax, VAT, and Land and Building Tax. BNI also submits annual and monthly tax returns, as well as obligatory documents to regulatory agencies in a timely manner. Corporate income tax payments in 2018 amounted to Rp5.0 trillion an increase of 57.2% compared to Rp1.8 trillion in 2017. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 293
  294. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Contribution to the State, Excluding Dividends 2017 2018 No Type of Tax (Billion Rp) (Billion Rp) 2016 Growth 2017-2018 Growth 2016-2017 (Billion Rp) (%) (%) 1 PPN 377 348 366 (55.1) (4.9) 2 PPh 3,634 3,254 2,316 (5.4) 40.5 3 PPh Badan 5,829 3,211 2,791 57.2 15 4 Other Tax Total 78 86 2 (17.6) 4.150 7,918 6,898 5,475 (20.9) 4,200.6 TAX CHARGES On February 5, 2018, BNI received an underpayment tax assessment letter (SKPKB) related to PPh 21 Income Tax, PPN and a Tax Collection Letter (“STP”) for fiscal year 2015 amounting to Rp74.9 billion (including penalties). On March 2, 2018, BNI made a full payment of the SKPKB and did not file any objection to the Directorate General of Taxes. On June 15, 2017 BNI received a tax assessment letter related to underpayment (SKPKB) PPh Badan, PPN, PPh pasal 21, PPh pasal 22, PPh pasal 23, PPh Pasal 26, PPh pasal 4 ayat (2) and a Tax Collection Letter ( “STP”) for fiscal year 2014 amounting to Rp145.3 billion (including penalties). On July 14, 2017, BNI made full payment of the SKPKB and did not file any objection to the Directorate General of Taxes. TAX LEGAL ISSUES On February 5, 2018, BNI has received a tax assessment letter related to underpayment (SKPKB) for PPh Badan for fiscal year 2015 amounting to Rp2.5 trillion (including penalties) and approved by BNI in the amount of Rp162.1 billion. On March 2, 2018, BNI paid a portion of the SKPKB amounting to Rp1.8 trillion. On May 4, 2018, BNI submitted an objection letter related to the SKPKB, to the Directorate General of Taxes. As of the date of these consolidated financial statements, the Directorate General of Taxation has not issued a decision regarding the objection letter submitted by BNI. The Bank believes that the objection or appeal submitted will be granted so the Bank has not made a reserve for the SKPKB. On December 16, 2014, BNI received an SKPKB for PPh Badan for fiscal year 2013 amounting to Rp619.8 billion (including penalties). On December 30, 2014, BNI paid the SKPKB in full. On March 12, 2015, BNI submitted an objection letter to the Directorate General of Taxes regarding the SKPKB for PPh Badan. On March 7, 2016, BNI received a letter from the Directorate General of Taxation refusing the objection to the PPh SKPKB. After the decision to reject the objection, on June 3, 2016, BNI submitted an appeal against the objection to the Tax Court. In January 2018, BNI received a copy of the Tax Court’s decision that rejected BNI’s appeal. Based on information on the official Supreme Court website on October 25, 2018, the panel of judges rejected the request for a review from BNI. The Bank has transferred the estimated income tax bill to the current tax expense for the current year. On November 28, 2012, BNI received an Underpayment Tax Assessment Letter (“SKPKB”) for PPh Badan for fiscal year 2010 amounting to Rp1.6 trillion (including penalties). On December 26, 2012, BNI made a partial payment of the SKPKB for PPh Badan of Rp9,798. On February 19, 2013, BNI submitted an objection letter to the Directorate General of Taxes regarding the remaining SKPKB for PPh Badan. On February 26, 2013, BNI made a partial payment for the remaining SKPKB for PPh Badan amounting to Rp816.9 billion. On February 21, 2014, BNI received a letter from the Directorate General of Taxation which refused the objection to the Agency’s SKPKB for PPh Badan. On May 16, 2014, BNI submitted an appeal against the objection to the Tax Court. On March 16, 2016, the Tax Court read out an appeal decision that granted BNI’s appeal. 294 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  295. Analisis & Pembahasan Manajemen On April 8, 2016, BNI received a copy of the appeal decision. The payment of Rp816.9 billion for the SKPKB has been transferred to PPh Pasal 29 PPh Badan for the 2015 tax year, PPh Pasal 25 for April, May, and June 2016. The Directorate General of Taxes filed a Judicial Review on June 28, 2016 with the Supreme Court through the Tax Court on the Tax Court Decision on March 16, 2016. In relation to the receipt of the Recognition Memory, BNI provided a response in the form of Counter Memory Review back to the Supreme Court by letter dated May 9, 2017 stating that the Tax Court’s decision was clearly in accordance with the provisions of the applicable legislation. Based on the Supreme Court Decree dated August 30, 2017, the panel of judges has rejected the request for a review of the Directorate General of Taxes. ASSUME TAX PAYMENTS BNI has paid off all tax assessments as a result of audits due for payment as described earlier in the discussion of Tax Law Issues. Although BNI is still in the process of filing legal remedies against the provisions of the Director General of Taxes, BNI always pays more than is required in the tax provisions. So that in terms of BNI the tax is not in arrears. For the 2015 corporate income tax assessment amounting to Rp2.5 trillion, BNI has agreed to part of the audit tax assessment amounting to Rp162 billion, while for the remaining underpayment amounting to Rp2.3 trillion, BNI has filed an legal objection and has appealed. If the Objection is rejected, the tax provisions that are still in the legal process, in accordance with the applicable tax laws, will become state receivables or BNI tax payable up to the provisions approved by BNI in the amount of Rp162 billion, while the remaining tax of Rp.2.3 the bill will be suspended up to 1 (one) month from the date of issuance of the Appeal Decision from the Tax Court. Nonetheless, BNI has made payments totaling Rp1.8 trillion in approved provisions as well as most of the unapproved tax assessments. Based on Article 27 paragraph (5a) jo. Article 25 paragraph (7) Law No 6 of 1983 stdd. Law No. 16 of 2009 concerning General Provisions and Tax Procedures, it states that in the case of Taxpayers filing an appeal, the tax repayment period for the amount of tax that has not been paid at the time of filing an objection is up to 1 (one) month from the date of issuance of the Appeal Decision. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 295
  296. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk TRANSFER PRICING DOCUMENT RANSFER PRICING DOCUMENT Minister of Finance (PMK) Regulation No.213/PM.03/2016 sets the types of documents and / or additional information required to be made and kept by Taxpayers transacting with related parties, and the Management procedures. This regulation aims to improve the quality of documents prepared by taxpayers and to increase transparency. Taxpayers also need to be more proactive to ensure that the information needed to prepare the master documents and local documents is available and complies with the applicable regulations. PT Bank Negara Indonesia, Tbk (BNI) as an obedient taxpayer, who is compliant with all existing tax regulations, complies with this regulation. 296 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  297. Analisis & Pembahasan Manajemen INTRODUCTION The Ministry of Finance issued a new regulation that requires taxpayers to prepare transfer pricing documentation (TP Doc). These new TP Doc regulations complement the provisions related to the principle of fairness, and the prevalence of business transactions involving parties with special relationships. Based on the definition in Article 1 point 6 PMK-213/ PM.03/2016 mentioned, the transfer pricing document is a document that is held by the taxpayer as the basis of applying the fairness principle and business practice in determining the transfer price made by the Taxpayer. This was issued in accordance with the provisions of the transfer pricing document, and shall not supersede the applicable rules to govern the principle of fairness and business practices, that is The Director General of Taxes Regulation No. PER-43/PJ/2010 (amended by The Director General of Taxes Regulation No. PER-32/PJ/2011) TYPE OF DOCUMENTS THAT HAVE TO BE RETAINED Based on these regulations, taxpayers are required to hold and store 3 (three) levels of documents consisting of: 1. Master Documents; 2. Local Documents; and 3. Country Report. Transfer pricing documents above must be submitted in Bahasa Indonesia. However, a Taxpayer who has obtained a license to maintain bookkeeping in a foreign language and a non-Indonesian currency may create a document in English accompanied by a transfer pricing document in Bahasa Indonesia SUBJECTS REQUIRED TO MAKE TP DOC Parties that must prepare TP Docs fall into 2 (two) groups, namely: 1. Those required to make master documents and local documents; and 2. Those required to make master documents, local documents and country reports. ACCESS TO FINANCIAL INFORMATION RELATED TO TAXATION PRELIMINARY The Automatic Exchange of Financial Account Information or (AEOI) is a plan from the G20 countries, and initiated by the Organization for Economic Cooperation and Development (OECD), regarding a system to support the exchange of information on taxpayer accounts between countries. With this system, taxpayers who have opened accounts in other countries will be able to be tracked directly by the tax authorities of their home countries. AEOI new global standards will later be useful in reducing the chances of tax payment avoidance. AEOI’s system works as an exchange of financial data of foreign nationals living in a country. Exchange of financial data is not conducted carelessly, but is carried out between the authorized tax authorities in each country. Every country that has joined the AEOI system will send and receive preagreed information annually without having to submit any special request. In Indonesia by using AEOI, the Directorate General of Taxation can supervise and explore any tax potential through banking or other financial institutions transactions conducted by overseas taxpayers, as if it applies to domestic taxpayers. This is done to strengthen the database, which has experienced limited access, so that the state revenue potential from the tax sector can be maximized. SCOPE In accordance with Law No. 9 of 2017 concerning Determination of Government Regulations Substituting Law Number 1 of 2017 concerning Access to Financial Information for Taxation Interests, the scope of access to financial information is divided into 2 (two), namely: 1. Exchange of information for the benefit of International Agreements or Foreign Customers 2. For the purposes of Domestic Taxation or Domestic Customers in the context of implementing the Taxation Regulations. IMPACT OF REGULATIONS ON THE COMPANY In the case of applying the Transfer Pricing regulation, BNI has disclosed the transactions with its subsidiaries and other related parties in accordance with the prevailing regulations. In terms of carrying out arms length transactions, or fairness of BNI transactions with related parties, the company uses the services of a Delloite public accountant to conduct an assessment. Based on the assessment results conducted, all BNI transactions conducted with related parties have met the set reasonableness limit. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 297
  298. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk REPORTING SUBJECTS AND FINANCIAL INFORMATION PROVIDERS Based on Law No. 9 of 2017, Financial Institutions (LK) that are required to report include: FINANCIAL INSTITUTIONS BY SECTOR Banking 1. Commercial Bank 2. BPR 3. Islamic Bank Capital market Insurance Commodity Futures Trading 1. Underwriting 2. Securities Brokerage (PPE) 3. Investment Manager (MI) 4. Custodian Bank 5. Administrative Bureau 1. .General and Sharia Insurance Companies 2. Sharia Life and Life Insurance Company 3. Sharia Reinsurance and Reinsurance Company 1. Futures Broker 2. Futures Broker Clearing Member Cooperatives Koperasi Simpan Pinjam NATURE OF FINANCING INFORMATION Based on Law No. 9 of 2017, the method of providing financial information is divided into 2 (two), namely: 1. 1. Automatic Reporting of financial information that is managed for 1 (one) calendar year automatically (without being asked). Financial institutions reporting financial account reporters, identify financial accounts that must be reported by applying the identification process to submit financial information reports. Based on Law No. 9 of 2017, there are 5 (five) data elements to be exchanged including: a. a. Identity of financial account holders b. b. Financial account number c. c. Identity of the reporting financial institution d. d. Balance or financial account value e. e. Income related to financial accounts. Financial Accounts that must be reported automatically by Financial Institutions: a. Banking Sector (savings) i. Domestic Customers -- owned by an individual, with an aggregate balance of at least Rp1 billion (one billion Rupiah);; -- owned by the entity, without a minimum balance limit; ii. Foreign Customers -- financial account worth US$250,000 (two hundred fifty thousand United States Dollars) b. Insurance Sector (policy) insurance coverage of at least Rp1 billion (one billion Rupiah); c. Cooperative Sector (deposits) with an aggregate balance of at least Rp1 billion (one billion Rupiah); d. Capital Market Sector (securities) and Commodity Futures Trading (deposit margin) without a minimum balance limit 2. Request by the Directorate General of Taxes Financial information reporting based on a Directorate General of Taxes request that has the authority to request information and / or evidence or information, in addition to information from automatic reports, to financial institutions. Financial institutions must provide information and / or evidence or information requested by the DGT for a maximum of 1 (one) month after the request is received that at least should contain: a. Information or evidence or information requested b. Format and form of request requested c. Reason for the request IMPLEMENTATION IN BNI Following up on the regulation on financial data information access, BNI has participated as a form of compliance for accessing financial information by sending customer data based on criteria that must be reported at the end of each year starting in 2018 to the Directorate General of Taxes. 298 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  299. Analisis & Pembahasan Manajemen FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA) LEMBAGA KEUANGAN DJP FATCA is a regulation issued by the US Treasury Department and Internal Revenue Service (“IRS”) to prevent tax evasion by US citizens or companies (US persons) for funds or businesses kept outside the United States. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 299
  300. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Related to FATCA, the steps that BNI has taken include: 01 Since July 1, 2014, the Customer Due Diligence process for individual customers has been carried out BNI registered with the IRS at the end of April 2014 02 FATCA 04 In 2015, additional forms for individual customers were included in the account opening form Since January 2015, the Customer Due Diligence process requiring prospective customers to fill out an additional account opening form has been conducted 03 Then through POJK No.25/POJK.03/2015 dated December 11, 2015 concerning Foreign Customer Information Submission Related to Taxation with Partner Country or Partner Jurisdiction, BNI committed to complying with the FATCA regulation, and was registered with the IRS as a financial institution that would implement the FATCA regulation. Currently compliance with the FATCA regulation is part of BNI’s Customer Due Diligence process and has been implemented since July 1, 2017.The Bank reporting related to the POJK was reported at the end of April 2018 for domestic taxes, while to purposes of the first International agreement was reported in early August 2018. 300 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  301. Analisis & Pembahasan Manajemen OTHER MATERIAL INFORMATION OTHER MATERIAL INFORMATION There was no significant material information and facts after the date of the auditor’s report that influenced BNI’s financial position as of December 31, 2018. OTHER SIGNIFICANT TRANSACTIONS OF A SIGNIFICANT AMOUNT During 2018, there were no significant transactions of a significant amounts conducted by BNI. ISO 9001:2015 Repair is relentless and as one of BNI’s cultural work values, BNI encourages everyone to always make improvements. One such cultural work value is the quality management system ISO 9001: 2015, when preparing the Financial Report (FR). ISO 9001: 2015 ensures that the BNI CGC meets regulators, external parties, and BNI management expectations and is accurate, timely, and in accordance with regulatory provisions. Efforts have been taken by BNI to develop procedures, documentation, and employee development for those involved in preparing the CGC, as well as systems and working environment improvements, to meet ISO 9001: 2015 requirements. In September 2016, the process for preparing the BNI CGC was officially recognized by ISO 9001: 2015. Every 3 (three) months, surveillance audits are conducted related to the implementation of ISO 9001: 2015, and during 2018 2 surveillance audits were conducted with satisfactory results. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 301
  302. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk SIGNIFICANT CHANGES IN LAWS AND REGULATIONS AFFECTING THE BANK The changes to several laws and regulations in 2018 and their affect on Bank BNI are described in the following table: Regulation Changes and Affect on BNI and Subsidiaries Performance No. 1. 2. Regulation PBI No. 20/3/PBI/2018 Regarding Statutory Reserves in Rupiah and Foreign Exchange for Conventional Commercial Banks, Sharia Commercial Banks, and Sharia Business Units 1. Fulfillment of Rupiah MSR for BUK of 6.5% (six point five percent) for BUK Deposits in rupiah during a certain reporting period: a. Daily basis of 4.5% (four point five percent); and b. An average of 2% (two percent) effective July 16, 2018. 2. Fulfillment of Foreign Exchange MSR for BUK of 8% (eight percent) for BUK TPF in foreign currencies during a certain reporting period: a. Daily basis of 6% (six percent); and b. An average of 2% (two percent). effective October 1, 2018 PADG No. 20/10/ PADG/2018 Regarding Statutory Reserves in Rupiah and Foreign Exchange for Conventional Commercial Banks, Sharia Commercial Banks, and Sharia Business Units 3. Fulfillment of Statutory Reserves in points 1 and 2 above are calculated by comparing the position of the Demand Deposit account balance at BI at the end of the day in 2 (two) reporting periods to the daily average number of TPF in the 2 (two) reporting periods at 4 (four) previous reporting periods. 4. BI provide checking services every day for a certain portion of the fulfillment of Statutory Reserves in BUK rupiah. The giro service is given at an interest rate of 0% (zero percent) per year. Changes in the amount of demand deposit services will be determined by PADG. 5. Adjustment of the sanction provisions for BUK, related to the application of the average Statutory Reserves for MSR in BUK foreign currency to 2 (two) types of sanctions, namely sanctions for the fulfillment of daily Statutory Reserves and sanctions for meeting the average Statutory Reserves. PADG No. 20/11/ PADG/2018 Regarding Macroprudential Intermediation Ratio and Macroprudential Liquidity Buffer for Conventional Commercial Banks, Sharia Commercial Banks, and Sharia Business Units 1. Completion of the Loan to funding Ratio (LFR MSR) Statutory Reserves into the Macroprudential Intermediation Ratio (RIM); Criteria for corporate securities (SBK) held by the Bank in rupiah and foreign currencies are used as the basis for calculating RIM or Sharia RIM Criteria for securities (SB) issued by the Banks in rupiah and foreign currencies, are used as the basis for calculation of RIM or Sharia RIM; Completion of Secondary Minimum Requirement Current Account (Second- PADG No. 20/11/ PADG/2018 Regarding Macroprudential Intermediation Ratio and Macroprudential Liquidity Buffer for Conventional Commercial Banks, Sharia Commercial Banks, and Sharia Business Units as amended several times, the latest by PADG No.20/33/PADG/2018 302 Affect on BNI and Subsidiaries Regulation Description 2. 3. 4. 1. 2. 3. 1. ary MSR) to be a Macroprudential Liquidity Buffer (PLM) provided that: a. PLM BUK must be a minimum of 4% (four percent) of TPF BUK in rupiah b. PLM Sharia must be a minimum of 4% (four percent) of TPF BUS in rupiah. 5. 5. The PLM and Sharia PLM compliance obligations are regulated as follows: a. PLM is fulfilled in the form of: • • b. SB in rupiah owned by BUK to be used in monetary operations; and SBS in rupiah held by UUS to be used in sharia monetary operations, for BUK that have UUS; and Sharia PLM is fulfilled in the form of SBS in rupiah owned by BUS to be used in sharia monetary operations. Beradaptasi dengan Cepat Menghadapi Perubahan  2. 3. Maintaining Rupiah MSR that must be fulfilled on a daily basis at 4.5% (four point five percent) and on average at 2% (two percent) during certain periods starting July 16, 2018. Maintaining Foreign Exchange MSR that must be fulfilled on a daily basis at 6% (six percent) and on average at 2% (two percent) during certain periods starting October 1, 2018 Updating the PP Work Procedure of the Treasury Division Procedure Funding And Gapping Group Chapter, Provisions for Implementation Sub-Section, for Funding and Gapping Management Sub-Section. The first report on Corporate Securities (SBK) owned and issued by the Bank for the monthly position: a. May 2018, by BUK no later than 10 (ten) working days after the end of the reporting month. b. August 2018, by BUS and UUS no later than 10 working days after the end of the reporting month. The obligation to fulfill the RIM Current Account came into force on July 16, 2018. The obligation to fulfill the RIM Syariah Current Account took effect on October 1, 2018. PT Bank Negara Indonesia (Persero) Tbk
  303. Analisis & Pembahasan Manajemen No. 3. Regulation PBI No. 20/6/PBI/2018 Affect on BNI and Subsidiaries Regulation Description 1. Regarding Electronic Money 2. 3. 4. 5. Based on the scope of operation, Electronic Money (EM) can be divided into: a. closed loop, which is EM that can only be used as an instrument of payment to the Provider of Goods and / or Services that constitutes the EM Issuer; and b. open loop, which is EM that can be used as an instrument of payment to a Provider of Goods and / or Services that is not an EM Issuer. 2. EM as referred to in paragraph (1) can be distinguished based on: a. EM Value storage media in the form of: • server based, namely EM with storage in the form of servers; and • chip based, namely EM with chip storage media; and b. recording User identity data in the form of: • unregistered, i.e. EM whose User identity data is not registered and is not registered with the Issuer; and • registered, i.e. EM whose User identity data is registered and regis- 1. 2. Submitting a statement and representation and warranties as referred to in Article 14 no later than 6 (six) months after this PBI comes into force. Ensuring the suitability of Electronic Money implementation within the provisions as stipulated in the PBI. tered with the Issuer. EM management permits and approvals, including, obligations and grouping of permits, general feasibility requirements and aspects, permits and approvals submitting and processing application procedure, capability and propriety appraisal; shareholder control, permit evaluation; and licensing and approval policies; i.e. operators must submit written statements and representations and guarantees to Bank Indonesia. 4. statement and guarantee is submitted and signed by the board of directors authorized to represent the Bank or Institutions other than Bank and must be accompanied by a statement from an independent and professional legal consultant based on legal due diligence. 5. The EM implementation includes the application of risk management, information system security standards, EM transaction processing in the Indonesian territory, interconnection and interoperability, the application of anti money laundering and prevention of terrorism funding, the application of consumer protection principles, the implementation of EM activities, and the implementation of Digital Financial Services (DFS); a. The limit on the amount of EM that can be deposited is determined as follows: • for unregistered EM a maximum of Rp2,000,000.00 (two million rupiah); and • for registered EM no more than Rp10,000,000.00 (ten million rupiah). b. PT Bank Negara Indonesia (Persero) Tbk  The amount limit for EM transactions in 1 (one) month is no more than Rp20,000,000.00 (twenty million rupiah). Beradaptasi dengan Cepat Menghadapi Perubahan 303
  304. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 4. Regulation PBI No. 20/8/PBI/2018 Regarding Loan to Value Ratios for Property Loans, Financing to Value Ratios for Property Financing, and Advances for Vehicle Loans or Financing Affect on BNI and Subsidiaries Regulation Description 1. Ratio adjustment and LTV tiering for Property Loans (PL) and ratio and tiering for Property Financing (PF) for the first facility, second facility, third facility and so on, for banks that meet or do not meet the following requirements: a. The ratio of net problem loans is less than 5% (five percent); and b. The ratio of problematic PL or the PF ratio is grossly problematic at less than 5% (five percent). Provision of top up by BUK in addition to the previous PL using the previous PL LTV Ratio as long as the top up uses the same collateral and the previous PL has current quality, if it does not use the same collateral and / or the previous PL did not have current quality, the additional loan (top up) uses the LTV ratio for PL as a new loan. For PL and take over PF with additional loan (top up) or accompanied by new financing using the LTV PL Ratio or the same FTV PF ratio as long as the PL or PF has current quality as referred to in item 2 above . PLs or PFs for property ownership that are not yet fully available are set to a maximum of 5 (five) facilities and are obliged to withdraw PL or PF in stages with the following conditions: 2. 3. 4. No Disbursement of PL or PP Adjustment of BNI's internal policies and procedures by referring to the provisions of the PBI. Stages a. ≤ 30% of the limit After signing the PL without the need for an assessment of development progress b. ≤ 50% of the limit After the first stage b until completion, based on development progress assessment *) c. ≤ 90% of the limit After first stage b. until completion of the limit based on the development development assessment *) d. 100% of the limit After the signing of the handover minutes, completed with a sale and purchase deed and deed of assignment of mortgage rights or a power of attorney imposing mortgage rights *) must be based on development progress reports from: a. developer with verification from the Bank's internal appraiser; or b. independent appraiser 5. The procedure for valuing collateral is determined as follows: a. for PL or PF given with a ceiling of up to Rp 5,000,000,000.00 (five billion rupiahs), the collateral value is based on estimates made by the Bank's internal appraiser or independent appraiser; and b. for PL or PF given with a ceiling above Rp 5,000,000,000.00 (five billion rupiah), the collateral value is based on estimates made by an independent appraiser. 6. Banks that provide KKB or PKB must fulfill the following conditions for Advances: Type of vehicle ≤ 20% 3 wheel / not intended for productive activities ≤ 25% 7. 8. The provisions in point 6 above apply to banks that meet the following requirements: a. The ratio of gross problem loans is less than 5% (five percent); and b. The ratio of KKB is problematic or the PKB ratio is grossly problematic at less than 5% (five percent). In the event that a Bank does not meet the requirements as referred to in point 7, the Bank must fulfill the following conditions for Advances: Type of vehicle Down payment 2 wheel ≤ 20% 3 wheel / not intended for productive activities ≤ 30% 9. 304 Down payment 2 wheel In the event that a Bank provides a KKB or PKB for the purchase of three-wheeled or more motorized vehicles intended for productive activities, the Bank must meet the following conditions: a. provide KKB or PKB with a down payment of at least 20% (twenty percent); and b. meet the following requirements: • is a vehicle that has permission to transport people or goods issued by the authorities; or • submitted by individuals or legal entities that have business licenses issued by the authorities that support the operational activities of their businesses. Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  305. Analisis & Pembahasan Manajemen No. 5. Regulation POJK No. 2/ POJK.03/2018 Regarding Systemic Bank Determination and Capital Surcharge Affect on BNI and Subsidiaries Regulation Description 1. OJK has established a Systemic Banks and Capital Surcharge to coordinate with BI, for every semester in: a. March by using the position data for December of the previous year; and b. September using the position data for June of the current year. 2. The OJK sends a written notification to the Bank as a Systemic Bank and the Capital Surcharge amount required by the Systemic Bank. 3. The methodology for determining the systemic bank uses an indicator of bank size, complexity of business activities, and its interconnectedness with the financial system. 4. 4. Capital Surcharge must be fulfilled by using the main core capital (Common Equity Tier 1), the amount of which is set in 5 (five) buckets as follows: a. 1.0% (one point zero percent) of Risk Weighted Assets (RWA) for Systemic Banks classified in bucket 1 (one); b. 1.5% (one point five percent) of RWA for Systemic Banks classified in bucket 2 (two); c. 2.0% (two point zero percent) of RWA for Systemic Banks classified in bucket 3 (three); d. 2.5% (two point five percent) of RWA for Systemic Banks classified in bucket 4 (four); and e. 3.5% (three point five percent) of RWA for Systemic Banks classified in bucket 5 (five). 5. 5. Establishment of Capital Surcharge is carried out with the following stages: a. a. for Systemic Banks classified in bucket 1 (one), amounting to: • 0.75% (zero point seven five percent) of RWA after this OJK Regulation came into force; and • 1.0% (one point zero percent) from RWA after January 1, 2019; b. b. for Systemic Banks classified in bucket 2 (two), amounting to: • 1.125% (one point one two five percent) from ATMR after this OJK Regulation came into force; and • 1.5% (one point five percent) from RWA after January 1, 2019; c. c. for Systemic Banks which are classified in bucket 3 (three), amounting to: • 1.5% (one point five percent) of RWA since this OJK Regulation came into force; and • 2.0% (two point zero percent) from RWA after January 1, 2019; d. d. for Systemic Banks classified in bucket 4 (four), amounting to: • 1.875% (one point eight seven five percent) of RWA since this OJK Regulation came into force; and • 2.5% (two point five percent) from RWA after January 1, 2019; e. for Systemic Banks classified in bucket 5 (five), amounting to 3.5% (three point five percent) after January 1, 2019. PT Bank Negara Indonesia (Persero) Tbk  BNI is required to monitor the Systemic Bank bucket category that will be notified in writing by the OJK and provide Capital Surcharge in accordance with the bucket determined by OJK. Beradaptasi dengan Cepat Menghadapi Perubahan 305
  306. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 6. Regulation POJK No. 12/ POJK.03/2018 Regarding Implementation of Digital Banking Services by Commercial Banks 7. POJK No. 18/ POJK.07/2018 Regarding Consumer Complaint Services in the Financial Services Sector SEOJK No. 18/ SEOJK.07/2018 Guidelines for Implementing Consumer Complaint Services in the Financial Services Sector 306 Affect on BNI and Subsidiaries Regulation Description 1. Electronic Banking Services (EBS) is a service for Bank customers to obtain information, communicate, and conduct banking transactions through electronic media. 2. Digital Banking Services (DBS) are EBS that are developed by optimizing the use of customer data in order to serve customers more quickly, easily, and according to needs (customer experience), and can be carried out independently by customers, taking into account security aspects. 3. Banks may hold EBS or DBS and must apply risk management, prudential principles, and fulfill the provisions in POJK. 4. The Bank is required to include the EBS product issuance plan or plan for the implementation of the DBS by the Bank and / or by the Bank Partner in the Bank's business plan. 5. Banks that issue transactional EBS products or have plans to implement DBS must obtain approval from OJK. 6. Requests for EBS or DBS approval must be submitted to OJK no later than 2 (two) months prior to implementation. 7. The bank holding the DBS is obliged to establish a unit or function in charge of managing the DBS. 8. In conducting business relationships with customers or prospective customers through the DBS, Banks are required to identify and verify information and supporting documents for customers or prospective customers. 9. Verification of information and supporting documents for customers or prospective customers is carried: a. Face to face: • Directly (face to face); or • Using Bank-owned software with Bank-owned hardware or hardware belonging to customers or prospective customers; and / or b. Without going through face-to-face but using the Bank's software with Bank's hardware or hardware belonging to customers or prospective customers. 10. In conducting verification with hardware and / or software, the Bank must pay attention and apply at least 2 (two) authenticity factors (two factor authentication). 11. In the event that the Bank verifies without face to face, Banks must apply characteristic factors (what you are) as one of 2 (two) authenticity factors (two factor authentication). 1. The Complaint Services consists of: a. Complaint Receipt; b. Complaint Handling; and c. Complaint settlement 2. PUJK are prohibited from charging Complaint Services to Consumers. 3. PUJK must have written procedures regarding Complaint Services and must include brief procedures for Complaint Services in agreements and / or financial Transaction documents. 4. PUJK is obliged to follow up and settle verbal complaints at the latest 5 (five) working days after the Complaint is received by PUJK. 5. PUJK must conduct follow-up and perform Complaint settlement in writing no later than 20 (twenty) working days after the documents directly related to the Complaint are received in full. 6. The PUJK Board of Commissioners must ensure that the PUJK Directors have and carry out Complaint Service procedures. 7. PUJK must prepare and submit Complaint Service reports quarterly to OJK to be submitted no later than the 10 (ten) of the following month after the quarterly period has ended. Beradaptasi dengan Cepat Menghadapi Perubahan  1. 2. 1. 2. 3. When conducting DBS, BNI must form a unit or function in charge of hosting the DBS. BNI is required to guided by the the POJK if it will has an EBS or DBS. Adjusting internal policies and procedures by referring to the POJK. Publishing brief procedures for Complaint Service to Consumers and / or the community as well as handling the latest Complaints, in annual reports, websites and / or other media that is officially managed. The Board of Commissioners must ensure that the Board of Directors has and implements Complaint Service procedures. PT Bank Negara Indonesia (Persero) Tbk
  307. Analisis & Pembahasan Manajemen No. 8. Regulation POJK No.15/ POJK.03/2018 Regarding Legal Lending Limit or the Bank's Maximum Fund Distribution Limit to Encourage the Tourism Sector Growth and Increase Foreign Exchange Affect on BNI and Subsidiaries Regulation Description 1. 1. Exemptions from the LLL or BMPD calculation include: a. Provision of Export-oriented funds to financial institutions that meet certain requirements b. Part Provision of Funds that are guaranteed by financial institutions that meet certain requirements 2. Certain requirements as referred to in point 1, namely: a. owned by the central government; b. business activities providing national export financing; and c. stipulated by Law with sovereign status 3. The guarantee as referred to in point 1.b must meet certain requirements, namely: a. unconditional and irrevocable; b. can be disbursed no later than 7 (seven) working days from the submission of claims, including partial disbursement to pay arrears in principal installments or interest / margin / profit sharing / ujrah; c. has the shortest period of time equal to the period of Provision of Funds; and d. is not a counter guarantee. 4. The Bank must file a claim against the guarantee received no later than 7 (seven) working days after the Borrower defaults. 5. The borrower is declared default if: a. There has been arrears of principal and / or interest / margin / revenue sharing / and / or other charges for 90 (ninety) days despite the provision of Funds not yet due; b. There has been repayment of principal and / or interest / margin / profit sharing / final and / or other charges when the Fund Provision is due; or c. There has been no fulfillment of any other requirements other than principal payment and / or interest / margin / revenue share / ujrah which may result in default. 6. Provision of Bank Funds to State-Owned Enterprises (SOEs) for the purpose of development is set at a maximum of 30% (thirty percent) of the Bank's Capital. Provision of Funds to State-Owned Enterprises (BUMN) for development purposes includes Provision of Funds for: a. Food procurement; b. Very simple home procurement; c. Procurement / supply / management of oil and gas as well as other similar alternative energy sources; d. Water supply / supply / management; e. Procurement / supply / management of electricity; f. Procurement / processing of export-oriented commodities; g. Procurement of land, sea and air transportation supporting infrastructure in the form of roads, bridges, railroads, seaports and airports construction; and / or h. National Tourism Strategic Area (KSPN) development as set and prioritized by the central government and referred to in the Presidential Regulation concerning the acceleration of national strategic projects. PT Bank Negara Indonesia (Persero) Tbk  Adjustments to BNI's internal policies and procedures based on the POJK provisions. Beradaptasi dengan Cepat Menghadapi Perubahan 307
  308. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk CHANGES IN ACCOUNTING POLICIES The changes in accounting policies in 2018 and their impact on Bank BNI are outlined in the table as follows: Changes in Accounting Policies No. Accounting Policy Change Amendment to PSAK 24: Employee Benefits regarding Amendment, Curtailment, or Settlement Program Impact of Accounting Policy Changes on BNI and Subsidiaries Policy Change Reason The amendment to PSAK 24 provides clearer guidance for entities in recognizing past service costs, settlement gains and losses, current service costs and net interest after amendments, curtailments, or program settlement as they use the latest actuarial assumptions (previously used acturial assumptions at the beginning of the annual reporting period). This PSAK has an influence on BNI related to BNI employee benefits but currently BNI has never made amendments, curtailments or settlements in the Program. This standard is effective as of January 1, 2019 with early application permitted. PSAK 74: Insurance Contract Insurance contracts require the entity to identify the insurance contract portfolio. The portfolio consists of contracts that have similar risks and are jointly managed. The entity divides the insurance contracts issued at least into an onerous contract group at initial recognition, contract groups at the initial recognition having no significant possibility of subsequently becoming a losing contract, and contract groups remaining in the portfolio. This PSAK has an influence on BNI subsidiaries, namely BNI Life. This standard is effective January 1, 2022. 308 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  309. Analisis & Pembahasan Manajemen Material changes in accounting policies that will apply THE STATEMENT OF FINANCIAL ACCOUNTING STANDARDS (PSAK) 71 - FINANCIAL INSTRUMENTS In 2014, IASB (International Accounting Standard Board) issued IFRS 9 - Financial Instrument. This International Standard is effective in countries that perform Full Adoption IFRS as per January 1, 2018 to replace IAS (International Accounting Standard) 39 - Financial Instrument: Recognition and Measurement (adopted in Indonesia into PSAK 55 - Financial Instruments: Recognition and Measurement In September 2017, DSAK IAI (Financial Accounting Standards Board - Indonesian Institute of Accountants) issued Financial Accounting Standards (PSAK) 71 - Financial Instruments. This PSAK adopts IFRS 9 and will become effective as of January 1st 2020, supersedes PSAK 55: Regulation IFRS 9/PSAK 71 PSAK 55 Determination of Classification of Financial Assets & Liabilities Based on Business Model with SPPI (Solely Principal, Payment & Interest) test Based on intention Klasifikasi Aset Keuangan Fair Value through Profit/Loss (FVPL) • Fair Value through Other Comprehensive Income (FVOCI) • Amortised Cost (AC) • • • • Reklasifikasi Aset Keuangan If there are any changes to the Company’s Business Model Permitted, for certain conditions (there are certain conditions affected by tainting rules) Tainting Rules Deleted Applies to HTM category reclassification to AFS over material limit Hedge Accounting • • • • Tahapan Penentuan Impairment (Penurunan Nilai) Requirements and documentation are simpler Dealing directly with the Bank’s risk management strategy Assessment of effectiveness in accordance with risk management objectives Stage 1 – Performing • Financial instruments that do not experience significant increases in credit risk (investment grade, and there are no arrears) • Expected Credit Loss 12 Months after the reporting date Stage 2 - Under Performing • Financial instruments experiencing a significant increase in credit risk but there is no evidence of impairment objectives (there are arrears but have not passed the impairment criteria of 90 days in arrears) • Expected Credit Loss: Lifetime (over the life of financial instruments • • Held to Maturity (HTM) Fair Value through Profit/Loss (FVTPL) Loan and Receivables (LAR) Available for Sales (AFS) More detailed requirements and documentation There is no direct relationship with the Bank’s risk management strategy Assessment of effectiveness 80% to 125% Performing and No Significant value • CKPN is calculated collectively • Using Probability of Default (PD) and Loss Given Default (LDG) based on historical data Non Performing and / or Individually Significant • CKPN is calculated individually • Using CKPN Discounted Cashflow Stage 3 - Non Performing • Financial instruments that meet the criteria of impairment (arrears ≥ 90 days) • Expected Credit Loss: Lifetime (over the life of financial instruments Statistical approach Point in Time (PiT), taking into account macroeconomic factors Migration analysis and roll rate, without taking into account macroeconomic factors CKPN for Loan Commitments CKPN calculation performed on Loan Commitment CKPN not calculated for Loan Commitment PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 309
  310. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk As BNI has overseas branch offices, 3 (three) BNI overseas branches (Singapore, Seoul, London) were required to apply IFRS 9 as of January 1, 2018. For the Hong Kong branch, IFRS 9 implementation will take place at the beginning of 2020 following the Head Office, while the 2 (two) other branches (Tokyo and New York) are not required to apply IFRS 9 based on their respective regulators. REVIEW OF FIXED ASSETS Based on the Capital Market and Financial Institution Supervisory Agency Chairperson decision KEP-347/ BL/2012 dated June 25, 2012 concerning the Presentation and Disclosure of Financial Statements of Issuers or Public Companies, taking into account the book value of fixed assets (land and buildings) that was revalued in 2015 , then in September 2018, BNI revalued its fixed assets for groups of land and building assets both in the country and abroad. Land and buildings assessments were carried out by external independent assessors as follows: 1. KJPP Toha Okky Heru and Partners 2. KJPP Rengganis Hamid and Partners 3. KJPP Benedictus Darmapuspita and Partners 4. KJPP Abdullah Fitriantoro and Partners Assessments were carried out based on Indonesian Appraisal Standards, determined based on current market transactions and carried out with the usual conditions. The valuation method used included the market data method, cost method and income method. The elements used for data comparison to determine the fair value of assets included: 1. Types and rights attached to property 2. Market conditions 3. Location 4. Physical characteristics 5. Income generating characteristics 6. Land characteristics The following summarizes the fixed assets revaluation results in 2018: 1. Land The land reassessment resulted in an increase in carrying cost of Rp1.4 trillion, and consisted of an increase in land value being recorded as Other Comprehensive Income of Rp1.4 trillion, and a decrease in land value, which was recognized as an expense for the current year of Rp4.4 billion. 2. Buildings The increase in carrying cost arising from the buildings’ revaluation was Rp1.4 trillion. This increase was recorded as Other Comprehensive Income of Rp1.4 trillion, and the decrease in the value of buildings was recognized as current expenses of Rp32.0 billion. 310 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  311. Analisis & Pembahasan Manajemen PREPARATION FOR IMPLEMENTATION OF PSAK 71 - FINANCIAL INSTRUMENTS Following the issuance of IFRS 9: Financial Instruments by the International Accounting Standard Board (IASB) in 2014, BNI responded by preparing a literature study and preliminary gap analysis. In preparation for implementation, BNI actively participated in discussions with the Indonesian Institute of Accountants (IAI), as an authorized institution in the preparation of financial accounting standards in Indonesia, banking industry associations, and Otoritas Jasa Keuangan (OJK). IFRS 9 was adopted in Indonesia in April 2017 and became PSAK 71: Financial Instruments, and will be effective in Indonesia as of January 1, 2020. As a follow up, BNI conducted a gap analysis of PSAK 71 requirements, with the implementation of PSAK 55 currently in force, using KPMG as a consultant. In 2018, BNI reappointed KPMG as an implementation consulting assistant for the preparation of PSAK 71 policies and procedures. In addition, after going through the procurement process, BNI appointed PT. Nexia Indonesia Advisory Service as a system development vendor in carrying out the process of developing a support system for implementing PSAK 71 in BNI.. Roadmap implementasi PSAK 71 in BNI General 2014 - 2017 2018 Preparation & Literature Study Gap Analysis Development Phase Comparison of PSAK 55 implementation and PSAK 71 Requirements Provision of resources (Humans, funds, infrastructure & procedures) • Study of IFS9 Literature and PSAK 71 • Comparison of implementation with an early adation bank 2019 Monitoring Implementation • Finalize development • Analyze the impact during the parallel run • Adjustment to policies and procedures • Adjustment to chart of accounts and mapping of reports • Adjustment to systems Classification & Measurement Identification of PSAK 71 requirements for classification with BNI policies Impairment Identify differences in calculation of PSAK 71 and BNI CKPN • Adjustment to policies and procedures • Modeling development and CKPN Environmental Value Accounting Identify differences in the PSAK 71 implementation and BNI hedge accounting • •Adjustment to policies and procedures • •Adjustment to system PT Bank Negara Indonesia (Persero) Tbk  2020 Beradaptasi dengan Cepat Menghadapi Perubahan 311
  312. L ANPNOURAA LN A R EHPUONRATN TA 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BUSINESS CONTINUITY MATTERS POTENTIALLY HAVING A SIGNIFICANT INFLUENCE AS A GOING CONCERN For operational risk management implementation, BNI refers to Bank Indonesia / Otoritas Jasa Keuangan provisions, and International Best Practices. Operational risk management includes the process of identifying, measuring, monitoring and controlling operational risk. MANAGEMENT ASSESSMENT ON MATTERS HAVING A SIGNIFICANT INFLUENCE AS A GOING CONCERN One of the tools used to perform risk management at BNI is PERISKOP (Perangkat Risiko Operasional). Periskop consists of 3 (three) main modules: 1. Self Assessment Module, is a methodology to detect the possibility that an operational risk has occurred. This method is a self- assessment process conducted by every risk owner independently in identifying, assessing, controlling and monitoring operational risk in each unit. Self Assessment module should be filed by all units, once every 3 (three) month; by conducting an assessment of the existing risk issue frequency and impacts; and finding solutions to mitigate emerging operational risks. 2. The Loss Event Database is a system to identify and record every operational risk that causes direct financial impact. Each time the risk owner unit experienced financial loss from operational risk, the unit should record it in the Lost Event Database module. The module will generate information such as type of risk, cause of risk, location where the risk emerge and the amount of risk or legal obligation and the recovery (if any). This system is very important to monitor operational risk exposure and profile in an orderly manner. The data gathered from the Loss Event Database will become the main input when the Bank applies advance approaches to measure its minimum operational risk capital adequacy ratio. 3. Key Risk Indicators, is a series of parameters established to identify main potential loss from operational risk that potentially interfere the achievement of Key Performance Indicator (KPI) before it happens. The module will give a warning/alert when the exposure exceeds a predetermined range/threshold that has been set and requires follow up from Unit’s management to overcome the problems. Besides PERISKOP, BNI has Operational Risk Expense (Beban Risiko Operasional (BRO)) and BRO Recovery accounts, which will be used to record losses or recoveries caused by operational risks. The recording in BRO accounts would also affect the performance assessment and also described in the Performance Measurement System (PMS) of the units concerned. To mitigate the operational risk, BRO account and recovery will be monitored monthly. 312 Beradaptasi dengan Cepat Menghadapi Perubahan  PT Bank Negara Indonesia (Persero) Tbk
  313. Analisis & Pembahasan Manajemen Regarding the business resilience when disaster occurs, BNI has a Business Continuity Management (BCM) policy, which is a formal mechanism that combined strategies, policies, procedures and organizations developed to ensure operational continuity of critical functions under certain levels of services when a disturbance or disaster is encountered. This policy is applied for all business units in BNI for both domestic and overseas. BNI has the infrastructure needed to implement BCM such as Disaster Recovery Center (DRC), Dual Data Center (DDC), BCM alternative building and Command Center. Regularly BNI perform a system and application testing on critical Division/Unit every 3 (three) months, do a site visit and simulation to the branch and region to ensure the disaster readiness. ASSUMPTIONS USED BY MANAGEMENT IN CONDUCTING ASSESSMENTS TO MANAGE MATTERS HAVING A SIGNIFICANT INFLUENCE AS A GOING CONCERN To manage any potentially significant impact on business continuity, especially financial, BNI has already established a Recovery Plan. In preparing the scenarios for the Recovery Plan, BNI used assumptions for liquidity crisis, based on Bank Indonesia’s granular stress test scenario, and the Liquidity Coverage Ratio (LCR) calculation scenario adjusted to BNI’s internal conditions. For the solvency crisis, it is based on the OJK assumption scenario for the Financial Stability Assessment Program (FSAP), adjusted to BNI’s internal conditions, as these scenarios are considered to represent near default conditions. PT Bank Negara Indonesia (Persero) Tbk  Beradaptasi dengan Cepat Menghadapi Perubahan 313
  314. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk BUSINESS SUPPORT UNIT 316CREDIT RISK MANAGEMENT 321NETWORK AND SERVICES 324BNI CONTACT CENTER 327UNIT SERVICES UNIT 328INFORMATION TECHNOLOGY 331INFORMATION TECHNOLOGY UTILIZATION 335INFORMATION TECHNOLOGYGOVERNANCE 336INFORMATION TECHNOLOGY FUTURE DEVELOPMENT PLAN 339DIGITAL BANKING 340ELECTRONIC BANKING 347HUMAN CAPITAL 314 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  315. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 315
  316. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk CREDIT RISK MANAGEMENT BNI’s expansive credit growth was the result of credit risk management improvement efforts in 2018. Amid the not yet fully recovered economic conditions in Indonesia, credit risk management has become an important factor in supporting the business growth strategies for maintaining BNI’s credit quality in line with the established risk appetite. The synergies between units for business acceleration have helped maintain BNI’s credit quality, with the non-performing loan (NPL) ratio standing at 1.9%. 316 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  317. Business Support Unit 2018 PERFORMANCE SELECTIVE PRODUCTIVE ASSETS GROWTH LOANS DISBURSED PROCESS FLOW During 2018 the Chinese economy has still not stretched or boosted the global economy as it did in 2008 . Therefore, China’s economic growth in 2018 is not expected to be better than the previous year. This was due to exports and foreign investments, usually the driving force of the Chinese economy, slowing down. These conditions also affected the Indonesian economy, as one of its trading partners. BNI therefore has established a policy to strengthen its business expansion in selected corporate and middle segment market sectors to maintain quality. BNI has made improvements in the Business Banking loan process in the Corporate, Commercial and Small Business segments. To achieve quality loan growth, setting strategic sectors and optimizing the supply chain and cross selling are important elements in the deep assessment process of the parent account (Anchor Company). The productive assets growth in the consumer segment in 2018 was more focused on selective borrowers with low risk profiles and included: • BNI Griya expansion focusing on selected developers, selected institutions, emerald customers, cross-sell existing to borrowers who have not used BNI Griya, and take over borrowers with a good track record from other banks, and existing Top Up program borrowers; • BNI Fleksi’s expansion focusing on government agencies, BUMN, BUMD and BHMN that have low employee turnover and also Upper-Middle employees; and • Credit Card expansion focusing on increasing credit card outstandings through loan on phone programs and by increasing credit limits, as well as acquisition policies that focus on the BUMN and government agencies segments. PT Bank Negara Indonesia (Persero) Tbk  Improvements made in the Corporate and Commercial Segments included: 1. Refining the Business Unit Functions The business units planned the list of prospects, marketing, conducts overall credit feasibility assessments (including first way out and second way out analysis) and borrower monitoring; 2. Refining the Risk Unit Functions The Risk Units provided recommendations to the business units after conducting loan risk and mitigation/ risk control analysis that focuses on likely risks and high impact. The Credit Risk Unit implemented Credit Risk Management as a key strategy to safeguarding the aggressive growth policies in 2018. Credit Risk Management includes: 1. Credit Risk Analysis: Increasing the Credit Risk Manager’s role in the credit committee in terms of: a. Balancing the business units (SRM and RM) roles in the committee; b. Maximizing the risk unit role when applying the four eyes principles. 2. Credit Risk Review: a. Conducting periodic reviews initiated by the risk unit heads at the Branch, Regional and Head Office levels; b. Collaborating with independent parties on specific matters. 3. Credit Administration: a. Ensuring fixed assets collateral taken correctly safeguards BNI’s interests; b. Ensuring credit documentation complies with the provisions; c. Evaluating partner performance. Adapting Quickly to Face Change 317
  318. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk To improve the Corporate segment loan quality efforts made during 2018, included: 1. Gradually implementing industry specialists in the Risk Units to sharpen risk analysis according to industry characteristics and mitigation; 2. Updating key risk parameters for leading sectors including Palm Oil Plantations, Toll Road Infrastructure, Electrical Infrastructure, and Mining. 3. Special monitoring of borrowers with a Collectibility 1 (one) Restruct, Pre NPL, and watchlist status through the Credit Risk Review mechanism (forum of risk units and business units); 4. Pro actively and comprehensively restructuring through joint efforts between business units, risk units, and remedial and recovery units. To improve the Commercial segment loan quality efforts made during 2018, included: 1. Creating a risk register from the audit findings as a lesson learned for the remote units. 2. Special monitoring of borrowers with a Loan at Risk (Collectibility 1 restructuring, Pre NPL, and NPL) status through the Credit Risk Review mechanism (forum of risk units and business units); 3. Establishing ad-hoc teams in all remote units in an effort to reduce loans at risk (LaR) 4. Pro actively and comprehensively restructuring through joint efforts between business units, risk units, and remedial and recovery units. While Small Business Segment improvements included: 1. The RM (Business Unit) preparing a list of prospects, marketing, conducting overall loan feasibility analysis (including first way out and second way out analysis) and borrower monitoring; 2. RM direct supervisors besides having inherent supervision functions, also having a deeper loan risk assessment function. 318 Adapting Quickly to Face Change Supporting tools in the lending process continue to be developed and refined, especially for the Small Business segment, especially, in terms of KUR distribution, supported by an electronic Loan Origination (eLO) system to speed up the loan analysis process. While all banking business segments use the Credit Analysis Assistance System (SABAK) to improve credit process efficiencies, and to reduce human error in the credit analysis process. In addition, the four eyes principle was strengthened at all stages, in the credit processing units up to credit decision making in the credit committees, covering credit breaker officials, in accordance with their authority, aimed at maintaining the quality of loans disbursed. To support the selective business growth in the consumer sector, comprehensive process flow improvements were carried out, ensuring adherence to the prudential principle, including: 1. Know Your Customer (KYC) principle policy for prospective borrowers through a document verification process to minimize application fraud; 2. Corrective action in the consumer loan processing units with an NPL ratio above the specified limit, with decision authorities being raised to a higher level; 3. Special instant approval processes for selected partners (purchasing primary homes with selected developers); 4. Regular and special instant approval processes for the purchase of BNI Griya collateral classified as NPL or written off; 5. BNI Fleksi pre approval and instant approval process for selected partners; 6. BNI Griya pre approval process for Emerald customers (Priority); and 7. BNI Fleksi and BNI Griya pre-approval process for Directors and Commissioners of all BUMNs. PT Bank Negara Indonesia (Persero) Tbk
  319. Business Support Unit LOAN MONITORING One method of creating quality asset growth is through intensive monitoring and loan collection . This monitoring can be realized through visits to borrowers to see the condition of their business, review the feasibility of their loans, and monitor the payment of their liabilities. The business banking segment monitoring process is supported by monitoring tools, including a watchlist system and credit risk review that are used to monitor the borrowers’ loan performance, and to determine any follow-up to ensure the loan quality does not deteriorate. Consumer segment loan monitoring includes: 1. Intensive monitoring of current borrowers with the potential to go into arrears; 2. Debiting credit card holders’ savings account in the Captive Market segment; 3. Following different billing strategies for credit card holders based on the credit card behavior scorecard so that billing is more effective and efficient; 4. Applying Automated Account Allocation for borrowers who have the potential to default to avoid a decline in asset quality; 5. Applying the Field Collector Tracking application to increase productivity; 6. Establishing special collection units for BNI Fleksi borrowers for unsecured products; 7. Monitoring periodically BNI Griya borrowers with loans of more than Rp1 billion (one billion Rupiah); and 8. Applying monitoring digitalization. LOAN RESTRUCTURING AND SETTLEMENT In 2018, during the slowdown in Indonesia’s economic growth and the not yet fully recovered global economy, BNI continued to more comprehensively improve its loan monitoring restructuring, and improve the NPL settlement by referring to the applicable provisions in accordance with the good corporate governance principles. The loan restructuring and settlement strategy is continuing to strengthen BNI’s financial fundamentals and maintain loan quality, and includes increasing the coverage ratio and optimally handling non-performing loans. Non-performing loan handling follows two strategies, loan restructuring and PT Bank Negara Indonesia (Persero) Tbk  loan settlement. The restructuring strategy includes: 1. Restructuring (Reconditioning, Rescheduling) borrowers who have difficulties in fulfilling their obligations but still have prospects and are considered cooperative; 2. Deposits/Settlements through strategic investors; 3. Sales of guarantees voluntarily or through execution of Underwriting Rights; and 4. Foreclosing Collateral (AYDA) and Temporary Participation by the Bank (PSB). While the settlement strategy is applied to borrowers without any prospect of settlement. Written off loans will be pursued to the maximum to minimize bank losses through: 1. Loan settlement through strategic investors; 2. Sales of guarantees voluntarily or through execution of Underwriting Rights; 3. Marketing loan collateral from the consumer and business banking segments by using collateral auction websites that can be accessed by the general public for; 4. Subrogation; 5. Legal action by billing personal guarantors (PG) and company guarantors (CG), execution of mortgage/ fiduciary rights, litigation, bankruptcy and claims. In addition, consumer credit non-performing loans are pursued through two strategies, loan restructuring and settlement, that include: 1. Accelerating the Restructuring (Reconditioning, Rescheduling) for borrowers who have difficulties in fulfilling their obligations but still have prospects and are considered cooperative through the Asset Quality Improvement and Acceleration Recovery (PPKA) Program; 2. Pursuing Legal action (simple lawsuit, State Attorney/ JPN); 3. Auction registration for borrowers in the NPL group to act as a deterrent so borrowers are more committed to completing their obligations; 4. Optimizing collateral auction websites for marketing consumer segment loan collateral; 5. Loan settlement through the transfer of NPL and Delete Book receivables (cessie-transfer or sale of bank-owned loans to other parties or investors based on criteria set by the Bank); and 6. Optimizing buy back guarantees from partner developers and insurance claims. Adapting Quickly to Face Change 319
  320. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 2019 PLAN AND STRATEGY Responding to the economic challenges in 2018, BNI has set an aggressive growth policy while still maintaining quality. Following internal and external studies, loan expansion will focus on prospective and priority industries. In line with this strategy, improvements in loan quality will also became a main focus in 2018 with loan process improvements, including restructuring troubled borrowers, improving risk control in the lending process by implementing the four eyes principle, and with more effective supervision. Loan monitoring will also continue to optimize identification of problems earlier and to apply the appropriate corrective action on borrowers. The Credit Risk Unit plan to strengthen Credit Risk Management is through key strategies to safeguard the aggressive growth in 2019, including: 1. Credit Risk Analysis, including: a. Increasing the Credit Risk Analysts roles and competencies, as follows: i. Corporate Segment -- Optimizing industry specialists especially for leading sectors; -- Optimizing handling of loans at risk (excluding NPL); -- Training and seminars in accordance with industry specifications; -- Sharing sessions with industry players, regulators and other stakeholders; ii. Commercial and Small Business Segments -- Developing the loan process through eLO end to end; -- Strengthening the tracking process function; -- Increasing risk unit risk assessments through knowledge sharing in certain sectors with corporate segment industry specialists; -- Sharing sessions with industry players, regulators and other stakeholders; b. Maximizing the risk unit role as a counterweight to the business units, as well as following the four eyes principles. 320 Adapting Quickly to Face Change 2. Credit Risk Review, including: a. Reviewing the existing industrial sector key risk parameters, adjusted to the macro and micro conditions of the industry; b. Creating key risk parameters for other industrial sectors (excluding those already set in 2018); c. Mapping and discussing loan problems that have occurred and making recommendations (risk mitigation and lessons learned); d. Refining the identification and monitoring of borrower problems so that more accurate action plans can be determined; and e. Refining the identification of borrower problems at an early age through the Early Warning Signal (EWS) system. The consumer credit plan and strategy for 2019 includes: • Maximizing the strategies that were implemented in 2018 • Focusing expansion on selected partners including PKS developers (Cooperation Agreements), selected institutions (BUMN, BUMD, selected national and private institutions, existing borrowers, selected professionals (doctors and notaries), Emerald customers, and consumer relationship banking customers who have had a BNI account for at least 6 months); • Digitizing the loan process through an integrated application data collection system, automatically checking for duplications and Bad Applications, and verification by using internal and external data (Big Data) to shorten the time needed to complete the loan process; and • Loan settlement through transfer of NPL receivables and write offs (via cessie and bulk). PT Bank Negara Indonesia (Persero) Tbk
  321. Business Support Unit NETWORK AND SERVICES BNI ’s network and service development during 2018 was carried out by increasing the office networks (outlets), electronic networks (ATM), Agen46 , and through various network and service innovations supported by the Contact Center Unit and Service Quality Unit. These efforts supported the company’s achievement of its projected business performance. OFFICE NETWORK (OUTLETS) 2018 PERFORMANCE To expand its networks, and to improve its services, and to extend the reach of financial inclusion for the community, in 2018 BNI added 13 (thirteen) Sub-Branch Offices, 23 (twenty three) Cash Offices, 9 (nine) Payment Points, 74 (seventy four) O-Branches (Mobile Cash Services), 1 (one) Small Loan Center, and 1 (one) Money Changer to its office network. In addition, to improve business performance, effectiveness and to optimize outlet management and operational risk control, BNI also ungraded the status of existing outlets with 1 (one) Sub-Branch Office becoming a Branch Office and 12 Cash Offices becoming Sub-Branch Offices. The BNI office network at the end of 2018 was spread across 34 (thirty four) provinces reaching 476 (four hundred seventy six) cities/regencies (91%) throughout Indonesia, and consisted of 17 (seventeen) Regional Offices, 201 (twenty hundred one) Branch Offices, 1,109 (a thousand one hundred ninety) Sub-Branch Offices, 605 (six hundre five) Cash Offices including 14 (fourteen) Digital Branch services, 128 (one hundred twenty eight) Payment Points and 196 (one hundred ninety six) O-Branches (Mobile Cash Services). To serve customers’ needs at weekends, BNI operates 78 (seventy eight) outlets serving customers on Saturdays and Sundays (Weekend Banking Services). To provide the best service to the Wealth customer segment (both priority and private customers), BNI also has 28 (twenty eight) BNI Emerald service outlets. Currently, 56% of all BNI outlets are in Java and 44% outside Java. Off the total BNI outlets, 1,388 (a thousand thirty hundred eighty eight) or 72% are located in strategic commercial business centers (shops and malls), and 527 (five hundred twenty seven) or 28% are located in office centers and strategic residential areas. The number of BNI Network Outlet 2,256 2,150 1,990 2016 2017 2018 Over the last 3 (three) years (2016 - 2018), BNI’s outlet network has grown rapidly with 266 (two hundred sixty six) additional outlets, an average of 6.47% per year, as illustrated in the chart below. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 321
  322. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk ATM NETWORK To continue its commitment to providing convenience to BNI customers and other banking customers for their transactions, in 2018 BNI added 345 (three hundred fourty five) ATM machines for cash deposit transactions (Cash Recycle Machine/CRM) so the total BNI ATMs throughout Indonesia at the end of 2018 amounted to 18,311 (eighteen thousand three hundred eleven) units consisting of 15,834 (Fiveteen thousand eight hundred thirty four) Cash ATM units (incl. Drive Thru and Ride Thru ATMs), 1,477 (a thousand four hundred seventy seven) Cash Deposit and Withdrawal ATMs, and 1,000 Non Cash ATMs. Of the total 18,311 (eighteen thousand three hundred eleven) BNI ATMs across Indonesia, 10,827 (ten thousand eight hundred twenty seven) or 59% are in Java, while 7,484 (seven thousand four hundred eighty four) or 41% are outside Java. Of the total 18,311 (eighteen thousand three hundred eleven) BNI ATMs, 10,461 (ten thousand four hundred sixty one) or 57% are in strategic commercial business centers (shops and malls) and 7,850 (seven thousand eight hundred fifty) or 43% are located in office centers and strategic residential areas. D-Branch Ngurah Rai, Bali Interactive Wall As part of the SOE synergy and to continue to provide easy transactions, especially for bank customers who are members of the State Bank Association (Himbara), BNI has also converted 9,900 (nine thousand nine hundred) BNI ATMs to Red and White (Link) ATMs. With the increasing number of BNI ATMs throughout Indonesia, banking transaction services will be further improved for both BNI customers and other customers who are members of the joint ATM networks, ATM Link, Global Master Card International ATM and Prima ATM network, and will increase fee-based income (FBI) from transactions through BNI ATMs. Big Screen dan CRM Banking Cafe, Manado 322 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  323. Business Support Unit OFFICE NETWORK INNOVATIONS Total and Growth BNI ATM 18 ,311 17,966 17,056 2016 2017 2018 To keep up with the increasingly rapid technological and digital developments, in 2018 BNI added 6 (six) D-Branch services prioritizing banking services through additional digital devices. The total number of BNI D-Branch currently stands at 14 (fourteen), located in major cities including Jakarta, Bandung, Surabaya, Medan, Bali, Yogyakarta, Makassar and Manado. To provide a complete digital transaction experience, digital devices are available at BNI D-Branch that help customers in conducting banking transactions, including; ATM/CRM (cash deposits, cash withdrawals, transfers and more), Smart Kiosks (opening account machines), Interactive Wall (BNI touchscreen product education devices), Interactive Table (touchscreen Information devices) and Big Screen (promos and information devices). To tap the business potential of millennials using a more modern, comfortable and contemporary transaction experience, BNI provides Banking Cafe services at several D-Branch outlets. Interactive Table In 2018, BNI made improvements and innovations to its banking transaction services, especially through frontliners by piloting the use of the Teller Cash Recycle (TCR) machine that facilitate and accelerate cash deposits and book-entry services at counter tellers. Perangkat TCR PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 323
  324. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BNI CONTACT CENTER The BNI Contact Center will continue to provide the best service for BNI customers. Through BNI Call 1500046 services, customers can obtain information, conduct transactions and find solutions to their every problem including banking services, credit cards, merchants, remittances and trade transactions. In 2018 the BNI Contact Center supported BNI’s Smart Kios with a Video Contact Center service for opening accounts through D-Branch, and managed various information requests and complaints through BNI Social Media, enabling it to serve all customers through non-branch channels. Together with the spirit of BNItuDigital, and to always provide the best customer service, the BNI Contact Center launched BNI Call Application, the first Contact Center banking application in Indonesia based on Artificial Intelligence, using voice commands and Natural Language. Processing (NLP). The BNI Call application makes it easier for customers and non-customers, using Android and iOS, to gather information on BNI products and services as well as the latest general information. By using the BNI Call Application, customers and non-customers will be able to communicate with BNI Call officers via chat. The BNI Call application, through BNI Call 1500046 services delivers a new experience and adds channel alternatives so that customers now have a variety of easy and convenient access choices, which will increase customer satisfaction. The BNI Contact Center supports BNI’s commitment to providing excellent services for people with disabilities, and follows strategic and inclusive financial program policies that are disability-friendly. The BNI Contact Center took part in the 2018 International Disability Day celebration held by the Republic of Indonesia Ministry of Social Affairs on December 2 and 3, 2018 introducing its disability-friendly BNI Call Applications. BNI Contact Center’s commitment through its Quality policy of “Commitment, Capability and Care” to continuously improve the service quality for customers through quality standardization in all services, obtained ISO 9001: 2015 Certification, and this commitment was maintained in 2018. The BNI Contact Center achievements in 2018, including being ranked first in the Phone Banking and Call Center category based on the Bank Service Excellent Monitor (BSEM) survey results from Marketing Research Indonesia (MRI), receiving an Excellent rating in the Regular Banking and Platinum Credit Card category based on the 2018 Contact Center Service Excellent Award survey results from Service Excellence Magazine in collaboration with Carre - Center for Customer Satisfaction and Loyalty (Carre-CCSL). The BNI Contact Center actively acts as a point of contact for BNI customers through the voice of customer application, and provides the business units with insights into enhancing products, features and services for customers, and provides feedback to business/product owners regarding customer complaints; monitors complaint resolution based on the Service Level Agreement (SLA); adapts the internal regulations if there are changes in legislation, and makes improvements to the customer complaint handling Online Request Management application. The BNI Call application, through BNI Call 1500046 contributes as a data source providing integrated sales and service solutions for strengthening the Consumer and Retail Segments revenue enhancement opportunities through the referral and cross selling program so that BNI Call 1500046. To further enhance customer experience and customer satisfaction, the BNI Contact Center will continue to develop features for the BNI Call Application to improve service quality. Also, the BNI Contact Center supported the Financial Inclusion for All program at the Fin Expo 2018 event organized by the Financial Services Authority (OJK) on October 27, 2018, as well as the Digital Expo event held by Pertamina Geothermal Energy on December 12 and 13, 2018 to share its experiences regarding digitization. 324 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  325. Business Support Unit BNI COMPLAINT SETTLEMENT PROCEDURES AND CUSTOMER SERVICE BNI Contact Center as one of BNI ’s frontline services to BNI customers, continually endeavors to provide the best service, including settlement of every customer’s banking and credit card services complaint. BNI customers are provided with easy access to the complaints services through a number of media choices, both oral and written. BNI CUSTOMER COMPLAINT SUBMISSION MEDIA ORAL WRITTEN Customer Contact BNI Call 1500046 Customer visiting www.bni.co.id and sub menu Contact Us Customer visiting Nearest BNI's Branch Customers sending email to bnicall@ bni.co.id or fax (021)25541203 Customer visiting Nearest BNI's Branch The BNI Contact Center is supported by an integrated Online Request Management complaint handling application, so that the customer complaints receipt and settlement process can be handled through the application, simplifying the monitoring and settlement status of customer complaints. Customer verbal complaint settlement solutions are made within a maximum of 5 (five) working days *), and written complaints within a maximum of 20 (twenty) working days. If supporting documents are needed for the verbal customer complaints, BNI will ask the customer to submit the complaint in writing. Under certain conditions, the document requirement and complaint settlement can be extended for a further 20 (twenty) working days based on POJK Number 1/POJK.07/2013, as updated by POJK Number 18/POJK.07/2018 *) concerning Consumer Complaint Services in the Financial Services Sector. An extension of the complaint settlement period is notified in writing to the customer. *) Effective as of March 2019 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 325
  326. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk SUBMISSION AND SETTLEMENT COMPLETION • • • • 1 Makes a complaint 2 Registers the complaint 3 Provide a receipt or registration number 5 Delivers extension of time notice ** 4 Delivers complaint settlement result * 6 Delivers complaint settlement result BNI strives to settle verbal complaints within a maximum of 5 working days and written complaints within a maximum of 20 working days. If supporting documents are needed for customer complaints submitted verbally, then BNI will ask the customer to submit a complaint in writing. If there is a lack of documents, the customer can submit the missing documents within a maximum of 20 working days. Under certain conditions, the document requirement and complaint settlement can be extended for a further 20 working days Based on OJK Circular Letter (SE OJK) No. 2/SEOJK.07/2014, as updated by OJK Circular Letter (SE OJK) No. 17/SEOJK.07/2018, BNI will provide information on customer complaint settlement via the telephone, e-mail, mail or short messages service (SMS). If the customer feels that the settlement solution provided by BNI does not meet their expectations, then they can continue the complaint settlement process through any Institution on the Financial Services Authority’s List of Alternative Dispute Settlement Institutions. 326 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  327. Business Support Unit UNIT SERVICES UNIT 2018 PERFORMANCE BNI is continually innovating and updating with the aim of improving the quality of its services . BNI consistently adjusts its service standards to keep up with the rapidly developing banking digitalization through its service standard renewal programs, enhancing frontliner competencies and simplifying service processes together with the appropriate risk mitigation making BNI services faster, easier and more accurate. Several initiations were carried out to support this, including; Overseas Branches services standardization, “D-Branch” Outlet services standardization, and with the Affiliate Wealth Manager Certification, Super Frontliner, and BNI Teller Service Quality Development programs. In an effort to accelerate business growth, BNI launched the “2nd Engine of Sales” service that is not only oriented towards satisfaction and solution for customers but also creates sustainable business opportunities for the Company to achieve a profit. A number of programs were initiated to prepare Branch Office frontliners as the spearhead of BNI’s business and services, including: Bancassurance Program, Emerald Segment Upgrade Program, Property Investment through Griya Program, Education on Capital Market Investment Program and Flexi Credit Card Program. The kick off for the BNI Professional Image program took place, a program designed to shape the image of every employee as someone with professional characteristics and ethics, reflecting their identity as a BNI person as well as the identity of the company. This program is a strategic step to improving the corporate identity through professional style employees, with good communication skills and business etiquette when interacting with customers and stakeholders, and who are digital intellectuals with a good understanding of technology and the use of social media. The efforts to improve service quality have had a positive impact, as reflected in the customer satisfaction surveys results conducted by independent institutions throughout 2018. BNI has received several awards including: 1. The Best Government Bank in Service Excellence in the Bank Service Excellence Monitor 2018 Survey by Marketing Research Indonesia (MRI); 2. The Best Government Bank for Satisfaction, Loyalty and Engagement (SLE) 2018 Survey by Marketing Research Indonesia (MRI); and 3. 2nd Overall for the Satisfaction, Loyalty and Engagement (SLE) 2018 Survey by Marketing Research Indonesia (MRI). 2019 WORK PLANS In 2019 the Service Quality Unit followed 3 (three) strategies to achieve superior and competitive service quality, including: 1. “Business Accelerator”, a service with a competitive advantage for accelerating BNI’s business achievements in both the consumer banking and business banking sectors. 2. Digital Services, a digital-based service including: a. Digital Mindset, to instill a digital mindset in officers who are in contact with customers. b. Analytical Data Optimization, to optimize “Big Data” with the aim of achieving business and service targets. c. Process Improvement, to improve business processes and service automation. 3. Beyond Services to provide added value for customers including: a. Services provided that exceed customer expectations. b. Services provided that exceed the industry average. c. Services provided that provide new experiences for customers. These service strategies are expected to produce customer-centric quality and service standards as a foundation to accelerating business achievements at all BNI customer touch points. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 327
  328. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk INFORMATION TECHNOLOGY To support digital transformation and competitive analytics, BNI has developed Big Data Analytics to utilize the advantages of machine learning and other analytical tools, supported by reliable data scientists. 328 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  329. INFORMATION TECHNOLOGY STRATEGIC POLICIES AND INITIATIVES The Information Technology development in the industry 4 .0 era has had an impact on the banking world. In an effort to support bank business innovation in the digital era, BNI developed strategic policies and initiatives during 2018. Information Technology Mission BNI 2018 Strategic Policies and Initiatives People, Process, Technology Agile and Dynamic IT Support Providing IT-based solutions to support businesses, through innovations and the application of IT governance, with controlled information security Providing availability & reliability based IT services Providing the IT needed to support the Strategic Plan to become competitive in financial services Providing efficient, superior, innovative and safe IT operations to ensure the availability of reliable and trusted IT services for business users Providing Decisions Support & Management Information System services Ensuring compliance with Banking IT governance IT 2018 Initiatives PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 329
  330. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk INFORMATION TECHNOLOGY DIVISION MANAGEMENTS STRUCTURE The Bank’s Information Technology (IT) Management is run by IT Work Units, namely the IT Solutions and Security Division and the IT Operations Division, who are supervised by the Director of IT and Operations, with the following tasks: NO Work unit Job Description 1 IT Solutions and Security Division Providing IT-based solutions to support business, through innovations and implementation of IT governance, with controlled information security. 2 IT Operations Division Providing superior, innovative and safe IT operations to maintain the availability, reliability and maintainability of IT services for business users. Based on the Board of Directors’ Decree No. KP/384/DIR/R dated November 9, 2018, the IT Director also oversees the Operational Division (OPR) and E-Channel Unit (ECN) with the following organizational structures: Wakil Direktur Utama Senior Executive Vice President of Information Technology Senior Executive Vice President of InformationTechnology IT Operations DivisionS Business Relations Management IT infrastructure IT Strategy & Architecture Service Operations Operations Division E-Channel Unit Information Security & Governance Solution Development BNI INFORMATION TECHNOLOGY ADVANTAGE Bank BNI’s advantages in the Information Technology field to support its business include: 1. BNI IT Work Unit has implemented IT bi-capital, whereby IT’s compliance and development flows runs in a more agile way to meet the faster time to market needs. 2. BNI’s data center is supported by a disaster recovery center that ensures maximum service availability. It has obtained an extension of its Tier III Certification to become an Unexpired Tier III Design (TCDD) in terms of design, and a Tier III Facility (TCCF) certification in terms of facilities from the Uptime Institute. By achieving this, BNI has become the first bank in Indonesia to have a data center with Tier III facility certification. 3. As a development of its data warehouse, BNI has developed big data to enable its businesses to gain better customer and business insight. 4. BNI also continues to innovate and develop information technology that is customer centric by focusing on comfort and security in digital transactions. 5. BNI IT Work Unit applies IT bi-capital, with an agile IT compliance and development flow enabling it to deliver a faster time to market. 330 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  331. Business Support Unit INFORMATION TECHNOLOGY UTILIZATION Information Technology ARCHITECTURE In an effort to harmonize information technology development , during 2018 BNI continued to refine the Application Architecture Landscape scheme as follows: Customer Management Products Processing Delivery Channel Payments Middleware DWH & Analytics Administration Bank Management Risk The Application Architecture Landscape Information Technology can be grouped as follows: 1. Delivery Channel, a channel for customer access to banking products such as outlets, ATMs, Internet Banking, Mobile Banking, API, etc. 2. Customer Management, an internal and external customer management system consisting of Contact Centers, Sales Performance Monitoring, and Loyalty. 3. Product Processing, a system for handling Customers, Funding, Lending, Credit Card Products, etc. 4. Middleware, a system that functions as a layer integrator between BNI and third party systems. 5. Data Warehouse and Analytics, consists of a Data Warehouse, ETL, Analytics API and Big Data. 6. Bank Management, a system that includes accounting and reporting applications. 7. Risk, a collection of risk management applications. 8. Payment, a payment transactions, money transfers, and transaction settlement module. 9. Administration, a collection of Administrative Applications and supporters. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 331
  332. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk DATA MANAGEMENT Data is the most valuable and treasured asset that is processed into guidance and support for businesses. Data has three enablers, namely People, Procedures (Data Governance & Strategy and System Operating Procedure), and Technology (Data Warehouse, Big Data, and Network). Data management output is in the form of data, information, and insights to support strategies & business decisions regarding products and services in accordance with customer needs. The Data Management mission is to realize a reliable Single Source of Truth for the bank’s business interests and act as a center of excellence in analytics at BNI. Information Architecture Principles Strategic Analytics Program Management Integrated Data Management (Data Governance, Data Quality & Data Profilling Metadata Management Source Systems DPK Information Delivery Loan Data Warehouse Others Analytics Services Master Data Big Data Data Archive Manual and External Data Security Data Lifecycle Management The data information flow in Data Management adheres to the Information Architecture Principle where data from various source systems is entered into the Data Warehouse (EDWH) and Big Data through an Extract Transfer Load (ETL) process, where it is then used as a database for report and analytic development. Data Governance is required to integrate the data from various source systems so that it can produce quality data and ensure an efficient information system. Big Data Analytics Implementation Strateg Leads/Daftar Structured Data EDWH Big Data Analytics: Data Mining, Statistical Modelling, Machine Learning, Artifical Intelligence Semi Structured Data Model Big Data Un-Structured Data 332 Adapting Quickly to Face Change Dashboard PT Bank Negara Indonesia (Persero) Tbk
  333. Business Support Unit To support digital transformation and competitive analytics , BNI has developed Big Data Analytics to utilize the advantages of machine learning and other analytical tools, supported by reliable data scientists. Complementing its existing enterprise data warehouse, the Big Data technology adoption went as expected. The Big Data platform with the latest technology was successfully implemented with several applied business cases. BNI’s ability to collect, process and retrieve value from a data set has increased, and is now not only limited to structured data, but can now access semi-structured and unstructured data in large volumes with a high data growth speed. Like other data management systems, Big Data has the ability to load data, retrieve data, or synchronize data between systems. Therefore, the integration between the Big Data system and other existing systems went well. In addition, it now has the ability to retrieve data from external sources using web crawling, where data from the internet becomes one of the data sources. Big Data also has advanced analytical tools, including tools for data mining activities, statistical modeling, machine learning, and artificial intelligence. With these devices, several outputs can be produced including data matching, predictive analysis, statistical models, listing customer prospects with specific offers, and dashboards. Big Data Analytics results will help BNI get to know its customers, identify new opportunities and realize data driven business leading to business value creation. To improve service quality and customer satisfaction, BNI continually adjusts its information technology capabilities based on technology developments and customer needs. The increased capabilities need to be accompanied by adjustments to the mindset to accommodate the trend in technological developments and the dynamic customer demands. Information Technology to support business needs is in line with BNI’s positioning as a Digital Bank, and references the 4 (four) IT strategic directions, namely New Digital Proposition, Governance Toward Performance, Strive for Operational Excellence, and the Innovative and Agile Organization. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 333
  334. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk INFORMATION TECHNOLOGY INFRASTRUCTURE CYBERSECURITY BNI has implemented a high availability infrastructure to minimize potential Information Technology operational risks, while at the same time maintaining customer satisfaction. High availability infrastructure is applied starting from the server, network, to the data center, with an active configuration and passive configuration as back up. It is supervised by a layered security architecture configuration, and supported by nonstop monitoring by the network command center and incident response teams who are experts in their fields. Strong cybersecurity is an important factor to gain customer trust, so BNI always pays serious attention to continuous cyber risk development for its business activities. The safeguards taken refer to international standards to protect BNI in general, as well as customers in particular. With its high availability infrastructure, service disruptions due to system failure can be minimized, as evidenced by the service stability during high volume transaction times, such as during religious and other holidays. In line with the increased business growth and the growing threat from cyber-crime, the safeguards carried out included: 1. Increased cybersecurity capacity through hardware and software investments such as anti-virus, Firewall and an Intrusion Prevention System (IPS), 2. Application of safeguards to prevent the spread of malware on ATMs, 3. Employee education to increase cyber security awareness, 4. Proactive 24x7 monitoring for potential cybercrime 5. Collaboration with stakeholders, including official government bodies and other cybersecurity activators. In response to the current widening trend of cyber attacks on customers, several safeguards on the customer side have been applied, including: 1. Application of customer protection mechanisms against fraud transactions caused by banking malware or social engineering, 2. Application of fake website detection on behalf of BNI, 3. Customer transaction notification mechanisms, 4. Continuous customer education regarding selfprotection through secure passwords, secure internet banking, secure mobile banking, secure transactions at ATMs and others. In line with the direction of digital banking development, cybersecurity will continue to be developed to guard the banking service innovations so that customer trust and comfort can always be maintained. 334 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  335. Business Support Unit INFORMATION TECHNOLOGY GOVERNANCE IT Governance includes leadership management , organizational structure and sustainable processes, to ensure the IT organization is aligned with the organization’s business strategy and objectives. Framework selection. Good IT governance requires a balance between People, Process and Technology aspects, and based on these considerations, BNI’s IT governance adopts various frameworks that are compatible with BNI’s IT service areas. CONTROL OBJECTIVES FOR INFORMATION AND RELATED TECHNOLOGIES (COBIT) Control Objectives for Information and Related Technologies (COBIT) is widely recognized as an IT management framework and IT governance. COBIT helps organize IT to meet the needs of BNI’s stakeholders through management of its process groups and enablers, where business objectives are mapped to IT objectives, and also by measuring their achievements and maturity. BNI’s IT uses the COBIT framework as a governance guidance because of the synergy between business objectives and IT objectives, focusing on data and information, which can be flexible when following the company’s work direction, and can be used in conjunction with other framework standards. INFORMATION TECHNOLOGY INFORMATION LIBRARY (ITIL) The Information Technology Information Library (ITIL) is the standard framework for IT Service Management (ITSM), used to align IT support services to BNI’s businesses. ITIL focuses on IT processes, procedures, tasks and service levels to support the corporate strategy, add value, and maintain IT competency levels. With ITIL, BNI’s IT operations establishes a baseline, as a service benchmark, as guidelines for the planning, implementation and measurement of its achievements. PT Bank Negara Indonesia (Persero) Tbk  ISO 27000 ISO 27000 is part of the Information Security Management Systems (ISMS) working standard that is used to manage information security risks in an organization. The ISO 27000 standard is used as a reference by BNI when establishing enterprise security solutions, both in terms of IT architecture, policies, development solutions, and IT operations. These standards are implemented in an end-to-end manner, starting from the core, surrounding systems, communication networks, applications, and access devices such as ATMs and EDCs. ISO 9001 ISO 9001 is a quality management system standard designed to ensure that companies meet the demands of stakeholders and adheres to regulatory requirements regarding their products and activities. BNI’s IT has implemented ISO 9001: 2008 (international standard for quality management system) within the scope of IT Operations and IT Security Management, and completed the ISO 9001: 2015 certification upgrade on July 30-31, 2018. Based on the external audit summary report regarding the IT unit achieving the quality objectives, it was concluded that the management system in the IT Unit met the requirements to upgrade the ISO 9001: 2015 certification on September 26, 2019. ISO 9001: 2015 certification in IT units will provide benefits to all IT units and management employees, by establishing mechanisms and quality standards focused on company performance, with a risk-based thinking approach, enabling the IT units to be more proactive in preventing and reducing undesirable events, and to continually improve the systems. Adapting Quickly to Face Change 335
  336. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk INFORMATION TECHNOLOGY FUTURE DEVELOPMENT PLAN INFORMATION TECHNOLOGY FUTURE DEVELOPMENT PLAN As part of its sustainable project planning system to meet the business needs for IT support, BNI conducted an IT Planning Session forum bringing together IT units with all BNI units. In the forum, these units discussed with IT their business needs together with their future target achievement and expectations, both in terms of solutions, security, operations, and data processing development plans, and reporting. The IT Planning Session Forum generated 122 (one hundred twenty two) application/architecture development plans to be initiated in 2019, including strategic requirements that will have a direct impact on the business targets achievement, as well as the usual business, to support for daily business operations. The IT development plan was submitted to OJK, in line with POJK No. 38/POJK.03/2016 dated December 1, 2016 concerning Application of Risk Management in the Use of Information Technology by Commercial Banks. New Digital Proposition Governance Toward Performance BNI IT Strategic Direction Innovative and Agile Organization Strive for Operational Excellence To ensure the application development plan implementation and to support the 2019-2023 corporate plan, BNI has established 4 (four) strategic IT directives, namely New Digital Proposition, Governance Toward Performance, Strive for Operational Excellence, and Innovative and Agile Organization. New Digital Proposition for how IT provides digitalization answers to bring something new to its users. The strategy direction encourages the creation of regular digital business value, by providing recommendations in the form of adjusting and developing new business models based on emerging IT trends or through digital innovations. Governance towards Performance for fulfilling good governance to encourage optimal performance, including effective prioritization, reliable portfolio management, demand management and IT planning in line with business needs, and good synergy between all units and subsidiaries. Strive for Operational Excellence for optimizing operational excellence through digitized and automated business processes while enhancing cybersecurity security and developing a consistently sustainable operating model. Innovative and Agile Organization for creating organizations that are adaptive to change with a fast deliverable capability, with a customer-centric innovation culture to appropriately and efficiently meet customer needs, and by transforming a visionary mindset in IT strategy and planning, and by implementing an Agile methodology. 336 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  337. Business Support Unit DIGITAL TRANSFORMATION Digital technology developments have significantly influenced the financial and banking services industry . This has driven BNI to remain adaptive in utilizing innovations that provide convenience, comfort and security for customers. In support of this, BNI has established an IT Architecture in line with the direction of digital transformation. Digital Banking IT Architecture BI-MODAL IT CREATE BUSINESS & IT TRANSFORMATION ASSURE CUSTOMER EXPERIENCE RELEASE PRODUCT PROCESSOR PROCESS CONSUMER INFORMATION INTEGRATION UNIVERSAL MESSAGING ACCESS SECURITY 3rd PARTIES DATA STORAGE BNI follows the BI-CAPITAL practice in its IT development that includes two separate but coherent work methods. The first method optimizes for the more predictable and well understood areas, while the second method is more explorative in solving new problems. Implementation is the application of both conventional and agile development methods, with the aim of providing an optimal, faster time to market, and customer centric service. The architecture components include, 1. Process, the capability for agile, prudent product development methods to meet time-to-market expectations. 2. Information, the capability for insightful and comprehensive information. 3. Integration, the capability for integrating inter-system processes and automation of workflow processes. 4. Storage, the capability for managing structured and unstructured data and information. 5. Product Processor, the core system and surrounding system capabilities that are responsive to developments and needs. 6. Access, the capability for providing modern and reliable access to services and products. 7. Universal Messaging, the capability for various types of messaging systems service. 8. Security, the capability for security to protect assets (data and information). 9. Consumers, the diversity of touchpoints between banks and consumers. 10. 3rd Parties including corporate, startup/fintech, commercial Off-The-Shelf (COTS) for both Premises and the Cloud. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 337
  338. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk The development of information and digital technology such as the Internet, Cloud, Big Data, Internet of Things (IoT), and Artificial Intelligence (AI) has triggered changes in the industry, better known as the 4.0 industrial revolution. This has been seen in the increasing use of communication and internet networks for many different purposes, the integrated automation process with the use of AI, decision making using insights obtained from the use of Big Data analysis, optimizing the use of the Cloud for business and personal needs, and connecting everyday devices with the Internet. These developments have resulted in changes in consumer behavior and encouraged the creation of new more suitable business models. To anticipate these changes, digital transformation have be carried out to include the integration of digital technology into the business processes. Digital transformation is not just changing analog technology to digital, but more, it will also be necessary to adjust various business processes that are driven by technological innovations so the processes can be faster, flexible and efficient, at a lower cost, with the potential to open up new business opportunities. The IT work units have explored innovations, both in terms of technology and business process optimization, and several technological initiatives have been introduced, including: 1. Research and Development (R & D) Blockchain Blockchain is a distributed ledger technology that has the ability to become a disruptor in the business world as it can eliminate the intermediary function. This technology can be used to create new business models or replace existing business processes to become faster, safer, and cheaper. The use case that has been tested is for cross border payments together with Fintech and an international corporation. 338 Adapting Quickly to Face Change 2. Research and Development (R & D) Intelligent Video Analytics Intelligent video analytics technology can be used to identify stationary and moving objects, facial recognition, space density analysis, building /space surveillance, identity verification, and other things. Using this technology, face recognition features have been tested for several use-cases such as for account opening through mobile phones and monitoring employee activities through CCTV. 3. Collaboration with various fintech and business startups BNI has established partnerships with the global Startup Accelerator Companies who have technology-based startup incubation & acceleration programs and have a reputation for connecting startups with various corporations. Through this collaboration, BNI will have the opportunity to take advantage of innovations/ solutions from various startups and fintech to support its business, improve the capability of the Bank’s internal processes, as well as other forms of cooperation. To optimize innovation both in terms of technology and business process optimization, BNI also has used the services of Independent International Research Institutions on an ongoing basis since 2007 to gain technology references, descriptions, trends, and insights, and insights into the development of global industry in general and banking in particular. PT Bank Negara Indonesia (Persero) Tbk
  339. Business Support Unit DIGITAL BANKING DIGITALIZATION DEVELOPMENT ACCELERATION In line with BNI ’s vision to become a financial institution that excels in service and performance, BNI continues to make innovative improvements to answer the challenges and changes from the latest developments. These innovations were developed through 5 (five) digital banking capabilities, namely: 1. Digital Branding and Proposition Developing customer-persona based services that provides information and products according to the customer needs. This process includes design thinking to validate these needs more deeply; 2. New Digital Channel a. Developing the Digital Branch as a physical channel by utilizing smart kiosks; b. Developing BNI’s Digital Banking-based Mobile Platform Application, such as: YAP (QRbased global network payment feature); c. Developing Chat Bot (Artificial Intelligent (AI) to serve messaging-based banking information); 3. Digital Business and Ecosystem a. Improving the digital business solutions penetration program in several priority ecosystems; b. Developing an automation process in the BNI operational process chain; 4. Agile IT a. Developing Two Speed IT Development (Development of acceleration and agility capabilities in the solution development process), b. Developing API Management with the capability of connecting potential digital ecosystems, such as the marketplace ecosystem, smart city, and etc.). c. Providing Big Data with its behavioral analytic capabilities to deliver contextual solutions to customers. 5. Digital Culture & Innovation a. Building a BNI Innovation Center with the capability to incubate potential digital business ideas, b. Organizing the BNI Business Innovation Awards (Binnova) as an idea and business innovation competition for BNI employees to spark an innovation spirit, c. Creating BNI Digital Ninja as a change agent program for supporting the internalization of the digital culture in BNI. 2019 Strategy In line with the BEYOND program contained in BNI’s corporate plan, BNI’s digital banking strategy is “Develop B2B2C business ecosystems and digital attackers (small and consumer segments) by optimizing the customer journey, analytical data and maintaining venture capital to capture opportunities for Beyond Banking” . PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 339
  340. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk ELECTRONIC BANKING KALEIDOSKOP E-BANKING 2018 January February March malljepara.com guteninc.com kalbestore.com Launched CINTA as an interactive banking information media for customers that can be accessed through chat platforms unionspace.id April Ranked 3td for Digital E-Money Bank Brand at the 7th Digital Brand Awards by Infobank & Isentia. Implementation of the National Payment Gate (GPN) through the Joint Debit ATM Network May Collaborated with Angkasa Pura Cargo for the implementation of cashless transactions using TapCash. grandclarionmakassar.com mokapos.com balilife.org June dewaweb.com July Cooperation between yap! in the Asian Games 2018 tickets sale kiosks mesinlaundry.com luxatme.com August September October 340 Launched yap! as a payment application using the QR method urbanathletes.co.id 2nd Best Collecting Agent at 2018 Transaction Banking Awards by Infobank & PT Rintis Sejahtera. 1st Best Transaction Growth as Acquirer Bank at 2018 Transaction Banking Awards by Infobank & PT Rintis Sejahtera. Implementation of Agency cooperation between BNI & PT Kimia Farma (Persero) Tbk Implementation of Agency cooperation between BNI & PT Dompet Anak Bangsa (GOPAY) The Best Bank in Digital Services pada Indonesia Banking Awards 2018 oleh Tempo Media Group & Indonesia Banking School. Best ICT Implementation in Sales & Marketing for Banking Category pada Indonesia Best eMark Award oleh Universitas Telkom & Majalah SWA – Business Digest Best e-Commerce Issuing & Acquiring pada Visa Award Night 2018 Akuisisi Ranch Market sebagai Merchant yap! Trial of international e-wallet integration (LiquidPay & WechatPay) as the source of yap! funds at the IMF Annual Meeting in Bali. Implementation of Agency cooperation between BNI & PT Axiata Digital Services Indonesia November Best Beneficiary Bank at the 2018 ATM Bersama Awards by PT. Artajasa Payment Electronics zomato.com/id alodokter.com December wecare.id parentstory.com Implementation of Agency cooperation between BNI & PT Bukalapak.com Implementation of Agency cooperation between BNI & PT Permodalan Nasional Madani Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  341. Business Support Unit E-BANKING PRODUCT DEFINITIONS BNI offers a variety of E-Banking facilities including ATM , SMS Banking, Mobile Banking, Internet Banking, Phone Banking, Agen46, Tap Cash, Uniqku, and Electronic Data Capture (EDC). An explanation of each product is as follows. ATM Banking service channel that allows customers to make cash deposits, balance checks, transfers, payments and purchases. BNI currently has 18,202 (eighteen thousand two hundred two) ATM machines throughout Indonesia connected to ATM Link, ATM Bersama, ATM Prima, International Mastercard, Visa, JCB, APN, Union Pay and Cirrus Networks. SMS BANKING BNI’s SMS Banking channel can be used by customers for transfers, payments and purchases transactions and can be accessed through SMS Banking, Syntax SMS and USSD application menus. MOBILE BANKING Customers can use BNI’s Mobile Banking transactional channel for transfers, payments and purchases through Android and iOS based smartphone banking applications. BNI Mobile Banking can also be activated and used for transactions from overseas. INTERNET BANKING BNI’s Internet Banking is one of BNI’s e-Banking transactional channels that can be accessed by customers via computers or mobile phones through BNI’s Internet Banking URL. BNI Internet Banking has reliable Personal Financial Management features and comes with security standards that use 2 types of financial transaction authorization tools, namely BNI e-Secure and BNI m-Secure. AGEN 46 BANKING Agen46 are BNI partners who provide banking services to the public in the context of inclusive finance. Besides being BNI’s partners providing a wide range of banking services, Agen46 also handle a wide range of government programs, such as relief aid or subsidies distribution, either in cash or non-cash. Through Agen46, banking transactions are easier, faster and easily accessible in the surrounding communities. (In accordance with Agen46 tagline: Easier, Faster, Closer). PT Bank Negara Indonesia (Persero) Tbk  TAPCASH TapCash is an electronic money cash card that can be used for making purchase payments at BNI-registered merchants, for various modes of transportation, and for toll roads. TapCash users can use the TapCash Go application to facilitate balance checks and balance top ups. UNIKQU UnikQu is a BNI server-based e-money development that can be accessed and used by BNI customers and non-customers through iOS and Android-based smartphones. With its flexibility, UnikQu payments can be made with merchants with an IT infrastructure, and with merchants who do not have any IT infrastructure such as street vendors or market traders. UnikQu balance top-ups can be done through BNI SMS Banking, BNI Mobile Banking, BNI Internet Banking, and Agen46. Also, UnikQu can be used to purchase telephone credit and to make postpaid telephone payments. YAP! Yap! is a QR payment application that uses the QRIS national standards. Yap! has 3 (three) sources of funds for completing each transaction, namely Debit Cards, Credit Cards and UnikQu providing flexibility to users when making payments. Payments made using QR can be through an EDC machine, yap! QR (tent card), and by push notification. Currently, Yap! has been implemented in a number of merchant segments including micro businesses, chain stores, Business to Business (B2B) and e-Commerce. CINTA CINTA is a chatbot development that uses artificial intelligence and machine learning technology to makes it easier for users to access banking information through social media platforms. CINTA has the capability to create a personalized program, survey and educate customers, with transactional features integrated into the Yap! payment method. Adapting Quickly to Face Change 341
  342. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk ELECTRONIC DATA CAPTURE (EDC)/ MERCHANT NETWORK The merchant network is a network service for receiving credit, debit and prepaid card transactions, a collaboration between banks (acquirers) with the global principals such as VISA, MasterCard, Japan Credit Bureau (JCB), UPI, and local principals such as Artajasa, Prima, and ALTO. As a principal member, the merchant network cooperates with shops, hotels, restaurants and various other business entities that accept payment for goods or services using credit, debit and prepaid cards, and receives a fee through the merchant discount rate ( MDR) for each transaction. E-BANKING USER COMPOSITION 12% 20% 13% 1.894 1.369 15% 2.893 1.781 2018 2017 9.820 8.497 73% 67% SMS Banking Internet Banking Mobile Banking Growth (Monthly) Channels 2018 2017 2016 % User Internet Banking 1,893,721 1,781,297 1,538,020 10,251 0.54% Mobile Banking 2,892,518 1,368,771 506,564 132,637 4.81% SMS Banking 9,819,514 8,497,014 6,873,626 108,000 1.11% E-BANKING PERFORMANCE IN 2018 The E-Banking product performance can be seen in the growth in the number of users, number of transactions, and transaction volumes reached in 2018 and are as follows. ATM Uraian Total Transactions Transaction Volume (Rp) 2018 2017 Growth 1,288.9 million 962.3 million 33.9% 668.0 trillion 600.1 trillion 11.3% During 2018, the ATM channel service number of transactions increased by 326.6 million, or 33.9% to 1,288.9 million transactions compared to 962.3 million transactions in 2017. The nominal value of transactions increased by Rp67.9 trillion, or 11.3% to Rp668.0 trillion from Rp600.1 trillion in 2017. 342 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  343. Business Support Unit SMS BANKING Description 2018 User Total Transactions Transaction Volume (Rp) 2017 Growth 9.7 million 8.5 million 15.6% 504.0 million 389.2 million 29.5% 51.2 trillion 39.9 trillion 28.3% During 2018, the number of SMS Banking users reached 9.7 million, a 15.6% increase from last year’s 8.5 million users. SMS Banking handled 504.0 million transactions in 2018, an increase of 29.5% compared to 389.2 million transactions the previous year. As a result of these increases, the SMS Banking transaction value in 2018 amounted to Rp51.2 trillion, an increase of 28.3% compared to Rp39.9 trillion the previous year. MOBILE BANKING Description 2018 User Total Transactions Transaction Volume (Rp) 2017 Growth 2.9 million 1.4 million 111.3% 96.9 million 32.3 million 199.4% 133.4 trillion 49.8 trillion 167.7% During 2018, the number of Mobile Banking users reached 2.9 million users, an increase of 111.3% from last year’s 1.4 million users. Mobile Banking handled 96.9 million transactions in 2018, an increase of 199.4% compared to 32.3 million transactions the previous year. As a result of these increases, the Mobile Banking transaction value in 2018 amounted to Rp133.4 trillion, an increase of 167.7% compared to Rp49.8 trillion the previous year. INTERNET BANKING Description 2018 User 2017 Growth 1.9 million 1.8 million 6.3% Total Transactions 27.5 million 25.4 million 8.3% Transaction Volume (Rp) 91.3 trillion 94.0 trillion -3.0% During 2018, the number of Internet Banking users reached 1.9 million users, an increase of 6.3% from last year’s 1.8 million users. Internet Banking handled 27.5 million transactions in 2018, an increase of 8.3% compared to 25.4 million transactions the previous year As a result of these increases, the Internet Banking transaction value in 2018 amounted to Rp91.3 trillion, down 3%, compared to Rp94.0 trillion the previous year. AGEN46 Description Total Agents 2018 2017 Growth 111,836 agen 69,589 agen 60.7% Total Transactions 79.3 million 34.4 million 130.4% Transaction Volume (Rp) 94.5 trillion 11.6 trillion 715.6% Pandai Accounts 9.2 million 4.8 million 91.7% BNI Pandai TPF 636.3 billion 561.9 billion 13.2% Agen46 TPF 658.4 billion 592.8 billion 11.1% During 2018, the number of BNI Agen46 reached 111,836 agents, an increase of 60.7% compared to 69,589 agents in 2017. In 2018 there was a significant increase in the number of transactions handled that reached 79.3 million transactions, an increase of 130.4%, compared to 34.4 million transactions in 2017. Sales volume increased 715.6% reaching Rp94.5 trillion in 2018, compared to Rp11.6 trillion in 2017. The number of Pandai accounts in 2018 increased by 91.7%, reaching 9.2 million accounts compared to 4.8 million accounts at the end of 2017. The TPF generated by these BNI Pandai accounts reached Rp636.3 billion, an increase of 13.2% compared to Rp561.9 billion in 2017. Total Agen46 TPF increased by 11.1% in 2018, and amounted to Rp658.4 billion compared to Rp592.8 billion in 2017. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 343
  344. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk TAPCASH Description 2018 Total Cards Total Transactions 2017 Growth 4.5 thousand 2.9 thousand 56.8% 50.8 thousand 23.2 thousand 119.1% 807.1 billion 362.5 billion 122.7% Transaction Volume (Rp) During 2018, the number of TapCash cards reached 4.5 million, an increase of 56.8% compared to2.9 million cards the previous year. The number of Tapcash transactions reached 50.8 million transactions in 2018, an increase of 119.1% compared to 23.2 million transactions the previous year. As a result of these increases, the Tapcash transaction value in 2018 amounted to Rp807.1 billion, an increase of 122.7%, compared to Rp362.5 Billion the previous year. UNIKQU Description 2018 2017 Growth User 109.2 thousand 68.2 thousand 60.0% Total Transactions 254.3 thousand 45.2 thousand 462.7% 7.1 billion 1.9 billion 122.7% Transaction Volume (Rp) During 2018, the number of Unikqu users reached 109.2 thousand. The number of Unikqu transactions reached 254.3 thousand, an increase of 462.7% compared to 2017, with a transaction value amounting to Rp7.1 billion. ELECTRONIC DATA CAPTURE (EDC) Description 2018 2017 Growth Total Transactions 40,9 million 34,0 million 20,3% Transaction Volume (Rp) 55,1 trillion 46,7 trillion 18,0% During 2018, the Electronic Data Capture (EDC) services purchase transactions increased by 20.3%, reaching 40.9 million transactions compared to 34.0 million transactions in 2017. Transaction value increased by 18% to Rp55.1 trillion in 2018 compared to Rp46.7 trillion the previous year. CINTA Description Followers 2018 2017 349.0 thousand - During 2018 CINTA had 349.0 thousand followers using the Line application platform, and actively provided various promos, surveys/couponing information and customer education through the chat platform. 344 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  345. Business Support Unit YAP ! Description 2017 2018 Total User 419,2 thousand - Total Merchant 515,4 thousand - 6,7 million - 687,8 billion - Total Transaction (Rp) Transaction Volume (Rp) During 2018, Yap! acquired 419.2 thousand users and 515.4 thousand merchants. In its first year, it recorded 6.7 million transactions with a value of Rp 687.8 billion through purchase transactions (regular, chainstore, e-commerce) and B2B (fiduciary payments from the AHU Directorate General). BNI E-CHANNEL TRANSACTION CONTRIBUTION During 2018 the e-channel transactions contribution to all banking transactions was above 90% with an average contribution of 95.06%. The highest transaction contribution occurred in June with 96.58%. The growth in e-channel transactions contribution can be seen in the following graph. BNI E-Channel Transactions Against BNI Overall Transactions 96.58% 94.63% JAN 95.05% 94.98% 95.09% 95.20% FEB MAR APR MAY PT Bank Negara Indonesia (Persero) Tbk  94.56% JUN JUL 94.78% AUG 94.40% SEP 94.74% OCT 95.70% NOV 94.96% DEC Adapting Quickly to Face Change 345
  346. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BNI AS A PIONEER IN BANKING TECHNOLOGY CINTA CINTA is a chatbot development that uses artificial intelligence and machine learning technology. CINTA uses chat platforms to provide services to CINTA followers, especially BNI customers in the millenial segment. The value proposition offered is its simple, personalized, familiar feel. CINTA has the capability to create a personalized program, and has an ATM-Locator, customer education facilities, surveys and couponing. YAP! Yap! is a QR payment application providing flexibility and ease of transaction as its users can choose from 3 (three) sources of funds that include credit cards, debit cards and UnikQu. Yap! is easy to install and reaches the micro market segment, helping BNI become an agent of development by creating a cashless society ecosystem. Merchant payments using Yap! can be through an EDC machine, Tent Card, or by push notification. E-WALLET TECHNOLOGY e-wallet Technology is a system developed for the purpose of distributing Government program services. Through this system, every transaction can be divided based on their respective functions so as to present auditable and accountable information. The e-wallet system is currently used for the distribution of the Bansos program (Family Hope Program, Non-Cash Food Assistance, and PIP) and subsidies (fertilizer and LPG). For Bansos activities all Bank Himbara managed by BNI as its owner uses the e-wallet technology system. EDC OFFLINE EDC Offline is a system developed by BNI to deliver transaction services in remote areas that have no access to a network infrastructure. This system was built without the need to use a network infrastructure to conduct transactions with verifications using Biometric technology. Currently this service assists Government programs in distributing social assistance in remote areas. MARKETPLACE e-commerce UMKMBNI, as one of the government’s development agencies, responsible for developing the market for creative industries, in this case MSE. With the UMK e-commerce system, MSE markets in areas with good potential can enjoy a more open market, both domestic and international. This system is already integrated with the payment system and distribution/delivery system. E-RETRIBUTION MARKET e-Retribution Pasar is a system that integrates the management of rental places and tax payments. Through this system, local governments can easily monitor tax levies on local markets so as to increase local tax revenue. Through this system, the use of kiosks in the market can become very effective and optimal as they can be monitored better. AGEN46 Agen46 is a Digital Financial Services (DFS) system, Laku Pandai (Officeless Financial Services for Inclusive Finance), and e-Payment service where BNI offers its banking services for all Indonesian people living in remote areas of Indonesia. Currently there are more than 111 (a hundred eleven) thousand agents throughout Indonesia. The system runs on the web and mobile platforms, and Agen46 are equipped with Android EDC to facilitate transactions. 346 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  347. Business Support Unit Human Capital CENTRAL ROLE FOR BNI HUMAN CAPITAL Business growth and technological developments in 2018 became increasingly faster and more competitive . In this increasingly competitive environment, human capital become an important factor in supporting BNI’s success in realizing its vision as a financial institution that excels in service and performance. Reliable human capital (HC) management, and being able to adapt to business demands, are the main supporting factors to ensuring the sustainable success of Banks strategy. 2018 was declared as the year of strengthening the digital human capital management policies. In 2018, the foundation for the digital human capital management applications began to be built. The changes will happen in stages, both in terms of infrastructure and digital mindset. Realizing the vision of being a financial institution that excels in service and performance requires employees with high engagement and productivity. The aspects that affect BNI employee engagement include leadership, career paths, rewards and remuneration, organizational policies, learning and development, performance management, work environment, work life balance, and a quality infrastructure. Factors affecting employee productivity include business processes, organization, technology, and an execution culture. Therefore, to develop employees with high engagement and productivity requires that BNI appropriately intervene on aspects that are considered not optimal. Bank Negara Indonesia Thinking System Table BNI GROUP AS A FINANCIAL INSTITUTION WITH SERVICE & PERFORMANCE EXCELLENCE HIGHLY ENGAGED EMPLOYEE LEADERSHIP CAREER REWARD & REMUNERATION ORGANIZATION POLICY PERFOMANCE MANAGEMENT WORKING ENVIRONMENT HIGHLY PRODUCTIVE EMPLOYEE PROCESS ORGANIZATION TECHNOLOGY EXECUTION CULTURE WORK LIFE BALANCE WORKING INFRASTRUCTURE HUMAN CAPITAL INTERVENTION LEARNING & DEVELOPMENT PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 347
  348. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk HUMAN CAPITAL ARCHITECTURE BNI’s human capital management strategy is expected to build the foundation for supporting BNI’s dynamic strategy, in line with the demands of the banking industry today. The Human Capital Architecture (HC Architecture) is a guideline for managing BNI’s human capital. All HC Architecture components result in an Employee Value Proposition (EVP), which becomes BNI commitment that is trusted and agreed upon between Banks and employees. BNI’s EVP is “Together to make BNI the best place to contribute, learn and grow to become the pride of the country”. The use of the word “Together” emphasizes that the employees and the company are two sides of a coin that are inseparable when realizing BNI goals. BNI as an organization has certain goals to achieve with strategies to achieve these goals and an organizational culture that guides behavior. In line with these three factors, the employees (people) are expected to perform in a way that supports the organizational goals, with competencies that are aligned with the Banks strategy, and a behavior that is in line with the organizational culture. So that the employee value proposition can be realized, a talent management system is needed to support the realization of all organization and employees aspects. The human capital management system, in broad terms, consists of talent and succession, learning and development, and reward and recognition. When implementing this policy, technology plays an important role, as the main supporting infrastructure, for implementing the more effective and efficient policies. All policy implementations run optimally when supported by Information Communication and Technology, as the main infrastructure, and with the active role of leaders. Talent & Succession omm un i ca ti o nT ec Organization Strategy Lead ers hip Information C nology tion Tec Competency nica p rshi ade Le u mm Co ce r vio a eh re n io an EVP ltu Inf orm atio nC at orm People Reward & Recognition Per f l a Go Cu Inf or m no l y og B Learning & Development y og nol ommunication Tec Leadership 348 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  349. Business Support Unit TALENT MANAGEMENT POLICY TO ACCELERATE LEADERSHIP DEVELOPMENT In line with the purpose of carrying out the sustainable human capital management process , the talent management process implemented at BNI focuses on preparing, developing and maintaining employees in line with BNI’s Employee Value Proposition (EVP). BNI understands that talent management is a process that must be carried out consistently and takes place over the long term. The three main components in the Talent Management System (Talent & Succession, Learning & Development, and Reward & Recognition), as part of the HC Architecture, include five aspects consisting of Talent Acquisition, Talent Classification, Talent Development, Talent Mobility and Talent Retention. Each talent management aspect involves the Talent Committee that comprises BNI empowerment leaders. BNI employees management does not only focus on numbers but also on employee capabilities, meaning that the learning process given to prospective employees also becomes increasingly focused and directed to ensure that employees have the suitable capabilities. The number of employees in 2018 reached 27,224 people, and this number is considered enough to support Banks business targets based on Earning per Employee (EPE) indicators. Employee productivity in 2018 was Rp529 million/employee, an increase of 12% compared to the previous year. The turnover rate in 2018 was 4.76%, which is considered a healthy turnover, and is below the national banking industry turnover average. TALENT DEVELOPMENT TALENT ACQUISITION To obtain reliable HC, an effective recruitment path and sourcing channels are required, and in 2018, BNI opened up a number of recruitment programs for various positions. In line with BNI’s goal of becoming a Leader’s Factory for both the BNI Group and for Indonesia, leadership development acceleration is absolutely necessary. Talent Development is a synergy between Banks and the employees, from the planning process through to its execution. A Management Trainee program, known as Rookie 46, is BNI’s flagship program for recruiting the best candidates with strong leadership and qualified capabilities. The program selection stages are conducted in an innovative and challenging way to obtain the future leader candidates. Participants passing the initial selection, will undergo the advanced learning and selection stages over 2 (two) years with various learning methods, including in class learning, social learning and experiential learning. The main emphasis for Rookie 46 participants is on the experiential learning method with its overall exposure to the banking business. At the end, participants who graduate will be placed in a number of strategic positions at the manager level. GROWING A LEARNING CULTURE The Talent management system at BNI is competency-based and aims to ensure that employees have the appropriate competencies for the intended position (right man in the right place). To support this competency-based Talent Management System, BNI has a competency dictionary, and for each position in BNI has a specific competency profile. The competency dictionary lists all soft and hard competencies in BNI, and the specific competency profile lists the competencies needed for each position to carry out the work optimally. The Officer Development Program (ODP) is aimed at recruiting new university graduates for careers in accordance with their regional areas. Participants in this program will receive comprehensive training for 6 months. In 2018, there were 674 employees recruited through this channel ensuring that the regeneration process in BNI was conducted optimally. In 2018, BNI also improved the recruitment process in a number of areas, including through the use of technology and social media to make it easier for candidates to get information regarding employee recruitment, and to follow the selection process. As well as opening recruitment sites, BNI also actively uses social media as effective sourcing channels for recruiting potential candidates. PT Bank Negara Indonesia (Persero) Tbk  BNI employee competency development starts by shifting the learning paradigm from the learning center to the learner as the center of learning, which means learning centers are learners. By doing this employees are not only referred to as learners but also as adult learners, namely individuals who freely and actively choose for themselves why, how and when to conduct learning and sharing based on their needs and preferences. It is also based on the fact that employees with the same job position do not necessarily need the same learning as others, but are strengthened as each of them is responsible for their own development. The change in the learning paradigm from the learning center to being learner as the center of learning is a gradual process that begins with a change in mindset, coupled with a complete learning infrastructure. Adapting Quickly to Face Change 349
  350. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk LEADERSHIP DEVELOPMENT ACCELERATION In 2018, BNI focused on developing leadership capabilities at every staff level with the aim of preparing short and long term Leader’s Successor. Leaders Create New Leaders was one of the themes in 2018. In line with the concept of leader empowerment, a leader is not only required to be able to lead but also to create cadres as future leaders. The Leaders Create New Leaders theme is further described as: 1. Building Immediate Successor Is a program to prepare successors to occupy leader positions in the near future. Employees who enter the program are divided into two categories, those that are ready to occupy the leader position (Ready Now), and those that require some short term development (Ready with Development). Both leaders and successors in this program are expected to be able to maintain their consistently, both in terms of performance and capability, and be ready to be assigned to fill certain positions at any time. 2. Preparing Future Leader Is a program to prepare future leaders for the manager level and below. To ensure that candidates have the relevant competencies, the capability development needs to be carried out from the start and monitored periodically. The method of developing successor candidates uses the 70:20:10 concept, comprising experiential learning, social learning, and in class learning. One of the experiential learning models for future leaders is organizing the Glowing Night Run event. This activity involves improving a number of competencies for future leaders. TALENT RETENTION EMPLOYEE ENGAGEMENT BNI regularly conducts Employee Engagement Surveys (EES) aimed at consistently understanding the level of employee engagement with the company so that the company is able to establish policies that are in accordance with Banks aspirations. In 2018, BNI refined its method of measuring employee engagement with a simplified and digitized method so as to facilitate respondents in filling out the questionnaires. In this way the employee engagement measurement can 350 Adapting Quickly to Face Change be carried out continuously (on going), with the company gaining feedback from employees at any time. As a result, BNI can immediately roll out intervention programs for each engagement driver considered to be less than optimal. The engagement level results in 2018 reached 88%, an increase of 5.17% compared to 82.83% in 2017. REWARD AND RECOGNITION BNI’s remuneration strategy is aimed at attracting, motivating and retaining talent with superior performance and competencies, to support the achievement of Banks vision. To implement a remuneration strategy that stays competitive in the market, the 2018 initiative for adjusting remunerations was a continuation of the 2017 remuneration strategy. In 2017 the remuneration program focused more on fixed pay and variable pay. Whereas in 2018 it focused on benefits and allowances. Benefit enhancements included health benefits, pension benefits, and location benefits. WORKING ENVIRONMENT Collaboration is an important factor in achieving the Bank’s vision and BNI realizes that to face the challenges of an increasingly competitive business, strong synergy between all components in BNI is required. Currently, the work environment shape is increasingly being pushed towards open space that is considered appropriate to the concept of agile work that promotes collaboration. With this in mind, BNI has increasingly encouraged open work spaces. In 2018, BNI established 46 Hub as a Coworking Space that employees could use for work as well as a space where BNI communities could gather. In BNI there are a number of communities that employees can participate in to channel their interests and talents, both in the arts, sports or hobbies, and BNI helps employees find the community that suits their interests. This channeling of interests and talents is not only to internal communities, but also to external activities, one being the 2018 SOE Sports and Art (Porseni) Week. In the Porseni activities, BNI came out as General Champion with 4 (four) Gold medals (Marawis, Ragam Talenta, MTQ Putri, Solo Vocal), 5 (five) Silver (Tennis, Band Group, Regional Dance, MTAQ, Duta BUMN Putra) and 2 (two) Bronze (Stand Up Comedy, Vocal Group). In addition, BNI supporters were also recognized as the best Supporters of the 2018 SOE PORSENI PT Bank Negara Indonesia (Persero) Tbk
  351. Business Support Unit STRENGTHENING DIGITAL TRANSFORMATION IN HUMAN CAPITAL MANAGEMENT BUILDING A DIGITAL FOUNDATION IN HUMAN CAPITAL MANAGEMENT Digitalization in human capital management is realized gradually , in line with the overall policy implementation process. BNI realizes the importance of technology in managing its human capital, and so a number of digitalbased applications are gradually being developed to conform to the latest human capital management policies. These applications will be built in an integrated manner in accordance with the information system architecture and human capital management technology, ensuring that all human capital information can be easily accessed, and forms the basis for data-based HC management. PROVIDING A DIGITAL LEARNING INFRASTRUCTURE TO SUPPORT EMPLOYEES AS A CENTER OF LEARNERS For employee capability development, in 2017 BNI SMARTER (BNI Integrated Learning Monitoring System) was developed, as a learning concept that follows the 70:20:10 Learning and Development Theory. This learning concept has a greater impact if it combines experiential learning, learning from others and formal learning (in both real and online classes). This can be followed through the internet-based learning infrastructure on the bnicorpu.co.id website, and in 2018 included the following: 1. BNI MoRe UnLeaSh (BNI Monitoring Learning and Sharing Upload) An application to foster a learning and sharing culture among employees, by stimulating employees to learn and share every day and register online through the application. BNI employees are required to conduct 46 hours of learning and 46 hours of sharing annually. 2. BNI Expert Locator (BEL) BNI Bank has mapped more than 600 BNI employees at a minimum Assistant Vice President (AVP) position, who are experts in their fields. Through the BNI Expert Locator application, employees can search for the experts they need, and can contact them directly. This activity is immediately registered as a learning realization. 3. BNI Digital Learning Learning modules that can be accessed by employees anywhere and anytime, in the form of pdf, gamification, bite size videos etc. They also contain pre and post tests, smartbooks and learning program modules, held as PT Bank Negara Indonesia (Persero) Tbk  blended learning and 100% online learning. 4. BNI Learning Wallet (BLW) A personal learning budget, managed by the employees themselves, with the aim of helping them fill their competency gap, or improve their work to be smarter, faster and more efficient. The BLW budget can be adjusted based on their talent classification results, total cash (salary), learning and sharing realization, and the learning budget available and managed by BNI Corporate University. The online BLW starts with the learning plan through to the reimbursement of the learning costs. 5. Learner’s Virtual Assistant (LeVA) An application based on Artificial Intelligence (AI) that can be downloaded via a smartphone, where employees can interact with bots related to BNI Corporate University’s learning modules and programs, or those related to Human Capital, using text or voice commands. By studying with LeVA, employees do not have to read a complete module to find the knowledge required. 6. DEEP46 A learning program in the form of daily questions, to be done online between 00.00 - 12.00 WIB with the aim of helping employees master the competency needed in their job position. 7. Daily Check In An application to oversee the on the job training (OJT), In Service Training and Evaluation (ISTE) and Field Evaluation (Evalap). This is to ensure learning participants, mentors and Unit Leaders can do their job after following the learning. 8. Digital Leadership for All Level A learning program for all office levels, from basic employees to directors, aimed at increase the capacity and leadership capabilities of BNI employees. Employees are free to follow leadership learning based on the assessment and mobility plan results, where learning can be started at any time (multy entry) and completed at any time (multiple exit). 9. Info Public Training A menu to help employees use their BLW budget, supported by the best training provider information along with a learning event schedule Adapting Quickly to Face Change 351
  352. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk OTHER PROGRAMS BINA BNI PREPARING EMPLOYEES FOR RETIREMENT The BINA BNI Apprenticeship Program is a manifestation of BNI’s care and social responsibility, and was continued in 2018. There are 3,838 participants in the BNI BINA apprenticeship program that is aimed at providing new graduates with knowledge, skills and abilities (fresh graduates) to compete in the workspace. BNI pays attention to employee welfare, both during their active service and after retirement. The transition period from their previous work and activities to retirement must be prepared for well, as the change is not felt financially but also in their daily activities. Therefore, to prepare employees to continue to be active after retirement, and to maintain their health, post-service training is provided including how to start a business and how to manage finances in retirement. During 2018 there were 14 batches involving 207 employees who followed pre-retirement training. The training will also teach the employees on how to prepare mentally, psychologically and financially during retirement age. To ensure employees maintain their health, funds gathered during their active service with BNI will be utilized after retirement. BNI INNOVATION AWARDS (BINNOVA) 2017 – 2018 A series of programs to develop an employee innovation culture, the BNI Innovation Awards (Binnova) are held annually. For 2017 - 2018, there were several process improvements, in the form of Design Thinking and Prototyping training for finalists, innovation incubation for 10 (ten) best teams, and comparative study opportunities for the 3 (three) best teams in Shanghai and Hangzhou, China where they had the opportunity to visit a number of global financial technology companies, one of which was Alipay. The improvements are aimed at continuously providing a better innovation experience for the participants, and transmitting the spirit of innovation culture throughout the organization, which in turn will have implications for the development of BNI’s business over the long-term. BNI PROFESSIONALISM AWARD (PERFORMA) 2018 The BNI Professionalism Awards (BNI Performa) 2018, is a competition to support BNI’s Employee Value Proposition (EVP), “Together to create the best place to contribute, learn and grow, to become the pride of the country”, and to promote BNI’s work culture that focuses on Professionalism, to help accelerate BNI’s sustainable business growth. BNI Performa is expected to produce employees with leadership abilities in accordance with PRINCIPLE 46, and ready to be representatives in the 2019 DUTA BUMN. 352 Adapting Quickly to Face Change INDUSTRIAL RELATIONS The quality of industrial relations between management and the trade unions is consistently being improved, and the trade unions are involved in the human capital policy making through a co-creation process. In addition to the policy making process, the partnership forum activities functions as a means of delivering aspirations Banks, and this happened 33 (thirty three) times in 2018. Also, in 2018, arrangements were made for the Collective Labor Agreement (PKB) to be socialized to all employees. BNI’s Human Capital Division (HCT) has an HCT Info service that is accessible at any time by employees through digital media such as websites, e-mail and telephone networks to facilitate settlement and follow-up of staffing obstacles experienced by employees. PT Bank Negara Indonesia (Persero) Tbk
  353. Business Support Unit APPRECIATION AND AWARDS As a means to evaluate and compare the existing human capital management system , the Bank involves external parties in comparing and assessing a number of human resource management aspects. The results form input into improving the human resource management processes and systems in line with the spirit of “Continuous Improvement” as one of BNI’s cultural values. In 2018, there were a number of awards and appreciations received by Bank BNI related to its human capital management, including: Bank BNI Awards Related to Human Resources during 2018 No Event Award 1 HR Excellence Award in HR Transformation SWA and Universitas Indonesia Faculty of Economics and Business Management Institute 2 HR Excellence Award in Learning & Development Strategy SWA and Universitas Indonesia Faculty of Economics and Business Management Institute 3 HR Excellence Award in Compensation & Benefit Strategy SWA and Universitas Indonesia Faculty of Economics and Business Management Institute 4 Corporate Transformation category Competent People PPM Management FUTURE PLAN In line with the Human Capital’s role to support achieving Banks strategy, the main theme in 2019 will be Optimizing Productivity and Accelerating Development. The strategic initiatives to be followed will include optimizing productivity through robust workforce planning, and accelerating employee development with an integrated development plan mechanism. BNI realizes that accelerating the employee capability development is absolutely necessary to support achieving Banks strategic plan. HUMAN CAPITAL MANAGEMENT STRUCTURE BNI’s organizational development design is always being adjusted to the direction of the Bank’s development. In this regard, BNI’s Human Capital management, under the Human Capital Management Division, plays a role in the formulation, implementation and management of staffing operations policies, and BNI Corporate University is responsible for developing employee capabilities. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 353
  354. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Director of Compliance Human Capital Management Division BNI Corporate University Leadership Academy and Corporate Core Work Culture Human Capital Strategy Human Capital Services Human Capital System Business Partner Recruitment and Outsourcing Business Academy Learning & Operational Experiencel Assessment Center Learning Consultant Strategy & Operations Learning Consultant Teaching staff Learning Services Operational Human Capital Teaching staff System & Infrastructure Knowledge Management Industrial relations The Human Capital Management Division and BNI Corporate University report to the Compliance Director, Endang Hidayatullah, whose profile can be found in the Board of Directors’ Profiles in this Annual Report. HUMAN CAPITAL SHORT PROFILES The human capital management short profile are as follows: 1. Human Capital Management Division Head The Human Capital Management Division is headed by Efita Praharani, who previously served as Consumer Product Management Deputy Division Head and Regional Banking Consumer Head at the Jakarta Kemayoran Regional Office, and has more than 20 years experience in managing human resources at BNI. Has a Master of Science degree in Administrative Sciences from Universitas Indonesia and a Bachelor of Psychology degree from Universitas Gadjah Mada 2. BNI Corporate University Head The BNI Corporate University Division is headed Wicaksono Sarwo Edi, who has officially held the position of Dean of BNI Corporate University since April 10, 2017. Before taking office, served in a number of strategic positions both in the region and at the Head Office, including Policy Management Division Head, Strategic Planning Division Head and Jakarta Kemayoran Regional Office Head. Has a Bachelor’s degree in Civil Engineering and Master’s degree in Finance and Banking Management from Universitas Gadjah Mada. EMPLOYEE PROFILE Information about employee profiles can be found in the BNI Profile section in this Annual Report. 354 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  355. Business Support Unit PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 355
  356. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Good Corporate Governance 686SOCIAL RESPONSIBILITY GOVERNANCE 691CORPORATE SOCIAL RESPONSIBILITY RELATED TO HUMAN RIGHTS 693CORPORATE SOCIAL RESPONSIBILITY RELATED TO FAIR OPERATIONS 694SOCIAL RESPONSIBILITY IMPLEMENTATION 694BASED ON SUSTAINABLE FINANCE CONCEPT 696CORPORATE SOCIAL RESPONSIBILITY APPLICATION BASIC 697CORPORATE SOCIAL RESPONSIBILITY MANAGEMENT STRUCTURE 698CORPORATE SOCIAL RESPONSIBILITY RELATED TO THE ENVIRONMENT 703CORPORATE SOCIAL RESPONSIBILITY RELATED TO EMPLOYMENT, OCCUPATIONAL HEALTH AND SAFETY 706CORPORATE SOCIAL RESPONSIBILITY RELATED TO SOCIAL COMMUNITY DEVELOPMENT 713CORPORATE SOCIAL RESPONSIBILITY RELATED TO CONSUMERS 356 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  357. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 357
  358. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk GOOD CORPORATE GOVERNANCE The implementation of corporate governance has proven to have a positive impact on BNI’s performance. This is indicated by BNI’s various achievements throughout 2018 which produced satisfactory results in terms of financial, operational performance, and awards achieved. Improved GCG implementation is directly proportional to the increase of BNI’s overall performance. 358 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  359. Good Corporate Governance BNI understands that the implementation of Good Corporate Governance is no longer a necessity , but is a basic need and foundation in carrying out the Bank’s business activities. Along with the understanding that improving the quality of effective implementation of corporate governance in a sustainable manner is very important, BNI as a trust institution is committed to applying prudential banking and consistently by prioritizing ethics and integrity in the management of the Bank aiming at encouraging the Bank’s increased performance, guaranteeing the fulfillment of stakeholders rights, as well as increasing compliance with laws and regulations that generally apply to the banking industry. The effectiveness of Good Corporate Governance implementation can be seen from the alignment of the 3 (three) aspects of governance system, which are governance structure, governance process, and governance outcome. Governance structure relates to the adequacy of structure and infrastructure of Corporate Governance so that the process of implementing good Governance principles produces outcomes in line with the expectations of the Bank’s Stakeholders. Included in the Bank’s Governance structure are the Board of Commissioners, Board of Directors, Committees, and work units of the Bank. Those included in Governance infrastructures, among others, are policies and procedures, management information systems, and the main duties and functions of each organizational structure. PT Bank Negara Indonesia (Persero) Tbk  Governance Process is the effectiveness of the process of implementing good Corporate Governance principles that are supported by sufficient Corporate Governance structures and infrastructure in order to produce outcomes in line with the expectations of the Bank’s Stakeholders. Governance Outcome is the quality of outcomes that meet the expectations of the Bank’s Stakeholders which are the results of the process of implementing good Governance principles which are supported by sufficient structure and infrastructure of Corporate Governance. Thus, Governance Outcome is the result of implementing Governance Process and adequate support from Governance Structure. The existence of problems in Governance Structure raises weaknesses in Governance Process. On the other hand, the existence of weaknesses in Governance Process has an impact on Governance Outcome. In order to improve the Bank’s performance, to protect stakeholders, and to improve compliance with provisions of laws and regulations according to the Bank’s Articles of Association, BNI’s Board of Commissioners has a supervisory function to ensure that the management of the Bank is carried out by the Board of Directors in accordance with the applicable laws and regulations. While BNI’s Board of Directors carries out management and administration functions professionally and avoids potential conflicts of interest. Adapting Quickly to Face Change 359
  360. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk The implementation and development of Good Corporate Governance within BNI’s environment and subsidiaries are not only as a form of compliance with the provisions of laws and regulations set by the regulator, but has become an irreplaceable need for each company in managing its company. With the implementation and development of GCG, the Bank already has a solid foundation and sufficient provision to become a strong and growing company. BNI is committed to continuously improving the implementation quality of good corporate governance principles in all aspects of its business activities including subsidiaries in an integrated manner. Along with the development of best practices of corporate governance implementation, both in banking and financial services industry, as a state-owned bank registered in the capital market, BNI understands that the implementation and development of GCG has enormous benefits for BNI. With the implementation and development of GCG, BNI has guidelines in carrying out its business activities so that they are always in line with the goals and needs of each stakeholder. Alignment between stakeholders and BNI will foster mutual trust and conducive attitude in the Bank’s environment which results in the emergence and increase in the superior nature of work and professionalism in all BNI people. The implementation of good corporate governance is built on solid integrity, therefore, good governance principles can be implemented at every level of the organization, and carried out in each BNI’s activity so that all banking operations can run consistently and continuously. The governance implementation in BNI is based on the basic principles of GCG, which are Transparency, Accountability, Accountability, Independence, Equality and also Fairness. The implementation of these principles within BNI’s environment has been agreed by the Board of Commissioners, Board of Directors, management ranks, and all BNI personnel in order to create a Company that is constantly growing and competitive globally, as well as strong and persevering in running the business wheel. BNI also realizes that corporate governance will further enhance investors’ trust and security in the current global era. On an ongoing basis, in addition to implementing the basic principles of GCG, BNI continues to adopt various best governance standards applicable at regional and international levels, including the ASEAN Corporate Governance Scorecard, Minister of State-Owned Enterprises Regulation No. PER-01/MBU/2011 on the Good Corporate Governance and its amendment, which is SOE State Minister Regulation No. PER-09/MBU/2012, FSA Regulation No. 21/POJK.04/2015 on Implementation of Governance Guidelines of Public Company and FSA Regulation No. 55/POJK.03/2016 on the Implementation of Governance for Commercial Banks, Principles for Enhancing Corporate Governance issued by the Basel Committee on Banking Supervision, FSA Circular Letter No. 32/SEOJK.04/2015 on Governance Guidelines of Public Company, and FSA Circular Letter No. 13/SEOJK.03/2017 on Governance Implementation for Commercial Bank. 360 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  361. Good Corporate Governance RELATIONSHIP BETWEEN GOOD CORPORATE GOVERNANCE AND COMPANY PERFORMANCE The implementation of corporate governance has proven to have a positive impact on BNI ’s performance. This is indicated by BNI’s various achievements throughout 2018 which produced satisfactory results in terms of financial, operational performance, and awards achieved. Improved GCG implementation is directly proportional to the increase of BNI’s overall performance. Recognition of external parties in the forms of various awards, either related to BNI’s performance, information disclosure, or GCG implementation, has been obtained, including: 1. 1st Winner in the Category of Listed Financial SOE at the 2016 Annual Report Award. 2. The Best State-Owned Enterprise and Top 50 Public Listed Companies in the Good Corporate Governance Award organized by the Indonesia Institute for Corporate Directorship (IICD). 3. The Most Trusted Company Based on Corporate Governance Index (CGPI) in the 2018 Good Corporate Governance Award. In addition, the achievement of good financial performance in 2018 is as follows. 1. Interest income and Sharia increased by 11.0% to Rp35,446 Billion. 2. Loans disbursed increased by 16.2% to Rp512,778 Billion. 3. Customer deposits increased by 12.1% to Rp578,775 Billion. 4. The amount of credit disbursed increased by 12.2% to Rp513,022 Billion. 5. Total Assets increased 14.1% to Rp808,572 Billion. 6. Equity increased by 9.4% to Rp110,374 Billion. 7. Profit increased 9.6% to Rp15,092 Billion. 8. Gross NPL decreased from 2.3% in 2017 to 1.9% in 2018. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 361
  362. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk LEGAL FOUNDATION OF THE IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE The legal foundation of Corporate Governance implementation in BNI refers to the provisions of: 1. Law of the Republic of Indonesia No. 10 of 1998 on Amendment to Law No. 7 of 1992 on Banking. 2. Law of the Republic of Indonesia No. 40 of 2007 on Limited Liability Company. 3. Financial Services Authority Regulation No. 55/POJK.03/2016 on Governance Implementation for Commercial Bank. 4. Circular Letter of Financial Services Authority No. 32/SEOJK.04/2015 on Governance for Public Company. 5. Financial Services Authority Regulation No. 17/POJK.03/2014 on Implementation of Integrated Risk Management for Financial Conglomeration. 6. Financial Services Authority Regulation No. 18/POJK.03/2014 on Implementation of Integrated Governance for Financial Conglomeration. 7. Financial Services Authority Regulation No. 8/POJK.04/2015 on Website of Issuers or Public Companies. 8. Financial Services Authority Regulation No. 31/POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies. 9. Circular Letter of Financial Services Authority No. 13/SEOJK.03/2017 on Governance Implementation for Commercial Bank. 10. Various guidelines of GCG implementation among others are Corporate Governance principles, which were developed by the Organization for Economic Cooperation and Development (OECD), ASEAN Corporate Governance Scorecard, and Principles for Enhancing Corporate Governance issued by Basel Committee on Banking Supervision. 362 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  363. Good Corporate Governance IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE The implementation of Good Corporate Governance (GCG) in BNI aims to: 1. Increase BNI’s corporate value by applying GCG principles which consist of Transparency, Accountability, Responsibility, Independency, and Fairness and Equality in carrying out its business so that BNI has strong competitiveness, both at national and regional levels. 2. Encourage each BNI’s organ to always emphasize the GCG culture in every decision making based on the applicable values and norms as well as high level of compliance with the applicable laws and regulations. 3. Enhance BNI’s performance through company efficiency programs created by the implementation of GCG culture in each BNI’s organ. 4. Increase investor confidence and place BNI as the main choice of places to invest. The implementation of BNI’s GCG principles can be described as follows:: GCG Principles Description Transparency 1. The Bank discloses information in a timely, adequate, clear, accurate, and comparable manner, and it can be accessed by interested parties (stakeholders) in accordance with their rights. 2. The Bank discloses information that includes but is not limited to vision, mission, business objectives, bank strategy, financial conditions, composition and compensation of the management, controlling shareholders, executive officers, risk management, internal monitoring and control system, compliance status, systems and implementation of good corporate governance, as well as information and material facts that can influence investors’ decisions. 3. The principle of openness is still with due observance to bank secrecy, confidentiality of positions, and personal rights in accordance with the applicable regulations. 4. Bank policies shall be written and communicated to stakeholders and those entitled to obtain information about the policy. Accountability 1. The Bank sets the business objectives and strategies to be accountable to the stakeholders. 2. The Bank sets a check and balance system in the management of the Bank. 3. The Bank has a performance measure from all organizational organs based on the agreed dimensions and in line with company values (Corporate Culture Values), business goals, and Bank strategies as well as has a reward and punishment system. 4. The Bank shall believe that all organizational organs of the Bank have competencies in accordance with their responsibilities and understand their roles in the implementation of good corporate governance. Responsibility 1. The Bank adheres to the prudential bank practices and guarantees compliance with the applicable regulations. 2. The Bank as a good corporate citizen cares about the environment and carries out social responsibility in a reasonable manner. Independency 1. The Bank avoids unnatural domination by any stakeholders, is not affected by unilateral interests, and is free from conflict of interest. 2. The Bank makes decisions objectively and is free from any pressures from any parties. Fairness and Equality 1. The Bank shall pay attention to the interests of all stakeholders based on the principle of fairness and equal treatment. 2. The Bank also provides opportunities to all stakeholders to give inputs and express opinion for the Bank’s interests, as well as to open access to information in accordance with the principle of transparency. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 363
  364. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk IMPLEMENTATION OF GCG ROADMAP BNI always strives to conduct business in accordance with the principles of Good Corporate Governance (GCG) as desired by all stakeholders. BNI’s GCG implementation is carried out in a structured and systematic manner with the following stages: Year Activities 2001 BNI is committed to implement Good Corporate Governance. The commitment was pioneered by the Commissioners and Directors of BNI with the signing of the Joint Decree of the Commissioners and Directors No. KEP/001/DK and KP/001/DIR dated January 3, 2001, on the Implementation of Good Corporate Governance Principles as stated in the Corporate Governance Handbook of PT Bank Negara Indonesia (Persero) Tbk. which was then used as a guideline for Directors and Commissioners to manage BNI. 2002 As part of its commitment to continuously improve the corporate governance implementation, BNI carried out the following activities. • Establish Compliance Unit and Anti Money Laundering Unit under the responsibility of the Legal and Compliance Division. • Establish Remuneration and Nomination Committee that has roles and responsibilities in preparing performance evaluation criteria for each member of the Board of Commissioners and Board of Directors as well as evaluate the structure, system, and implementation of compensation for the Board of Directors and advise changes to the Board of Commissioners if requested. • Establish an assessment center to improve the selection process/system of top-level leadership positions. • Improve banking information system. • The Commissioner established the Audit Committee Charter as a guide for Audit Committee members in carrying out their duties. 2003 Quasi Reorganization, Reverse Stock Split, increase in authorized capital BNI continued to improve its corporate governance, both in terms of commitment and compliance with its implementation. Each employee was required to sign a statement of compliance with the Behavioral Code of Conduct. 2004 Launch of a new corporate identity Important achievements in implementing corporate governance throughout 2004 were as follows: • BNI’s management approved the establishment of Good Corporate Governance Committee with duties to assist the Board of Directors in evaluating and optimizing policy effectiveness and implementation of corporate governance in BNI’s work environment. • BNI was considered as one of five public companies with good corporate governance practices as per surveys conducted by Standard & Poor’s Governance Services as well as Corporate Governance and Financial Reporting Centers (CGRfC), which is headquartered in Singapore. • Management implemented the Zero Fraud program to foster sound and responsible banking practices, risk awareness, and inherent supervision of deviant behavior. Through this program, BNI rewarded work units that have succeeded in achieving Zero Fraud in their operations and on the other hand, sanctioned work units that fail to prevent Fraud. • BNI established a Work Ethics Team that works under the Human Resources Committee. Periodically, this team evaluates the progress of work ethics in BNI’s work environment. One of the efforts to improve governance was carried out in 2003, BNI established an Executive Committee, with duties to assist the Board of Directors in certain sector, which are: • Asset & Liability Committee (ALCO) • Risk Management Committee • Credit Policy Committee • Human Resources Committee • Technology Management Committee BNI increased stakeholders’ access to all information that has a material impact on BNI, including quarterly financial statements, annual reports, information on the use of corporate action proceeds, information that can influence investors’ investment decisions, resolutions of the General Meeting of Shareholders, and Other important events concerning BNI, both through BNI website, reports to Bapepam, Stock Exchange, mass media, public exposure, or analyst meeting. 364 2005 BNI's commitment to improve governance was proven by the establishment of a GCG Monitoring organizational unit through Decision Letter of Board of Directors No. KP/174/DIR/R, dated April 26, 2005 2006 The signing of “Commitment Statement to Implement Good Corporate Governance” by all Board of Directors, Board of Commissioners, and Division Heads at the Company’s Work Meeting, which was then followed by all employees at all levels of the organization and updated annually. 2007 As a follow-up to the signing of the ‘Commitment Statement to Implement Good Corporate Governance’ in the previous year, BNI developed GCG programs, including: • GCG e-learning • BNI’s Board of Commissioners and Board of Directors’ Guidelines and Work Conduct • The Book of Behavior Demands for BNI Personnel, which consists of BNI’s Work Cultural Values and Main Behavior called PRINCIPLE 46. • BNI received the title of a Trusted company in the ranking of the Corporate Governance Perception Index held by the Indonesian Institute for Corporate Governance (IICG) and SWA magazine. Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  365. Good Corporate Governance Year Activities 2008 Regarding the implementation of Know Your Customer Principles (PMN) and the implementation of Anti-Money Laundering Law (TPPU Law), the Compliance Division in collaboration with the Information Technology Division developed and continued to refine the system that is integrated with iCONS system to identify suspicious financial transactions. 2009 BNI managed to improve performance which resulted in a profit increase of up to 103% compared to that of the previous year. This was inseparable from the consistent implementation of GCG by all BNI people. 2010 Launched the Whistleblowing System (WBS) in an integrated manner so that transparency is maintained and its implementation is understood by all BNI employees. Improvement of code of conduct of BNI’s employee aimed at improving BNI’s employee quality. BNI’s participation in rating/ranking of GCG implementation, which was carried out by independent rating agencies, which are Center for Good Corporate Governance of Universitas Gadjah Mada (CGCG UGM), The Indonesian Institute for Corporate Directorship (IICD). 2011 BNI won various awards from various national and international institutions. Some major awards among others were: • 2011 SOE’s Best of the Best Company • The Most Admired ASEAN Entrepreneur Economics Challenges Award 2011 • The Most Trusted Company of the Indonesian Institute for Corporate Governance (IICG) • Regarding GCG implementation, BNI won several awards, including: • BNI won the Corporate Governance Award 2011 from The Indonesian Institute for Corporate Governance. • BNI’s information technology governance was recognized for its reliability by receiving IT Governance Award from the SOE Ministry. 2012 • • The self assessment results in accordance with Bank Indonesia regulations in 2011 and 2012 showed a stable trend with Excellent composite predicate. Establishment of Anti-Fraud Committees, which was established based on Decision Letter of Board of Directors Number KP/508/DIR/R dated November 9, 2012, on the Establishment of Anti-Fraud Committee (KAF). In carrying out its duties and responsibilities, KAF was assisted by the Ethics Management unit under the Compliance Division, in which one of its functions was as data liaison and to report to other Divisions/Units and external parties related to Anti-Fraud Strategies and to manage Fraud related databases existing in BNI. 2013 BNI won the following awards: • − The Most Trusted Company Based on Investors and Analyst’s Assessment Survey in the 2013 Good Corporate Governance Award. • − The Most Trusted Company Based on Corporate Governance Index (CGPI) in the 2013 Good Corporate Governance Award. • − Awarded as The Best Bank in Indonesia in Developing Good Corporate Governance (GCG) from Asiamoney Magazine. 2014 • • 2015 BNI won the award as: The Best State-Owned Enterprise and Top 50 Public Listed Companies in the Good Corporate Governance Award event held by The Indonesian Institute for Corporate Directorship (IICD). 2016 BNI won the following awards: • − The Best State-Owned Enterprise and Top 50 Public Listed Companies in the Good Corporate Governance Award organized by the Indonesia Institute for Corporate Directorship (IICD). • − The Most Trusted Company Based on Corporate Governance Index (CGPI) in the 2018 Good Corporate Governance Award. 2017 BNI won the following awards: • − 1st Winner in the Category of Listed Financial SOE at the 2016 Annual Report Award. • − The Best State-Owned Enterprise and Top 50 Public Listed Companies in the Good Corporate Governance Award organized by the Indonesia Institute for Corporate Directorship (IICD). • − The Most Trusted Company Based on Corporate Governance Index (CGPI) in the 2017 Good Corporate Governance Award. 2018 BNI won the following awards: • − The Best State-Owned Enterprise and Top 50 Public Listed Companies in the Good Corporate Governance Award organized by the Indonesia Institute for Corporate Directorship (IICD). • − The Most Trusted Company Based on Corporate Governance Index (CGPI) in the 2018 Good Corporate Governance Award. − BNI continued to make improvements and updates to improve corporate governance. − BNI also continued to support economic and environmental growth by organizing Kampoeng BNI program, PKBL, CSR activities organized by BNI Syariah, and commitment to One Billion Indonesian Trees (OBIT) program, which had planted more than 7 million trees in the past 7 years. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 365
  366. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Throughout 2018, BNI implemented GCG as follows: January Submission of GCG Self Assessment, position of December 2017 to FSA. February 1. The signing of GCG Commitment by all BNI Personnel. 2. Dissemination of Anti-Fraud to all BNI employees. 3. Submission of TKT Self Assessment, position of December 2017 to FSA. 4. Submission of Annual Report of the 2017 Fiscal Year to the Financial Services Authority and the Indonesia Stock Exchange. 5. Notification of the Annual GMS for 2017 Fiscal Year was carried out 21 (twenty-one) calendar days prior to the GMS date in accordance with the Roadmap Recommendation of Indonesian Corporate Governance and POJK No. 32/POJK.04/2014. 6. The GMS Notification included details of each agenda item of the GMS which are in accordance with the Roadmap Recommendation of Indonesian Corporate Governance and POJK No. 32/POJK.04/2014. March 1. The Annual GMS of 2017 Fiscal Year was held on March 20, 2018. 2. Publication of the Summary of Minutes of the Annual GMS for 2017 Fiscal Year including the Announcement of Schedule and Procedure for Cash Dividend Distribution for 2017 Fiscal Year was made on March 22, 2018, in 2 (two) newspapers, which are The Investor Daily and The Jakarta Post in order to fulfill POJK No. 32/POJK.04/2014 as lastly amended by POJK No. 10/POJK.04/2017. April 1. Payment of Cash Dividend for 2017 Fiscal Year was exactly 1 (one) month from the GMS date or after the announcement of the summary of minutes of the GMS on April 20, 2018, in accordance with the Roadmap Recommendation of the Indonesian Corporate Governance and POJK No. 32/POJK.04/2014 as lastly amended by POJK No. 10/POJK.04/2017. 2. GCG Dissemination in Malang Regional Offices. May 1. Report Submission of the Corporate Secretary Implementation function to the Board of Directors which was copied to the Board of Commissioners in accordance with the provisions stipulated in POJK No. 35/POJK.04/2014. 2. Anti-Gratification Publication in Kompas and Bisnis Indonesia daily newspapers on May 30, 2018. 366 Adapting Quickly to Face Change June Refinement of the Guidelines and Work Conduct of the Board of Directors as stated in the Decision Letter of the Board of Directors Number: KP/228/DIR/R dated June 29, 2018. July Submission of GCG Self Assessment, position of June 2018 to FSA. August 1. The signing of the Board of Directors’ Integrity Pact as a Commitment to Good Corporate Governance Implementation as stipulated in Decision Letter of Board of Directors No. DIR/564 dated July 19, 2017. 2. Submission of TKT Self Assessment, position of June 2018 to FSA. 3. GCG Dissemination in Singkawang and Pontianak Branch Offices. 4. Implementation of Compliance Forum of Anti-Money Laundering and Prevention of Terrorism Financing in the Financial Services Sector on August 30, 2018. December 1. The implementation of the IICD Award, BNI received 2 (two) awards, which are: The Best State-Owned Enterprise and Top 50 Public Listed Companies. 2. Anti-Gratification Publication in Kompas and Bisnis Indonesia daily newspapers on May 30, 2018. 3. Participation in the Research of the ASEAN Corporate Governance Scorecard for BNI, and BNI got a score of 88.60. 4. The implementation of the Corporate Governance Perception Index (CGPI) held by the Indonesian Institute for Corporate Governance (IICG) in which BNI received awards, which are: Most Trusted Company Based on Corporate Governance Index with a score of 88.38. 5. BNI always strives to improve GCG implementation within BNI’s working environment. This is carried out through the KMP Division by organizing internal activities such as GCG Vlog Competition with the theme: Integrity As a Lifestyle of BNI Employees #IniIntegritasGue (This is My Integrity). The purpose and objective in organizing this competition is to grow awareness of the entire BNI’s personnel to make this integrity attitude as a lifestyle and to improve the participation of the entire BNI’s personnel to participate actively and creatively in the integrity campaign as a lifestyle of BNI’s personnel. PT Bank Negara Indonesia (Persero) Tbk
  367. Good Corporate Governance EFFORTS TO IMPROVE THE QUALITY OF GOOD CORPORATE GOVERNANCE IMPLEMENTATION In principle , GCG implementation in BNI runs well and is carried out by the Board of Commissioners, Board of Directors, and all employees at every activity with the purpose to protect the interests of the Bank, shareholders, and stakeholders. BNI always evaluates GCG implementation continuously so that GCG implementation will always improve. GCG Evaluation in BNI is carried out among others by: 1. Reviewing guidelines/policies related to pre-existing GCG to be adjusted to the latest regulatory provisions. 2. Preparing new guidelines/policies related to GCG that do not yet exist, including updating new provisions to the Board of Directors and Board of Commissioners. 3. Increase the Compliance Principle through the Compliance Index. 4. Preparing GCG-related reports, including Governance Report, Corporate Secretary Report, and other related reports. 5. GCG-related External Complaint Facilities to encourage awareness of BNI Personnel to always behave in accordance with GCG principles as a culture, BNI also involves the participation of society/public as supervisors of GCG implementation in BNI, among others, by providing facilities for the general public to submit complaints and complaints of GCG violations committed by BNI employees through PO Box GCG BNI JKP 10000 and gcg@bni.co.id. People who feel to have been harmed by the actions of BNI Personnel or are aware of the actions of BNI employees that deviate from GCG principles can inform through these two facilities by clearly stating the identity of BNI employee/personnel who commits violation and the unit where such BNI employee/ personnel carry out the duties. In order to improve GCG implementation quality in BNI, BNI continues to strive to create, develop, and improve itself in accordance with GCG principles. Roadmap preparation is needed to map GCG aspects and create GCG related programs at BNI in order to support GCG implementation practices. AWARENESS GCG-RELATED DISSEMINATION Sosialisasi terkait GCG selama tahun 2018 telah dilakukan baik di Kantor Pusat dan Kantor Wilayah, diantaranya pada Divisi Komunikasi Perusahaan & Kesekretariatan, Wilayah Malang dan Makassar serta Kantor Cabang Singkawang dan Pontianak. Dalam sosialisasi dimaksud dipaparkan antara lain mengenai prinsip-prinsip GCG, contoh implementasi, sampai dengan ketentuan terbaru terkait GCG. Dengan sosialisasi ini diharapkan para Insan BNI memiliki tekad serta komitmen bersama untuk mewujudkan implementasi GCG di BNI. NEW EMPLOYEE INDUCTION PROGRAM New employees are the embryos of BNI personnel who will learn, grow, and develop in BNI. As a shoot or embryo, a briefing on corporate values is very important. In the briefing, GCG values and Code of Ethics will be embed, in which later it is expected that these will be useful in their BNI career journey. The briefing is carried out by the GCG Team, in collaboration with BNI Corporate University, which provides specific times related to GCG and Code of Ethics for new employees. Complaints received through PO Box GCG BNI JKP 10000 and gcg@bni.co.id are intended to assist the process of solving problems faced by parties who submit complaints/information and are expected to be a material for review/input and evaluation for BNI to make improvements continuously and improve the GCG implementation quality in BNI so that it can reduce the occurrence of irregularities or violations of GCG principles by BNI employees. Number of complaints/requests for information entered in 2018 was as many as 16 (sixteen) complaints. Complaints/requests for information that are not related to GCG have been forwarded to the relevant units for settlement. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 367
  368. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk GOVERNANCE COMMITMENT As a form of shared commitment in order to support GCG enforcement and implementation in BNI, once a year the Governance Commitment is signed, and for 2018, this was carried out in February. All employees from all levels of the Company jointly sign the Governance Commitment, preceded by the reading of the commitment and dissemination of Anti Fraud Awareness. This program is conducted to emphasize the importance and meaning of such commitment values to BNI personnel. The Governance Commitment is intended to state that, among others, BNI personnel are committed to: 1. Carry out duties and jobs properly and correctly in full responsibilities in accordance with the corporate culture and the applicable laws and regulations. 2. Not give, promise, and/or receive compensation in any forms. 3. Refrain from any possible conflict of interest. 4. Act fairly and equally in fulfilling stakeholders’ rights. 5. Make maximum efforts to prevent the possibility of fraud. 6. Be willing to report any cases of suspected fraud through BNI’s available reporting media; 7. Be willing to be sanctioned in the event that as BNI personnel, it is proven that the commitments mentioned above are not implemented when executing the duties and responsibilities. 368 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  369. Good Corporate Governance INTERNALIZATION Internalization is not limited to knowledge . Internalization has reached understanding stage. GCG internalization in BNI is carried out through various tools, facilitating the process of adopting values that can later be applied in carrying out daily work. The tools used, among others, are in the forms of: 1. Reading BNI’s 46 Principles and Code of Conduct on each quality day, conducted once a month in each unit as well as in the morning briefing. 2. Self-education method through GCG and Corporate Culture e-learning facilitates BNI personnel to learn GCG. 3. Distribution of posters and e-leaflets of anti-gratification and GCG enforcement in each unit and BNI Forum so that employees are aware at all times. 4. Distribution of Code of Conduct pocket books. 5. Ease of access to the Code of Conduct and Corporate Culture through BNI website that can be accessed anytime and anywhere. 6. As one way to improve the implementation of GCG principles in BNI’s work environment, an internal activity is held in the form of GCG Vlog competition with the theme “Integrity as the Lifestyle of BNI’s Personnel #IniIntegritasGue (#ThisIsMyIntegrity)”. The purpose and objective in organizing this competition is to grow awareness of the entire BNI’s personnel to make this integrity attitude as a lifestyle and to improve the participation of the entire BNI’s personnel to participate actively and creatively in the integrity campaign as a lifestyle of BNI’s personnel. BNI understands that Corporate Culture provides concentration in the form of attitude. These attitudes will shape the personality of each individual in a company, therefore, a collection of attitudes will form an interaction between individuals and their integrity, that will further bring out the characters that will exist in a company. EXTERNALIZATION Externalization itself is defined as an adjustment to the outside world that is a ‘world’ without oneself. As we know, the parties or the ‘world’ outside the public company comprises stakeholders (shareholders, Depositors, borrowers (debtors), associates/vendors/partners, governments, employees, customers) and the wide community. GCG externalization is closely related to the principles of transparency and fairness, where the principle of openness always observes the provisions of Bank secrecy and professional secrecy as well as treats stakeholders and the community with fair treatment and equal opportunity according to its proportions. BNI implements GCG externalization to stakeholders and wide communities through various means as follows: PT Bank Negara Indonesia (Persero) Tbk  1. GMS GMS is a communication means of the stakeholders to the company and a form of implementation of GCG principles because at the GMS, the form of responsibilities the Company’s Management are described from various aspects. A more detailed explanation of GMS can be found in GMS Section of Corporate Governance chapter in this Annual Report. 2. Shareholders Rights and Ownership Functions Shareholder’ rights are always protected and facilitated, in BNI, shareholders’ rights are demonstrated through dividends, the right to ask questions at the GMS, the right to obtain information, and the right to approve/not approve GMS resolutions via voting at GMS. 3. Disclosure and Transparency As a form of transparency pillar of GCG principles, BNI continues to strive to provide disclosure of information to stakeholders and the general public through various means including through the Annual Report, BNI website, mass media, IDX website, as well as notification to the regulator by hardcopy and electronic reporting facility. Considering BNI’s status as an issuer, information disclosure is considered crucial as a public company’s communication media; information disclosure is carried out by referring to the applicable capital market regulations. 4. Equal Treatment All BNI shareholders, including minority shareholders and foreign shareholders, are treated equally. All shareholders are given equal opportunities to obtain information. BNI applies this treatment to provide information related to Corporate Actions and the information disclosure as regulated by the capital market regulations. Everyone is given equal opportunities to obtain information and express criticism/advice to the Bank. Information, criticism, and/or suggestions can be accessed through BNI website and BNI Call 1500046. 5. Creating a Positive Bank Image It is undeniable that the Bank is a financial institution that relies on trust. A sound GCG practices by all of the company’s internal parties and stakeholders can improve the company’s image to wider public in the long term, so that the trust to the bank will always be maintained. In this digital age, BNI seeks to utilize a variety of tools to enhance the positive image of the bank through various media such as through print media (newspapers, tabloids, magazines), electronic media (radio and television) and cyber media (website, twitter, instagram, email, news portals, facebook, blogs, and other social media). Utilizing the media to support GCG practices is carried out to disseminate anti gratification, GCG awareness, service excellent, WBS, and so forth. Adapting Quickly to Face Change 369
  370. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk MONITORING OF IMPLEMENTASI GCG GCG monitoring in BNI is carried out, among others, by: Optimizing the monitoring function of duties and responsibilities of each employee is carried out in each unit by direct supervisors, Unit Leaders, and the Internal Audit Unit. Preparation and monitoring of Key Performance Indicators (KPI). Unit leaders have active roles in KPI monitoring process. Branch Performance Rewards, which are rewards for branches with assessment criteria of operations, business, and improvement efforts. Know Your Employee (KYE) as one of the inherent monitoring efforts to the employees. Direct supervisors must monitor employees under their supervision to ensure that there is no fraud by observing whether there are indications that need further attention (irregularities). 370 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  371. Good Corporate Governance GOOD CORPORATE GOVERNANCE ASSESSMENT GCG Assessment is an effort to measure or map the current company ’s condition in GCG implementation. This measure is taken to determine GCG implementation level and to identify appropriate measures in order to prepare infrastructure and corporate structure that is conducive to effectively implement GCG. In other words, GCG assessment is needed to identify the aspects that need to be prioritized, and the steps to make it happen. In order to evaluate GCG implementation, BNI conducts GCG Assessment that is conducted periodically and consistently every year consisting of Self Assessment according to BI/FSA regulations and Third-Party Assessment, as follows. SELF ASSESSMENT Based on FSA Circular Letter No. 13/SEOJK.03/2017 on Governance Implementation for Commercial Bank, FSA Circular Letter No. 55/POJK.03/2016 on Governance Implementation for Commercial Bank, Financial Services Authority Circular Letter No. 21/POJK.04/2015 on Implementation of Governance Guidelines of Public Company, FSA Circular Letter No. 32/SEOJK.04/2015 on Guidelines of Corporate Governance for Public Company as well as FSA 4/POJK.03/2016 on assessment of Bank Sound Level on Bank Indonesia Regulation on assessment of Bank Sound Level, one of the assessment points of Bank Sound Level is self-assessment of the implementation of Good Corporate Governance (GCG) Principles at a bank. Self Assessment implementation is conducted periodically every semester in June and December in the current year. This self-assessment is intended to map the strengths and weaknesses of GCG implementation in BNI in regard of 3 (three) aspects: 1. Governance Structure Governance structure assessment aims to assess the adequacy of BNI’s governance structure and infrastructure so that the implementation process of GCG principles will produce an outcome in line with the expectations of the Bank’s stakeholders. Included in the Bank’s governance structure are the Commissioners, Directors, Committees, and work units of the Bank. Included in the Bank’s governance infrastructures among others are the Bank’s policies and procedures, management information systems, and the main duties and functions of each organizational structure. PT Bank Negara Indonesia (Persero) Tbk  Governance Structure aspect is an assessment on the fulfillment of corporate structure and infrastructure in applying GCG as measured through the governance structures which includes: a. Shareholder Composition and Company Organs; the structure and function of the persons responsible for GCG implementation; the structure of the person in charge of ethics enforcement; the structure of the person in charge of information disclosure; the structure of the person in charge of supervisory and audit; the structure of the person in charge of human resources management; the structure of the person in charge of operations/productions; the structure of the person in charge of marketing; the structure of the person in charge of finance; the structure of the person in charge of risk management; the structure of the person in charge of information technology management; the structure of the person in charge of stakeholder relationship; the structure of the person in charge of procurement of goods and services; as well as the structure of the person in charge of change management. b. Fulfillment to the company policies is mainly related to the enforcement of GCG functions in conducting the company’s operations, which include guidelines and policies related to GCG, ethics enforcement, information disclosure, monitoring and audit as well as compliance, human resource management, operations/production, marketing, finance and accounting, risk management, information technology governance, relationships with stakeholders. 2. Governance Process The governance process assessment aims to assess the effectiveness of the implementation process of GCG principles supported by the adequacy of the Bank’s governance structure and infrastructure in order to produce outcomes that meet stakeholders’ expectations. Governance Process aspect is an assessment on the implementation of the company’s system and mechanism in applying GCG as measured by: Adapting Quickly to Face Change 371
  372. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk a. The process of implementing GCG, enforcing ethics, information disclosure, monitoring and audit, as well as compliance, human resource management, operations/ productions, marketing, finance and accounting, risk management, information technology governance, relationships with stakeholders, and so forth. b. Corporate governance mechanisms include GCG implementation mechanism and process, ethics enforcement, information disclosure, monitoring and audit as well as compliance, human resource management, operations/productions, marketing, finance and accounting, risk management, information technology management, relationship with stakeholders and so forth. 3. Governance Outcome Governance Outcome aspect is an assessment on the results of the implementation of the company’s system and mechanism in applying GCG that is measured through GCG implementation results, including outputs and outcomes of GCG implementation process, ethics enforcement, information disclosure, monitoring and audit as well as compliance, human resource management, operations/ productions, marketing, finance and accounting, risk management, information technology governance, relationships with stakeholders and so forth. As an evaluation of the GCG implementation, BNI has conducted assessment of GCG implementation. This assessment aims to measure GCG implementation process in BNI, the assessment is carried out by self assessment based on Financial Services Authority Regulation No. 55/POJK.03/2016 on Implementation of Governance for Commercial Bank that measures GCG implementation 11 (eleven) aspects consisting of: 1. Implementation of duties and responsibilities of the Board of Commissioners 2. Implementation of duties and responsibilities of the Board of Directors 3. Completeness and implementation of duties of the Committees 4. Management of conflict of interest 5. Implementing compliance function 6. Implementing internal audit function 7. Implementing external audit function 8. Implementing risk management including internal control system 9. Providing fund to related party and provision of large exposure 10. Transparency of the Bank’s financial and non-financial condition, GCG implementation report, and internal reporting 11. Bank’s Strategic Plans 372 Adapting Quickly to Face Change In accordance with FSA regulations, the Bank must conduct Self Assessment on GCG implementation. Result of GCG Self Assessment for the last 3 (three) years can be seen in the table below: Year 2018 Year 2017 Year 2016 2 2 2 Composite Score Based on the three assessment aspects, through GCG self assessment in 2018, BNI has set the score for GCG implementation as follows. Self Assessment Result of GCG Implementation Ratings Individual 2 Definition of Ratings This shows that the Bank Management has implemented the Governance, which is generally good. This is reflected from the adequate fulfillment of the Governance principles. In the event that there is weakness in the implementation of Governance principles, this weakness is generally less significant and can be resolved by normal actions by the Bank’s Management. Currently, the Bank keeps making efforts for corrective action to follow-up the Regulator’s finding results. PT Bank Negara Indonesia (Persero) Tbk
  373. Good Corporate Governance The score determination above is based on strengths and weaknesses of GCG implementation in BNI as follows : Recommendations obtained by Bank BNI from self-assessment, which have been followed-up can be seen in the table below. Strengths Weaknesses Governance Structure Governance Structure The Bank has had complete Governance structure and infrastructure, which is in line with the applicable provisions, in order to support Governance implementation in every line of work and Bank’s operations. None Governance Process Governance Process Generally, GCG implementation has been applied in accordance with the provisions as reflected from the fulfillment and implementation of Bank’s obligations to the Regulators as well as the fulfillment and implementation of obligations to all stakeholders. Overall, the governance process is carried out well in every activity/ business and Bank's Operations, in its implementation, there is still implementation that is not yet in line due to Human Error, and the current system and policies are not entirely understood by the employees. Governance Outcome • GCG implementation is generally well, supported by the rating result by independent party. BNI’s CGPI score achievement increased from 88.38 to 88.94 with the predicate of Indonesia most trusted Company, as well as BNI’s ACGS score achievement that increased from 88.60 to 91.58, with excellent predicate. • Decrease in number of sanctions and reprimands from the Regulator if compared to that of period of January-December 2017. Governance Outcome Until December 2018, there was still reprimands/penalties and violations done by BNI’s internal, however, the frequency and nominal of penalties imposed decreased significantly compared to that of December 2017. Recommendations obtained by BNI from self-assessment, which have been followed-up can be seen in the table below. Weaknesses Follow-Up Overall, the governance process is carried out well in every activity/ business and Bank's Operations, in its implementation, there is still implementation that is not yet in line due to Human Error, and the current system and policies are not entirely understood by the employees. In order to improve the understanding of SOP by the entire employees, BNI has mandated all employees to improve their awareness through e-learning mandatory, therefore, mistakes due to human error can be decreased every year. Until December 2018, there was still reprimands/penalties and violations done by BNI’s internal, however, the frequency and nominal of penalties imposed decreased significantly compared to that of December 2017. Supervision by the Compliance unit will always be improved. This is evidenced by the significant decrease of number of sanctions and penalties from that of the previous period. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 373
  374. 2018 AN N NU U AALL REPOR R TT BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk CORPORATE GOVERNANCE PERCEPTION INDEX (CGPI) In order to maintain the trust from all stakeholders, BNI also actively participates in Corporate Governance Perception Index (CGPI) held by The Indonesian Institute for Corporate Governance (IICG). BNI’s participation in the program aims to evaluate GCG implementation in BNI. The evaluation results are a reference for BNI to improve the future GCG implementation. The 2017 CGPI which was carried out in 2018 took the theme of Transforming the Business Model in the Framework of Good Corporate Governance. The assessment aspects of the 2017 CGPI include governance structure, governance process, and governance outcome. CGPI’s assessment uses a mandatory GCG implementation and generally applicable best practices as well as approaches to stakeholders’ perspectives where the relationship with all stakeholders is increasingly important in maintaining the Company’s business sustainability in the long run. BNI has completed all the requirements and stages of the 2017 CGPI assessment, in which the results showed very good results and received the predicate of the “Most Trusted Company”. CGPI assessment results in 2014-2017 are as follows. 88.94 88.38 87.73 87.46 2014 2016 2015 2017 CGPI assessment results in 2017-2018 Indicator 2017 2018 Governance Structure 29.06 23.03 Governance Process 29.73 38.14 Governance Outcome 29.59 27.77 CGPI Score 88.38 88.94 CGPI assessment results in 2015-2016 Assessment Aspect 2015 2016 Self Assessment/Survey 18.17 26.94 Documentation System 23.55 22.35 Paper 22.01 13.12 Observation 23.73 25.33 CGPI Score 87.46 87.73 In the last 4 (four) years, the assessment given by IICG in regard of BNI’s participation in CGPI has always increased. This shows that the implementation of GCG in BNI is getting better from year to year. The recommendations obtained by BNI from CGPI on the 2016 fiscal year which were implemented in 2017 and have been followed up are as follows. 374 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  375. Good Corporate Governance No Recommendation Follow-Up 1 . Mapping regulatory development and its consequence for the Company’s business and operations in order to guarantee continuous compliance. In order to map the Regulation development, BNI has already had a Policy Governance Division, which always reviews the Regulation development by collaborating with Compliance Division to always ensure compliance with the applicable laws and regulations. 2. Re-mapping the stakeholders in order to guarantee harmonious, synergic, and ethically-oriented relationship, and sustainable value creation. BNI has carried out stakeholder mapping contained in the Bank's Business Plan, which is reviewed periodically to be submitted later to the Regulator. 3. Integrating system and corporate value chain in order to support the effectiveness and efficiency of the expected Company’s performance. In order to increase efficiency, BNI has already integrated the business process so that it can maximize the business process and increase revenues as reflected in the profit increase obtained by BNI. 4. Updating policies, guidelines, and corporate governance systems in order to refine system weakness and prevent negative impact on the Company’s business and operations. Every risk impact has been anticipated, through the synergy of business units with risk units to minimize the negative impact on the Company's business. Furthermore, efforts to increase awareness of the governance culture are always carried out routinely by using current methods so that they can be easily accepted by all BNI employees. 5. Increasing understanding and competence in GCG in the internal environment as well as external stakeholders of the Company through many dissemination activities and good attachments. In order to increase understanding of all BNI employees and all stakeholders, the Company uses updated methods by maximizing social media function as a program to improve understanding of governance in BNI. 6. Appealing and encouraging affiliation companies and colleagues to have the same commitment and effort in implementing GCG in order to create a conducive situation for the implementation of GCG and sustainability practices. In order to encourage an increase in governance culture of subsidiaries, the Company has formed BNI’s Financial Conglomeration in which the members are all Subsidiaries in financial sector, with one of the objectives to have standardization of governance implementation. ASEAN CORPORATE GOVERNANCE SCORECARD (ACGS) An assessment of BNI’s GCG implementation is also carried out by Asean CG Scorecard (ACGS) based on the Annual Report and the Company’s Website. ACGS assessment is carried out by IICD (Indonesian Institute for Corporate Directorship) by using scorecard components consisting of: 1. Shareholders Rights 2. Equal Treatment to Shareholders 3. Roles of Stakeholders 4. Disclosure and Transparency 5. Responsibilities of the Board of Directors and Board of Commissioners Based on the assessment results of BNI GCG practices following the principles set forth in the ASEAN Corporate Governance Scorecard conducted in 2018, BNI achieved a score of 91.58. No Assessment Component 2017 2016 1. Shareholders' Rights 2. Equal Treatment to Shareholders 3. Roles of Stakeholders 15 10 4. Disclosure and Transparency 22.66 22.56 5. Responsibilities of the Board of Commissioners 31.88 30.27 6. Bonus 9 7 7. Penalty Total Score PT Bank Negara Indonesia (Persero) Tbk  9.05 9.60 6 9.17 (2) 0 91.58 (Very Good) 88.60 (Good) Adapting Quickly to Face Change 375
  376. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Recommendations obtained by Bank BNI from ACGS, which have been followed-up can be seen in the table below: No. 376 Recommendation Follow-Up 1 To guarantee shareholders rights, the Company is expected to notice the announcement time of GMS note-taking, which is no later than 1 (one) business day. The announcement process of Summary of GMS Minutes is currently in line with the applicable provisions in Indonesia, however, BNI always strives to accelerate the delivery of information on Annual/Extraordinary General Meeting of Shareholders in order to comply with these criteria. 2 In the GMS invitation document, it is recommended to provide further details of the following matters: (1) profile of Commissioners/Directors who will be selected in GMS, such as age, qualifications, experience in directorship in public companies, (2) disclosure of external auditor names who will be selected for the following fiscal year, (3) explanation of the policy to disburse dividend in GMS agenda, (4) the amount of dividend to be distributed. Regarding the submission of the Board's profile, which will be published at the time of submitting GMS invitation, it will be our improvement in convening GMS in the future, with due observance of the provisions applicable in SOE Bank. 3 The Company is also advised to have policies that regulate the reporting of company stock trading transactions by insiders within 3 (three) business days. Transaction reporting mechanism for a maximum of 3 (three) business days by insiders has been carried out with reference to the applicable provisions. 4 It is necessary to stipulate provisions on the provision of loan facilities for members of board of commissioners and board of directors in reasonable terms (i.e. the maturity period and market/normal interest rates without exception). To facilitate this, BNI has compiled provisions on the provision of loan facilities for the Board of Directors and the Board of Commissioners. 5 The Company is advised to add information in the Annual Report regarding the details of remuneration received by each member of the Board of Commissioners. The Company has informed the CEO Remuneration amount, as per the Financial Services Authority regulations. 6 The Company is advised to disclose fees given to the External Auditor if there are non-audit services provided, if not, the statement to be disclosed is that the Company does not receive non-audit services from external auditors. This will be our concern in preparing the next Annual Report. 7 The company is advised to expedite the issuance of the Annual Report no later than 120 days from the end of the financial statements period. The Company has issued the Annual Report <120 days from the end of the financial statements period. 8 The Board must continuously review annually the Bank's vision, mission, and strategy. For 2018, the Board of Directors has reviewed the vision and mission which become part of the Bank's Business Plan. 9 The Company is advised to plan detailed Board of Directors meetings before the fiscal year starts so that members of the Board of Directors can plan their attendance earlier at those meetings. The schedule plan for the Board of Directors Meeting will be included in the Annual Report of 2018 Fiscal Year. 10 Preparing policies to set a minimum level of attendance for members of the Board of Commissioners in Board of Commissioners meetings (minimum 75% of the total Board of Commissioners meetings held in 1 period). The Company has set rules and work procedures of the Board of Directors and Board of Commissioners, in which it has set a minimum level of attendance in accordance with the applicable provisions. 11 It is necessary to have a policy requiring quorum requirements in a decision-making meeting by the Board of Commissioners, i.e. a minimum of 2/3 members shall attend. The Company has set rules and work procedures of the Board of Directors and Board of Commissioners, in which it has set a minimum level of decision making in meetings in accordance with the applicable provisions. 12 Circulation of meeting material can be accepted by each member of the Board of Commissioners no later than five (5) (business) days before the Board of Commissioners meeting. The Company has set rules and work procedures of the Board of Directors and Board of Commissioners, in which it has stipulated the submission of meeting material in accordance with the applicable provisions. 13 Giving compensation in the form of bonus is not a good practice, because bonus relates to the company's performance, which is the Board of Directors performance. It is recommended that compensation to the Board of Commissioners, especially for independent members of the Board of Commissioners, not be given in the form of bonus because it will affect the independency of the Independent Commissioner. Provision of remuneration to the Board of Directors and Board of Commissioners has been carried out in accordance with the applicable provisions. Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  377. Good Corporate Governance No . Recommendation Follow-Up 14 The Board of Commissioners or Audit Committee shall state and disclose their statement regarding the adequacy of the company internal control or company risk management system in the company's annual report. The adequacy of internal controls has been contained in each of the Company's Annual Reports. 15 The Company is advised to make a succession plan for the President Director, members of Board of Directors, and key management of the company that will be carried out by the Board of Commissioners.The said plan means the process of identifying and developing employees who have potential to be the successors of the President Director, members of the Board of Directors, and Key Management of the Company. The Company has had a Nomination and Remuneration Committee with duties to prepare the succession of the President Director, members of Board of Directors, and Key Management of the Company. 16 The company is advised to include the duties and responsibilities of the President Commissioner in the work guidelines of the Board of Commissioners and disclose it to the public. The duties and responsibilities of the President Commissioner have been included in the Board of Commissioners’ guidelines and work conduct which can be downloaded on BNI’s website. 17 The performance assessment of the President Director by the Board of Commissioners needs to be carried out and disclosed (not just the assessment for Board of Directors that is carried out only collectively) The Board of Directors Performance Assessment has been carried out in accordance with the applicable laws and regulations in Indonesia. 18 The Company is advised to conduct annual performance assessments of each/every member of the Board of Commissioners (or disclose it if there is such practice) and disclose the process occurring during the performance assessment. The performance assessment of Members of Board of Commissioner has been carried out in accordance with the applicable laws and regulations in Indonesia. 19 The Company is advised to make a policy that regulates the composition of the Nomination/Remuneration Committee, in which the majority of members are Independent Commissioners. The composition and qualifications policy and Number of Members of the Nomination and Remuneration Committee have been regulated according to the provisions of laws and regulations. 20 To support the duty implementation of the Audit Committee, the Company is advised to appoint members of Audit Committee who have qualifications in accounting. The Audit Committee composition has been adjusted to the Company needs in order to support the duty implementation of Audit Committee. 21 Related to Audit Committee, it is recommended to add its role or function, which is not only to recommend the appointment of an external auditor, but also to arrive at giving recommendations to dismiss the company's external auditor. Such role or function shall be clearly stated or stipulated in the Audit Committee charter. The duties and responsibilities of the Audit Committee are stated in the BNI Audit Committee charter which can be accessed on BNI’s website. 22 The Company is advised to use information technology when casting votes at the Annual General Meeting of Shareholders. The voting by using Information Technology will be our record in our next GMS implementation in accordance with the applicable provisions. 23 The New Financial Services Authority Regulation on GMS issued in December 2016 requires companies to send Annual GMS notice to shareholders at least 21 (twenty-one) calendar days. However, the GMS notice mechanism itself allows the company to send notice to the shareholders within 28 (twenty-eight) calendar days. The implementation of GMS notice has been carried out in accordance with the applicable provisions of laws and regulations. 24 The Company can consider gender diversification in the Board of Commissioners, by increasing the appointment/designation of women as board members of Independent Commissioners. This will be the Company's attention in the future. 25 As one of the big companies in Indonesia, BNI has the ability to use a professional search firm to recruit prospective members of the Board of Commissioners. This will be the Company's attention in the future. 26 The Company is advised to disclose the details of remuneration received by the President Director. This will be the Company's attention in the future. 27 The Company can strengthen the role of the Board of This will be the Company's attention in the future. Commissioners through empowering the nomination committee with a composition of 100 percent independent members. Independent members do not have to be Independent Commissioners, but can come from outside parties who fulfill the independence requirements. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 377
  378. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk SUPERIOR PERFORMANCE ASSESSMENT CRITERIA Superior Performance Assessment Criteria (KPKU) is a performance management and control system prepared by the Ministry of State-Owned Enterprises (SOE) as the standard guidelines for the Ministry of SOE and all SOEs in building, managing, and empowering their company’s systems and resources to achieve superior performance. KPKU assessment criteria were adopted from the Malcolm Baldrige Criteria for Performance Excellence (MBCfPE) and has been implemented in SOE since 2012 as per Ministry of SOE Letter No. S-153/S.MBU/2012 dated July 19, 2012. Since 2005, BNI has integrated the performance assessment system of Malcolm Baldrige Criteria for Performance Excellence (MBCfPE) into the framework for the company’s performance development, and has continued its implementation in the form of SOE’s KPKU. KPKU assessment criteria consists of a number of questions representing the fundamental aspects of the management of company/organization in the context of achieving superior performance. Such questions are classified in 7 (seven) categories, as follows: 1. Leadership 2. Strategic Planning 3. Focus on Customers 4. Measurement, Analysis, and Management of Knowledge 5. Focus on Manpower 6. Focus on Operation 7. Business Results For BNI, as one of the SOEs implementing KPKU, the evaluation process of the above seven categories will result in performance improvement feedback (OFI/Opportunity For Improvement), and a performance rating with a world class rating standard because SOE’s KPKU is extracted from Malcolm Baldrige Criteria, which is indeed designed to assess company’s performance based on the characteristics of world-class companies. The rating performance is divided into several levels, which are: World Leader Emerging Industry Leader Early Improvement Industry Leader Benchmark Leader Good Performance Early Results Early Development Since implementing MBCfPE system in 2005, the assessment results have shown that BNI’s KPKU score always increases from time to time. The 2016 KPKU assessment results that took place at the end of January 2017 have succeeded in obtaining the “Emerging Industry Leader” Band Score. For 2018, KPKU assessment was not carried out, therefore, the previous year’s assessment results are still valid. Through KPKU framework implementation, BNI obtains a comprehensive picture of the company’s condition from various aspects, either the processes or the results. Through a portrait of the company’s condition, BNI can acknowledge the company’s strengths and weaknesses. The company’s weakness as wrapped up in OFI becomes a study, as well as a source of inspiration and trigger for BNI to make refinements and improvements in various fields. 378 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  379. Good Corporate Governance COMPANY ORGANS AND IMPLEMENTATION PROCESS OF GOOD CORPORATE GOVERNANCE In implementing BNI ’s management, the Board of Directors is supported by an organizational structure consisting of major organs and supporting organs to achieve effective management. In implementing the supervisory and advisory functions, the Board of Commissioners is supported by supporting organs, which are Secretary to Board of Commissioners, Audit Committee, Risk Monitoring Committee, Nomination and Remuneration Committee, and Integrated Governance Committee. STRUCTURE OF COMPANY ORGANS The structure of BNI’s organs is as follows. GENERAL MEETING OF SHAREHOLDERS Elect & Dismisses Board of Directors Check & Balances Board of Commissioners Secretary of the Board of Commissioners Reports to Internal Audit Unit Review Internal Audit reports Corporate Secretary Compliance Division Review Compliance reportsreports Management Division Bank’s Risk Division Policy Governance GCG Unit Credit Committee Integrated Risk Management Committee Risk and Capital Management Committee Risk Management Sub-Committee (RMC) Performance Management Committee Technology Management Committee Audit Committee Independent Auditor Risk Monitoring Committee Review Risk Management reports Nomination and Remuneration Committee Integrated Governance Committee Credit Policy and Procedure Committee Human Capital Committee Asset & Liability Sub-Committee (ALCO) Anti Fraud SubCommittee Product Committee PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 379
  380. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Principles Implementation of Good Corporate Governance (GCG) in BNI basically follows the roadmap that has been developed, through three main process groups (structure, process, and outcome), with reference to the GCG principles. GCG principles Transparency Accountability Responsibility Independency Fairness RUPS Governance Structure Dewan Komisaris Direksi Main Organs Komite Dewan Komisaris Komite Direksi Enterprises Risk Management Internal Audit Corporate Secretary Compliance Unit Company Policies and Reporting Process Flow Awareness Output Governance Process GCG Implementation Internalisasi Assessment Adapting Quickly to Face Change Monitoring/Evaluasi Performance Growth and Improvement of GCG Assessment Score (CGPI, ACGS, SA, KPKU) The process of GCG implementation by company organs in executing the functions and duties is supported by various policies/guidelines called GCG infrastructure. GCG infrastructure owned by BNI, among others, are: 1. The Bank’s Articles of Association No. 52 dated May 22, 2018, which have been received and recorded in the Legal Entity Administration System of the Ministry of Law and Human Rights of the Republic of Indonesia under the number AHU0012962.AH.01.02 Tahun 2018 dated June 25, 2018. 2. BNI’s Code of Ethics as BNI Employees’ Code of Conduct. 3. Board Manual of the Board of Commissioners, whose update has been validated by Board of Commissioners’ Decision Letter No. KEP/0049/DK/2017 dated October 26, 2017. 4. Board Manual of the Board of Directors, whose update has been validated by Board of Directors’ Decisions Letter No. KP/228/DIR/R dated June 29, 2018. 5. The Integrated Governance Guidelines, which have been approved by the Board of Commissioners through Board of Directors’ Decision Letter No. DIR/796 dated 12 December 2018 and Decision Letter of Board of Commissioners No. DIR/140 dated 13 December 2018. 6. Guidelines of Integrated Risk Management, which has been approved by the Board of Commissioners through Board of Commissioners’ Letter No. DK/27 dated March 8, 2016 and stipulated in e-PP No. IN/239/ERM/001 dated April 28, 2016. 7. Guidelines of Conflict of Interest, which has been set forth in the Online Company Manual (e-PP) No. IN/695/KMP/001 dated October 29, 2014. 380 Externalization 8. Guidelines of Corporate Secretary, which has been validated by Board of Directors’ Decision Letter No. KP/356/DIR/R dated September 2, 2016. 9. Company Guidelines for Securities Transactions which are Prohibited and not Prohibited for Insiders. 10. Audit Committee Charter, which has been approved by the Board of Commissioners through the Board of Commissioners’ Decision Letter No. KEP/009/DK/2016 dated April 14, 2016. 11. Risk Monitoring Committee Charter, which has been approved by the Board of Commissioners through the Board of Commissioners’ Decisions Letter No. KEP/024/ DK/2016 dated July 21, 2016. 12. Remuneration and Nomination Committee Charter, which has been validated through the Board of Commissioners’ Decision Letter No. KEP 027/DK /2015 dated September 21, 2015. 13. Integrated Governance Committee Charter and Work Conduct, which has been approved by the Board of Commissioners through the Board of Commissioners’ Decisions Letter No. KEP/006/DK/2015 dated June 22, 2015. 14. Corporate Governance Handbook No. KEP/001/DK and KP/001/Dir dated January 3, 2001, on the Implementation of Governance Principles. 15. BNI Anti-Money Laundering and Countering Financing of Terrorism (AML & CFT) Policy Statement. 16. Related Company Manual for Procurement Procedures stipulated in e-PP. PT Bank Negara Indonesia (Persero) Tbk
  381. Good Corporate Governance 17 . Whistle Blowing System Policy, which has been validated through Joint Decision Letter of the Board of Directors and Board of Commissioners No. KEP/019/DK/2010 and No. KP/279/DIR dated December 1, 2010. 18. Risk and Capital Committee (KRK) Charter, which has been approved by the Board of Directors through Board of Directors’ Decisions Letter No. KP/483/DIR/R dated December 21, 2016. 19. Integrated Risk Management Committee (KMRT) Charter, which has been approved by the Board of Directors through Board of Directors’ Decisions Letter No. KP/193/DIR/R dated May 26, 2015. 20. Credit Policy and Procedure Committee Charter, in which there is a Sub-Committee of Credit Procedure (KPP), which has been approved by the Board of Directors through Board of Directors’ Decision Letter No. KP/253/DIR/R dated June 1, 2016. 21. Performance Management Committee Charter, which has been approved by the Board of Directors through Board of Directors’ Decision Letter No. KP/466/DIR/R dated October 5, 2012, on BNI’s Performance Management Committee (PMC). 22. Product Committee Charter, which has been approved by the Board of Directors through Board of Directors’ Decision Letter No. KP/448/ DIR/R dated September 20, 2012, on BNI’s Product Committee (PRC). 23. Technology Management Committee Charter, which has been approved by the Board of Directors through Board of Directors’ Decision Letter No. KP/201/DIR/R dated June 14, 2011, which has been updated through Memo of the Planning Division No. REN/2/234/R dated May 4, 2016, on Amendment to Committee Membership. 24. Guidelines for GCG monitoring activities and Self Assessment Report as stipulated in e-PP No. IN/462/KMP/001 dated October 22, 2015. 25. Guidelines for Investor Relations activities as stipulated in e-PP No. IN/41/KMP/001 dated January 26, 2015. 26. Guidelines for Preparation of Bank’s Business Plan as stipulated in e-PP No. IN/92/REN/001 dated March 17, 2014. 27. Guidelines for Accounting Policy Management as stipulated in e-PP No. IN/406/PKU/001 dated August 24, 2016. 28. Employment Guidelines for Performance Assessment as stipulated in e-PP No. IN/99/HCT/001 dated February 29, 2016. 29. Employment Guidelines for Employee Code of Conduct No. IN/648/HCT/001 dated October 10, 2014. PT Bank Negara Indonesia (Persero) Tbk  GOOD CORPORATE GOVERNANCE MECHANISM SHAREHOLDERS A shareholder is a person or a legal entity that legally owns one or more shares of the Company and is a party authorized to exercise the rights granted by the law on shares. The Company’s shares are registered stocks consisting of: 1. Dwiwarna A Series shares that can only be owned by the State of the Republic of Indonesia, and 2. B Series shares and C Series shares are common stocks that can be owned by the State of the Republic of Indonesia and the public. SHAREHOLDERS’ RIGHTS Unless stipulated otherwise in the Articles of Association, Shareholders of Dwiwarna A Series, B Series, and C Series have the same rights and every 1 (one) share gives 1 (one) voting right. Based on the Articles of Association, Dwiwarna A Series Shares are shares specially held by the State of the Republic of Indonesia, which give the holders the following privileges: 1. The right to approve in GMS on the following matters: a. Approval for amendment to the Articles of Association. b. Approval for changes to equity. c. Approval for appointment and dismissal of members of Board of Directors and Board of Commissioners. d. Approval for merger, consolidation, acquisition, split, and dissolution. e. Approval for remuneration of members of Board of Directors and Board of Commissioners. f. Approval for asset transfer based on Articles of Association that requires GMS approval. g. Approval for participation and reduction of the percentage of equity participation in other companies based on the Articles of Association that requires GMS approval. h. Approval for the use of profits. i. Approval for investment and long-term financing that is not operations in nature based on the Articles of Association that requires GMS approval. 2. The right to propose candidates for members the Board of Directors and candidates for members of the Board of Commissioners. 3. The right to propose GMS agenda. 4. The right to request and access company data and documents with the mechanism of the use of such rights in accordance with the provisions in the Articles of Association and laws and regulations. Adapting Quickly to Face Change 381
  382. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk In addition to the privileges held by Dwiwarna A Series Shareholders, Dwiwarna A Series Shareholders, B Series Shareholders, and C Series Shareholders have the same rights unless otherwise stipulated by the Articles of Association, as follows: 1. The right to attend, express opinions, and vote in GMS based on shares. 2. The opportunity to propose an agenda at the GMS. 3. The opportunity to grant power to another party in the event that the shareholder is unable to attend the GMS. 4. The right to obtain meeting materials immediately after the GMS notification. 5. In the GMS forum, they are entitled to obtain information relating to the Company from the Board of Directors and/or the Board of Commissioners, as long as it relates to the meeting agenda and does not conflict with the Company’s interests. 6. The opportunity to vote in agreement, disagreement, or abstain from any proposed resolution of the GMS agenda. 7. The right to obtain information about the company in a timely, correct, and orderly manner, except for confidential matters. 8. The right to receive a share of the company’s profits designated for Shareholders in the form of dividends and other profit sharing, that is proportional to the number of shares held. 9. The right to obtain complete explanation and accurate information about procedures that shall be fulfilled with regard to GMS implementation. 10. The opportunity to see shareholder register and special register. POLICY OF RELATIONSHIP WITH SHAREHOLDERS In order to implement good governance principles, especially in the aspect of openness, the Company always strives to ensure the company’s transparency on financial and non-financial information in a fair and timely manner, to all shareholders, including minority shareholders and foreign shareholders. In order to realize such transparency of information, the Corporate Secretary has an active role in the implementation of the bank’s information disclosure to shareholders as stipulated in Article 5 of FSA Regulation No. 35/POJK.04/2014 on Corporate Secretary of Issuer or Public Company; the Corporate Secretary serves as a liaison between the Bank and shareholders, including the Financial Services Authority and other stakeholders. To foster intensive, systematic, and planned relationship with Shareholders, the Bank has internal company policies as stipulated in the Company Regulations No. IN/794/KMP/001 dated December 23, 2014. 382 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  383. Good Corporate Governance GENERAL MEETING OF SHAREHOLDERS GMS IMPLEMENTATION GMS is the highest organ of a limited liability company , which has the right and authority that are not owned by the Board of Directors and Board of Commissioners. Thus, GMS is the highest organ in the Bank. GMS is a crucial organ in the Bank with roles to determine direction and objectives of the Bank as stipulated in the Bank’s Articles of Association. Moreover, the GMS also determines important matters related to the Bank. GMS AGENDA MATERIAL 1. GMS Agenda Material is a document containing the composition of Meeting Agenda accompanied by the legal basis and explanations related to the GMS Agenda. 2. The Bank provides GMS agenda material that can be accessed by Shareholders from the date of the GMS Notice to the GMS implementation. 3. GMS Agenda Material is available at the Bank’s Head Office and can be accessed on the Bank’s Website, both in Indonesian and in English. 4. In the event of Changes in the Management of the Bank, curriculum vitae of candidate member of the Board of Commissioners and Board of Directors of Public SOE that will be proposed to be appointed at the GMS, is available and announced at the time of the GMS, before making decisions regarding the appointment of the candidate to be member of Board of Commissioners and Board of Directors. This is as stipulated in the Minister of StateOwned Enterprises Regulation No. PER-02/MBU/02/2015 on the Requirements and Procedures for Appointment and Dismissal of Members of Board of Commissioners and Board of Supervisors of State-Owned Enterprises, and State-Owned Enterprise Minister Regulation No. PER-03/MBU/02/2015 on the Requirements, Procedures for Appointment and Dismissal of Members of Board of Directors of State-Owned Enterprises. Based on the Bank’s Articles of Association, BNI’s GMS consists of Annual GMS and other GMS, usually called as Extraordinary GMS (EMGS), which can be held any time as deemed necessary. LEGAL FOUNDATION TO ORGANIZE GMS Organizing Annual GMS and Extraordinary GMS is performed by referring to the following requirements: 1. The Bank’s Articles of Association. 2. Law No. 40 of 2007 on Limited Liability Company. 3. Law No. 19 of 2003 on State-Owned Enterprises. 4. Financial Services Authority Regulation No. 10/ POJK.04/2017 on Amendment to Financial Services Authority Regulation No. 32/POJK.04/2014 dated December 8, 201, on Planning and Organizing GMS for Public Company. 5. State-Owned Enterprise Minister Regulation No. PER-02/ MBU/02/2015 on the Requirements and Procedures for Appointment and Dismissal of Members of the Board of Commissioners and Board of Supervisors of State-Owned Enterprises. 6. State-Owned Enterprise Minister Regulation No. PER-03/ MBU/02/2015 on the Requirements, Procedures for Appointment and Dismissal of Members of Board of Directors of State-Owned Enterprises. PT Bank Negara Indonesia (Persero) Tbk  GMS CONDUCT 1. GMS conduct is carried out by referring to Financial Services Authority Regulation No. 10/POJK.04/2017 on Amendment to Financial Services Authority Regulation No. 32/POJK.04/2014 on Planning and Organizing General Meeting of Shareholders of Public Companies. 2. The GMS Conduct is distributed to shareholders/their proxies at the time of registration. 3. The GMS Conduct regulates, among others, meeting participants who have the right to attend the GMS, Meeting Chairperson, Language used in the GMS, meeting quorum and decision making, mechanism of questioning and responding, mechanism of decision making, and voting procedures. 4. The principles of the GMS conduct are read out before the GMS begins. In accordance with the provisions of the GMS Conduct as stipulated in the Bank’s Articles of Association, at the opening of the GMS, the Chairperson of the GMS provides an explanation to the shareholders on: a. The Bank’s general conditions in brief b. GMS agenda c. Mechanism of decision-making related to GMS agenda, and d. Procedures for using shareholders rights to raise questions and/or share opinions. Adapting Quickly to Face Change 383
  384. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk CHAIRPERSON OF THE MEETING Based on Article 24 paragraph (1.1) of the Bank’s Articles of Association, the Chairperson of the GMS is a member of the Board of Commissioners appointed by the Board of Commissioners. PROVISIONS OF ATTENDANCE QUORUM The quorum at the GMS shall be attended by shareholders representing more than ½ (one half ) of the total shares with valid voting rights, and the resolution is valid if approved by more than ½ (one half ) of the total shares with valid voting rights attending the GMS unless the laws and/or Articles of Association stipulate a larger number of quorum. In the event that the attendance quorum is not met, the second GMS is valid and has the right to adopt binding resolutions if attended by shareholders representing at least 1/3 (one third) of the total shares with valid voting rights, and the resolution is valid if approved by more than ½ (one half ) of the total shares with voting rights attending the GMS unless the laws and/or Articles of Association stipulate a larger number of quorum. PROCEDURE FOR QUESTION AND ANSWER AND GIVING RESPONSE 1. Only the shareholders and/or their proxies who have registered for the GMS have the rights to ask questions and/or give responses. 2. Question and/or response forms are submitted to shareholders or their proxies at the time of GMS registration. 3. After the Chairperson of the GMS or the party appointed by the Chairperson of the GMS delivers a proposal regarding matters to be decided at the GMS, the Chairperson of the GMS will provide an opportunity to the Bank’s shareholders or their proxies to ask questions and/or give responses before a vote is held on the related matter. 4. For Shareholders or their proxies who wish to raise questions and/or give responses, the Chairperson of the GMS invites shareholders/their proxies to submit questions and/or responses to the Chairperson of the GMS in writing by putting down the names and number of shares owned or represented. Questions and/or responses submitted shall relate directly to the GMS agenda being discussed. VOTING PROCEDURE 1. In the GMS, each share gives the right to the owner to cast 1 (one) vote. 2. In voting, the votes cast by the Shareholders are valid for all shares owned and the shareholders are not entitled to give power to more than one power of attorney for a portion of the number of shares they have with a different vote. These provisions are excluded for: a. Custodian Bank or Securities Company as Custodian representing its customers who are owners of the Bank’s shareholders. b. Investment Managers who represent the interests of the Mutual Funds they manage. 3. All GMS resolutions are taken based on deliberation to reach consensus. 4. In the event that a resolution based on deliberation for consensus is not reached, then the GMS resolution is taken based on the agreed votes. 5. Shareholders or their Proxies who disagree or abstain from the proposed GMS resolution will be invited by the Chairperson of the GMS to raise their hands and submit the voting cards to the Meeting officers to count the votes. Shareholders and/or their Proxies who do not raise their hands are declared agree. 6. After the votes are counted and reported by the Notary, the Chairperson of the GMS will announce the voting results. 7. Shareholders with voting rights who are present at the GMS but not casting vote (abstain) are considered to cast the same vote as the majority vote of the voting Shareholders.. VOTING CALCULATION PROCEDURE The Notary calculates the vote with the assistance of the Share Registrar Bureau by counting the disagree voting cards or abstain votes submitted by the Shareholders/their Proxies through the Meeting officers. The voting calculation is carried out by scanning the barcode on the said Sound Card with a barcode scanner. Abstain votes are added to the Agree votes or to the Disagree votes, whichever is higher. After that, the Chairperson of the GMS will ask the Notary to report the voting calculation results. If the number of votes meets the specified quorum, then a GMS decision can be adopted. At the Bank’s Annual GMS dated March 20, 2018, Shareholders were given the opportunity to raise questions and/or give opinions related to each Meeting agenda, but no shareholders/their proxies asked questions and/or gave opinions. 384 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  385. Good Corporate Governance INVOLVEMENT OF INDEPENDENT PARTIES IN GMS Share Registrar Bureau is a Party that based on a contract with the Bank /Issuer records the securities ownership and distribution of rights relating to the securities. The Share Registrar Bureau assists the Bank/Issuer in convening the GMS, which among others includes: 1. Notary A Notary is a public official who is authorized to make an authentic deed and has other authorities as referred to in the Law on the position of a notary that is registered with the Financial Services Authority as a capital market supporting profession. Notary plays a role in examining the validity of supporting documents and paying attention to the formalities requirements for the GMS implementation in order not to conflict with the laws and regulations and articles of association. 2. Share Registrar Bureau Share Registrar Bureau is a Party that based on a contract with the Bank/Issuer records the securities ownership and distribution of rights relating to the securities. The Share Registrar Bureau assists the Bank/Issuer in convening the GMS, which among others includes: a. Preparing proxies from minority shareholders b. Publishing Written Confirmation for Meetings (KTUR) c. Validating shareholders who are entitled to attend the GMS and register them d. Calculating shareholders presence in connection with the GMS quorum e. Providing voting card for shareholders. f. Helping Notary in calculating votes using a barcode scanner. 3. Public Accountant Firm The Public Accountant Firm is present as the party that audits the Bank’s Financial Statements and Annual Report on the Implementation of Partnership and Community Development Program. COMPANY’S EFFORTS TO IMPROVE SHAREHOLDERS ATTENDANCE IN THE GMS As an effort of the Company to facilitate Shareholders to exercise their rights and authority at the GMS, the Company carries out the following efforts: 1. The Company announces and summons the GMS in a timely manner, in Indonesian and English, which is published in 2 (two) national circulation newspapers, company websites, and the Indonesia Stock Exchange website. 2. In the Announcement and Summon of the GMS, the Company clearly describes the authorized shareholders to attend/represent and vote in the GMS, who are the Company’s Shareholders whose names are registered in the Bank’s Shareholders Register or Shareholders in securities accounts at the Indonesian Central Securities Depository on the Summoning Day. 3. On the website, the Company provides contacts that shareholders can use to communicate in connection with the holding of the GMS. 4. The company provides services to shareholders who need information and/or will ask questions related to the GMS plan and/or GMS agenda through either direct meetings or correspondence via email. STAGES OF ORGANIZING GMS Referring to the applicable provisions, the stages of organizing the Company’s GMS are as follows: 1 Notification of the GMS Plan to FSA 4 GMS Implementation 2 Publication of the GMS Announcement 5 Publication of Summary of GMS Minutes 3 Publication of GMS Notice 6 Submission of GMS Minutes to FSA PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 385
  386. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk GMS IMPLEMENTATION IN 2018 Throughout 2018, BNI held 1 (one) GMS, which was the Annual GMS of 2017 Fiscal Year on March 20, 2018 . The implementation of the Bank’s Annual GMS was carried out in accordance with the Bank’s Articles of Association and the provisions of organizing GMS for Public Company as stipulated in the Financial Services Authority Regulation No. 32/ POJK.04/2014 dated Dedember 8, 2015 about the plan and implementation of GMS public companies : as much as changed with The Financial Services authority No. 10/POJK.04/2017: Notification to FSA GMS Announcement Provisions The Bank notifies the Financial Services Authority no later than 5 (five) days prior to the GMS announcement The Bank must make a GMS Announcement to shareholders no later than 14 (fourteen) days prior to the GMS notice. Publication of GMS Announcement is conducted through 1 (one) Indonesian language daily newspaper, Stock Exchange website, and Public Company website in Indonesian and foreign languages Implementation Notification of the plan to convene Annual GMS was delivered on January 30, 2018, to FSA. Notification of Changes to the Annual GMS Date was announced on February 5, 2018. Compliance Complied Stages GMS Implementation Summary of GMS Minutes The Bank must make a Notice to shareholders no later than 21 (twenty one) days before the GMS. Publication of GMS Notice is conducted through 1 (one) Indonesian language daily newspaper, Stock Exchange website, and Public Company website in Indonesian and foreign languages The Annual GMS must be held within 6 (six) months the most after the Bank's fiscal year ends. The Bank must make a summary of the GMS minutes. Publication of Summary of GMS Minutes is conducted no later than 2 (two) business days after GMS is held through 1 (one) Indonesian language daily newspaper, Stock Exchange website, and Public Company website in Indonesian and foreign languages The Bank must make GMS Minutes and must submit it to the Financial Services Authority no later than 30 (thirty) days after the GMS is held. Announcement of the Annual GMS was conducted on February 9, 2018. The Publication was made through The Investor Daily and The Jakarta Post, and can be accessed through Indonesia Stock Exchange website and the Bank’s website in Indonesian and English languages. The Annual GMS Notice was conducted on February 26, 2018. The Bank Revised the Annual GMS Notice, which was conducted on March 9, 2018. Publication was made through The Investor Daily and The Jakarta Post, and can be accessed through Indonesia Stock Exchange website and the Bank’s website in Indonesian and English languages. Annual GMS was held on March 20, 2018, at 14.00 WIB (Western Indonesian Time) until finished, at Ballroom Shangri-La Hotel, Jakarta, located at Jalan Jenderal Sudirman Kavling 1. Jakarta, 10220. Summary of the Annual GMS Minutes was published on March 22, 2018, through The Investor Daily and The Jakarta Post, and can be accessed through Indonesia Stock Exchange website and the Bank’s website in Indonesian and English languages. The Bank submitted the GMS Minutes to the Financial Services Authority on March 29, 2018, in the form of Deed of GMS Minutes prepared by a notary, which was Deed of Annual GMS Minutes No. 37 dated March 20, 2018, made before Notary Fathiah Helmi, S.H. The Bank’s Annual GMS Minutes can be accessed through the Bank’s website in Indonesian and English languages. Complied Complied Complied Complied Complied GMS Notice GMS Minutes The Bank’s 2018 Annual GMS Agenda Material The Agenda Material of the Annual GMS held on March 20, 2018, can be accessed through the Bank’s website as follows: http:// bni.co.id/portals/1/bni/perusahaan/docs/Buku%20Materi%20Rapat.pdf The Bank’s 2018 Annual GMS Conduct The Conduct of the Annual GMS held on March 20, 2018, can be accessed through the Bank’s website as follows: http://bni. co.id/portals/1/bni/perusahaan/docs/Buku%20Tata%20Tertib.pdf 386 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  387. Good Corporate Governance THE BANK ’S GMS AGENDA 2018 The agenda of the Annual GMS for 2017 Fiscal Year, which was held on March 20, 2018, is as follows: Agenda - Item 1 Approval for the Annual Report and Ratification of the Bank's Consolidated Financial Statements, Approval for the Board of Commissioners' Supervisory Duties Report, and Ratification of the Annual Report for the Implementation of the 2017 Partnership & Community Development Program, including submission of the Accountability Report of Realization of the Use of Proceeds of Public Offering of Sustainable Bonds I BNI Phase I Year 2017 and granting the release of full responsibility (volledig acquit et de charge) to the Board of Directors and Board of Commissioners of the Bank for the management and supervision actions that were carried out during the 2017 Fiscal Year Agenda - Item 2 Approval for the use of the Bank's Net Profit for the 2017 Fiscal Year Agenda - Item 3 Determination of remuneration (salary/honorarium, facilities and allowances) for 2018 Fiscal Year and tantiem for 2017 Fiscal Year for the Board of Directors and Board of Commissioners of the Bank Agenda - Item 4 Determination of the Public Accountant Firm to audit the Bank's Financial Statements and the Annual Report for the Implementation of Partnership and Community Development Program for 2018 Fiscal Year Agenda - Item 5 Approval for the Bank's Recovery Plan Agenda - Item 6 Inauguration of the Enactment of SOE Minister Regulation No. PER-02/MBU/7/2017 on Second Amendment to SOE Minister Regulation No. PER-09/MBU/07/2015 on Partnership Program and Community Development Program of State-Owned Enterprises Agenda - Item 7 Approval for the Amendments to the Bank's Articles of Association Agenda - Item 8 Change in the composition of the Bank's Management MEETING CHAIR IN THE BANK’S 2018 ANNUAL GMS On the GMS dated March 20, 2018, based on the Board of Commissioners’ Letter No. DK/31 dated March 16, 2018, the Board of Commissioners appointed Ari Kuncoro (President Commissioner/Independent Commissioner) as the Chairperson of the Meeting and as the Substitute Chairperson of the Meeting I was Mr. Wahyu Kuncoro (Vice President Commissioner), and Substitute Chairperson of the Meeting II was Mr. Pataniari Siahaan (Independent Commissioner). ATTENDANCE OF COMPANY’S MANAGEMENT IN GMS The Board of Commissioners and Board of Directors attending the Annual GMS of 2017 Fiscal year, which was held on March 20, 2018, are as follows: No. Name Position Attendance Present Absent Description Board of Commissioners 1. Ari Kuncoro President Commissioner/Independent Commissioner √ 2. Wahyu Kuncoro Vice President Commissioner √ 3. Pataniari Siahaan Independent Commissioner √ 4. Revrisond Baswir Independent Commissioner √ 5. Bistok Simbolon Commissioner √ 6. Marwanto Harjowiryono Commissioner √ 7. Joni Swastanto Commissioner √ 8. Ahmad Fikri Assegaf Independent Commissioner √ ATTENDANCE PT Bank Negara Indonesia (Persero) Tbk  100% Adapting Quickly to Face Change 387
  388. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. Name Position Attendance Present Absent Description Board of Directors 1. Achmad Baiquni President Director √ 2. Herry Sidharta Vice President Director √ 3. Rico Rizal Budidarmo Director of Finance and Credit Risk √ 4. Putrama Wahju Setyawan Director of Medium Business √ 5. Anggoro Eko Cahyo Director of Consumer Banking √ 6. Panji Irawan Director of Treasury and International √ 7. Catur Budi Harto Director of Small Business and Network √ 8. Adi Sulistyowati Director of Institutional Relations and Banking Transactional √ 9. Bob Tyasika Ananta Director of Planning and Operations √ 10. Imam Budi Sarjito Director of Compliance and Corporate Risk √ ATTENDANCE 100% ATTENDANCE OF INDEPENDENT PARTIES IN 2018 ANNUAL GMS The independent parties attending the GMS of 2017 Fiscal Year are as follows: 1. Notary In the Bank’s Annual GMS on March 20, 2018, the Notary who assisted in organizing the Meeting was Notary Fathiah Helmi, SH. 2. Share Registrar Bureau In the Bank’s Annual GMS on March 20, 2018, the Share Registrar Bureau that assisted in organizing the Meeting was PT Datindo Entrycom. 3. Public Accountant Firm In the Bank’s Annual GMS on March 20, 2018, the Public Accountant Firm that attended was the Public Accountant Firm Purwantono, Sungkoro & Surja – a member Firm of Ernst & Young global network. GMS ATTENDANCE AND RESOLUTION QUORUM Establishing GMS attendance and resolution quorum refers to Article 25 of the Bank’s Articles of Association. The Bank’s Annual GMS on March 20, 2018, was attended by 16,329,884,642 shares including Dwiwarna A Series Shares, which had valid voting rights equaling to 87.566% of the total shares with valid voting rights issued by the Bank. Referring to the Bank’s Annual GMS implementation on March 20, 2018, the Attendance and Resolution Quorum based on the Agenda are as follows: 388 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  389. Good Corporate Governance Provisions of Attendance Quorum Resolution Quorum Provisions Resolution Quorum of Annual GMS March 20 , 2018 Complied Resolutions are valid if approved by more than 1/2 (one half ) portion of the total shares with valid voting rights attending the GMS. Approved by 16,294,383,042 votes or 99.78% part of the total shares with voting rights attending the Meeting, therefore, the resolution quorum was fulfilled. Attended by shareholders representing more than 1/2 (one half ) portion of the total shares with valid voting rights. Complied Resolutions are valid if approved by more than 1/2 (one half ) portion of the total shares with valid voting rights attending the GMS. Approved by 16,253,252,242 votes or 99.53% part of the total shares with voting rights attending the Meeting, therefore, the resolution quorum was fulfilled. Attended by shareholders representing more than 1/2 (one half ) portion of the total shares with valid voting rights. Complied Resolutions are valid if approved by more than 1/2 (one half ) portion of the total shares with valid voting rights attending the GMS. Approved by 15,711,499,429 votes or 96.21% part of the total shares with voting rights attending the Meeting, therefore, the resolution quorum was fulfilled. Agenda Basis of Proposal Approval for the Annual Report and Ratification of the Bank’s Consolidated Financial Statements, Approval for the Board of Commissioners’ Supervisory Duties Report, and Ratification of the Annual Report for the Implementation of the 2017 Partnership & Community Development Program, including submission of the Accountability Report of Realization of the Use of Proceeds of Public Offering of Continuous Bonds I BNI Phase I Year 2017 and granting the release of full responsibility (volledig acquit et de charge) to the Board of Directors and Board of Commissioners of the Bank for management and supervision actions that were carried out during the 2017 Fiscal Year. Article 69 of Law of Limited Liability Company. Article 22 paragraph (2) of SOE Minister Regulation No. Per-07/ MBU/05/2015, which was amended by SOE Minister Regulation No. Per-02/MBU/7/2017 on the Second Amendment to the State-Owned Enterprise Minister Regulation No. Per-09/MBU/07/2015 on Partnership Program and Community Development Program of State-Owned Enterprise. Financial Services Authority Regulation No. 30/POJK.04/2015 on Report of Actual Use of Proceeds from the Public Offering. Article 21 paragraph (2) of the Bank’s Articles of Association. Attended by shareholders representing more than 1/2 (one half ) portion of the total shares with valid voting rights. Approval for the use of the Bank’s Net Profit for the 2017 Fiscal Year. Article 70 and Article 71 of Law on Limited Liability Company. Article 21 paragraph (2) and Article 26 paragraph (2) of the Bank’s Articles of Association Determination of remuneration (salary/honorarium, facilities and allowances) for 2018 Fiscal Year and tantiem for 2017 Fiscal Year for the Board of Directors and Board of Commissioners of the Bank. Articles 96 and 113 of Law on Limited Liability Company. SOE Minister Regulation No. Per-04/MBU/2014, which was amended by SOE Minister Regulation No. Per-01/MBU/06/2017 on Guidelines to Establish Remuneration of Board of Directors, Board of Commissioners, and Board of Supervisors of SOE. Article 11 paragraph (19), Article 14 paragraph (30), and Article 26 paragraph (2) of the Bank’s Articles of Association. PT Bank Negara Indonesia (Persero) Tbk  Attendance Quorum of Annual GMS March 20, 2018 Adapting Quickly to Face Change 389
  390. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Agenda 390 Basis of Proposal Provisions of Attendance Quorum Attendance Quorum of Annual GMS March 20, 2018 Resolution Quorum Provisions Resolution Quorum of Annual GMS March 20, 2018 Determination of the Public Accountant Firm to audit the Bank's Financial Statements and the Annual Report for the Implementation of Partnership and Community Development Program for 2018 Fiscal Year. Article 21 paragraph (2) of the Bank's Articles of Association. Attended by shareholders representing more than 1/2 (one half ) portion of the total shares with valid voting rights. Complied Resolutions are valid if approved by more than 1/2 (one half ) portion of the total shares with valid voting rights attending the GMS. Approved by 15,640,575,837 votes or 95.78% part of the total shares with voting rights attending the Meeting, therefore, the resolution quorum was fulfilled. Approval for the Bank's Recovery Plan. Financial Services Authority Regulation No. 14/POJK.03/2017 on Recovery Plan for Systemic Banks. Attended by shareholders representing more than 1/2 (one half ) portion of the total shares with valid voting rights. Complied Resolutions are valid if approved by more than 1/2 (one half ) portion of the total shares with valid voting rights attending the GMS. Approved by 16,305,925,487 votes or 99.85% part of the total shares with voting rights attending the Meeting, therefore, the resolution quorum was fulfilled. Inauguration of the Enactment of SOE Minister Regulation No. PER-02/MBU/7/2017 on the Second Amendment to Regulation of Minister of StateOwned Enterprise No. PER-09/ MBU/07/2015 on Partnership Program and Community Development Program of State-Owned Enterprise. SOE Minister Regulation No. PER-02/MBU/7/2017 on the Second Amendment to Regulation of Minister of StateOwned Enterprise No. PER-09/MBU/07/2015 on Partnership Program and Community Development Program of State-Owned Enterprise. Attended by shareholders representing more than 1/2 (one half ) portion of the total shares with valid voting rights. Complied Resolutions are valid if approved by more than 1/2 (one half ) portion of the total shares with valid voting rights attending the GMS. Approved by 16,319,090,442 votes or 99.93% part of the total shares with voting rights attending the Meeting, therefore, the resolution quorum was fulfilled. Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  391. Good Corporate Governance Provisions of Attendance Quorum Agenda Basis of Proposal Approval for the Amendments to the Bank ’s Articles of Association. Article 88 of Law of Limited Liability Company. Article 28 of the Bank’s Articles of Association. The GMS was attended by Dwiwarna A Series shareholders and other shareholders and/or their authorized proxies who together representing at least 2/3 (two thirds) of the total shares with valid voting rights. Change in the Company’s Management. Article 94 and Article 111 of Law on Limited Liability Company. SOE Minister Regulation No. PER-02/MBU/02/2015 dated February 17, 2015, on the Requirements, Procedures for Appointment and Dismissal of Members of the Board of Commissioners and Board of Supervisors of StateOwned Enterprises. SOE Minister Regulation No. PER-03/MBU/02/2015 dated February 17, 2015, on the Requirements, Procedures for Appointment and Dismissal of Members of Board of Directors of StateOwned Enterprises. Article 11 paragraph (10) and Article 14 paragraph (12) of the Bank’s Articles of Association. The GMS was attended by Dwiwarna A Series shareholders and other shareholders and/or their authorized proxies who together representing more than 1/2 (one half ) of the total shares with valid voting rights. PT Bank Negara Indonesia (Persero) Tbk  Attendance Quorum of Annual GMS March 20, 2018 Resolution Quorum Provisions Resolution Quorum of Annual GMS March 20, 2018 Complied The resolutions were approved by Dwiwarna A Series shareholders and other shareholders and/or their authorized proxies who together representing more than 2/3 (two thirds) of the total shares with valid voting rights attending the GMS. Approved by 12,014,624,743 votes or 73.57% part of the total shares with voting rights attending the Meeting, including Dwiwarna A Series shareholders, therefore, the resolution quorum was fulfilled. Complied The resolutions were approved by Dwiwarna A Series shareholders and other shareholders and/or their authorized proxies who together representing more than 1/2 (one half ) of the total shares with valid voting rights attending the GMS. Approved by 12,019,850,702 votes or 73.61% part of the total shares with voting rights attending the Meeting, including Dwiwarna A Series shareholders, therefore, the resolution quorum was fulfilled. Adapting Quickly to Face Change 391
  392. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk KEPUTUSAN DAN TINDAK LANJUT KEPUTUSAN RUPS TAHUNAN Perseroan TAHUN 2018 The resolutions of the Annual GMS of 2017 Fiscal Year, which was held on March 20, 2018, are as follows: Agenda – Item 1 Resolution 1. Approved the Bank’s Annual Report including the Supervisory Duty Report that has been carried out by the Board of Commissioners for the fiscal year ending on December 31, 2017, and ratified the Company’s Consolidated Financial Statements for the fiscal year ending on December 31, 2017, which was audited by the Public Accountant Firm Purwantono, Sungkoro & Surja - a member firm of Ernst & Young global network according to Report No. RPC-5575/ PSS/2018 dated January 15, 2018, with reasonable opinion in all material matters. 2. Ratified the Financial Statements for the Implementation of Partnership and Community Development Program for the fiscal year ending on December 31, 2017, which was audited by the Public Accountant Firm Purwantono, Sungkoro & Surja - a member firm of the Ernst & Young global network according to Report No. RPC-5806/PSS/2018 dated February 26, 2018, with reasonable opinion in all material matters. 3. Accepted the Accountability Report of Realization of the Use of Proceeds from the Public Offering of BNI Sustainable Bonds I Phase I Year 2017 of Rp3,000,000,000,000.00 (Three trillion Rupiah). 4. Granted full release of responsibility (volledig acquit et de charge) to all members of the Board of Directors and members of the Board of Commissioners for the management and supervision actions that were carried out during the fiscal year ending on December 31, 2017, as long as these actions are not criminal offense and these actions are reflected in the Annual Report, the Bank’s Consolidated Financial Statements, and the Financial Statements for the Implementation of Partnership and Community Development Program for the fiscal year ending on December 31, 2017. Voting Results (Total Votes and Percentage) Agree 16,294,383,042 votes or 99.78% part of the entire shares with voting rights attending the Meeting Disagree 9,994,200 votes or 0.06% part of the entire shares with voting rights attending the Meeting Abstain 25,507,400 votes or 0.16% part of the entire shares with voting rights attending the Meeting Realization/ Follow Up The Financial Statements and Annual Reports had been submitted to the Financial Services Authority and the Indonesia Stock Exchange on January 18, 2018, and February 26, 2018. Status Completed Agenda – Item 2 Resolution Voting Results (Total Votes and Percentage) 392 Approved and stipulated the use of the Bank’s Net Profit for the fiscal year ending on December 31, 2017, amounting to Rp13,616,475,751,928.00 (Thirteen trillion six hundred sixteen billion four hundred seventy five million seven hundred fifty one thousand nine hundred twenty eight rupiah), hereinafter referred to as ”Net Income for 2017 Fiscal Year” as follows: 1. Dividend of 25% or Rp3,404,118,937,982.00 (Three trillion four hundred four billion one hundred eighteen million nine hundred thirty seven thousand nine hundred eighty two rupiah) and added by special dividend of 10% or Rp1,361,647,575,192.80 (One trillion three hundred sixty one billion six hundred forty seven million five hundred seventy five thousand one hundred ninety-two point eight zero cents rupiah), which therefore, the total dividend is 35% or Rp4,765,766,513,174.80 (Four trillion seven hundred sixty five billion seven hundred sixty six million five hundred thirteen thousand one hundred seventy four point eight zero cents rupiah), was stipulated as cash dividends distributed to shareholders to be paid under the following conditions: a. a.dividend specifically for Government share for 60% share ownership shall be deposited to the account of the State Treasury. b. b.granted authority and power to the Bank’s Board of Directors with substitution rights to determine the schedule and procedures for distributing dividends of 2017 fiscal year in accordance with the applicable provisions. 2. 65% or Rp8,850,709,238,753.20 (Eight trillion eight hundred fifty billion seven hundred nine million two hundred thirty eight thousand seven hundred fifty three point two zero cents rupiah) shall be used as Retained Earnings. Agree 16,253,252,242 votes or 99.53% part of the entire shares with voting rights attending the Meeting Disagree 75,832,400 votes or 0.46% part of the entire shares with voting rights attending the Meeting Abstain 800,000 votes or 0.00% part of the entire shares with voting rights attending the Meeting Realization/ Follow Up BNI announced the Schedule and Procedure for Distributing Cash Dividends for the 2017 Fiscal Year on March 22, 2018, and disbursed the cash dividends to shareholders on April 20, 2018 Status Completed Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  393. Good Corporate Governance Agenda – Item 3 Resolution 1. Granted authority and power to Dwiwarna A Series Shareholders to determine tantiem amount for 2017 fiscal year, and determined the salary/honorarium, allowances, facilities, and other incentives for members of the Board of Commissioners for 2018. 2. Granted authority and power to the Board of Commissioners by first obtaining written approval from Dwiwarna A Series Shareholder to determine tantiem amount for 2017 fiscal year, and determined the salary/honorarium, allowances, facilities, and other incentives for members of the Board of Directors for 2018. Voting Results (Total Votes and Percentage) Agree 15,711,499,429 votes or 96.21% part of the entire shares with voting rights attending the Meeting Disagree 606,898,813 votes or 3.72% part of the entire shares with voting rights attending the Meeting Abstain 11,486,400 votes or 0.07% part of the entire shares with voting rights attending the Meeting Realization/ Follow Up The GMS granted authority and power to Dwiwarna A Series Shareholders to determine tantiem amount for the 2017 fiscal year, and determined the salary/honorarium, allowances, facilities, and other incentives for members of the Board of Commissioners for 2018, and The GMS granted authority and power to the Board of Commissioners by first obtaining written approval from Dwiwarna A Series Shareholders to determine tantiem amount for the 2017 fiscal year, and determined the salary/ honorarium, allowances, facilities, and other incentives for members of the Board of Directors for 2018. Status Completed Agenda – Item 4 Resolution Voting Results (Total Votes and Percentage) 1. Established Public Accountant Firm Purwantono, Sungkoro & Surja - a member firm of the Ernst & Young global network, as the Public Accountant Firm to audit the Bank’s Financial Statements and Financial Statements for the Implementation of Partnership and Community Development Program for 2018 Fiscal Year. 2. Granted power to the Bank’s Board of Commissioners to determine the honorarium and other requirements for the Public Accountant Firm, as well as established a Substitute Public Accountant Firm in the event that Public Accountant Firm Purwantono, Sungkoro & Surja - a firm member of the Ernst & Young global network, for any reason cannot complete the audit of the Bank’s Financial Statements and the Financial Statements for the Implementation of Partnership and Community Development Program for 2018 Fiscal Year, including determined the honorarium and other requirements for the substitute Public Accountant Firm. Agree 15,640,575,837 votes or 95.78% part of the entire shares with voting rights attending the Meeting Disagree 688,508,805 votes or 4.22% part of the entire shares with voting rights attending the Meeting Abstain 800,000 votes or 0.00% part of the entire shares with voting rights attending the Meeting Realization/ Follow Up Public Accountant Firm Purwantono, Sungkono & Surja (member of Ernst and Young) finished conducting the Banks audit on January 24, 2019 Status Completed Agenda – Item 5 Resolution Voting Results (Total Votes and Percentage) Approved the Bank’s Recovery Plan in the framework of meeting FSA Regulation No. 14/POJK.03/2017. Agree 16,305,925,487 votes or 99.85% part of the entire shares with voting rights attending the Meeting Disagree 23,159,155 votes or 0.14% part of the entire shares with voting rights attending the Meeting Abstain 800,000 votes or 0.00% part of the entire shares with voting rights attending the Meeting Realization/ Follow Up The Bank has implemented the Recovery Plan by observing Financial Services Authority Regulation No. 14/POJK.03/2017 dated April 4, 2017, on Recovery Plan for Systemic Bank and fulfillment of obligations in the form of the Bank’s Recovery Plan document that has obtained approval from the SOE Ministry Status Completed PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 393
  394. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Agenda – Item 6 Resolution Voting Results (Total Votes and Percentage) 1. Approved the inauguration of enforcement of SOE State Minister Regulation No. PER-02/MBU/7/2017 on Second Amendment to SOE Minister Regulation No. PER-09/MBU/07/2015 on Partnership Program and Community Development Program of State-Owned Enterprise and its amendments. 2. Granted power to the Board of Commissioners by first obtaining written approval from the Shareholders of Dwiwarna A Series in relation with GMS authority as stipulated in SOE Minister Regulation No. PER-09/MBU/07/2015 as lastly amended by SOE State Minister Regulation No. PER-02/MBU/7/2017 and its amendments. Agree 16,319,090,442 votes or 99.93% part of the entire shares with voting rights attending the Meeting Disagree 9,994,200 votes or 0.06% part of the entire shares with voting rights attending the Meeting Abstain 800,000 votes or 0.00% part of the entire shares with voting rights attending the Meeting Realization/ Follow Up Bank BNI has enacted the SOE Minister Regulation No. PER-02/MBU/7/2017 on Second Amendment to SOE Minister Regulation No. PER-09/MBU/07/2015 on Partnership Program and Community Devel-opment Program of State-Owned Enterprise in 2018. Status Completed Agenda – Item 7 Resolution Voting Results (Total Votes and Percentage) 394 1. Approved amendments to the Bank’s Articles of Association as long as it does not add the rights of Dwiwarna A Series Shareholders. 2. Approved the rearrangement of all provisions in the Articles of Association in connection with such amendments as referred to in point 1 resolution above. 3. Granted power and authority to the Bank’s Board of Directors with substitution rights to take all necessary actions relating to the resolutions of this Meeting agenda, including drafting and restating all of the Bank’s Articles of Association in a Notarial Deed and submitting them to competent authorities to obtain approval and/or signs of receipt of notification of amendments to the Bank’s Articles of Association, to carry out everything that is deemed necessary and useful for such purpose without excluding anyone, including to make additions and/or amendments to the Bank’s Articles of Association if such matter is required by the competent authorities. Agree 12,014,624,743 votes or 73.57% part of the entire shares with voting rights attending the Meeting Disagree 4,301,745,199 votes or 26.34% part of the entire shares with voting rights attending the Meeting Abstain 13,514,700 votes or 0.08% part of the entire shares with voting rights attending the Meeting Realization/ Follow Up Amendments to the Articles of Association are contained in Deed No. 52 dated May 22, 2018, made before Fathiah Helmi, SH, a Notary in Jakarta, which has obtained approval from the Minister of Law and Human Rights of the Republic of Indonesia based on Decree No. AHU-0012962.AH.01.02.TAHUN 2018 dated June 25, 2018, in which the notification has been accepted and recorded in the database of Legal Entity Administration System under the Receipt Letter of Notification of Amendments to the Articles of Association No. AHU-AH.01.03-0215738 and has been registered in the Company Register No. AHU-0082015.AH.01.11.Tahun 2018 dated June 25, 2018 Status Completed Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  395. Good Corporate Governance Agenda – Item 8 Resolution 1. Dismissed with respect the names stated below from being members of the Bank’s Board of Directors: a. Mr. Panji Irawan as Director; b. Mr. Imam Budi Sarjito as Director, starting from the closing of this Meeting by conveying gratitude for the contribution of energy and thought given during the term of office as members of the Bank’s Board of Directors. 2. Changed the nomenclature of the Bank’s Board of Directors as follows:: No. Previous Now 1. Director Director of Corporate Banking 2. Director Director of Retail Banking 3. Director Director of Small Business and Network 4. Director Director of Treasury and International Banking 5. Director Director of Finance 6. Director Director of Information Technology and Operation 7. Director Director of Institutional Relations 8. Director Director of Risk Management 9. Director Director of Compliance 3. Transferring the duties of the names stated below as members of the Bank’s Board of Directors: No. Name Previous Now 1. Putrama Wahju Setyawan Director Director of Corporate Banking 2. Catur Budi Harto Director Director of Small Business and Network 3. Rico Rizal Budidarmo Director Director of Treasury and International Banking 4. Anggoro Eko Cahyo Director Director of Finance 5. Adi Sulistyowati Director Director of Institutional Relations 6. Bob Tyasika Ananta Director Director of Risk Management 4. Appointing the names stated below as members of the Bank’s Board of Directors: a. Ms. Tambok P. Setyawati as Director of Retail Banking b. Mr. Endang Hidayatullah as Director of Compliance c. Mr. Dadang Setiabudi as Director of Information Technology and Operation. The end of the term of office of the appointed members of Board of Directors shall be until the closing of the 5th Annual GMS since the appointment, which will be the Annual GMS to be held in 2022, with due observance of the laws and regulations in capital market sector and without prejudice to the GMS right to dismiss them at any time. 5. Appointed Mr. Sigit Widyawan as the Bank’s Independent Commissioner. The end of the term of office of the appointed Independent Commissioner shall be until the closing of the 5th Annual GMS since the appointment, which will be the Annual GMS to be held in 2022, with due observance of the laws and regulations in capital market sector and without prejudice to the GMS right to dismiss him at any time. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 395
  396. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Agenda – Item 8 6. With the dismissal, changes in nomenclature, transfer of of duties and appointment of members of the Bank’s Board of Directors and Independent Commissioner, the composition of the Bank’s members of Board of Directors and Board of Commissioners is as follows: a. Board of Directors No. Name Position 1. Achmad Baiquni President Director 2. Herry Sidharta Vice President Director 3. Putrama Wahju Setyawan Director of Corporate Banking 4. Tambok P. Setyawati Director of Retail Banking 5. Catur Budi Harto Director of Small Business and Network 6. Rico Rizal Budidarmo Director of Treasury and International Banking 7. Anggoro Eko Cahyo Director of Finance 8. Dadang Setiabudi Director of Information Technology and Operation 9. Adi Sulistyowati Director of Institutional Relations 10. Bob Tyasika Ananta Director of Risk Management 11. Endang Hidayatullah Director of Compliance b. Board of Commissioners No. Name Position 1. Ari Kuncoro President Commissioner/Independent Commissioner 2. Wahyu Kuncoro Vice President Commissioner 3. Bistok Simbolon Commissioner 4. Marwanto Harjowiryono Commissioner 5. Revrisond Baswir Independent Commissioner 6. Joni Swastanto Commissioner 7. Pataniari Siahaan Independent Commissioner 8. Ahmad Fikri Assegaf Independent Commissioner 9. Sigit Widyawan Independent Commissioner 7. Granted power and authority to the Bank’s Board of Directors with substitution right to take all necessary actions in relation to the resolutions of this Meeting agenda in accordance with the applicable laws and regulations, including to declare in a separate Notarial Deed and notify the composition of the Bank’s Board of Directors and Board of Commissioners to the Ministry of Law and Human Rights, as well as to request the Financial Services Authority to conduct Fit & Proper Test to the candidate members of Board of Directors and Board of Commissioners in accordance with the applicable provisions. Voting Results (Total Votes and Percentage) 396 Agree 12,019,850,702 votes or 73.61% part of the entire shares with voting rights attending the Meeting Disagree 4,297,927,040 votes or 26.32% part of the entire shares with voting rights attending the Meeting Abstain 12,106,900 votes or 0.07% part of the entire shares with voting rights attending the Meeting Realization/ Follow Up The appointed members of the Bank’s Board of Commissioners and Board of Directors have obtained approval from the Financial Services Authority. The appointment and composition of members of the Bank’s Board of Commissioners and Board of Directors have been stated in a separate Notarial Deed and have been notified to the Ministry of Law and Human Rights. Status Completed Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  397. Good Corporate Governance GMS IMPLEMENTATION IN 2017 In accordance with the Financial Services Authority Circular No . 30/SEOJK.04/2016 on the Forms and Contents of Annual Report of Issuers or Public Companies, this Annual Report also provides information about the previous 1 (one) year GMS resolutions. In 2017, the Bank held 2 (two) GMS, which are the Bank’s 2017 Annual GMS, held on March 16, 2017, and the Bank’s 2017 Extraordinary GMS, held on November 2, 2017. The implementation stages of the Bank’s Annual General Meeting of Shareholders in 2017, which was held on March 16, 2017, are illustrated in the following table. Tabel Pelaksanaan RUPS Tahunan Perseroan Tahun 2017 Stages Notification to FSA GMS Announcement GMS Notice GMS Implementation Summary of GMS Minutes GMS Minutes Provisions The Bank notifies the Financial Services Authority no later than 5 (five) days prior to the GMS announcement The Bank must make a GMS Announcement to shareholders no later than 14 (fourteen) days prior to the GMS notice. Publication of GMS Announcement is conducted through 1 (one) Indonesian language daily newspaper, Stock Exchange website, and Public Company website in Indonesian and foreign languages The Bank must make a Notice to shareholders no later than 21 (twenty one) days before the GMS. Publication of GMS Notice is conducted through 1 (one) Indonesian language daily newspaper, Stock Exchange website, and Public Company website in Indonesian and foreign languages Other GMS can be held at any time based on the needs for the interest of the public company The Bank must make a summary of the GMS minutes. Publication of Summary of GMS Minutes is conducted no later than 2 (two) business days after GMS is held through 1 (one) Indonesian language daily newspaper, Stock Exchange website, and Public Company website in Indonesian and foreign languages The Bank must make GMS Minutes and must submit it to the Financial Services Authority no later than 30 (thirty) days after the GMS is held. Implementation Notification of the plan to convene Annual GMS is delivered on January 30, 2017, to FSA. Announcement of the Annual GMS was conducted on February 7, 2017. The Publication was made through The Investor Daily and The Jakarta Post, and can be accessed through Indonesia Stock Exchange website and the Bank’s website in Indonesian and English languages. The Annual GMS Notice was conducted on February 22, 2017. Publication was made through The Investor Daily and The Jakarta Post, and can be accessed through Indonesia Stock Exchange website and the Bank’s website in Indonesian and English languages. Annual GMS was held on March 16, 2017, at 14.00 WIB (Western Indonesian Time) - ended, in BNI’s Multipurpose Room, 25th floor. Jalan Jenderal Sudirman Kav. 1 Jakarta, 10220. Summary of the Annual GMS Minutes was published on March 20, 2017, through The Investor Daily and The Jakarta Post, and can be accessed through Indonesia Stock Exchange website and the Bank’s website in Indonesian and English languages. The Bank submitted the GMS Minutes to the Financial Services Authority on March 23, 2017, in the form of Deed of GMS Minutes prepared by a notary, which was Deed of Annual GMS Minutes No. 42 dated March 16, 2017, made before Notary Fathiah Helmi, S.H. The Bank’s Annual GMS Minutes can be accessed through the Bank’s website in Indonesian and English languages. Compliance Complied Complied Complied Complied Complied Complied PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 397
  398. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk THE BANK’S GMS AGENDA 2017 The agenda of the Annual GMS for 2016 Fiscal Year, which was held on March 16, 2017, is as follows: Agenda - Item 1 Approval for the Annual Report and Ratification for the Bank's Consolidat-ed Financial Statements, Approval for the Board of Commissioners' Super-visory Duty Report, and Ratification for the Annual Report for the Implementation of the Partnership and Community Development Program for 2016 Fiscal Year, including the granting of the release of full responsibility (acquit et de charge) to the Board of Directors and Board of Commissioners of the Bank for the management and supervision actions that were carried out during the 2016 Fiscal Year. Agenda - Item 2 Approval for the use of the Bank's Net Profit for the 2016 Fiscal Year Agenda - Item 3 Determination for the remuneration (salary/honorarium, facilities and al-lowances) for 2017 Fiscal Year and tantiem for 2016 Fiscal Year for the Board of Directors and Board of Commissioners of the Bank Agenda - Item 4 Determination of the Public Accountant Firm to audit the Bank's Financial Statements and the Annual Report for the Implementation of Partnership and Community Development Program for 2017 Fiscal Year Agenda - Item 5 Inauguration of the enactment of SOE Minister Regulation No. PER-03/MBU/12/2016 on Amendments to SOE Minister Regulation No. PER-09/MBU/07/2015 on Partnership Program and Community Development Program of State-Owned Enterprises. Agenda - Item 6 Approval for the Amendments to the Bank's Articles of Association Agenda - Item 7 Change in the composition of the Bank's Management ATTENDANCE OF COMPANY’S MANAGEMENT IN GMS The Board of Commissioners and Board of Directors attending the Annual GMS of 2016 Fiscal year, which was held on March 16, 2017, are as follows: Table of Attendance Recapitulation of 2017 Annual GMS No. Name Position Attendance Present Absent Description BOARD OF COMMISSIONERS 1. Hartadi A. Sarwono President Commissioner/Independent Commissioner √ 2. Pradjoto Vice President Commissioner/Independent Commissioner √ 3. Anny Ratnawati Independent Commissioner 4. Pataniari Siahaan Independent Commissioner √ 5. Revrisond Baswir Independent Commissioner √ 6. Bistok Simbolon Commissioner √ 7. Joni Swastanto Commissioner √ 8. Wahyu Kuncoro Commissioner √ Total Attendance 100% BOARD OF DIRECTORS 1. Achmad Baiquni Vice President Director 2. Suprajarto Director of Corporate Business 3. Herry Sidharta Director of Medium Business √ 4. Putrama Wahju Setyawan Director of Consumer Banking √ 5. Anggoro Eko Cahyo Director of Finance and Credit Risk √ 6. Rico Rizal Budidarmo Director of Planning and Operations √ 7. Bob Tyasika Ananta Director of Treasury and International √ 8. Panji Irawan Director of Institutional Relations and Banking Transactional √ √ 9. Adi Sulistyowati Director of Compliance and Corporate Risk √ 10. Imam Budi Sarjito Direktur Kepatuhan dan Risiko Perusahaan √ Total Attendance 398 √ Adapting Quickly to Face Change Has been appointed as the President Director of PT Bank Rakyat Indonesia (Persero) Tbk 90% PT Bank Negara Indonesia (Persero) Tbk
  399. Good Corporate Governance ATTENDANCE OF INDEPENDENT PARTIES IN 2017 ANNUAL GMS The independent parties attending the 2017 Annual GMS are as follows : 1. Notary In the Bank’s Annual GMS on March 16, 2017, the Notary who assisted in organizing the Meeting was Notary Fathiah Helmi, SH. 2. Share Registrar Bureau In the Bank’s Annual GMS on March 16, 2017, the Share Registrar Bureau that assisted in organizing the Meeting was PT Datindo Entrycom. 3. Public Accountant Firm In the Bank’s Annual GMS on March 16, 2017, the Public Accountant Firm that attended was the Public Accountant Firm Purwantono, Sungkoro & Surja – a member Firm of Ernst & Young global network. ATTENDANCE AND RESOLUTION QUORUM IN 2017 ANNUAL GMS Establishing GMS attendance and resolution quorum refers to Article 25 of the Bank’s Articles of Association. The Bank’s Annual GMS on March 16, 2017, was attended by 15,672,907,888 shares including Dwiwarna A Series Shares, which had valid voting rights equaling to 84.04% of the total shares with valid voting rights issued by the Bank. Referring to the Bank’s Annual GMS implementation on March 16, 2017, the Attendance and Resolution Quorum based on the Agenda are as follows: Table of 2017 Annual GMS Resolutions Agenda Basis of Proposal Approval for the Annual Report and Ratification for the Bank's Consolidated Financial Statements, Approval for the Board of Commissioners' Supervisory Duty Report, and Ratification for the Annual Report for the Implementation of the Partnership and Community Development Program for 2016 Fiscal Year, including the granting of the release of full responsibility (acquit et de charge) to the Board of Directors and Board of Commissioners of the Bank for the management and supervision actions that were carried out during the 2016 Fiscal Year. • Approval for the use of the Bank's Net Profit for the 2016 Fiscal Year • • • • • Provisions of Attendance Quorum Attendance Quorum of Annual GMS March 16, 2017 Resolution Quorum Provisions Resolution Quorum of Annual GMS March 16, 2017 Article 69 of Law of Limited Liability Company Article 22 paragraph (2) of SOE Minister Regulation No. Per-07/MBU/05/2015, which was amended by SOE Minister Regulation No. Per-02/MBU/7/2017 on the Second Amendment to the State-Owned Enterprise Minister Regulation No. Per-09/MBU/07/2015 on Partnership Program and Community Development Program of State-Owned Enterprise Financial Services Authority Regulation No. 30/ POJK.04/2015 on Report of Actual Use of Proceeds from the Public Offering Article 21 paragraph (2) of the Bank’s Articles of Association Attended by shareholders representing more than 1/2 (one half ) portion of the total shares with valid voting rights Complied Resolutions are valid if approved by more than 1/2 (one half ) portion of the total shares with valid voting rights attending the GMS Approved by 15,409,422,609 votes or 98.32% part of the total shares with voting rights attending the Meeting, therefore, the resolution quorum was fulfilled Article 70 and Article 71 of Law on Limited Liability Company Article 21 paragraph (2) and Article 26 paragraph (2) of the Bank’s Articles of Association Attended by shareholders representing more than 1/2 (one half ) portion of the total shares with valid voting rights Complied Resolutions are valid if approved by more than 1/2 (one half ) portion of the total shares with valid voting rights attending the GMS Approved by 15,431,337,721 votes or 98.46% part of the total shares with voting rights attending the Meeting, therefore, the resolution quorum was fulfilled PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 399
  400. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Agenda Determination of remuneration (salary/ honorarium, facilities and allowances) for 2017 Fiscal Year and tantiem for 2016 Fiscal Year for the Board of Directors and Board of Commissioners of the Bank Basis of Proposal • • • 400 Articles 96 and 113 of Law on Limited Liability Company SOE Minister Regulation No. Per-04/MBU/2014, which was amended by SOE Minister Regulation No. Per-01/MBU/06/2017 on Guidelines to Establish Remuneration of Board of Directors, Board of Commissioners, and Board of Supervisors of SOE Article 11 paragraph (19), Article 14 paragraph (30), and Article 26 paragraph (2) of the Bank’s Articles of Association Provisions of Attendance Quorum Attendance Quorum of Annual GMS March 16, 2017 Resolution Quorum Provisions Resolution Quorum of Annual GMS March 16, 2017 Attended by shareholders representing more than 1/2 (one half ) portion of the total shares with valid voting rights Complied Resolutions are valid if approved by more than 1/2 (one half ) portion of the total shares with valid voting rights attending the GMS Approved by 15,711,499,429 votes or 96.21% part of the total shares with voting rights attending the Meeting, therefore, the resolution quorum was fulfilled Determination of the Public Accountant Firm to audit the Bank's Financial Statements and the Annual Report for the Implementation of Partnership and Community Development Program for 2017 Fiscal Year Article 21 paragraph (2) of the Bank’s Articles of Association Attended by shareholders representing more than 1/2 (one half ) portion of the total shares with valid voting rights Complied Resolutions are valid if approved by more than 1/2 (one half ) portion of the total shares with valid voting rights attending the GMS Approved by 15,640,575,837 votes or 95.78% part of the entire shares with voting rights attending the Meeting, therefore, the resolution quorum was fulfilled on January 20, 2017 Inauguration of the enactment of SOE Minister Regulation No. PER-03/MBU/12/2016 on Amendments to SOE Minister Regulation No. PER-09/MBU/07/2015 on Partnership Program and Community Development Program of State-Owned Enterprises. SOE Minister Regulation No. PER-09/MBU/07/2015 on Amendment to SOE Minister Regulation No. PER-09/ MBU/07/2015 on Partnership Program and Community Development Program of SOE dated December 16, 2016 Attended by shareholders representing more than 1/2 (one half ) portion of the total shares with valid voting rights Complied Resolutions are valid if approved by more than 1/2 (one half ) portion of the total shares with valid voting rights attending the GMS Approved by 15,454,940,114 votes or 98.61% part of the total shares with voting rights attending the Meeting, therefore, the resolution quorum was fulfilled Approval for the Amendments to the Bank's Articles of Association Article 28 of the Bank's Articles of Association and SOE Ministry Letter No. SR-117/MBU/02/2017 dated February 13, 2017, on the Proposal to Add the Annual GMS Agenda of PT Bank BNI (Persero), Tbk for 2016 fiscal year Attended by shareholders representing more than 1/2 (one half ) portion of the total shares with valid voting rights Complied Resolutions are valid if approved by more than 1/2 (one half ) portion of the total shares with valid voting rights attending the GMS Approved by 11,695,587,769 votes or 74.62% part of the total shares with voting rights attending the Meeting, therefore, the resolution quorum was fulfilled Change in the composition of the Bank's Management Article 11 paragraph (7) and Article 14 paragraph (8) of the Bank's Articles of Association and SOE Ministry Letter No. SR-117/MBU/02/2017 dated February 13, 2017, on the Proposal to Add the Annual GMS Agenda of PT Bank BNI (Persero), Tbk for 2016 fiscal year Attended by shareholders representing more than 1/2 (one half ) portion of the total shares with valid voting rights Complied Resolutions are valid if approved by more than 1/2 (one half ) portion of the total shares with valid voting rights attending the GMS Approved by 11,589,196,448 votes or 73.94% part of the total shares with voting rights attending the Meeting, therefore, the resolution quorum was fulfilled Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  401. Good Corporate Governance GMS RESOLUTIONS AND FOLLOW UP IN 2017 GMS RESOLUTIONS The resolutions of the Annual GMS of 2016 Fiscal Year , which was held on March 16, 2017, are as follows: Agenda – Item 1 Resolution Voting Results (Total Votes and Percentage) 1. Approved the Bank’s Annual Report including the Supervisory Duty Report that has been carried out by the Board of Commissioners for the fiscal year ending on December 31, 2016, and ratified the Bank’s Consolidated Financial Statements for the fiscal year ending on December 31, 2016, which was audited by the Public Accountant Firm Purwantono, Sungkoro & Surja - a member firm of Ernst & Young global network according to Report No. RPC-2855/ PSS/2017 dated January 20, 2017, with reasonable opinion in all material matters. 2. Ratified the Financial Statements for the Implementation of Partnership and Community Development Program for the fiscal year ending on December 31, 2016, which was audited by the Public Accountant Firm Purwantono, Sungkoro & Surja - a member firm of the Ernst & Young global network according to Report No. RPC-2958/PSS/2017 dated February 3, 2017, with reasonable opinion in all material matters.Granted full release of responsibility (volledig acquit et de charge) to all members of the Board of Directors and members of the Board of Commissioners for the management and supervision actions that were carried out during the fiscal year ending on December 31, 2016, as long as these actions are not criminal offense and these actions are reflected in the Annual Report, the Bank’s Consolidated Financial Statements, and the Financial Statements for the Implementation of Partnership and Community Development Program for the fiscal year ending on December 31, 2016. 3. Granted full release of responsibility (volledig acquit et de charge) to all members of the Board of Directors and members of the Board of Commissioners for the management and supervision actions that were carried out during the fiscal year ending on December 31, 2016, as long as these actions are not criminal offense and these actions are reflected in the Annual Report, the Bank’s Consolidated Financial Statements, and the Financial Statements for the Implementation of Partnership and Community Development Program for the fiscal year ending on December 31, 2016. 4. In order to comply with the provisions of the SOE Minister Regulation No. PER-12/MBU/2012 dated August 24, 2012, on the Supporting Organs of SOE’s Board of Commissioners/Board of Supervisors, the Bank submits a report on changes in the composition of the Audit Committee, Risk Monitoring Committee, Remuneration and Nomination Committee, and Integrated Governance Committee. Agree 15,409,422,609 votes or 98.32% part of the total shares with voting rights attending the Meeting. Disagree 15,145,612 votes or 0.10% part of the entire shares with voting rights attending the Meeting. Abstain 248,339,667 votes or 1.58% part of the total shares with voting rights attending the Meeting. Realization/ Follow Up The Financial Statements and Annual Reports have been submitted to the Financial Services Authority and the Indonesia Stock Exchange on Friday, 27 January, 2017, and Wednesday, 22 February, 2017. Status Completed PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 401
  402. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Agenda – Item 2 Resolution Voting Results (Total Votes and Percentage) Approved and determined the use of the Bank’s Net Profit for the fiscal year ending on December 31, 2016, amounting to Rp11,338,748,081,836 (eleven trillion three hundred thirty eight billion seven hundred forty eight million eighty one thousand eight hundred thirty six rupiah), hereinafter referred to as “Net Income for 2016 Fiscal Year” as follows: 1. Dividend of 25% or Rp2,834,687,020,459.00 and added by special dividend of 10% or Rp1,133,874,808,183.60, therefore, the total dividend of 35% or Rp3,968,561,828,642.60 was determined as cash dividend distributed to the shareholders that shall be paid under the following provisions: a. Dividend specifically for Government for 60% share ownership shall be deposited to the account of the State Treasury in the form of Rupiah in Bank Indonesia. b. Granted authority and power to the Bank’s Board of Directors with substitution rights to determine the schedule and procedures for distributing dividends of 2016 fiscal year in accordance with the applicable provisions. 2. 65% or Rp7,370,186,253,193.40 shall be used as Retained Earnings. Agree 15,431,337,721 votes or 98.46% part of the total shares with voting rights attending the Meeting. Disagree 10,821,800 votes or 0.07% part of the total shares with voting rights attending the Meeting. Abstain 230,748,367 votes or 1.47% part of the total shares with voting rights attending the Meeting. Realization/ Follow Up BNI announced the Schedule and Procedure for Distributing Cash Divi-dends for the 2016 Fiscal Year on March 20, 2017, and disbursed the cash dividends to shareholders on April 20, 2017 Status Completed Agenda – Item 3 Resolution Voting Results (Total Votes and Percentage) Granted authority and power to Dwiwarna A Series Shareholders to determine the tantiem amount for 2016 Fiscal Year and to determine salary/honorarium, allowances, facilities, and other incentives for members of the Board of Commissioners for Year 2017, and granted authority and power to the Board of Commissioners by first obtaining written approval from Dwiwarna A Series Shareholders to determine the tantiem amount for 2016 Fiscal Year, and to determine salary/honorarium, allowances, facilities, and other incentives for members of the Board of Directors and Board of Commissioners for Year 2017. Agree 15.091.429.511 suara atau 96,29% bagian dari seluruh saham dengan hak suara yang hadir dalam Rapat. 15,091,429,511 votes or 96.29% part of the entire shares with voting rights attending the Meeting Disagree 354,190,503 votes or 2.26% part of the entire shares with voting rights attending the Meeting Abstain 227,287,874 votes or 1.45% part of the entire shares with voting rights attending the Meeting Realization/ Follow Up GMS granted authority and power to Dwiwarna A Series Shareholders to determine the tantiem amount for 2016 Fiscal Year and to determine salary/honorarium, allowances, facilities, and other incentives for mem-bers of the Board of Commissioners for Year 2017, and Dwiwarna A Series Shareholders granted authority and power by first obtaining written ap-proval from Dwiwarna A Series Shareholders to determine the tantiem amount for 2016 Fiscal Year, and to determine salary/honorarium, allow-ances, facilities, and other incentives for members of the Board of Direc-tors and Board of Commissioners for Year 2017. Status Completed Agenda – Item 4 Resolution Voting Results (Total Votes and Percentage) 402 Approved: 1. The appointment of Public Accountant Firm Purwantono, Sungkoro & Surja as the Public Accountant Firm to audit the Bank’s Financial Statements and the Financial Statements for the Implementation of Partnership and Community Development Program for 2017 Fiscal Year. 2. The granting of power to the Bank’s Board of Commissioners to determine the honorarium and other requirements for the Public Accountant Firm, as well as the appointment of a Substitute Public Accountant Firm in the event that the Public Accountant Firm Purwantono, Sungkoro & Surja, for any reason cannot complete the audit of the Bank’s Financial Statements and the Financial Statements for the Implementation of Partnership and Community Development Program for 2017 Fiscal Year, including the determination of honorarium and other requirements for the substitute Public Accountant Firm. Agree 14,871,840,932 votes or 94.89% part of the entire shares with voting rights attending the Meeting Disagree 556,447,828 votes or 3.55% part of the entire shares with voting rights attending the Meeting Abstain 244,619,128 votes or 1.56% part of the entire shares with voting rights attending the Meeting Realization/ Follow Up The Public Accountant Firm Purwantono, Sungkoro & Surja (member of Ernst and Young) completed the Bank's audit on January 20, 2017. Status Completed Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  403. Good Corporate Governance Agenda – Item 5 Resolution Approved the enforcement of SOE State Minister Regulation No. PER-03/MBU/12/2016 on Amendments to SOE Minister Regulation No. PER-09/MBU/07/2015 on Partnership Program and Community Development Program of State-Owned Enterprises. Voting Results (Total Votes and Percentage) Agree 15,454,940,114 votes or 98.61% part of the entire shares with voting rights attending the Meeting Disagree 0 votes or 0.00% part of the entire shares with voting rights attending the Meeting Abstain 217,967,774 votes or 1.39% part of the entire shares with voting rights attending the Meeting Realization/ Follow Up The Bank has made effective the SOE Minister Regulation No. PER-03/MBU/12/2016 on Amendments to SOE Minister Regulation No. PER-09/MBU/07/2015 on Partnership Program and Community Development Program of State-Owned Enterprise in 2017. Status Completed Agenda – Item 6 Resolution Voting Results (Total Votes and Percentage) 1. Approved the amendments to the Bank’s Articles of Association, in the framework of SOE Ministry program to standardize the Articles of Association of Public SOE. 2. Approved the rearrangement of all provisions in the Articles of Association in connection with such amendments as referred to in point 1 resolution above. 3. Granted power and authority to the Bank’s Board of Directors with substitution rights to take all necessary actions relating to the resolutions of this Meeting agenda, including drafting and restating all of the Bank’s Articles of Association in a Notarial Deed and submitting them to competent authorities to obtain approval and/or signs of receipt of notification of amendments to the Bank’s Articles of Association, to carry out everything that is deemed necessary and useful for such purpose without excluding anything, including to make additions and/or amendments to the Bank’s Articles of Association if such matter is required by the competent authorities. Agree 11,695,587,769 votes or 74.62% part of the entire shares with voting rights attending the Meeting Disagree 3,562,043,345 votes or 22.73% part of the entire shares with voting rights attending the Meeting Abstain 415,276,774 votes or 2.65% part of the entire shares with voting rights attending the Meeting Realization/ Follow Up The Deed of Amendment to the Articles of Association No. 45 dated April 25, 2017, has obtained approval from the Minister of Law and Human Rights of the Republic of Indonesia. No. AHU-0010821.AH.01.02.TAHUN 2017 dated May 17, 2017. Status Completed PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 403
  404. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Mata Acara Ketujuh Resolution Voting Results (Total Votes and Percentage) 404 1. Board of Commissioners: a. Enforced the dismissal of Mr. Kiagus Ahmad Badaruddin as the Commissioner of PT Bank Negara Indonesia (Persero) Tbk starting from his appointment as Head of Financial Transaction Report and Analysis Center based on Presidential Decree No. 61/M TAHUN 2016 dated October 25, 2016, by conveying gratitude for the contribution of energy and thought given during the term of office as members of the Board of Commissioners. b. Dismissed Mr. Pradjoto as Vice President Commissioner/Independent Commissioner and Ms. Anny Ratnawati as the Independent Commissioner of PT Bank Negara Indonesia (Persero)Tbk starting from the closing of this Meeting by conveying gratitude for the contribution of energy and thought given during the term of office as member of Board of Commissioners. c. Transferred the assignment of Mr. Wahyu Kuncoro from initially Commissioner to Vice President Commissioner with the term of office continuing the term of office as Commissioner. d. Appointed Mr. Marwanto Harjowiryono as Commissioner and Mr. Ahmad Fikri Assegaf as Independent Commissioner. 2. Board of Directors: a. Dismissed Mr. Suprajarto as Vice President Director of PT Bank Negara Indonesia (Persero) Tbk starting from the appointment as the President Director of PT Bank Rakyat Indonesia (Persero) Tbk on March 15, 2017, by conveying gratitude for the contribution of energy and thought given during the term of office as Vice President Director. b. Transferred the assignment of Mr. Herry Sidharta from initially Director to Vice President Director, with the term of office continuing the term of office as Director, appointed at Annual GMS March 17, 2015. c. Appointed Mr. Catur Budi Harto as Director. 3. The term of office of the newly appointed members of Board of Commissioners and Board of Directors shall be until the closing of the 5th Annual GMS since the appointment, which will be the GMS held in 2022, with due observance of the laws and regulations in capital market sector and without prejudice to the GMS right to dismiss them at any time. 4. With these appointments, the composition of the Bank’s Board of Commissioners and Board of Directors shall be as follows: Board of Commissioners • Mr. Hartadi A. Sarwono as President Commissioner/Independent Commissioner • Mr. Wahyu Kuncoro as Vice President Commissioner • Mr. Pataniari Siahaan as Independent Commissioner • Mr. Revrisond Baswir as Independent Commissioner • Mr. Ahmad Fikri Assegaf as Independent Commissioner • Mr. Bistok Simbolon as Commissioner • Mr. Joni Swastanto as Commissioner • Mr. Marwanto Harjowiryono as Commissioner Board of Directors • Mr. Achmad Baiquni as President Director • Mr. Herry Sidharta as Vice President Director • Mr. Rico Rizal Budidarmo as Director • Mr. Anggoro Eko Cahyo as Director • Ms. Adi Sulistyowati as Director • Mr. Bob Tyasika Ananta as Director • Mr. Imam Budi Sarjito as Director • Mr. Panji Irawan as Director • Mr. Putrama Wahju Setiawan as Director • Mr. Catur Budi Harto as Director 5. Granted power and authority to the Bank’s Board of Directors with substitution right to take all necessary actions in relation to the resolutions of this Meeting agenda in accordance with the applicable laws and regulations, including to declare in a separate Notarial Deed and notify the composition of the Bank’s Board of Directors and Board of Commissioners to the Ministry of Law and Human Rights, as well as to request the Financial Services Authority to conduct Fit & Proper Test to the candidate members of Board of Directors and Board of Commissioners in accordance with the applicable provisions. Agree 11,589,196,448 votes or 73.94% part of the entire shares with voting rights attending the Meeting Disagree 3,539,081,050 votes or 22.58% part of the entire shares with voting rights attending the Meeting Abstain 544,630,390 votes or 3.47% part of the entire shares with voting rights attending the Meeting Realization/ Follow Up The appointed members of Board of Commissioners and Board of Direc-tors have obtained approval by the Financial Services Authority and the Bank has stated in a separate Notarial Deed and has notified the changes in the composition of the Bank's Board of Commissioners and Board of Directors to the Ministry of Law and Human Rights. Status Completed Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  405. Good Corporate Governance THE BANK ’S EXTRAORDINARY GMS IN 2017 The stages of the implementation of the Company’s Extraordinary GMS in 2017 which was held on November 2, 2017, are illustrated in the following table: Table of Extraordinary GMS Implementation Notification to FSA GMS An-nouncement Provisions The Bank notifies the Financial Services Authority no later than 5 (five) days prior to the GMS an-nounce-ment The Bank must make a GMS Announce-ment to sharehold-ers no later than 14 (fourteen) days prior to the GMS notice. Pub-lication of GMS An-nounce-ment is conducted through 1 (one) Indo-nesian lan-guage daily newspaper, Stock Ex-change website, and Public Company website in Indonesian and foreign languages Implementation Notification of the plan to convene Annual GMS is delivered on Septem-ber 15, 2017, to FSA. Compliance Complied Stages GMS Implementation Summary of GMS Minutes The Bank must make a Notice to sharehold-ers no later than 21 (twenty one) days before the GMS. Pub-lication of GMS No-tice is conducted through 1 (one) Indonesian language daily newspa-per, Stock Exchange website, and Public Company website in Indonesian and foreign lan-guages Other GMS can be held at any time based on the needs for the interest of the public company The Bank must make a summary of the GMS minutes. Publication of Summary of GMS Minutes is con-ducted no later than 2 (two) business days after GMS is held through 1 (one) Indone-sian lan-guage daily newspa-per, Stock Exchange website, and Pub-lic Company website in Indo-nesian and for-eign languages The Bank must make GMS Minutes and must submit it to the Fi-nancial Services Authority no later than 30 (thirty) days after the GMS is held. Announce-ment of the Extraordinary GMS was con-ducted on September 26, 2017. The Publica-tion was made through The Investor Dai-ly and The Jakarta Post, and can be accessed through In-donesia Stock Ex-change web-site and the Bank’s website in Indo-nesian and English languages. Notice of Extraordinary GMS was held on Octo-ber 11, 2017. Pub-lication was made through The Inves-tor Daily and The Jakarta Post, and can be ac-cessed through Indonesia Stock Exchange website and the Bank’s website in Indonesian and English lan-guages. Extraordi-nary GMS was held on November 2, 2017, at 14.00 WIB - ended, in BNI’s Multi-purpose Room, 25th floor. Jalan Jenderal Su-dirman Kav. 1 Jakarta, 10220. Summary of the Annual GMS Minutes was pub-lished on Novem-ber 6, 2017, through The In-vestor Daily and The Ja-karta Post, and can be accessed through Indone-sia Stock Exchange website and the Bank’s website in Indonesian and Eng-lish lan-guages. The Bank submitted the Ex-traordi-nary GMS Minutes to the Finan-cial Services Au-thority on November 7, 2017, in the form of Deed of GMS Minutes prepared by a notary, which was Deed of Extraor-dinary GMS Minutes No. 2 dat-ed No-vember 2, 2017, made by Notary Fathiah Helmi, S.H. The Bank’s Annual GMS Minutes can be ac-cessed through the Bank’s website in Indonesian and Eng-lish languages. Complied Complied Complied Com-plied Complied GMS No-tice GMS Minutes The Bank’s 2017 Extraordinary GMS Agenda Material The Agenda Material of the Bank’s 2017 Extraordinary GMS held on November 2, 2017, can be accessed on the Bank’s website is as follows: http://bni.co.id/portals/1/bni/perusahaan/docs/mata-acara-rups-luar-biasa-bni-2-november-2017.pdf The Bank’s 2017 Extraordinary GMS Conduct The Conduct of the Bank’s 2017 Extraordinary GMS held on November 2, 2017, can be accessed on the Bank’s website is as follows: http://bni.co.id/portals/1/bni/perusahaan/docs/tata-tertib-rups-luar-biasa-bni-2-november-2017.pdf PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 405
  406. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk ATTENDANCE OF COMPANY’S MANAGEMENT IN EGMS The Board of Commissioners and Board of Directors who attended the Extraordinary GMS held on November 2, 2017, are as follows: Tabel Rekapitulasi Kehadiran Pada RUPSLB No. Name Position Attendance Present Absent Description BOARD OF COMMISSIONERS 1. Hartadi A. Sarwono President Commissioner/Independent Commissioner √ 2. Wahyu Kuncoro Vice President Commissioner √ 3. Pataniari Siahaan Independent Commissioner √ 4. Revrisond Baswir Independent Commissioner √ 5. Bistok Simbolon Commissioner √ 6. Joni Swastanto Commissioner √ 7. Ahmad Fikri Assegaf Independent Commissioner √ 8. Marwanto Harjowiryono Commissioner √ Total Attendance Has been appointed as the President Commissioner/ Independent Commissioner at PT Bank Mandiri (Persero) Tbk 87.5% BOARD OF DIRECTORS 1. Achmad Baiquni President Director √ 2. Herry Sidharta Vice President Director √ 3. Putrama Wahju Setyawan Director of Medium Business √ 4. Catur Budi Harto Director of Small Business and Network √ 5. Anggoro Eko Cahyo Director of Consumer Business √ 6. Rico Rizal Budidarmo Director of Finance and Credit Risk √ 7. Bob Tyasika Ananta Director of Planning and Operations √ 8. Panji Irawan Director of Treasury and International √ 9. Adi Sulistyowati Director of Institutional Relations and Banking Transactional √ 10. Imam Budi Sarjito Director of Compliance and Corporate Risk √ Total Attendance 100% ATTENDANCE OF INDEPENDENT PARTIES IN EXTRAORDINARY GMS IN 2017 The independent parties who attended the Extraordinary GMS held on November 2, 2017, are as follows: 1. Notary Notary who assisted in organizing the Meeting was Notary Fathiah Helmi, SH. 2. Share Registrar Bureau Share Registrar Bureau that assisted in organizing the Meeting was PT Datindo Entrycom. 406 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  407. Good Corporate Governance QUORUM OF ATTENDANCE AND RESOLUTION OF THE BANK ’S EXTRAORDINARY GMS IN 2017 Establishing GMS attendance and resolution quorum refers to Article 25 of the Bank’s Articles of Association. The Bank’s Extraordinary GMS on November 2, 2017, was attended by 16,148,948,470 shares including Dwiwarna A Series Shares, which had valid voting rights equaling to 86.59% of the total shares with valid voting rights issued by the Bank. Referring to the Bank’s Extraordinary GMS implementation on November 2, 2017, the Attendance and Resolution Quorum based on the Agenda are as follows: Table of 2017 Extraordinary GMS Resolutions Agenda Change in the composition of the Bank's Management Basis of Proposal Articles 23 and 24 of Financial Services Authority Regulation No. 55/POJK.03/2016 on Governance Implementation for Commercial Bank as well as the Bank's Articles of Association, Article 11 on Board of Directors and Article 14 on Board of Commissioners Provisions of Attendance Quorum Attended by shareholders representing more than 1/2 (one half ) portion of the total shares with valid voting rights Attendance Quorum of Extraordinary GMS on November 2, 2017 Complied Resolution Quorum Provisions Resolutions are valid if approved by more than 1/2 (one half ) portion of the total shares with valid voting rights attending the GMS Resolution Quorum of Extraordinary GMS on November 2, 2017 Approved by 11,519,663,335 votes or 71.33% part of the total shares with voting rights attending the Meeting EGMS RESOLUTIONS AND FOLLOW UP ON EGMS RESOLUTIONS The resolutions of the Extraordinary GMS held on November 2, 2017, are as follows: Agenda: Change in the Company’s Management Resolution Appointed Mr. Ari Kuncoro, as the President Commissioner, concurrently as the Independent Commissioner, of the Company. The termination of the term of office of the appointed President Commissioner is until the closing of the 5thAnnual GMS since his appointment, which is the GMS to be held in 2021. Voting Results (Total Votes and Percentage) Agree 11,519,663,335 votes or 71.33% part of the entire shares with voting rights attending the Meeting Disagree 4,461,192,519 votes or 27.62% part of the entire shares with voting rights attending the Meeting Abstain 168,092,616 votes or 1.04% part of the entire shares with voting rights attending the Meeting Realization/Follow Up The Company’s appointed President Commissioner is still in the process of obtaining approval from the Financial Services Authority. The appointment and changes in the composition of the Bank’s Board of Commissioners have been stated in a separate Notarial Deed and have been notified to the Ministry of Law and Human Rights. Status Completed PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 407
  408. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BOARD OF COMMISSIONERS Board of Commissioners is the bank’s organ with duties to supervise the management policy, management course on the bank, and the bank’s business, in general and/or specific, in accordance with the Articles of Association as well as to provide advice to the Board of Directors. The arrangement of BNI’s Board of Commissioners is guided by Law of the Republic of Indonesia No. 40 of 2007 on Limited Liability Company and other laws and regulations, specifically Financial Services Authority Regulation No. 33/POJK.04/2014 dated December 8, 2014 on Board of Directors and Board of Commissioners of Issuers or Public Companies. GUIDELINES AND WORK CONDUCT OF BOARD OF COMMISSIONERS Guidelines and Work Conduct of BNI’s Board of Commissioners are stipulated in Decision Letter of BNI’s Board of Commissioners No. KEP/49/DK/2017 dated 26 October 2017, which essentially covers regulations on the following matters: 1. Legal Basis; 2. Structure; 3. Requirements for Members of Board of Commissioners; 4. Independent Commissioner; 5. Duties, Authority, Obligations, and Responsibilities of the Board of Commissioners; 6. Appointment and Dismissal of Members of the Board of Commissioners; 7. Term of Office of the Board of Commissioners and Vacant Position; 8. Meetings of the Board of Commissioners and Joint Meetings of Board of Commissioners and Board of Directors; 9. Division of Work and Working Time of the Board of Commissioners; 10. Secretariat of the Board of Commissioners and Secretary of the Board of Commissioners; 11. Corporate Values; 12. Board of Commissioners’ Work Ethics and Prohibitions, Transparency. 13. Transparency. BOARD OF COMMISSIONERS’ DUTIES AND RESPONSIBILITIES The Board of Commissioners have duties to monitor the management policies, management course in general, either about the Bank or the Bank’s business carried out by the Board of Directors, and to provide advice to the Board of Directors, including supervising the implementation of the Bank’s Long-Term Plan, the Bank’s Work Plan and Budget, and the provisions of the Articles of Association and GMS resolutions, as well as the applicable laws and regulations for the Bank’s interest in accordance with the Bank’s purposes and objectives. 408 Adapting Quickly to Face Change In carrying out the duties, each member of the Board of Commissioners must: 1. Comply with the Articles of Association and Laws and Regulations, as well as the principles of professionalism, efficiency, transparency, independency, accountability, responsibility, as well as fairness and equality. 2. Have good faith, be full of caution, and be responsible for carrying out supervisory and advisory duties to the Board of Directors for the Bank’s interest and in accordance with the Bank’s purposes and objectives. In order to maintain objectivity and independency in performing the functions and duties of supervision, the Board of Commissioners is not involved in the decision-making of the Bank’s operational activities, except for: 1. Provision of funds to related parties as stipulated in the provisions on legal lending limit of commercial banks; and 2. Other matters set forth in the Bank’s Articles of Association or Laws and Regulations. The decision making of the Bank’s operational activities by the Board of Commissioners stated above is part of the Board of Commissioners’ supervisory duties, which does not eliminate the Board of Directors’ responsibilities for the Bank’s management activities. BOARD OF COMMISSIONERS’ AUTHORITY In performing its duties as stated in point a, the Board of Commissioners has authority to: 1. Examine books, letters, and other documents, examine cash for verification purposes and other securities, and examine the Bank’s assets; 2. Enter yards, buildings, and offices used by the Bank; 3. Request explanation from the Board of Directors and/ or other officials on any issues related to the Bank’s management; 4. Understand all policies and actions that have been and will be carried out by the Board of Directors; 5. Request the Board of Directors and/or other officials under the Board of Directors under the consent of the Board of Directors to attend the Board of Commissioners’ Meeting; 6. Appoint and dismiss a Secretary of the Board of Commissioners; 7. Temporarily dismiss member of Board of Directors in accordance with the provisions of the Articles of Association; 8. Establish an Audit Committee, Remuneration and Nomination Committee, Risk Monitoring Committee, and other committees if deemed necessary with due observance of the Bank’s capability; PT Bank Negara Indonesia (Persero) Tbk
  409. Good Corporate Governance 9 . Use experts for certain matters and for a certain time period at the Bank’s expense, if deemed necessary; 10. Perform Bank’s management in certain circumstances for a certain time period in accordance with the provisions of the Articles of Association; 11. Approve the appointment and dismissal of the Corporate Secretary and/or Head of the Internal Audit Unit; 12. Attend Meetings of the Board of Commissioners and provide insights on matters discussed; 13. Carry out other supervisory authority as long as it is not in contrary to the laws and regulations, Articles of Association, and/or GMS resolutions. BOARD OF COMMISSIONERS’ OBLIGATIONS Board of Commissioners has the obligations to: 1. Provide advice to the Board of Directors in conducting the management of the Bank; 2. Provide opinion and approval for the Bank’s Annual Work Plan and Budget, as well as other work plans that are prepared by the Board of Directors, in accordance with the provisions of the Articles of Association; 3. Follow the Bank’s development, provide opinions and suggestions to the GMS on any matters deemed necessary for the management of the Bank; 4. Report to the Dwiwarna A Series Shareholders in the event of any declining tendency in the Bank’s performance; 5. Propose to the GMS the appointment of a Public Accountant Firm to audit the Bank’s books; 6. Examine and review the periodic report and Annual Report prepared by the Board of Directors, including signing the Annual Report; 7. Provide explanations, opinions, and suggestions to the GMS on the Annual Report, if requested; 8. Prepare Minutes of Board of Commissioners’ Meetings and keep a copy; 9. Report to the Bank on any personal and/or family share ownership in the Bank and any other Companies; 10. Provide report on the supervisory duties that was performed in the previous fiscal year to the GMS; 11. Provide explanation on all matters questioned or requested by Dwiwarna A Series Shareholders with due observance of the laws and regulations particularly those applicable in Capital Market sector; 12. Perform other obligations in the framework of supervisory and advisory duties as long as they do not violate the laws and regulations, Articles of Association, and/or GMS resolutions; 13. Grant approval in writing for legal acts performed by the Board of Directors as required in BNI’s Articles of Association with regard to the laws and regulations as well as provisions in Capital Market sector. The Board of Directors’ actions shall obtain approval from the Board of Commissioners to: PT Bank Negara Indonesia (Persero) Tbk  a. Release/transfer and/or pledge the Bank’s assets with criteria and values exceeding certain amounts stipulated by the Board of Commissioners, except assets that are recorded as inventories, with due observance of the provisions in capital market and banking sector; b. Cooperate with business entities or other parties, in the form of joint operations (KSO), business cooperations (KSU), license agreements, Build, Operate, and Transfer (BOT), Build, Transfer, and Operate (BTO), Build, Operate, and Own (BOO), and other agreements that have the same nature, same time period, or value exceeding those set by the Board of Commissioners; c. Establish and change the Bank’s logo; d. Establish an organizational structure 1 (one) level below the Board of Directors; e. Undertake capital participation with specified value as stipulated by the Board of Commissioners of other companies, subsidiaries, and joint ventures that are not in the framework of rescuing receivables with due observance of the provisions in Capital Market sector; f. Establish subsidiary and/or joint venture company with certain value as stipulated by the Board of Commissioners with due observance of the provisions in Capital Market sector; g. Propose the Bank’s representative as a candidate member of the Board of Directors and Board of Commissioners in a subsidiary that gives significant contribution to the Bank, and/or has strategic value as stipulated by the Board of Commissioners; h. Release capital participation with specified value as stipulated by the Board of Commissioners of other companies, subsidiaries, and joint ventures that are not in the framework of rescuing receivables with due observance of the provisions in Capital Market sector; i. Perform actions included in material transactions as stipulated by the laws and regulations in capital market sector with certain values as determined by the Board of Commissioners, except such actions are included in material transactions excluded by the laws and regulations applicable in Capital Market sector; j. Actions that are not regulated in the RKAP; k. Actions to transfer include selling, releasing the right to charge and/or not to charge again for: i. The principal of non-performing receivables which has been written off in the framework of credit settlement, either partially or entirely; ii. The difference between the principal value of non-performing receivables that has been written off with transfer value including sales or with the value of disposal of right; Adapting Quickly to Face Change 409
  410. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk shall be carried out based on the Board of Directors’ policies that have been approved by the Board of Commissioners and in the amount of debt-canceled limit set by the GMS which shall remain in force until any new limit has been determined by the GMS. Approval of the Board of Commissioners specifically with regard to letters a, b, e, f, g, h, and i is performed by the Board of Commissioners after obtaining approval from Dwiwarna A Series Shareholders. Determination of the limits and/or criteria by the Board of Commissioners for matters as referred to in letters a, b, e, f, g, h, and i shall be conducted by the Board of Commissioners after obtaining approval from Dwiwarna A Series Shareholders. BOARD OF COMMISSIONERS’ CRITERIA AND TERM OF OFFICE Requirements for members of the Board of Commissioners must comply with the provisions of the Law on Limited Liability Companies, Laws and Regulations in Capital Market sector; and other laws and regulations including regulations relating to the Bank’s business activities. Based on the Articles of Association, persons who can be appointed as members of the Board of Commissioners are those individuals that meet the requirements upon appointment and during their term of office: 1. Having good character, morals, and integrity; 2. Proficient in performing legal actions; 3. Within 5 (five) years before appointment and during the term of office: a. Never been declared bankrupt; b. never become a member of Board of Directors and/or a member of Board of Commissioners who is found guilty for causing a company to be declared bankrupt; c. never been sentenced for committing a criminal offense that is detrimental to state finances and/or related to the financial sector; and d. never been a member of Board of Directors and/or a member of Board of Commissioners who during the term of office: 410 Adapting Quickly to Face Change 4. 5. 6. 7. i. Has ever not convening an annual GMS; ii. the accountability as a member of Board of Directors and/or a member of Board of Commissioners has ever not accepted by the GMS or has ever not present the accountability as a member of Board of Directors and/or a member of Board of Commissioners to the GMS; and iii. has ever caused a company that obtains license, approval, or registration from the Financial Services Authority not to fulfill its obligation to submit its annual report and/or financial statements to the Financial Services Authority. Having the commitment to comply with the laws and regulations; Having the knowledge and/or expertise in the fields required by the Bank, and any other requirements based on the laws and regulations applicable to the bank; Satisfying other requirements as stipulated in the applicable laws and regulations. Among members of the Board of Commissioners and between members of the Board of Commissioners and members of the Board of Directors, there must be no family bloodline relationship up to third degree, either in a straight line or side line, including relationship arising from marital ties; The term of office of the Board of Commissioners is at most 2 (two) consecutive periods, under the following conditions: 1. The members of the Board of Commissioners are appointed for the term of office commencing from the date determined by the GMS that appoints them and ending at the closing of the 5th (fifth) Annual GMS after the appointment date, provided that it shall not exceed the time period of 5 (five) years with due observance of the laws and regulations in Capital Market sector, but without prejudice to the right of the GMS to dismiss the members of the Board of Commissioners at any time before their term of office ends. 2. After the term of office ends, the members of the Board of Commissioners may be reappointed by the GMS for 1 (one) term of office. PT Bank Negara Indonesia (Persero) Tbk
  411. Good Corporate Governance BOARD OF COMMISSIONERS ’ APPOINTMENT PROCESS The appointment process of candidate members of BNI’s Board of Commissioners is carried out by referring to laws and regulations stipulating the appointment procedures of members of Board of Commissioners for Bank and SOE sectors, particularly State-Owned Enterprise Minister Regulations No. PER-02/MBU/02/2015 dated February 17, 2015, on the Requirements, Procedures for Appointment and Dismissal of Members of Board of Commissioners and Supervisory Board of State-Owned Enterprise, Financial Services Authority Regulation No. 27/POJK.03/2016 dated July 22, 2016, on Fit and Proper Test for Main Party of Financial Services Institution and Circular Letter of Financial Services Authority No. 31/SEOJK.05/2016 dated August 30, 2016 on Fit and Proper Test for Main Party of Financial Services Institution, as well as with due observance to the provisions of appointment of members of Board of Commissioners stipulated in BNI’s Articles of Association. Members of the Board of Commissioners are appointed by the GMS which are attended and approved by Dwiwarna A Series Shareholders and the meeting resolutions shall be approved by Dwiwarna A Series Shareholders with due observance to the provisions of the Articles of Association. GMS resolutions on appointment of members of Board of Commissioners also determines the effectiveness of the appointment. In the event that GMS does not adopt a resolution, then the appointment as member of Board of Commissioners will be effective starting from the closing of the GMS. Submission of proposal of candidate member of Board of Commissioners to the GMS through Dwiwarna A Series Shareholders is carried out by observing the recommendations of the Nomination and Remuneration Committee. The Financial Services Authority Regulation No. 27/POJK.03/2016 dated July 22, 2016, on Fit and Proper Test for the Main Party of Financial Services Institution, among others, regulates that candidate members of Board of Commissioners, who are included as BNI’s Main Party, which is a Financial Services Institution, must obtain approval from the Financial Services Authority before carrying out actions, duties, and functions as member of the Board of Commissioners. In order to provide such approval, the FSA conducts a fit and proper test to candidate members of the Board of Commissioners. Members of the Board of Commissioners who have passed the fit and proper test without notes and have obtained approval from the Financial Services Authority shall indicate that such members of the Board of Commissioners have and fulfill the requirements of integrity, competency, and financial reputation in an adequate manner. All members of BNI’s Board of Commissioners have passed the fit and proper test and received FSA approval to serve as members of BNI’s Board of Commissioners which can be seen in the table below: Table of Fit and Proper Test Nama Jabatan Pelaksana Tanggal Efektif Hasil Ari Kuncoro* President Commissioner/Independent Commissioner Financial Services Authority March 14, 2018 Pass Wahyu Kuncoro Commissioner Vice President Commissioner/ Commissioner Financial Services Authority January 25, 2017 May 29, 2017 Pass Revrisond Baswir Commissioner Independent Commissioner Financial Services Authority June 24, 2015 January 25, 2017 Pass Pataniari Siahaan Commissioner Independent Commissioner Financial Services Authority June 25, 2015 January 25, 2017 Pass Bistok Simbolon Commissioner Financial Services Authority May 10, 2016 Pass Joni Swastanto Commissioner Financial Services Authority April 20, 2016 Pass Marwanto Harjowiryono Commissioner Financial Services Authority July 19, 2017 Pass Ahmad Fikri Assegaf Independent Commissioner Financial Services Authority July 19, 2017 Pass Sigit Widyawan** Independent Commissioner Financial Services Authority September 7, 2018 Pass * Appointment as President Commissioner/Independent Commissioner is based on BNI EGMS, November 2, 2017, and effective based on FSA approval since March 14, 2018. ** Appointment as Independent Commissioner is based on BNI AGMS, March 20, 2018, and effective based on FSA approval since September 7, 2018. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 411
  412. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Members of the Board of Commissioners who have passed the fit and proper test were then appointed in the GMS, which was stated in the Minutes of GMS. Basis of appointment of each member of Board of Commissioners is as follows: Table of Basis of Appointment of Board of Commissioners Nama Jabatan Dasar Pengangkatan Ari Kuncoro President Commissioner /Independent Commissioner EGMS dated November 2, 2017. Wahyu Kuncoro • • Commissioner Vice President Commissioner/ Commissioner AGMS dated March 10, 2016 AGMS dated March 16, 2017 Revrisond Baswir • • Commissioner Commissioner Independent AGMS dated March 17, 2015 AGMS dated March 10, 2016 Pataniari Siahaan • • Commissioner Commissioner Independent AGMS dated March 17, 2015 AGMS dated March 10, 2016 Bistok Simbolon Commissioner EGMS dated January 12, 2016 Joni Swastanto Commissioner AGMS dated March 10, 2016 Marwanto Harjowiryono Independent Commissioner AGMS dated March 16, 2017 Ahmad Fikri Assegaf Independent Commissioner AGMS dated March 16, 2017 Sigit Widyawan Independent Commissioner AGMS dated March 20, 2018 ORIENTATION PROGRAM FOR NEW COMMISSIONERS The orientation program for members of the Board of Commissioners is carried out by delivering documents, presentations or explanations, which can be carried out by the Board of Directors, Corporate Secretary, related Divisions or units, which generally include information/matters pertaining to: 1. Vision, mission, organizational structure of the bank, business activities and operational network; 2. Annual Report, the Bank’s Work Plan and Budget (RKAP), and the Bank’s Business Plan (RBB), Bank’s Code of Ethics, BNI’s Work Cultures, Boards of Commissioners’ Guidelines for Work Conduct, Corporate Governance Handbook, and the Articles of Association. 3. Good Corporate Governance (concurrent positions, share ownership, and independent commissioners); 4. Board of Commissioners and Board of Directors’ duties, authority, and responsibilities, Board of Commissioners’ delegation of authority and limits of authority in conducting supervisory duties on the bank based on the applicable laws and regulations; 5. Committees under the Board of Commissioners, which are established and directly responsible to the Board of Commissioners, Secretary of the Board of Commissioners, and Secretariat of the Board of Commissioners, which facilitates the duties of the Board of Commissioners; 6. Remuneration and facilities provided to members of the Board of Commissioners. DIVISION OF SUPERVISORY DUTIES OF BOARD OF COMMISSIONERS The division of supervisory duties of the Board of Commissioners per December 2018 is as follows. Table of Division of Supervisory Duties of Board of Commissioners Name 412 Position Period Field of Duty Ari Kuncoro* President Commissioner/ Independent Commissioner 5 April 2018 – 31 December 2018 Chairman of Nomination and Remuneration Committee Wahyu Kuncoro Vice President Commissioner/ Commissioner 1 January 2018 – 31 December 2018 Member of Nomination and Remuneration Committee Revrisond Baswir Independent Commissioner 1 January 2018 - 31 December 2018 1 January 2018 - 31 December 2018 1 January 2018 - 31 December 2018 • Adapting Quickly to Face Change • • Member of Nomination and Remuneration Committee Chairman of Risk Monitoring Committee Chairman of Integrated Governance Committee PT Bank Negara Indonesia (Persero) Tbk
  413. Good Corporate Governance Name Position Pataniari Siahaan Bistok Simbolon Joni Swastanto Period Field of Duty Independent Commissioner 1 January - 31 December 2018 1 January 2018 - 31 December 2018 • Commissioner 1 January – 31 December 2018 1 January 2018 - 31 December 2018 • 1 January 2018 - 31 December 2018 1 January 2018 - 31 December 2018 1 January 2018 - 31 December 2018 • Commissioner • • • • Member of Nomination and Remuneration Committee Chairman of Audit Committee Member of Nomination and Remuneration Committee Member of Risk Monitoring Committee Member of Nomination and Remuneration Committee Member of Risk Monitoring Committee Member of Integrated Governance Committee Marwanto Harjowirjono Commissioner 1 January 2018 - 31 December 2018 • Member of Nomination and Remuneration Committee Ahmad Fikri Assegaf Independent Commissioner 1 January 2018 - 5 April 2018 5 April 2018 - 31 December 2018 1 January 2018 - 31 December 2018 • Chairman of Nomination and Remuneration Committee Member of Nomination and Remuneration Committee Member of Audit Committee Sigit Widyawan** Independent Commissioner 13 September 2018 -31 December 2018 • • • Member of Nomination and Remuneration Committee Information: * Appointment as President Commissioner/Independent Commissioner is based on BNI EGMS, November 2, 2017, and effective based on FSA approval since March 14, 2018. ** Appointment as Independent Commissioner is based on BNI AGMS, March 20, 2018, and effective based on FSA approval since September 7, 2018. DIVERSITY POLICY OF COMPOSITION OF BOARD OF COMMISSIONERS Based on the Attachment of Circular Letter of Financial Services Authority No. 32/SEOJK.04/2015 dated November 27, 2015 on Governance Guidelines for Public Companies, it is stated that the composition of Board of Commissioners is a combination of characteristics either from the organ side of the Board of Commissioners or the members of Board of Commissioners as an individual, which is in line with the Public Companies needs. Such characteristics can be reflected in the determination of expertise, knowledge, and experience necessary in implementing the supervisory and advisory duties by the Board of Commissioners of Public Companies. A composition that has observed the Public Companies needs is a positive matter, particularly related to decision making in the framework of implementing supervisory function performed by considering various wider aspects. In the 2018 period, the diversity of the composition of the Board of Commissioners reflected in the education, work experience, expertise, age and gender, can be seen in the table below: Name Ari Kuncoro* Position Age Gender President Commissioner/ Independent Commissioner 56 years old Male Education • • • Bachelor of Economics Master of Economic Development Doctor of Economic Science Work Experience • • • • • • • PT Bank Negara Indonesia (Persero) Tbk  Program Secretary of Post-Graduate • Study of Economic Science of Universitas Indonesia. Vice Dean I in the Fields of Teaching, Education, and Community Services. Faculty of Economics, Universitas Indonesia Guest Professor in Research Field, Brown University. Member of Research Communication Forum for Financial System Stability of Bank Indonesia. Board of Director of East Asian Economist Association. Dean of the Tri Dharma College of the Faculty of Economics and Business, Universitas Indonesia. Expertise Economics Adapting Quickly to Face Change 413
  414. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Name Wahyu Kuncoro Position Age Gender Vice President Commissioner/ Commissioner 49 years old Male Education • • • Bachelor of Agriculture Bachelor of Economics Master of Management Work Experience • • • • • • • • • • • • • • • • • Revrisond Baswir Independent Commissioner 60 years old Male • • • Bachelor of Accounting Master of Business Administration Doctor of Economic Science • • • • • • • • • • • • 414 Adapting Quickly to Face Change Expertise Head of Funding and Resources Section, • Directorate General of SOE Development, • Department of Finance. Head of Sub-Division of Planning of Agricultural Production Business, Ministry of SOE. Secretary of the Board of Commissioners of PT Perkebunan Nusantara VIII (Persero). Head of Plantation IIB Business Sector, Ministry of SOE. Commissioner of PT Perkebunan Nusantara IX (Persero). Head of Primary Industry IIIA Business Sector, Ministry of SOE. Head of Infrastructure and Logistics IA Business Sector, Ministry of SOE. Commissioner of PT Perkebunan Nusantara XIII (Persero). Assistant Deputy of Services III Business Sector, Ministry of SOE. Assistant Deputy of Banking and Insurance, Ministry of SOE. Deputy of Business Infrastructure Sector, Ministry of SOE. Commissioner of PT Angkasa Pura II (Persero). Chairman of Prabunara Employee Cooperative, Ministry of SOE. Member of Prabunara Employee Cooperative Supervisors, Ministry of SOE. Deputy of Agro and Pharmaceutical Business Sector, Ministry of SOE. Commissioner of PT Bank Negara Indonesia (Persero) Tbk. Vice President Commissioner of PT Bank Negara Indonesia (Persero) Tbk. Economics Management Lecturer of Economics and Business, Universitas Gajah Mada Researcher of P3PK, Universitas Gajah Mada Expert Staff of Ministry of Human Rights of the Republic of Indonesia Expert Staff of Pustep, Universitas Gajah Mada Expert Staff of DPD of the Republic of Indonesia Head of Center for Economic Democracy Studies, Universitas Gajah Mada Member of the Public Policy Committee, Ministry of SOE. Commissioner and Chairman of Audit Committee of PTPN XIII, Pontianak. Commissioner of PTPN VIII, Bandung. Commissioner and Chairman of Audit Committee of PTPN XI, Surabaya. Commissioner of PT Bank Negara Indonesia (Persero) Tbk. Independent Commissioner of PT Bank Negara Indonesia (Persero) Tbk Economics Accounting • • PT Bank Negara Indonesia (Persero) Tbk
  415. Good Corporate Governance Name Pataniari Siahaan Position Independent Commissioner Age Gender 72 years old Male Education • • • Bachelor of Civil Engineering Bachelor of Transportation Civil Engineering Master of LawDoctor of Law Work Experience • • • • • • • • • • • • • • • • Bistok Simbolon Commissioner 62 years old Male • • Bachelor of Law Master of Economic Law • • • • • • • • • • • • • PT Bank Negara Indonesia (Persero) Tbk  Expertise • Member of DPR/MPR RI • Member of Commission I, DPR-RI Member of Cooperation Bodies among Parliaments of DPR-RI Member of Bilateral Cooperation Group of Indonesian-Australia of DPR-RI Member of Workers’ Body of MPR-RI Member of Ad Hoc I Committee, Workers’ Body of MPR-RI Chairman of Committee A, Annual Session of MPR-RI Member of Commission III of DPR-RI Leader of Legislative Body of DPR-RI Attorney for DPR-RI for the Constitutional Court Chairman of Working Team of Dissemination of MPR RI Decision in the Sector of State Constitution of RI Lecturer of Law, Universitas Trisakti Chairman of the Center of Constitutional Studies and the Laws and Regulations, Faculty of Law, Universitas Trisakti Editorial Board of Prioris Law Journal, Faculty of Law, Universitas Trisakti Commissioner of PT Bank Negara Indonesia (Persero) Tbk. Independent Commissioner of PT Bank Negara Indonesia (Persero) Tbk ­Engineering ­Legal Head of Sub-division of Research Design • 3, Research Section II, Legal Bureau and PPU, Cabinet Secretariat Head of Political Division, Regional Government, and District Police at PUU II Bureau of Cabinet Secretariat Division Head of State Administration Law Analysis, Legal Bureau, Cabinet Secretariat Assistant Cabinet Secretary, Cabinet Secretariat Head of Legal Bureau, Cabinet Secretariat Head of Political and Security Affairs, Defense, Ratification, and Legal Issues, Cabinet Secretariat Deputy Cabinet Secretariat for Political, Legal, and Security, Cabinet Secretariat Commissioner of PT Industri Kereta Api (Persero) President Commissioner of PT Industri Kereta Api (Persero) Commissioner of Pertamina Geothermal Energy Deputy Chief, Cabinet Secretary Special Staff, Cabinet Secretary Commissioner of PT Bank Negara Indonesia (Persero) Tbk. Legal Adapting Quickly to Face Change 415
  416. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Name Position Joni Swastanto Commissioner Age Gender 62 years old Male Education • • • Bachelor of Economics Master of Economics Doctor of Economics Work Experience • • • • • • • • • • • • • • • • • • • 416 Adapting Quickly to Face Change Section Head of Bank Indonesia Bandung • Deputy Head of Non-Foreign Exchange Supervision Division 2, Bank Indonesia Senior Bank Supervisor for Bank Supervision Affairs 3, Bank Indonesia Executive Bank Supervisor for Bank Supervision Affairs 3, Bank Indonesia Head of Analysis Division of Foreign Exchange Management, Bank Indonesia Head of Monetary Division, Bank Indonesia Division Head of Bank Indonesia Surabaya Senior Executive Bank Supervisor of Bank Indonesia Surabaya Deputy Director of Banking Supervision Department 3, Bank Indonesia Director of Banking Supervision Department 3, Bank Indonesia. Director of Licensing and Banking Information Department, Bank Indonesia Chief of Representative Semarang Bank Indonesia. Head of Banking Research and Development Department, Financial Services Authority Head of Licensing and Banking Information Department, Financial Services Authority Advisor to the Panelist Group of Financial Services Authority Deputy Commissioner of Strategic Management 1B of the Financial Services Authority Deputy Commissioner of Strategic Management 2B of the Financial Services Authority Commissioner of PT Bank Negara Indonesia (Persero) Tbk Expertise Economics PT Bank Negara Indonesia (Persero) Tbk
  417. Good Corporate Governance Name Marwanto Harjowiryono Position Commissioner Age Gender 59 years old Male Education • • • Bachelor of Economics Master of Economics Doctor of Economics/ Public Policy Work Experience • • • • • • • • • • • • • • • • • • • • Ahmad Fikri Assegaf Independent Commissioner 50 years old Male • • Bachelor of Law Master of Law • • • • • • Sigit Widyawan** Independent Commissioner 53 years old Male • • Bachelor of Economics Master of Accounting • • • • • Expertise Head of Analysis Bureau of State Revenue • and Expenditure Budget (APBN) of the Department of Finance Head of Analysis Center of State Revenue and Budget Financing of the Department of Finance Head of Foreign Cooperation Bureau of the Department of Finance Acting Head of International Financial Cooperation Center of the Department of Finance Head of Public Relations Bureau of the Department of Finance Member of the National Social Security Board/DJSN Daily Chief Executive and Deputy Chairman of the Bureaucratic Reform Team of the Department of Finance Expert Staff to Minister of Finance for State Expenditure Member of Budget Review Committee, Asian Development Bank, Manila. Chairman of Ethic Committee, Asian Development Bank, Manila. Executive Director, Asian Development Bank, Manila. Commissioner of PTPN XIII, Pontianak, Kalimantan. Commissioner of PT Sucofindo (Persero) President Commissioner PT Bahana Pembinaan Usaha Indonesia (Persero). Commissioner of PT Semen Indonesia (Persero) Tbk. Commissioner of PT Indonesia Infrastructure Finance. Directorate General of Financial Balance (DJPK) of the Ministry of Finance Director General at the Directorate General of Treasury of the Ministry of Finance Commissioner of PT Bank Negara Indonesia (Persero) Tbk. Economics Co founder of PT Justika Siar Publika, Owner & Operator (www.hukum.online. com) Founder of the Indonesian Law College of Jentera Advisory Member of the Association of Capital Market Legal Consultants Member of Management Center Supervisory Board of the Kemayoran Complex Founder and Senior Partner of Assegaf Hamzah & Partners Independent Commissioner of PT Bank Negara Indonesia (Persero) Tbk • Legal Head of Tax Division - Concrete Product Division of PT Wijaya Karya (Persero) Head of Finance Division at PT Wijaya Karya Beton Director of Finance of Roda Jati Grup Director of PT Roda Pembangunan Jaya Independent Commissioner of PT Jasamarga (Persero) Tbk • Economic Accounting Finance • Information: *Appointment as President Commissioner/Independent Commissioner is based on BNI EGMS, November 2, 2017, and effective based on FSA approval since March 14, 2018. **Appointment as Independent Commissioner is based on BNI AGMS, March 20, 2018, and effective based on FSA approval since September 7, 2018. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 417
  418. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk NUMBER AND COMPOSITION OF THE BOARD OF COMMISSIONERS In the 2018 period, the number and composition of BNI’s Board of Commissioners amended twice as described below: PERIOD OF 1 JANUARY 2018 – 20 MARCH 2018 In the period of 1 January 2018 - 20 March 2018, the Board of Commissioners consisted of 8 (eight) persons consisting of 1 (one) President Commissioner concurrently as Independent Commissioner, 1 (one) Vice President Commissioner, 3 (three) Independent Commissioners, and 3 (three) Commissioners. Name Position Domicile Appointment Date Effective Date Ari Kuncoro President Commissioner/ Independent Commissioner Jakarta November 2, 2017 March 14, 2018 Wahyu Kuncoro Commissioner Vice President Commissioner/ Commissioner Jakarta March 10, 2016 March 16, 2017 January 25, 2017 May 29, 2017 Revrisond Baswir Commissioner Independent Commissioner Jogjakarta March 17, 2015 March 10, 2016 June 24, 2015 January 25, 2017 Pataniari Siahaan Commissioner Independent Commissioner Jakarta March 17, 2015 March 10, 2016 June 25, 2016 January 25, 2017 Bistok Simbolon Commissioner Jakarta January 12, 2016 May 10, 2016 Joni Swastanto Commissioner Jakarta March 10, 2016 April 20, 2016 Marwanto Harjowiryono Commissioner Jakarta March 16, 2017 July 19, 2017 Ahmad Fikri Assegaf Independent Commissioner Jakarta March 16, 2017 July 19, 2017 PERIOD OF 20 MARCH 2018 - 31 DECEMBER 2018 In the period of 20 March 2018 - 31 December 2018, the Board of Commissioners consisted of 9 (nine) persons consisting of 1 (one) President Commissioner concurrently as Independent Commissioner, 1 (one) Vice President Commissioner, 4 (four) Independent Commissioners, and 3 (three) Commissioners. Nama Jabatan Domisili Tanggal Pengangkatan Tanggal efektif Ari Kuncoro President Commissioner/ Independent Commissioner Jakarta November 2, 2017 March 14, 2018 Wahyu Kuncoro Vice President Commissioner/ Commissioner Jakarta March 10, 2016 March 16, 2017 January 25, 2017 May 29, 2017 Revrisond Baswir Commissioner Independent Commissioner Jogjakarta March 17, 2015 March 10, 2016 June 24, 2015 January 25, 2017 Pataniari Siahaan Commissioner Independent Commissioner Jakarta March 17, 2015 March 10, 2016 June 25, 2016 January 25, 2017 Bistok Simbolon Commissioner Jakarta January 12, 2016 May 10, 2016 Joni Swastanto Commissioner Jakarta March 10, 2016 April 20, 2016 Marwanto Harjowiryono Commissioner Jakarta March 16, 2017 July 19, 2017 Ahmad Fikri Assegaf Independent Commissioner Jakarta March 16, 2017 July 19, 2017 Sigit Widyawan Independent Commissioner Jakarta March 20, 2018 September 7, 2018 AFFILIATION RELATIONSHIP OF BOARD OF COMMISSIONERS Among members of the Board of Commissioners and between members of the Board of Commissioners and members of the Board of Directors, there must be no family relationship up to third degree, either in a straight line or side line, including relationship arising from marital ties. The entire Board of Commissioners does not have financial, family, and management relationship, either among members of Board of Commissioners or with members of Board of Directors. 418 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  419. Good Corporate Governance Table of Affiliation Relationship of Board of Commissioners Financial , Family, and Management Relationship of the Commissioners Financial Relationship With Name Position Board of Commissioners Board of Directors Yes Yes No No Family Relationship With Controlling Shareholders Yes No Board of Commissioners Yes No Board of Directors Controlling Shareholders Management Relationship With Yes Yes Yes No No No Ari Kuncoro* President Commissioner/ Independent Commissioner √ √ √ √ √ √ √ Wahyu Kuncoro Vice President Commissioner/ Commissioner √ √ √ √ √ √ √ Revrisond Baswir Independent Commissioner √ √ √ √ √ √ √ Pataniari Siahaan Independent Commissioner √ √ √ √ √ √ √ Biston Simbolon Commissioner √ √ √ √ √ √ √ Joni Swastanto Commissioner √ √ √ √ √ √ √ Marwanto Commissioner Harjowirjono √ √ √ √ √ √ √ Ahmad Fikri Assegaf Independent Commissioner √ √ √ √ √ √ √ Sigit Widyawan** Independent Commissioner √ √ √ √ √ √ √ Information: *Appointment as President Commissioner/Independent Commissioner is based on BNI EGMS, November 2, 2017, and effective based on FSA approval since March 14, 2018. **Appointment as Independent Commissioner is based on BNI AGMS, March 20, 2018, and effective based on FSA approval since September 7, 2018. INDEPENDENT COMMISSIONER The composition of BNI’s Board of Commissioners has complied with the provisions of Financial Services Authority No. 55/POJK.03/2016 dated December 7, 2016, on Governance Implementation for Commercial Banks, regulating that the Independent Commissioner at commercial bank must be at least 50% (fifty percent) of the total members of Board of Commissioners. The composition of BNI’s Commissioners per December 31, 2018, amounted to 8 (eight) persons consisting of 5 (five) Independent Commissioners and 4 (four) Commissioners. Therefore, the composition of BNI’s Independent Commissioners is more than 50% of the total members of Board of Commissioners. The number has complied with the Financial Services Authority. CRITERIA OF INDEPENDENT COMMISSIONER The determination of BNI’s Independent Commissioner is carried out by observing and following the provisions governing the requirements and criteria of the Independent Commissioner in the applicable Laws and Regulations particularly: 1. The Circular Letter of Financial Services Authority on Governance Implementation for Commercial Banks, which stipulates that Independent Commissioners are members of the Board of Commissioners who do not have financial relationship, management relationship, ownership relationship, and/or family relationship with members of the Board of Directors, other members of the Board of Commissioners, and/or controlling shareholders, or relationship with the Bank that can affect the ability to act independently. The definition of having financial relationship, management relationship, ownership relationship, and/or family relationship with members of the Board of Directors, other members of the Board of Commissioners, and/or controlling shareholders, or relationship with a bank that can influence the ability to act independently is guided by the definition in the applicable Laws and Regulations, particularly the Circular Letter of Financial Services Authority on the Implementation of Governance for Commercial Banks. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 419
  420. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 2. Financial Services Authority Regulation (POJK) No. 33/POJK.04/2014 dated December 8, 2014, Article 1 paragraph (4) and Article 21 paragraph 2 regulating that: a. Independent Commissioner is a member of the Board of Commissioners from outside the issuer or public company and fulfills the requirements as an Independent Commissioner as referred to in POJK. b. Independent Commissioner must meet the following requirements: i. Not a person who works or has the authority and responsibility to plan, lead, control, or supervise activities of the Issuer or Public Company within the last 6 (six) months, except for re-appointment as an Independent Commissioner of Issuer or Public Company in the next period; ii. Does not have shares either directly or indirectly with the Issuer or Public Company; iii. Has no Affiliation relationship with the Issuer or Public Company, members of the Board of Commissioners, members of the Board of Directors, or the main shareholders of the Issuer or Public Company; and iv. Does not have a business relationship either directly or indirectly that is related to the business activities of the Issuer or Public Company. 3. Article 120 paragraph (1) and paragraph (2) of the Law on Limited Liability Company which states that: a. The Articles of Association of the Bank can regulate the presence of 1 (one) Independent Commissioner and 1 (one) messenger commissioner. b. Independent Commissioner is appointed based on GMS resolutions from non-affiliated parties with main shareholders, members of the Board of Directors, and/or other members of the Board of Commissioners. 4. Article 8 of Bank Indonesia Regulation No. 11/19/PBI/2009 dated June 4, 2009, on Risk Management Certification for Managers and Officials of Commercial Banks as amended by Bank Indonesia Regulation No. 12/7/PBI/2010 dated April 19, 2010, stating that each Independent Commissioner must have Level 2 Risk Management Certificate. STATEMENT OF INDEPENDENT COMMISSIONERS Each of the Bank’s Independent Commissioner has made an Independent Statement Letter, which has been submitted to the FSA as one of the requirements to take the fit and proper test at the FSA. 420 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  421. Good Corporate Governance PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 421
  422. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 422 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  423. Good Corporate Governance CONCURRENT POSITIONS OF BOARD OF COMMISSIONERS The Board of Commissioners does not have concurrent positions that are prohibited based on the applicable laws and regulations . Board of Commissioners’ concurrent positions that are allowed based on the applicable Laws and Regulations are executed by the related members of Board of Commissioners by not ignoring the implementation of duties and responsibilities as members of the Bank’s Board of Commissioners. Based on the Guidelines and Conduct of Board of Commissioners, the Board of Commissioners is prohibited to have concurrent position as: Ari Kuncoro* Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowirjono Ahmad Fikri Assegaf Sigit Widyawan** Members of Board of Directors at State-Owned Enterprise, RegionalOwned Enterprises, Private Companies No No No No No No No No No Administrator of political party and/ or mem-ber/ candidate member of House of Representative, DPD, House of Representative Level I, and House of Representative Level II and/or candidate of regional head/ deputy head. No No No No No No No No No Other positions according to the provisions in laws and regulations. No No No No No No No No No Other positions that may cause a conflict of interest. No No No No No No No No No Description Information: *Appointment as President Commissioner/Independent Commissioner is based on BNI EGMS, November 2, 2017, and effective based on FSA approval since March 14, 2018. **Appointment as Independent Commissioner is based on BNI AGMS, March 20, 2018, and effective based on FSA approval since September 7, 2018. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 423
  424. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk MANAGEMENT OF CONFLICT OF INTEREST OF BOARD OF COMMISSIONERS Conflict of Interest is a condition in which the Bank’s economic interests contradict the personal economic interests. Regarding such matter, members of the Board of Commissioners shall: 1. Prioritize the Bank’s interests and not decrease the Bank’s financial in the event of any conflict of interest; 2. Avoid making decisions in situations and conditions of conflict of interest; 3. Disclose family relationship, financial relationship, management relationship, ownership relationship with other members of Board of Commissioners and/or members of Board of Directors and/or the bank’s controlling shareholders and/or other parties in the framework of the Bank’s business; 4. Disclose decisions that shall be made in a condition with conflict of interest. SHARE OWNERSHIP OF BOARD OF COMMISSIONERS The entire Board of Commissioners does not own shares amounting to 5% or more of the paid-up capital, including types and number of shares in BNI, other Banks, Non-Bank Financial Institutions, and other Companies domiciled inside or outside the country. IMPLEMENTATION OF DUTIES AND DECISIONS OF BOARD OF COMMISSIONERS WORK PLAN AND BUDGET (RKA) OF BOARD OF COMMISSIONERS As a guideline in carrying out its duties, authority, and responsibilities, every beginning of year the Board of Commissioners prepares the Board of Commissioners’ Work Plan and Budget (RKA), which is submitted to the Board of Directors. The RKA Preparation is required in: 1. SOE State Minister Regulation No. PER-01/MBU /2011 dated August 1, 2011, on the Implementation of Good Corporate Governance in State-Owned Enterprises as amended by Regulation of the State Minister of State-Owned Enterprises No. PER-09/MBU/2012 dated July 6, 2012, Article 12 paragraph (5) which stipulates that the Board of Commissioners/Board of Supervisors must prepare annual work plan and budget of the Board of Commissioners/ Board of Supervisors, which is an integral part and RKAP, as well as; 2. BNI’s Articles of Association Article 17 paragraph (2) which stipulates that the Board of Commissioners must prepare a work program of the Board of Commissioners which is an integral part of the Bank’s Annual Work Plan and Budget prepared by the Board of Directors. 424 Adapting Quickly to Face Change MECHANISM OF IMPLEMENTATION OF SUPERVISORY DUTIES OF BOARD OF COMMISSIONERS The supervision carried out by the President Commissioner in carrying out the functions, duties, and obligations is conducted through the following mechanisms: 1. Through the Board of Commissioners’ Meetings The implementation of the Board of Commissioners’ Meetings is carried out internally by the Board of Commissioners, or by inviting Sectoral Director or Senior Executive Vice President related to the Meeting agenda, as well as the joint meeting between the Board of Commissioners and Board of Directors on a regular basis. 2. Active roles of Committees under the Board of Commissioners in assisting and supporting the duties of the Board of Commissioners, among others, are through the implementation of Committee meetings, evaluation, study or review of matters that become the duties of the Board of Commissioners. 3. Providing direction and opinion of the Board of Commissioners in writing to the Board of Directors as a response to the report of duty implementation of the Board of Directors, approval of an application, or consultancy submitted by the Board of Directors on information regarding strategic and significant matters. 4. Working visits of the Board of Commissioners to BNI’s work environment as well as giving direction and opinion of the Board of Commissioners to the Board of Directors based on the results of such working visit of the Board of Commissioners REALIZATION OF SUPERVISORY DUTIES OF BOARD OF COMMISSIONERS Throughout 2018, the Board of Commissioners carried out its duties, obligations, and responsibilities in the framework of supervising the management policies and course of the Bank as stipulated in the applicable laws and regulations, the Bank’s Articles of Association, and the Work Plans set out at beginning of the year, which among others as follows: 1. Perform the supervisory function of the Bank’s Business Plan (RBB), including: a. Directing, monitoring, and evaluating the implementation of the Bank’s strategic policies in 2018, among others, evaluation on BNI’s Corporate Plan and RBB as well as 2018 financial performance every month; b. Supervising the efforts to achieve RBB, particularly towards achieving several important aspects of business plans such as credit lending, improving asset quality, collecting third party funds, productivity and efficiency; c. Reviewing and providing approval for RBB Revision for 2018-2020; d. Evaluating RBB realization that is reported to the Financial Services Authority every semester and submitting the RBB supervision report to the Financial Services Authority; e. Reviewing and approving RBB 2019-2021 and BNI’s Corporate Plan 2019-2023. PT Bank Negara Indonesia (Persero) Tbk
  425. Good Corporate Governance 2 . Evaluating BNI’s Financial Performance and Consolidated financial performance every month. 3. Reviewing financial information that will be issued by the Bank. 4. Reviewing the implementation of 2017 fiscal year financial statements audit conducted by the Public Accountant Office (KAP) or other external parties. 5. Performing supervisory functions on the implementation of internal control at BNI, among others by: a. Ensuring that the implementation of internal control system in BNI has been running well; b. Ensuring that the Board of Directors has monitored the effectiveness of implementation of the Internal Audit Work Unit (SKAI) or BNI’s Internal Control Unit; c. Supervising the duty implementation of BNI’s Internal Control Unit, including: i. Evaluating the internal control or BNI’s Internal Control Unit; ii. Reviewing the plan and audit implementation as well as monitoring the follow-up of audit results from the duty implementation of BNI’s Internal Control Unit; iii. Ensuring that the Board of Directors has followed up on audit findings and recommendations from BNI’s Internal Control Unit, the supervision results of the Financial Services Authority, and/or supervision of other authorities, findings of the Audit Board, external auditors or audit results of public accountants, among others by ensuring that there is a followup by the Board of Directors on audit findings either in writing or verbally; iv. Reviewing the principles of audit results from BNI’s Internal Audit Unit which is reported to the Financial Services Authority every semester. 6. Supervising, monitoring, and evaluating the Bank’s Sound Level Semester II-2016 and Semester I-2017 and supporting the Board of Directors to take necessary steps needed in order to maintain and/or improve the Bank’s Sound Level. 7. Performing supervisory functions on BNI’s Risk Management and Integrated Risk Management, including: a. Evaluating the Board of Directors’ duties on the implementation of Risk Management policies and providing guidance on improvements to the implementation of Risk Management policies on a regular basis to ensure that the management of the Bank’s activities and risks has been carried out effectively; b. Evaluating BNI’s Risk Management policies and Risk Management strategies; c. Reviewing Risk Profiles on a quarterly basis, and periodically evaluating BNI’s position and risk development; d. Ensuring that the Risk Management policies and process are performed effectively and integrated comprehensively in the Risk Management process; PT Bank Negara Indonesia (Persero) Tbk  8. 9. 10. 11. e. Evaluating and giving directions the to improve the implementation of Integrated Risk Management policies periodically; f. Providing approval on the Integrated Risk Management Policies Guidelines. g. Ensuring that the implementation of Integrated Risk Management is in accordance with the characteristics and complexity of the Financial Conglomeration business and ensuring the implementation of Risk Management in each Financial Services Institution in BNI’s Financial Conglomeration to support the implementation of integrated risk management effectively. Performing supervisory functions on the implementation of BNI’s compliance, among others by: a. Evaluating the compliance function in BNI, ensuring that the compliance function in BNI has been well implemented and providing advice to the Board of Directors to improve the quality of compliance function. b. Reviewing reports on the implementation of compliance function and duty implementation of the Compliance Director that are regularly submitted by the Board of Directors. c. Monitoring the implementation of Anti-Fraud Strategy, Anti-Money Laundering and Prevention of Terrorism Funding (APU-PPT) Program, and Know Your Customer Principles. 9. Regarding the implementation of principles and practices of Good Corporate Governance (GCG): a. Ensuring the implementation of GCG principles and practices at all levels or ranks of BNI organization and in the Financial Services Institution in BNI’s Financial Conglomeration; b. Supervising GCG implementation in BNI’s Financial Conglomeration and evaluating/reviewing Integrated Governance Guidelines in the framework of improvement; c. Encouraging improvement in GCG practices by referring to the applicable laws and regulations and international best practices; d. Reviewing the GCG implementation reports submitted by the Board of Directors; e. Monitoring GCG self assessment results, as well as conducting self assessment to examine the effectiveness of GCG implementation of the Board of Commissioners including Committees under the Board of Commissioners every semester as required by Financial Services Authority Regulations governing GCG implementation for Commercial Banks. Monitoring and evaluating Subsidiaries’ performance and Board of Directors’ policies related to creating synergies and strengthening subsidiaries’ business. Evaluating, directing, and monitoring the strategic plan, Information Technology implementation, and Bank’s policies related to BNI’s Information Technology. Adapting Quickly to Face Change 425
  426. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 12. Reviewing periodic reports on material case progress. 13. Supervising the implementation of prudential principle in providing credit facilities by the Board of Directors, which includes: a. Supervising the implementation of credit provision and financing plans as outlined in the RBB. b. Providing advice and opinion on the Board of Directors’ decision regarding provision of credit facilities above a certain amount that must be consulted to the Board of Commissioners. c. Granting approval for provision of credit facilities to related parties based on the applicable laws and regulations must obtain approval from the Board of Commissioners. d. Conducting regular and routine reviews of the development and follow-up of credits that have been consulted with the Board of Commissioners. e. Evaluating and approving credit policies and strategies according to the obligations regulated by the applicable Laws and Regulations. f. Reviewing, periodically, the development and quality of overall credit or financing portfolio including Non-Performing Loans (NPL). 14. Monitoring and evaluating the development and management of Human Resources (HR) specifically with regard to the strategic function of Human Resources in supporting the Bank’s performance achievement. 15. Evaluating the implementation of duties and responsibilities of Sectoral Director on a regular basis, including the achievement of the Sectoral Director’s work plan, specifically related to strategic and significant issues. 16. Reviewing the Performance of the Financial Institution Pension Fund (DPLK) as the DPLK Supervisory Board. 17. Supervising and evaluating, periodically, the implementation of remuneration policies and systems in BNI including remuneration of the Board of Directors and the Board of Commissioners as well as employees. 18. Giving approval to matters that must obtain the approval from the Board of Commissioners based on the applicable laws and regulations and the Bank’s Articles of Association, which include: a. BNI investment approval; b. Credit provision to related parties; c. Approval of BNI Organizational Arrangement; d. Approval of Revision of Bank BNI Business Plan for 2018-2020; e. Approval of Bank BNI Business Plan for 2019-2021; f. Approval of BNI Corporate Plan 2019-2023; g. Approval of BNI Recovery Plan Document; h. Approval of Management of BNI Subsidiaries; i. Approval of Company Policies or Guidelines based on Financial Services Authority Regulations must be obtained from the Board of Commissioners. 19. Submitting report to SOE Ministry in the form of a response from the Board of Commissioners on BNI performance reports every quarter as a follow up to SOE Minister Letter in 2014 to BNI’s Board of Commissioners that in order to streamline supervision and guidance on SOE’s performance, the Board of Commissioners is required to submit opinions and responses to BNI performance reports for the quarterly period. 20. Holding Board of Commissioners’ Meetings, either internal meetings of the Board of Commissioners or by inviting relevant members of the Board of Directors or Sectoral Directors as well as joint meetings between Board of Commissioners and Board of Directors regularly to discuss certain aspects such as aspects of business, organization, risk management, legal internal control and compliance, human resources, technology, and others that are held regularly for 52 (fifty-two) meetings. 21. Visiting Regional Offices or Branch Offices in order to carry out the supervisory function. 426 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  427. Good Corporate Governance BOARD OF COMMISSIONERS ’ DECISION As part of implementing its duties and responsibilities, throughout 2018 the Board of Commissioners issued 18 (eighteen) Decision Letters (SK) of the Board of Commissioners, which were: 1. Credit Consultation Guidelines. 2. General Provisions for Appointment, Dismissal, Duty Arrangement, and Honorarium of Members of Committees Under the Board of Commissioners. 3. Adjustment of Honorarium of Independent Members of Committees under the Board of Commissioners. 4. Termination of the Appointment of Mr. Ahmad Fikri Assegaf as Chairman of the Nomination and Remuneration Committee. 5. Appointment of Mr. Ari Kuncoro as Chairman of the Nomination and Remuneration Committee. 6. Appointment of Mr. Ahmad Fikri Assegaf as Member of the Nomination and Remuneration Committee. 7. Appointment of Ms. Pasu Donnaria as an Independent Member of the Audit Committee. 8. Appointment of Ms.Idayu Nilawati as Independent Secretary of the Nomination and Remuneration Committee. 9. Determination of the Board of Directors ‘Salary and Board of Commissioners’ Honorarium for 2018 and Tantiem of the Board of Directors and Board of Commissioners for 2017 performance. 10. Board of Commissioners’ Meeting Conduct and Joint Meeting Conduct between Board of Commissioners and Board of Directors. 11. Termination of the Appointment of Ms. Nurul Almy Firdausi and Appointment of Mr. Mamat Rohimat as Secretariat staff of the Board of Commissioners. 12. Enforcement of Termination of the Appointment of Mr. Krisna Wijaya as a member of the Integrated Governance Committee. 13. Appointment of Mr. Irwan Rinaldi as an Independent Member of the Risk Monitoring Committee. 14. Appointment of Mr. Sigit Widyawan as Member of the Nomination and Remuneration Committee. 15. Guidelines for Nomination for Candidate Members of the Board of Directors and Board of Commissioners of PT Bank Negara Indonesia (Persero) Tbk. 16. Appointment of Mr. Suhendry Hafni as a Member of the Integrated Governance Committee. 17. Appointment of Mr. Parikesit Suprapto as a Member of the Integrated Governance Committee. 18. Appointment of Ms. Efita Praharani as a Member of the Nomination and Remuneration Committee. PT Bank Negara Indonesia (Persero) Tbk  BOARD OF COMMISSIONERS’ MEETINGS MECHANISM OF BOARD OF COMMISSIONERS’ MEETINGS AND BOARD OF COMMISSIONERS’ MEETING WITH BOARD OF DIRECTORS Based on FSA Regulation and the Bank’s Articles of Association No. 33/POJK.04/2014 dated December 8, 2014, on Board of Directors and Board of Commissioners of Issuers or Public Company and the Bank’s Articles of Association, the Board of Commissioners must hold Meeting at least 1 (one) time in 2 (two) months and hold Joint Meeting with the Board of Directors periodically at least 1 (one) time in 4 (four) months. In addition, the Board of Commissioners may hold a meeting at any time at the request of 1 (one) or several members of the Board of Commissioners or the Board of Directors by stating the matters that will be discussed. As a guideline for the implementation of Board of Commissioners’ Meetings and Board of Commissioners’ Meetings with the Board of Directors, the Board of Commissioners has established procedures and mechanisms for the implementation of Board of Commissioners Meetings and Board of Commissioners’ Meetings with the Board of Directors, which are generally stipulated in the Board of Commissioners’ Decision Letter No. Kep/049/DK/2017 dated October 26, 2017, on Guidelines and Work Conduct of the Board of Commissioners, which are further explained in the Decision Letter of the Board of Commissioners No. KEP/010/ DK/2018 dated July 12, 2018, on the Conduct of Board of Commissioners’ Meeting and Board of Commissioners’ Meeting with Board of Directors, which basically contain provisions on: 1. Meeting Schedule; 2. Meeting Agenda; 3. Meeting Location; 4. Meeting Participants; 5. Authority and Representatives; 6. Calling of the Meeting; 7. Meeting Attendance and Decision Making; 8. Documentation of Meeting Implementation and Administration Management of Minutes of Meetings; 9. Decision of the Board of Commissioners Outside the Meeting; 10. Board of Commissioners’ Meetings through Teleconferencing Media; 11. Meeting Presentation Format and Materials. The Board of Commissioners’ meeting consists of: 1. The Board of Commissioners’ meeting which consists of: a. Board of Commissioners’ Internal Meeting b. Board of Commissioners’ Meeting by inviting the related Sectoral Directors or Senior Executive Vice President (SEVP). 2. Joint Meeting Between Board of Directors and Board of Commissioners is Board of Commissioners’ Meeting with Board of Directors, which is attended by the Corporate Secretary and Secretary of the Board of Commissioners. Adapting Quickly to Face Change 427
  428. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk AGENDA, DATE, AND PARTICIPANTS OF BOARD OF COMMISSIONERS’ MEETING BOARD OF COMMISSIONERS’ MEETINGS Throughout 2018, the agenda, dates, and participants of Board of Commissioners’ Meetings were as follows. Table of Board of Commissioners’ Meetings No. Date Meeting Agenda 1. January 11, 2018 Internal Meeting of Board of Commissioners • Committee’s Independent Members • Audit Committee Report on BNI’s Performance until December 2017. • Overview the Decision Letter of the Board of Commissioners on BNI’s Credit Consultancy Guidelines. • Risk Monitoring Committee Report on review result against credits consulted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. Ari Kuncoro*) Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Present Present Present Present Present Present Present Present 2. January 18, 2018 Internal Meeting of Board of Commissioners • Decision on providing credit facility to related parties • Monitoring on follow-up of the previous meeting. • Approval document on capital addition on Subsidiary. Ari Kuncoro*) Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Absent Absent Present Present Present Present Present Present Ari Kuncoro*) Wahyu Kuncoro Revrisond Baswir Bistok Simbolon Pataniari Siahaan Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Present Absent Present Present Present Present Present Absent Ari Kuncoro*) Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Present Present Present Present Present Present Absent Present Meeting by inviting the related Sectoral Director Credit consultancy to the Board of Commissioners 3. January 25, 2018 Internal Meeting of Board of Commissioners • Approval on Self Estimated Price (HPS) for Procurement of General Audit Services for Consolidated Financial Statements and other Reports of BNI for the fiscal year ending on December 31, 2018. • Decision to provide credit facility to related parties. • Monitoring on follow-up of the previous meeting. Meeting Participants Attendance Description On Duty On Duty On Duty On Duty Meeting by inviting the related Sectoral Director High Risk Credit. 4. February 1, 2018 Internal Meeting of Board of Commissioners • Credit to related party. • Monitoring on follow-up of the previous meeting. • Follow-up report on letters submitted to the Board of Commissioners. • Audit Committee Report on review result against the Self Estimated Price (HPS) for Procurement of Public Accountant Firm (KAP). On Duty Meeting by inviting the related Sectoral Director Implementation of Credit Restructuring Policies. 428 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  429. Good Corporate Governance No . 5. Date February 8, 2018 Meeting Agenda Meeting Participants Attendance Description On Duty Internal Meeting of Board of Commissioners • Monitoring on follow-up of the previous meeting. • Report on letters submitted to the Board of Commissioners. • Audit Committee Report on principles of suggestions and opinions of the Audit Committee Quarter IV-2017. Ari Kuncoro*) Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Absent Present Present Present Absent Present Present Present 6. February 15, 2018 Internal Meeting of Board of Commissioners • Report of the Audit Committee and Risk Monitoring Committee on Self Assessment Result (HPS) against the Implementation of BNI’s DPLK Risk Management. • Risk Monitoring Committee Report on review result against credits consulted to the Board of Commissioners. • Audit Committee Report on review result against the performance of BNI’s Pension Fund of Financial Institution (DPLK). • Monitoring on follow-up of the previous meeting. • Report on letters submitted to the Board of Commissioners. Ari Kuncoro*) Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Present Present Present Present Present Present Present Present 7. February 22, 2018 Internal Meeting of Board of Commissioners • Integrated Governance Committee Report on evaluation of function of BNI’s Integrated Compliance of Financial Conglomeration Semester II-2017. • Monitoring on follow-up of the previous meeting. • Report on letters submitted to the Board of Commissioners. Ari Kuncoro*) Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Present Present Present Present Present Present Present Ari Kuncoro*) Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Present Present Present Present Present Present Present Present Ari Kuncoro*) Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Present Absent Present Present Present Present Present Present Meeting by inviting the related Sectoral Director Report of Self Assessment Result (HPS) on the implementation of BNI’s DPLK Risk Management per December 31, 2017. 8. March 1, 2018 Internal Meeting of Board of Commissioners • Monitoring on follow-up of the previous meeting. • Report on letters submitted to the Board of Commissioners. Meeting by inviting the related Sectoral Director • Management of Subsidiary. • Risk Mitigation on SOE Infrastructure Project Funding 9. March 8, 2018 Internal Meeting of Board of Commissioners • Risk Monitoring Committee Report on review result against credits consulted to the Board of Commissioners. • Audit Committee Report on review result against the proposal of Public Accountant Firm. • Audit Committee Report on review result against BNI’s asset discharge in Pare-pare. • Report on letters submitted to the Board of Commissioners. On Duty Present On Duty Meeting by inviting the related Sectoral Director • Management of network and development of Kartu Tani. • Treasury performance and overseas transaction as well as management of overseas branches. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 429
  430. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 10. Date March 15, 2018 Meeting Agenda Discussion of the Nomination and Remuneration Committee • Presentation by the Head of Corporate Communicate and Secretariat Division on Performance Assessment of the Board of Directors Year 2017. • KPI format for Performance Assessment of the Board of Directors Year 2018. • Presentation of Remuneration Review. Meeting Participants Attendance Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Present Present Present Present Present Present Present Present Description Internal Meeting of Board of Commissioners • Monitoring on follow-up of the previous meeting. • Report on letters submitted to the Board of Commissioners. 11. March 20, 2018 Internal Meeting of Board of Commissioners • Monitoring on follow-up of the previous meeting. • Report on letters submitted to the Board of Commissioners. Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Present Absent Present Present Present Present Present Present 12. March 29, 2018 Internal Meeting of Board of Commissioners • Composition of the Nomination and Remuneration Committee. • Structuring BNI’s Board of Directors organization (BNI’s Board of Directors Division). • Approval on KAP honorarium for Year 2018 Audit. • Approval on extension and addition of credit facility to related party. • Work Visit Plan of the Board of Commissioners to BNI Regional Offices. • Report on letters submitted to the Board of Commissioners. Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan**) Present Absent Present Present Present Present Present Present Present 13. April 5, 2018 Internal Meeting of Board of Commissioners • Follow-Up on GMS: Proposal of remuneration and limit/threshold of Board of Directors’ actions that need written approval from the Board of Commissioners. • Risk Monitoring Committee Report on review result against credits consulted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. • Report on letters submitted to the Board of Commissioners. Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan**) Present Present Present Present Present Present Present Present Present Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan**) Absent Absent Present Present Present Present Present Present Present On Duty On Duty Meeting by inviting the related Sectoral Director Digital Banking Strategy. Meeting by inviting the related SEVP BNI Corporate University & Training of the Board of Commissioners. 14. April 26, 2018 Rapat dengan mengundang Direktur Sektor terkait • Review Auto Writte Off Kartu Kredit Rapat Internal Dewan Komisaris • Laporan Komite Pemantau Risiko mengenai hasil review kredit-kredit yang dikonsultasikan kepada Dewan Komisaris. • Review Keanggotaan Komite Independen. • Batasan/treshold perbuatan Direksi yang perlu mendapat persetujuan tertulis Dewan Komisaris. • Monitoring tindak lanjut Rapat sebelumnya. • Laporan surat-surat yang disampaikan kepada Dewan Komisaris. 430 Adapting Quickly to Face Change On Duty On Duty PT Bank Negara Indonesia (Persero) Tbk
  431. Good Corporate Governance No . 15. Date May 3, 2018 Meeting Agenda Board of Commissioners’ Meeting by inviting the related Sectoral Director Monitoring on progress to provide credit to debtor groups. • • • • 16. May 17, 2018 Internal Meeting of Board of Commissioners Re-appointment of Committee’s Independent Members and Committee’s Secretary. Monitoring on follow-up of the previous meeting. Report on letters submitted to the Board of Commissioners. Internal Meeting of Board of Commissioners • Proposal of remuneration of Board of Directors and Board of Commissioners. • Board of Directors’ proposal on the Administrator of BNI’s Subsidiary. • Monitoring on follow-up of the previous meeting. • Report on letters submitted to the Board of Commissioners. Board of Commissioners’ Meeting by inviting the Sectoral Director Implementation of compliance function and progress of Material Cases. Meeting Participants Attendance Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan**) Present Absent Present Present Present Present Present Present Present Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan**) Present Absent Present Present Present Present Present Present Present 17. May 24, 2018 Internal Meeting of Board of Commissioners • Candidate to administer Subsidiary. • Proposal of remuneration of Board of Directors and Board of Commissioners. • Follow-up of the previous meeting. • Report on letters submitted to the Board of Commissioners. • Determining the time period for re-appointment of independent members of Audit Committee and Secretary of Nomination and Remuneration Committee. Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan**) Absent Present Present Present Present Present Present Present Present 18. June 28, 2018 Internal Meeting of Board of Commissioners • Validating decisions of the Board of Commissioners outside the Meeting. • Updating the Board of Commissioners’ Meeting Conduct. • Report on letters submitted to the Board of Commissioners. Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan**) Present Present Present Present Present Present Present Absent Present Internal Meeting of Board of Commissioners • Corporate Secretary Report on Budget Allocation and Realization of Partnership and Community Development Program/Corporate Social Responsibility (PKBL/CSR) Year 2017 and Quarter I-2018. • Risk Monitoring Committee Report on review result on credit provision to related party. • Work Visit Plan of the Board of Commissioners to BNI Regional Offices. • Monitoring on follow-up of the previous meeting. • Report on letters submitted to the Board of Commissioners. Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan**) Present Present Absent Absent Present Present Absent Absent Present Internal Meeting of Board of Commissioners • Presentation by Audit Committee and Integrated Governance Committee on BNI’s Consolidated Financial Performance Quarter II-2018. • Monitoring on follow-up of the previous meeting. Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan**) Present Absent Present Present Absentr Present Present Present Present Board of Commissioners’ Meeting by inviting the related Sectoral Director Revision on Bank BNI’s Business Plan Year 2018-2020. 19. 20. July 5, 2018 July 12, 2018 PT Bank Negara Indonesia (Persero) Tbk  Description On Duty On Duty On Duty On Duty On Duty On Duty On Duty On Duty On Duty On Duty Adapting Quickly to Face Change 431
  432. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 21. Date July 19, 2018 Meeting Agenda Internal Meeting of Board of Commissioners • Risk Monitoring Committee Report on review result of BNI’s Risk Profile. • Presentation by Corporate Communication and Secretariat Division on Remuneration of Board of Commissioners and Board of Commissioners’ Organs. • Composition of Committee who is from independent party. • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. Meeting Participants Attendance Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan**) Present Absent Present Present Present Present Present Present Present Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan**) Present Present Present Present Present Present Present Present Present Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan**) Present Absent Present Present Present Present Present Present Present Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan**) Present Present Present Absent Present Present Present Present Present Description On Duty Board of Commissioners’ Meeting inviting the Sectoral Director Effectiveness of duty implementation of the Internal Audit Unit. 22. July 26, 2018 Internal Meeting of Board of Commissioners • Refreshment Program for the Board of Commissioners. • Determining honorarium of Secretary staff of the Board of Commissioners who is from outside the company. • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. • Presentation by Corporate Communication and Secretariat Division on Remuneration of Board of Commissioners. Joint Meeting Between Board of Commissioners and Board of Directors Handling NPL, write off policies, Remedial & Recover, and Credit Pipeline. 23. August 2, 2018 Internal Meeting of Board of Commissioners • Work Visit Plan of the Board of Commissioners to BNI Regional Offices. • Report on temporary findings of Financial Services Authority audit. • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. Meeting by inviting the Sectoral Director Kick Off Meeting of Audit 2018 by Public Accountant Firm. 24. 432 August 16, 2018 Internal Meeting of Board of Commissioners • Work Visit Report of the Board of Commissioners to BNI Regional Offices. • Threshold of approval authority of the Board of Commissioners and Shareholders of Dwiwarna A Series. • Refreshment Program for the Board of Commissioners. • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. Adapting Quickly to Face Change On Duty On Duty PT Bank Negara Indonesia (Persero) Tbk
  433. Good Corporate Governance No . Date 25. August 23, 2018 Meeting Agenda Meeting by inviting the Sectoral Director • Implementation of Long-Term Incentive (LTI) Year 2018. • Capital participation to the subsidiary. Internal Meeting of Board of Commissioners • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. 26. August 30, 2018 Internal Meeting of Board of Commissioners • Candidacy of the President Director of the Subsidiary. • Nomination Guidelines for candidate member of Board of Directors and Board of Commissioners. • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. Meeting by inviting the Sectoral Director • Implementation of Anti-Money Laundering and Counter-Terrorism Financing (APU-PPT) programs. • Report of the Head of Corporate Communication and Secretariat Division on implementation of Good Corporate Governance in BNI. 27. September 6, 2018 Internal Meeting of Board of Commissioners Presentation by BNI’s Nomination and Remuneration Committee on the Nomination System for candidate member of Board of Directors and candidate member of the Board of Commissioners Internal Meeting of Board of Commissioners • Review on the Candidates for President Director for Subsidiary as proposed by the Board of Directors. • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. Meeting Participants Attendance Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan**) Present Present Absent Present Present Present Present Present Present Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan**) Present Absent Present Present Present Present Present Present Present Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan**) Present Absent Present Present Present Present Present Present Absent Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan Present Absent Present Present Present Present Present Present Present Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan Present Absent Present Present Present Present Present Present Present Description On Duty On Duty On Duty Meeting by inviting the Sectoral Director Performance of Overseas Branch Offices and other strategic issues. 28. September 13, 2018 Internal Meeting of Board of Commissioners • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. Meeting by inviting the Sectoral Director Consumer Business Performance, and development of BNI’s YAP and Agent 46. 29. September 20, 2018 Internal Meeting of Board of Commissioners • Discussion on Minutes of Board of Commissioners’ Meeting. • Evaluation on the realization of Work Program of the Board of Commissioners and Committee 2018. • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. PT Bank Negara Indonesia (Persero) Tbk  On Duty On Duty Adapting Quickly to Face Change 433
  434. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. Date 30. September 26, 2018 Internal Meeting of Board of Commissioners • Implementation of Long-Term Incentive (LTI) Year 2018. • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan Present Absent Absent Absent Present Present Present Present Present October 4, 2018 Internal Meeting of Board of Commissioners • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan Present Present Present Present Present Present Present Present Present Internal Meeting of Board of Commissioners • Presentation by Enterprise Risk Management Division on stress test of macro condition against BNI’s performance. • Presentation by the Committees on review result of Corporate Plan 2019-2023. • Structuring Board of Directors organization (Board of Directors Division) of BNI. • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting.   Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan     Present Present Present Present Present Present Present Present Absent    Internal Meeting of Board of Commissioners • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan Present Absent  Present Present Present Present Present Absent Present Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan Present Present Present Present Absent Present Present Absent Present Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan Present Present Present Present Present Present Present Absent Present 31. Meeting Agenda Board of Commissioners’ Meeting by inviting the Sectoral Director • Development of BNI’s new products in 2018 and sales plan of Securities Mutual Funds. • Development on credits consulted to the Board of Commissioners up to August 2018. 32 33. 34. October 11, 2018 October 18, 2018 October 25, 2018 Internal Meeting of Board of Commissioners • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. Board of Commissioners’ Meeting by inviting the Sectoral Director Transformation of BNI to be the most profitable Financial Institution. 35. 434 November 1, 2018 Internal Meeting of Board of Commissioners • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. • Nomination Guidelines for candidate member of Board of Directors and Board of Commissioners. • Board of Commissioners’ Meeting by inviting the Sectoral Director • Stress test of Macro Condition against BNI’s performance. • Development of BNI’s new products in 2018 and sales of Securities Mutual Funds. Adapting Quickly to Face Change Meeting Participants Attendance Description On Duty On Duty On Duty  On Duty On Duty On Duty On Duty On Duty Dinas PT Bank Negara Indonesia (Persero) Tbk
  435. Good Corporate Governance No . Date 36. November 8, 2018 Meeting Agenda Nomination and Remuneration Committee: Talent and succession, and Leadership Program Internal Meeting of Board of Commissioners • Appointment of Public Accountant Firm to audit Year 2019. • Audit Committee Report on settlement progress of findings and recommendations of Internal Audit Unit and 2016-2018 audit result. • Improvement of effectiveness of BNI’s Board of Commissioners’ duty implementation. • External fraud report • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. • Nomination Guidelines for candidate member of Board of Directors and Board of Commissioners. Meeting Participants Attendance Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan Present Absent  Present Present Present Present Present Absent Present Description On Duty On Duty Board of Commissioners’ Meeting by inviting the Sectoral Director • Discussion on external fraud • Establishing Provision for Impairment Loss (CKPN), development of remedial and recovery, and realization of 2018 investment. 37. November 16, 2018 Internal Meeting of Board of Commissioners • 2019 Board of Commissioners’ Work Plan and Budget (RKA). • Monitoring on follow-up of the previous meeting. Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan Present Absent Present Present Present Present Present Present Present 38. November 22, 2018 Board of Commissioners’ Meeting by inviting the Sectoral Director • Progress of 2018 Financial Statements Audit. Internal Meeting of Board of Commissioners • Presentation by the Committees on Bank BNI’s Business Plan Year 2019-2021. • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan Present Present Present Present Present Present Present Absent Present Internal Meeting of Board of Commissioners • Board of Commissioners’ Approval on: -- Bank BNI’s Business Plan Year 2019-2021 -- Sustainable Finance Action Plan Year 2019 -- Document of BNI’s 2018 Recovery Plan -- Work Plan and Budget of the Board of Commissioners 2019 -- Nomination Guidelines for candidate of Board of Directors and Board of Commissioners. -- Report on letters submitted to the Board of Commissioners. -- Monitoring on follow-up of the previous meeting. Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan Present Absent Present Present Present Present Present Present Present 39. November 29, 2018 On Duty On Duty On Duty Board of Commissioners’ Meeting by inviting the Sectoral Director Supply Chain Financing PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 435
  436. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. Date 40. December 6, 2018 Meeting Agenda Meeting Participants Internal Meeting of Board of Commissioners • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. Board of Commissioners’ Meeting by inviting the Sectoral Director Approval of Credit to Related Parties. 41. December 13, 2018 Board of Commissioners’ Meeting by inviting the Sectoral Director • Follow-Up on BPK’s audit result • Key Performance Indicator (KPI) Year 2019 Internal Meeting of Board of Commissioners • Report on letters submitted to the Board of Commissioners. • Monitoring on follow-up of the previous meeting. Attendance Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan Present Present Present Present Present Present Absent Present Present Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan Absent Absent Present Present Present Present Present Present Present Description On Duty On Duty On Duty Keterangan: Information: *Appointment as President Commissioner/Independent Commissioner is based on EGMS, effective based on FSA approval since March 14, 2018. **Appointment as Independent Commissioner is based on GMS, effective based on FSA approval since September 7, 2018. JOINT MEETING BETWEEN BOARD OF COMMISSIONERS AND BOARD OF DIRECTORS Throughout 2018, the agenda, dates, and participants of joint meeting between the Board of Commissioners and Board of Directors are as follows: No. 1. 436 Date Meeting Agenda January 11, 2018 Financial Performance of BNI’s Consolidation Position until December 2017. Adapting Quickly to Face Change Meeting Participants Board of Commissioners Attendance Description Meeting Participants Board of Directors Attendance Description Achmad Baiquni Absent On Duty Herry Sidharta Present Ari Kuncoro*) Present Wahyu Kuncoro Absent Revrisond Baswir Present Anggoro Eko Cahyo Absent Pataniari Siahaan Present Bob Tyasika Ananta Present Bistok Simbolon Present Rico Rizal Budidarmo Absent Joni Swastanto Present Putrama Wahju Setyawan Present Marwanto Harjowiryono Absent Catur Budi Harto Absent Ahmad Fikri Assegaf Present Adi Sulistyowati Present Panji Irawan***) Absent On Duty On Duty On Duty On Duty On Duty On Duty PT Bank Negara Indonesia (Persero) Tbk
  437. Good Corporate Governance No . 2. 3. Date Meeting Agenda February 22, 2018 Financial Performance of BNI’s Consolidation Position until January 2018. March 29, 2018 Financial Performance of BNI’s Consolidation February 2018. PT Bank Negara Indonesia (Persero) Tbk  Meeting Participants Board of Commissioners Attendance Description Meeting Participants Board of Directors Attendance Description On Duty Ari Kuncoro*) Present Achmad Baiquni Absent Wahyu Kuncoro Present Herry Sidharta Present Revrisond Baswir Present Anggoro Eko Cahyo Present Pataniari Siahaan Present Bob Tyasika Ananta Present Bistok Simbolon Present Rico Rizal Budidarmo Absent On Duty Joni Swastanto Present Putrama Wahju Setyawan Absent On Duty Marwanto Harjowiryono Present Catur Budi Harto Present Ahmad Fikri Assegaf Absent Adi Sulistyowati Present Panji Irawan***) Present Achmad Baiquni Absent On Duty Herry Sidharta Absent On Duty On Duty Ari Kuncoro*) Present Wahyu Kuncoro Absent Revrisond Baswir Present Anggoro Eko Cahyo Present Pataniari Siahaan Present Bob Tyasika Ananta Present Bistok Simbolon Present Rico Rizal Budidarmo Present Joni Swastanto Present Putrama Wahju Setyawan Present Marwanto Harjowiryono Present Catur Budi Harto Absent On Duty Ahmad Fikri Assegaf Present Adi Sulistyowati Absent On Duty Sigit Widyawan**) Present Dadang Setiabudi****) Present Tambok P. Setyawati****) Present Endang Hidayatullah****) Present On Duty Adapting Quickly to Face Change 437
  438. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 4. Date April 18, 2018 Meeting Agenda • • 5. May 24, 2018 • • 438 Financial Performance of BNI’s Consolidation Position until March 2018 Credits to be consulted to the Board of Commissioners in March 2018. Financial Performance of BNI’s Consolidation Position until April 2018. Decision to provide credit facility in April 2018 that needs to be consulted to the Board of Commissioners. Adapting Quickly to Face Change Meeting Participants Board of Commissioners Attendance Description Ari Kuncoro*) Absent On Duty Wahyu Kuncoro Absent On Duty Revrisond Baswir Meeting Participants Board of Directors Attendance Description Achmad Baiquni Absent On Duty Herry Sidharta Absent On Duty Present Anggoro Eko Cahyo Present Pataniari Siahaan Present Bob Tyasika Ananta Absent On Duty Bistok Simbolon Present Rico Rizal Budidarmo Absent On Duty Joni Swastanto Present Putrama Wahju Setyawan Present Marwanto Harjowiryono Present Catur Budi Harto Absent On Duty Ahmad Fikri Assegaf Present Adi Sulistyowati Absent On Duty Sigit Widyawan**) Present Dadang Setiabudi****) Present Tambok P. Setyawati****) Present Endang Hidayatullah****) Present Achmad Baiquni Present Herry Sidharta Absent Ari Kuncoro*) Present Wahyu Kuncoro Absent Revrisond Baswir Present Anggoro Eko Cahyo Present Pataniari Siahaan Present Bob Tyasika Ananta Present Bistok Simbolon Present Rico Rizal Budidarmo Present Joni Swastanto Present Putrama Wahju Setyawan Present Marwanto Harjowiryono Present Catur Budi Harto Present Ahmad Fikri Assegaf Present Adi Sulistyowati Present Sigit Widyawan**) Present Dadang Setiabudi****) Present Tambok P. Setyawati****) Present Endang Hidayatullah****) Present On Duty On Duty PT Bank Negara Indonesia (Persero) Tbk
  439. Good Corporate Governance No . 6. 7. Date July 12, 2018 August 23, 2018 Meeting Agenda Financial Performance in May and June 2018 • • BNI Financial Performance July 2018 Credits to be consulted to the Board of Commissioners in May-July 2018. PT Bank Negara Indonesia (Persero) Tbk  Meeting Participants Board of Commissioners Attendance Ari Kuncoro*) Present Wahyu Kuncoro Absent Revrisond Baswir Description Meeting Participants Board of Directors Attendance Achmad Baiquni Present Herry Sidharta Present Present Anggoro Eko Cahyo Present Pataniari Siahaan Present Bob Tyasika Ananta Present Bistok Simbolon Absent Rico Rizal Budidarmo Present Joni Swastanto Present Putrama Wahju Setyawan Present Marwanto Harjowiryono Present Catur Budi Harto Present Ahmad Fikri Assegaf Present Adi Sulistyowati Present Sigit Widyawan**) Present Dadang Setiabudi Present Tambok P. Setyawati Present Endang Hidayatullah Present Achmad Baiquni Absent On Duty On Duty Ari Kuncoro*) Present Wahyu Kuncoro Absent On Duty Herry Sidharta Present Revrisond Baswir Absent On Duty Anggoro Eko Cahyo Present Pataniari Siahaan Present Bob Tyasika Ananta Present Bistok Simbolon Present Rico Rizal Budidarmo Present Joni Swastanto Present Putrama Wahju Setyawan Present Marwanto Harjowiryono Absent Catur Budi Harto Present Ahmad Fikri Assegaf Present Adi Sulistyowati Absent Sigit Widyawan**) Present Dadang Setiabudi Present Tambok P. Setyawati Present Endang Hidayatullah Absent On Duty Description On Duty On Duty On Duty Adapting Quickly to Face Change 439
  440. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 8. Date September 20, 2018 Meeting Agenda • • 9. October 11, 2018  • • • Financial performance August 2018. Decision to provide credit facility in August 2018 that needs to be consulted to the Board of Commissioners. BNI Corporate Plan Financial Performance in September 2018 Decision to provide credit facility in September 2018 that needs to be consulted to the Board of Commissioners. Meeting Participants Board of Commissioners Ari Kuncoro*) Attendance Description Present Meeting Participants Board of Directors Achmad Baiquni On Duty Adapting Quickly to Face Change Description Absent On Duty On Duty Wahyu Kuncoro Absent Herry Sidharta Absent Revrisond Baswir Present Anggoro Eko Cahyo Present Pataniari Siahaan Present Bob Tyasika Ananta Present Bistok Simbolon Present Rico Rizal Budidarmo Present Joni Swastanto Present Putrama Wahju Setyawan Present Marwanto Harjowiryono Absent Catur Budi Harto Present Ahmad Fikri Assegaf Present Adi Sulistyowati Present Sigit Widyawan Present Dadang Setiabudi Present Tambok P. Setyawati Present Endang Hidayatullah Present On Duty Ari Kuncoro*) Absent Achmad Baiquni Absent Wahyu Kuncoro Present On Duty Herry Sidharta Present Revrisond Baswir Present Anggoro Eko Cahyo Present Pataniari Siahaan Present Bob Tyasika Ananta Present Bistok Simbolon Present Rico Rizal Budidarmo Absent On Duty Joni Swastanto Present Putrama Wahju Setyawan Absent On Duty Marwanto Harjowiryono Absent Catur Budi Harto Present Ahmad Fikri Assegaf Present Adi Sulistyowati Present Sigit Widyawan Absent Dadang Setiabudi Present Tambok P. Setyawati Present On Duty On Duty Endang Hidayatullah 440 Attendance On Duty Hadir PT Bank Negara Indonesia (Persero) Tbk
  441. Good Corporate Governance No . 10. Date November 22, 2018 Meeting Agenda • • • • 11. December 13, 2018 • • Consolidated Financial Performance October 2018. Bank BNI’s Business Plan Year 2019-2021. Sustainable Finance Action Plan 2019. Credits to be consulted to the Board of Commissioners in October 2018. Consolidated Financial Performance November 2018 and Prognosis December 2018 Decision to provide credit facility in November 2018 that needs to be consulted to the Board of Commissioners Meeting Participants Board of Commissioners Attendance Description Meeting Participants Board of Directors Attendance Ari Kuncoro*) Present Achmad Baiquni Wahyu Kuncoro Present Herry Sidharta Absent Revrisond Baswir Present Anggoro Eko Cahyo Present Pataniari Siahaan Present Bob Tyasika Ananta Present Bistok Simbolon Present Rico Rizal Budidarmo Present Joni Swastanto Present Putrama Wahju Setyawan Present Marwanto Harjowiryono Present Catur Budi Harto Present Ahmad Fikri Assegaf Absent Adi Sulistyowati Present Sigit Widyawan Present Dadang Setiabudi Present Tambok P. Setyawati Present Endang Hidayatullah Absent Ari Kuncoro*) On Duty Description Present On Duty On Duty Absent Dinas Achmad Baiquni Present Wahyu Kuncoro Absent Dinas Herry Sidharta Present Revrisond Baswir Present Anggoro Eko Cahyo Present Pataniari Siahaan Present Bob Tyasika Ananta Absent On Duty Bistok Simbolon Present Rico Rizal Budidarmo Absent On Duty Joni Swastanto Present Putrama Wahju Setyawan Present Marwanto Harjowiryono Absent Catur Budi Harto Absent Ahmad Fikri Assegaf Present Adi Sulistyowati Present Sigit Widyawan Present Dadang Setiabudi Present Tambok P. Setyawati Present Endang Hidayatullah Absent Dinas On Duty Dinas Information: *) Appointment as President Commissioner/Independent Commissioner is based on EGMS, effective based on FSA approval since March 14, 2018. **) Appointment as Independent Commissioner is based on GMS, effective based on FSA approval since September 7, 2018. ***) No longer in position as the Director since March 20, 2018. ****) Appointment as a Director is based on GMS, effective based on FSA approval since July 5, 2018. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 441
  442. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk MEETING FREQUENCY AND ATTENDANCE OF BOARD OF COMMISSIONERs Throughout 2018, the Board of Commissioners held 41 (forty-one) Board of Commissioners’ Meetings, and 11 (eleven) joint meetings between the Board of Commissioners and the Board of Directors. The meeting frequency and attendance of each member of the Board of Commissioners are as follows. Table of Meeting Frequency and Attendance of Board of Commissioners Name Position Meeting of Board of Commissioners Joint Meeting Between Board of Commissioners and Board of Directors Number and (%) Attendance Number and (%) Attendance Total Meetings Total Attendance % Total Meetings Total Attendance % Ari Kuncoro* President Commissioner/ Independent Commissioner 32 28 87.50 9 6 66.66 Wahyu Kuncoro Vice President Commissioner/ Commissioner 41 26 63.41 11 3 27.27 Revrisond Baswir Independent Commissioner 41 37 90.24 11 10 90.91 Pataniari Siahaan Independent Commissioner 41 38 92.68 11 11 100 Bistok Simbolon Commissioner 41 38 92.68 11 10 90.91 Joni Swastanto Commissioner 41 41 100 11 11 100 Marwanto Harjowirjono Commissioner 41 39 95.12 11 8 72.73 Ahmad Fikri Assegaf Independent Commissioner 41 33 80.48 11 9 81.82 Sigit Widyawan** Independent Commissioner 13 13 100 4 3 75.00 Information: * Appointment as President Commissioner/ Independent Commissioner is based on BNI EGMS, November 2, 2017, and effective based on FSA approval since March 14, 2018. ** Appointment as Independent Commissioner is based on BNI AGMS, March 20, 2018, and effective based on FSA approval since September 7, 2018. RISK MANAGEMENT CERTIFICATION In 2018, the Board of Commissioners who passed the risk management certification is as follows. Name Position Certification Ari Kuncoro* President Commissioner/ Independent Commissioner Level 2 Wahyu Kuncoro Vice President Commissioner Level 1 Revrisond Baswir Independent Commissioner Level 2 Pataniari Siahaan Independent Commissioner Level 2 Bistok Simbolon Commissioner Level 1 Joni Swastanto Commissioner Level 1 Marwanto Harjowirjono Commissioner Level 1 Ahmad Fikri Assegaf Independent Commissioner Level 2 Sigit Widyawan** Independent Commissioner Level 2 Information: *Appointment as President Commissioner/ Independent Commissioner is based on BNI EGMS, November 2, 2017, and effective based on FSA approval since March 14, 2018. **Appointment as Independent Commissioner is based on BNI AGMS, March 20, 2018, and effective based on FSA approval since September 7, 2018. 442 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  443. Good Corporate Governance BOARD OF COMMISSIONERS ’ COMPETENCE DEVELOPMENT The Board of Commissioners’ competence development can be seen in the Company Profile section of this Annual Report. PERFORMANCE ASSESSMENT OF BOARD OF COMMISSIONERS Performance Assessment of the Board of Commissioners is carried out through various procedures or mechanisms, which among others, as follows: PERFORMANCE ASSESSMENT OF BOARD OF COMMISSIONERS BY THE GMS Performance Assessment of the Board of Commissioners is carried out by the Shareholders at the Annual General Meeting of Shareholders (GMS) at the time of submission of the Board of Commissioners’ supervisory report to the GMS in the Company’s Annual Report, where based on the report the GMS shall state and give full discharge (acquit et de charge) to the Board of Commissioners for the supervisory actions carried out in the Fiscal Year ending at the end of the year. PERFORMANCE EVALUATION CRITERIA OF BOARD OF COMMISSIONERS BY THE GMS Kinerja Dewan Komisaris selama tahun 2018 tercermin dari pencapaian realisasi Program Kerja/Rencana Kerja Tahunan Dewan Komisaris tahun 2018 yang seluruhnya tercapai. ASSESSORS Performance assessment of the Board of Commissioners is carried out by the Shareholders at the General Meeting of Shareholders. PERFORMANCE ASSESSMENT RESULTS OF BOARD OF COMMISSIONERS The Board of Commissioners has prepared the Annual Work Plan and Budget (RKA) of the Board of Commissioners, which is an integral part of the Company’s Annual RKA. The Annual Work Plan of the Board of Commissioners is prepared by observing the duties, authority, and obligations of the Board of Commissioners as stipulated in the applicable laws and regulations. In its implementation, the Board of Commissioners’ Annual Work Plan and Budget is used as work guidelines for each member of the Board of Commissioners in carrying out the Company’s supervisory duties during the current year. Throughout 2018, the Board of Commissioners’ performance is shown by the achievement of realization of the Annual Work Program/Work Plan of the Board of Commissioners in 2018, which was entirely achieved. PERFORMANCE ASSESSMENT OF BOARD OF COMMISSIONERS BY GCG ASSESSMENT Performance assessment of the Board of Commissioners is also conducted through GCG Self-Assessment that is submitted to PT Bank Negara Indonesia (Persero) Tbk  the Financial Services Authority based on Financial Services Authority Circular Letter Number 13/SEOJK.03/2017 dated March 17, 2017, on Governance Implementation for Commercial Bank. The implementation of GCG Self Assessment is conducted periodically every semester, which is reported to BI/FSA to obtain approval. PERFORMANCE EVALUATION CRITERIA OF BOARD OF COMMISSIONERS BY GCG ASSESSMENT The Self Assessment criteria of the Board of Commissioners related to GCG implementation is divided into 3 (three) groups, which are Governance Structure, Governance Process, and Governance Outcome. ASSESSORS The parties conducting GCG Self Assessment are Board of Directors and Board of Commissioners that shall obtain approval and monitoring from FSA. ASSESSMENT RESULT BNI’s GCG self-assessment result for the period of December 31, 2017, received a composite value of 2 (good). The positive factors of Governance Structure, Governance Process, and Governance Outcome existing in the Board of Commissioners and outlined in GCG Self-Assessment for the period of December 31, 2017, include the following: 1. The Board of Commissioners’ structure is in accordance with the applicable regulations where 55.5% (fifty-fivepoint five percent) of the Board of Commissioners are from independent parties. 2. All members of the Board of Commissioners do not violate the provisions of concurrent positions as stipulated in Regulations issued by the Regulator (in this case, the Financial Services Authority, Bank Indonesia, and other provisions of laws and regulations). 3. All members of the Board of Commissioners do not have financial, management, ownership, and family relationship with other members of the Board of Commissioners, Board of Directors, and/or Controlling Shareholders. 4. The Board of Commissioners already has a Board of Commissioners Work Conduct, which is updated regularly in accordance with the applicable provisions of laws and regulations and best practices for GCG implementation. 5. The Board of Commissioners already has and continues to strive to ensure the implementation of GCG principles in each of the Bank’s business activities at all organizational ranks or levels, among others, through regular meeting of the Board of Commissioners or the Board of Commissioners and Board of Directors or Sectoral Directors each week to ensure that operational activities have been running well and in line with GCG principles. All meeting results are stated in minutes of meeting and are well documented. 6. The Board of Commissioners had been responsible for carrying out its duties to shareholders and was accepted by shareholders at the Annual GMS of 2017 Fiscal Year. Adapting Quickly to Face Change 443
  444. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk REMUNERATION POLICY OF BOARD OF COMMISSIONERS Remuneration Governance BNI already has a Board of Commissioners’ Remuneration Governance Policy, which refers to the Financial Services Authority Circular No. 40/SEOJK.03/2016 on Implementation of Governance in Providing Remuneration for Commercial Bank. In the Board of Commissioners’ Remuneration Governance Policy, it is stated that the remuneration given is of fixed and variable natures. The provision of remuneration that is of Fixed and Variable natures is based on business scale, business complexity, peer group, inflation rate, financial condition and capability of the Bank, as well as not contrary to the applicable laws and regulations. Regarding the determination of Fixed Remuneration, it observes the difference (gap) of remuneration between levels of position, thus, it prevents potential internal conflicts and operational risks such as fraud or other operational risks. Regarding the determination of Variable Remuneration, the Bank uses the basis of prudent risk taking which refers to the provisions of the Financial Services Authority regulating Risk Management Implementation for Commercial Banks. Based on BNI’s Articles of Association, members of the Board of Commissioners are given honorariums and allowances/facilities including tantiem and post-retirement benefits whose types and amounts are determined by the GMS with due observance to the prevailing laws and regulations. The Board of Commissioners supervises the implementation of remuneration policies and conducts regular evaluations through the Nomination and Remuneration Committee. The Nomination and Remuneration Committee evaluates the Remuneration policy based on performance, risk, fairness with peer group, targets, the Bank’s long-term strategy, and the fulfillment of reserves as stipulated in laws and regulations and the Bank’s potential income in the future. Based on Annual GMS Resolutions for 2017 Fiscal Year, the GMS agreed as follows: 1. Granted authority and power to Dwiwarna A Series Shareholders to determine tantiem amount for 2017 fiscal year, and determined the salary/honorarium, allowances, facilities, and other incentives for members of the Board of Commissioners for 2018. 2. Granted authority and power to the Board of Commissioners by first obtaining written approval from Dwiwarna A Series Shareholder to determine tantiem amount for 2017 fiscal year, and determined the salary/honorarium, allowances, facilities, and other incentives for members of the Board of Directors for 2018. PROCEDURE FOR DETERMINATION OF REMUNERATION In general, the procedure for determination of the Board of Commissioners’ remuneration is carried out through the following stages: 1. The Nomination and Remuneration Committee evaluates the remuneration policy applicable to the Board of Directors. 2. After that, the Nomination and Remuneration Committee will provide recommendations to the Board of Commissioners on the remuneration policy for the Board of Commissioners. 3. The Board of Commissioners submits proposals on remuneration recommendation in the form of salary/honorarium and tantiem to be approved by the GMS. 444 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  445. Good Corporate Governance REMUNERATION STRUCTURE OF MEMBERS OF BOARD OF COMMISSIONERS The remuneration structure of the Board of Commissioners based on SOE Minister Regulation No . PER-04/MBU/2014, which was amended by SOE Minister Regulation No. PER-06/MBU/06/2018 is as follows. Table of Remuneration Structure for Members of Board Commissioners No. Type of Remuneration/ Facilities 1. Honorarium Description 1. President Commissioner is 45% of the salary of the President Director. 2. Vice President Commissioner is 42,5% of the salary of the President Commissioner. 3. Commissioner is 90% of the honorarium of the President Commissioner. Allowances 1. Religious Holiday Board of Commissioners is given allowances for Religious Holiday for 1 (one) time honorarium 2. Transportation Board of Commissioners is given transportation for 20 (twenty) percent of the honorarium. 3. PostEmployment Insurance 1. Given during the term of office 2. Premium borne by the Company is 25% (twenty-five percent) of the honorarium in one year. 3. Selecting the program for post-employment insurance is determined by the Board of Directors and Board of Commissioners, coordinated by the unit managing the facilities and allowances for members of Board of Directors and Board of Commissioners. 4. Provision of premium, fee, or other terms relevant to post-employment insurance already includes premium for accident and death insurance. Facilities Health 1. Health facilities are given to members of Board of Commissioners in the forms of health insurance or reimbursement of medical expenses. 2. Health facilities are given to members of Board of Commissioners, the wife/husband, and maximum 3 (three) children who have not reached the age of 25 (twenty five) provided that in the event that the child is not yet 25 years but had been married or had previously worked, the said child is not entitled to receive health facilities. Health facilities are provided in the forms of: a. Outpatient and medicines; b. Inpatient and medicines; c. Medical check up subject to 1 (one) time every year and done inside the country. 3. In the event that the treating doctor provides referrals for treatment overseas, the health facility is provided in full. Legal Aid 1. Legal Aid facility to members of Board of Commissioners is given in the event of any action/activity for and on behalf of a position of members of Board of Commissioners that is related to the purpose and objective as well as the company’s business activities. 2. Legal aid facility is at cost. 3. Legal aid facility is budgeted at the Bank’s expense as stated in the Bank’s Work Plan and Budget (RKAP). 4. Legal aid facility can only be used during the term of office or no longer in office on the policies taken during the term of office and cannot be given directly to the person concerned. 5. In the event that members of the Board of Commissioners use lawyers/legal consultants of their own choice, either at level of preliminary investigation/investigation, first-level court, appeal, cassation, and judicial review, then, the lawyer/legal consultant fee is not borne/compensated by the Bank. 6. Procedures for Board of Commissioners’ legal aid facility are carried out by referring to the applicable Laws and Regulations, specifically the Minister of State-Owned Enterprises Regulation which regulates the Guidelines for Determining the Income of Board of Directors, Board of Commissioners, and Supervisory Board of State-Owned Enterprises. INDICATOR TO DETERMINE REMUNERATION OF BOARD OF COMMISSIONERS In determining indicators for Board of Commissioners and Board of Directors, the Company refers to SOE Minister Regulation No. PER-04/MBU/2014 on Guidelines for Determination of Income of the Board of Directors, Board of Commissioners, and Supervisory Board of SOE as have been amended several times, lastly by SOE Minister Regulation No. PER-06/MBU/06/2018 as follows: 1. Business scale factor 2. Business complexity factor 3. Inflation Rate 4. Company’s condition and financial capability 5. Other relevant factors, as well as not in violation of the laws and regulations. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 445
  446. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk TOTAL NOMINAL/COMPONENT OF REMUNERATION OF BOARD OF COMMISSIONERs The disclosure of remuneration component of the Board of Commissioners refers to Financial Services Authority Circular Letter No. 40/SEOJK.03/2016 on Implementation of Governance in Providing Remuneration for Commercial Bank. The total nominal/component of remuneration of Board of Commissioners is as follows. Type of Remuneration and Other Facilities Amount Received in 1 (one) Year Number of People Million Rupiah Remuneration Salary 9 13,686.34 Housing Allowance - - Transportation Allowance 9 2,737.37 Holiday Allowance 9 1,168.65 Tantiem 9 45,142.81 Other Natura Facilities • Housing (cannot be owned) - - • Transportation (cannot be owned) - - • Post-Employment Insurance (can be owned) 9 3,421.59 • Health (cannot be owned) 9 43.07 The honorarium composition of members of the Board of Commissioners is determined as follows: 1. President Commissioner is 45% of the salary of the President Director. 2. Vice President Commissioner is 42.5% of the salary of the President Director 3. Commissioner is 90% of the President Director The remuneration in one year is grouped in the range of income levels as follows: Table of Group of Remuneration Amount of Board of Commissioners Total Remuneration 446 Total Commissioners Million Rupiah Di atas Rp2 miliar 9 66.199.83 Di atas Rp1 miliar - Rp2 miliar - Di atas Rp500 juta - Rp1 miliar - Rp500 juta ke bawah - - Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  447. Good Corporate Governance COMPLETENESS OF ORGANS OF THE BOARD OF COMMISSIONERS Based on the State-Owned Enterprise Minister Regulation No . PER-12/MBU/2012 dated August 24, 2012, the supporting organs of the Board of Commissioners may consist of the Secretariat of the Board of Commissioners if necessary, Audit Committee, and other committees if necessary. To support and facilitate the implementation of duties, the Board of Commissioners is supported by the following organs: COMMITTEES UNDER THE BOARD OF COMMISSIONERS Committees under the Board of Commissioners consist of the Audit Committee (KA), the Risk Monitoring Committee (KPR), the Nomination and Remuneration Committee (KNR), and the Integrated Governance Committee (TKT). The establishment and implementation of Committees under the Board of Commissioners are carried out by observing the applicable laws and regulations, specifically the Financial Services Authority Regulations and the Minister of State-Owned Enterprises (BUMN) Regulations. The Board of Commissioners establishes a guideline that regulates the procedures for appointment, dismissal, arrangement of duties and honorarium of members of the Committees under the Board of Commissioners which are continuously refined and updated in accordance with developments/ amendments in the applicable laws regulations and current conditions. The latest update was made in 2017, which was stipulated in the Decision Letter of the Board of Commissioners No. KEP/002/DK/2018 dated February 8, 2018, on “General Provisions for Appointment, Dismissal, Arrangement of Duties, and Honorarium of Members of Committees Under the Board of Commissioners” which basically includes the following matters: 1. Procedures for Appointment of Committee Members 2. The principal material that needs to be regulated in the work agreement of the committee members who come from independent parties with BNI 3. Concurrent positions that regulate multiple positions which are permitted and which are prohibited for members of the Committee based on the applicable laws and regulations 4. The period of appointment/term of office of committee members 5. Division of duties and scope of duties of the Committee 6. Committee members’ obligation to attend to the Company 7. Honorarium for Committee members who are from independent parties 8. Evaluation/assessment of the performance of Committee members who are from independent parties 9. Termination of Appointment of Committee members 10. Resignation of Committee members PT Bank Negara Indonesia (Persero) Tbk  MEKANISME KERJA KOMITE-KOMITE DI BAWAH Dewan Komisaris In carrying out their duties, the Committees under the Board of Commissioners are guided by each Committee’s Charter. The committees under the Board of Commissioners carry out their duties in accordance with each Committee’s Work Plan Program, which is established at the beginning of the year in order to assist the implementation of duties of the Board of Commissioners, by monitoring, reviewing, and providing advice or recommendations to the Board of Commissioners on matters relating to the functions and duties of the related committees through the following mechanism: 1. The Committees conduct meetings either internally or by inviting units and/or divisions and/or related units 2. The Committees conduct a study/evaluation/review as well as discussion/talk outside the meeting forum which if necessary a discussion is carried out with the related unit or divisions/units. 3. The results of a meeting or evaluation/review and discussion/talk outside the meeting forum are submitted by the Chair of the Committee to the Board of Commissioners as a report either in writing or in a meeting forum of the Board of Commissioners that discusses the related agenda. 4. Committees under the Board of Commissioners submit the realization report of work programs/activities every quarter to the Board of Commissioners. PERFORMANCE ASSESSMENT OF COMMITTEES UNDER BOARD OF COMMISSIONERS In implementing its duties and responsibilities, the Board of Commissioners is assisted by committees under the Board of Commissioners, which are Audit Committee, Nomination and Remuneration Committee, Risk Monitoring Committee, and Integrated Governance Committee. The Performance Assessment of committees under the Board of Commissioners is reflected in the proper implementation of all programs/work plans of the Committees that have been established at the beginning of the year. Implementation of Programs/Work plans of committees is carried out through the mechanism of: 1. Implementation of committee meetings including by inviting Sectoral Directors or related Divisions/Work units. 2. Review/evaluation/review of committees outside the meeting forum where the results are submitted in writing to the Board of Commissioners. Explanation of the realization of completion of all programs/ work plans of Committees under the Board of Commissioners which have been determined at the beginning of the year can be seen in the Governance section of each committee in the sub chapter of frequency and attendance level of Meetings and reports on the implementation of Audit Committee, Nomination and Remuneration Committee, Risk Monitoring Committee, and Integrated Governance Committee activities. Adapting Quickly to Face Change 447
  448. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk ASSESSMENT OR EVALUATION OF COMMITTEE MEMBERS WHO ARE FROM INDEPENDENT PARTY The committee’s chair evaluates/assesses the performance of committee members who are from independent party every 6 (six) months or at any time. Such evaluation or assessment includes Performance Assessment Indicators which among others are but not limited to competency and expertise, output quality, discipline and attendance level of the relevant committee members to the company, as well as implementation of duties and obligations in accordance with the committee charter and work conduct that apply to independent members of committees under the Board of Commissioners. The evaluation and assessment results as referred above shall be submitted as recommendations to the Board of Commissioners to extend or continue or terminate the appointment of the relevant committee members to the company. Assessment of the Committees under the Board of Commissioners is carried out for Committee members who are from Independent Party (not the Board of Commissioners). The assessment factors are: 1. Duty according to Committee Charter (weight 25%) 2. Competence and Skill (weight 30%) 3. Output Quality (weight 30%) 4. Attendance Level (15%) MANDATORY ATTENDANCE OF COMMITTEE MEMBERS WHO ARE FROM INDEPENDENT PARTY Committee members who are from outside the company (independent members) have the obligation to regularly attend on the company’s working days and hours according to the days, number of days, and schedules set by the Board of Commissioners and/or the committee chair, among others, to attend Committee Meetings and carry out other duties, and must fill the attendance list at the Company in order to carry out duties other than attending committee meetings. If necessary, at the request of the Board of Commissioners and/or committee chair, Committee members who are from outside the company must also attend at the company or at Board of Commissioners’ Meetings or committee meetings, or at activities that must be attended by the Board of Commissioners in accordance with the requirements outside the frequency and such routine attendance schedule. Explanations and exposures regarding each Committee are submitted in a separate sub-chapter in the Corporate Governance Section of this Annual Report. SECRETARIAT OF THE BOARD OF COMMISSIONERs The Secretariat of the Board of Commissioners is led by a Secretary who is from outside the company assisted by the Secretariat staff of the Board of Commissioners. The implementation of functions and duties of the Secretariat of the Board of Commissioners and the Secretary of the Board of Commissioners is guided by SOE Minister Regulation that regulates the Supporting Organs of the Board of Commissioners/Board of Supervisors of State-Owned Enterprises. Explanations and exposures of the Secretariat of the Board of Commissioners and the Secretary of the Board of Commissioners are presented in a separate sub-chapter. 448 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  449. Good Corporate Governance BOARD OF COMMISSIONERS ’ RESIGNATION AND DISMISSAL MECHANISM The mechanism for dismissal and resignation of the Board of Commissioners is based on BNI’s Articles of Association as follows: 1. Members of the Board of Commissioners are appointed and dismissed by the GMS, where the GMS is attended by Dwiwarna A Series shareholders and the Meeting’s resolution shall be approved by Dwiwarna A Series shareholders, by observing the provisions in the Articles of Association. 2. Members of the Board of Commissioners may at any time be dismissed based on the GMS resolution by stating the reasons. The reason for dismissal of the related member of the Board of Commissioners is carried out in the event that it is based on the fact that such member of the Board of Commissioners, among others: a. Cannot perform the duties properly; b. Violates the provisions of the Articles of Association and/or laws and regulations; c. Engages in action that harms the Company and/or State; d. Commits an action that violates ethics and/or properness that shall be respected as member of the Board of Commissioners; e. Is found guilty by a Court decision that has had permanent legal force; or f. Resigns. 3. Apart from the reasons for dismissal of member of the Board of Commissioners as mentioned above, members of the Board of Commissioners may be dismissed by the GMS based on other reasons which are deemed appropriate by the GMS for the interests and objectives of the Company. 4. The decision to dismiss due to reasons as stated in point 2 letter a, b, c, and d is carried out after the relevant member is given opportunity to defend him/herself in the GMS. 5. Dismissal as referred to in letter c and e is a dishonorable discharge. 6. Among members of the Board of Commissioners and among members of the Board of Commissioners and members of the Board of Directors, there must be no blood relationship up to the third degree, either in a straight line or side line, or a marriage relationship/family relationship arising from marital ties, including son/daughter-in-law or brother/sister-in-law ). In the event of such situation, the GMS has the authority to dismiss one of them. 7. A member of the Board of Commissioners has the right to resign from the position before the term of office ends by notifying in writing of the intention to the Company. PT Bank Negara Indonesia (Persero) Tbk  8. The Company must convene a GMS to resolve the resignation request of member of the Board of Commissioners no longer than 90 (sixty) days after receiving the resignation letter. 9. The Company must disclose the information to public and submit to FSA no later than 2 (two) business days after receiving such resignation request from the member of the Board of Commissioners as referred to in point 7 and the results of the GMS convention as referred to in point 8 above. 10. Before the resignation becomes effective, the relevant member of Board of Commissioners shall remain obligated to complete the duties and responsibilities in accordance with the Articles of Association and applicable Laws and Regulations. 11. The member of the Board of Commissioners who resigns as mentioned above can still be held accountable as member of the Board of Commissioners since the appointment until the approval date of the resignation at the GMS. 12. The release of the responsibilities of the resigning member of the Board of Commissioners is given after the Annual GMS releases him/her. 13. In the event that a member of Board of Commissioners resigns that causes the total number of Board of Commissioners to be less than 3 (three) people, then such resignation becomes valid if it has been resolved by GMS and new member of Board of Commissioners has been appointed, therefore, the minimum requirements of the number of members of Board of Commissioners is satisfied. 14. The position of a member of the Board of Commissioners shall end in the event that: a. The resignation has become effective as referred to in point 8 above. b. Pass away; c. The term of office ends; d. Terminated based on the GMS; or e. Declared bankrupt by a Commercial Court which already has legal force; permanent or underguarded; f. based on a court decision; g. No longer fulfills the requirements as a member of the Board of Commissioners based on Articles of Association and other laws and regulations. 15. Member of the Board of Commissioners who resigns before or after the term of office ends, unless due to death, shall still be responsible for actions whose accountability has not been received by the GMS. Adapting Quickly to Face Change 449
  450. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BOARD OF DIRECTORS Board of Directors is the Company’s Organ that has full authority over and is responsible for the Company’s management for the Company’s interest, in accordance with the Company’s purposes and objectives, and represents the Company either inside or outside the court in accordance with the provisions of the Articles of Association. In performing the duties, the Board of Directors must devote full energy, mind, attention, and devotion to the duties, obligations, and achievements of the Company’s objectives. Furthermore, members of Board of Directors shall comply with the Company’s Articles of Association and laws and regulations, as well as must implement the principles of professionalism, efficiency, transparency, independency, accountability, responsibility, and fairness. Each member of the Board of Directors must perform the duties and responsibilities in good faith, with full responsibility and prudence, in accordance with the prevailing laws and regulations. REFERENCES FOR REGULATIONS Based on Law No. 40 of 2007 on Limited Liability Company and Financial Services Authority Regulation No. 33/POJK.04/2014 on Board of Directors and Board of Commissioners of Issuers or Public Company, the Board of Directors has full authority over and is responsible for the Company including to represent the Company, either inside or outside court according to the provisions of the articles of associations. GUIDELINES AND WORK CONDUCT OF THE BOARD OF DIRECTORS Similar to the Board of Commissioners Charter, in order to improve the Board of Directors Charter and as an effort to implement GCG practices at BNI, an improvement was made to the Board of Directors Charter. The Guidelines of Work Conduct of the Board of Directors Charter have been ratified through BNI Board of Directors’ Decision Letter No. KP/228/ DIR/R dated June 29, 2018, therefore, the Board of Directors’ Decisions Letter No. KP/150/DIR/R dated April 11, 2016, had been revoked and declared invalid. The Guidelines of Work Conduct of the Board of Directors regulate, among others, the Legal Basis, Structure, Requirements, Duties, Authority, and Responsibilities of the Board of Directors, Appointment and Dismissal of Members of the Board of Directors, Term of Office of Board of Directors, Establishment of Committees Under the Board of Directors, Board of Directors ‘Meetings, and Joint Meeting between the Board of Directors and the Board of Commissioners, Term of Office of the Board of Directors, Company Value, Board of Directors’ Ethics, Transparency, as well as Reporting and Responsibility. DIRECTORS The Board of Directors has duties to perform all activities relating to the management and is responsible for the management of the Company for the Company’s interests in line with the Company’s purposes and objectives as well as to represent the Company inside or outside court on all matters and occurrences with certain limitations as stipulated by the laws and regulations, the Articles of Association, and/or GMS Resolutions. BOARD OF DIRECTORS’ AUTHORITY In performing its duties, the Board of Directors has the authority to: 1. Establish policies deemed appropriate in the management of the Company; 2. Arrange the transfer of power of the Board of Directors to represent the Company inside and outside the court to a person or several persons who are specifically designated for such reason including the Company’s employee, either individually or jointly, and/or other entity; 3. Manage provisions on the Company’s employment affairs including determining salary, retirement, pension plan, and other income for the Company’s employees based on the applicable laws and regulations; 4. Appoint and dismiss Company’s employees based on the Company’s employment regulations and applicable laws and regulations; 5. Appoint and dismiss the Corporate Secretary and/or Head of Internal Audit Unit with the approval of the Board of Commissioners; 6. Write off bad debts based on provisions stipulated in the Articles of Association and subsequently report them to the Board of Commissioners, which shall subsequently be reported and accounted for in the Annual Report; 7. No longer collect interest receivables, fines, fees, and other receivables other than the principal that is carried out in the framework of restructuring and/or settlement of receivables and other actions in order to settle the Company’s receivables, with the obligation to report to the Board of Commissioners, in which the provisions and procedures for reporting are determined by the Board of Commissioners. 8. Perform any actions and other activities regarding the management or ownership of the Company’s assets, bind the Company to other parties and/or other parties to the Company, as well as represent the Company inside or outside court in all matters and occurrences with limitations as stipulated under the laws and regulations, the Articles of Association, and/or GMS Resolutions. In addition to a number of matters relating to work conduct as set out above, some of the main work guidelines of the Board of Directors that are regulated in the Guidelines of Work Conduct of the Board of Directors are described as follows. DUTIES AND RESPONSIBILITIES OF THE BOARD OF 450 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  451. Good Corporate Governance BOARD OF DIRECTORS ’ OBLIGATIONS In addition, the Board of Directors has the obligation to: 1. Promote and ensure the implementation of the Company’s business and activities in accordance with its purposes and objectives as well as its business activities; 2. Establish in time the Company’s Long-Term Plan, the Company’s Annual Work Plan and Budget, and other work plans, and their amendments to be submitted to the Board of Commissioners for approval. 3. Prepare the Shareholders Register, Special Register, GMS Minutes, and Minutes of the Board of Directors’ meetings. 4. Prepare Annual Report, which among others contains the Financial Statements, as a form of accountability of the Company’s management as well as the Company’s financial documents as referred to in Law on Company Documents; 5. Prepare Financial Statements in point 4 above based on the Financial Accounting Standards and submit them to Public Accountant to be audited; 6. Deliver the Annual Report after being reviewed by the Board of Commissioners within a maximum period of 5 (five) months after the Company’s fiscal year ends to the GMS for approval and ratification; 7. Provide explanation to the GMS on the Annual Report; 8. Deliver the Balance Sheet and Income Statement that has been approved by the GMS to the Minister in charge of Law in accordance with the provisions of laws and regulations; 9. Prepare other reports mandated by the provisions of laws and regulations; 10. Maintain Shareholders Register, Special Register, GMS Minutes, Minutes of Board of Commissioners’ Meeting, and Minutes of Board of Directors’ Meeting, Annual Report, and Company’s financial documents as referred to in point 4 and point 5 above, and other Company’s documents. 11. Maintain the following matters in the Company’s domicile: Shareholders Register, Special Register, GMS Minutes, Minutes of Board of Commissioners’ Meeting, and Minutes of Board of Directors’ Meeting, Annual Report, and Company’s financial documents as well as other Company’s documents; 12. Procure and maintain the Company’s bookkeeping and administration according to norms applicable to a company; 13. Prepare an accounting system in accordance with the Financial Accounting Standards and based on the principles of internal control, especially the functions of handling, recording, storing, and supervising; 14. Provide periodic reports in the manner and time in accordance with the applicable provisions, as well as other reports anytime at the request of the Board of Commissioners and/or Shareholders of Dwiwarna Series A; by observing the laws and regulations particularly the regulations in Capital Market sector; PT Bank Negara Indonesia (Persero) Tbk  15. Prepare the Company’s organizational structure complete with the details and duties; 16. Provide explanation on all matters questioned or requested by members of the Board of Commissioners and Shareholders of Dwiwarna Series A, by observing the laws and regulations particularly in Capital Market sector. 17. Perform other obligations in accordance with the provisions stipulated in the Articles of Association and those of stipulated by the GMS. CRITERIA AND TERM OF OFFICE OF THE BOARD OF DIRECTORS Those who can be appointed as members of the Board of Directors are individuals who satisfy the following requirements upon appointment and during the term of office: 1. has good character, morals, and integrity; 2. proficient in performing legal actions; 3. within 5 (five) years before appointment and during the term of office: a. never been declared bankrupt; b. never become a member of Board of Directors and/ or a member of Board of Commissioners who is found guilty of causing a company to be declared bankrupt; c. never been punished for committing a criminal act that is detrimental to state finances and/or related to the financial sector; d. never been a member of Board of Directors and/or a member of Board of Commissioners who during the term of office: -- has ever not convened an annual GMS; -- the accountability as a member of Board of Directors and/or a member of Board of Commissioners has ever not been accepted by GMS or has ever not presented the accountability as a member of Board of Directors and/or a member of Board of Commissioners to GMS; and -- has ever caused a company that obtains permit, approval, or registration from FSA not fulfilling its obligation to submit its annual report and/or financial statements to FSA. 4. has a commitment to comply with the laws and regulations; 5. has knowledge and/or expertise in the field required by the Company; and 6. meets other requirements as stipulated in: a. Law on Limited Liability Company (UUPT); b. laws and regulations in Capital Market sector; and c. other applicable laws and regulations and those related to the Company’s business activities. Adapting Quickly to Face Change 451
  452. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk The term of office of the Board of Directors is at most 2 (two) consecutive periods, under the following conditions: 1. The members of the Board of Directors are appointed for the period commencing from the date determined by the GMS that appoints them and ends at the closing of the 5th (fifth) Annual GMS after the appointment date, by observing the laws and regulations in Capital Market sector, but without reducing the right of the GMS to dismiss at any time the members of the Board of Directors before their term of office ends. 2. Dismissal is effective from the closing of the GMS, unless otherwise determined by the GMS. 3. After the term of office ends, the members of the Board of Directors may be reappointed by the GMS for 1 (one) term of office. BOARD OF DIRECTORS NOMENCLATURESt The Bank’s Annual GMS which was held on March 20, 2018, decided to change the nomenclature of position of the Bank’s Board of Directors as follows: No Previous Now 1 Director Director of Corporate Banking 2 Director Director of Retail Banking 3 Director Director of Small Business & Network 4 Director Director of Treasury and International Banking 5 Director Director of Finance 6 Director Director of Information Technology and Operation 7 Director Director of Institutional Relations 8 Director Director of Risk Management 9 Director Director of Compliance BASIS OF APPOINTMENT OF MEMBERS OF BOARD OF DIRECTORS The Board of Directors’ appointment process is based on SOE Minister Regulation No. PER-03/MBU/02/2015 on the Requirements, Procedures for Appointment and Dismissal of Members of Board of Directors of State-Owned Enterprises. The process of nominating and selecting the Board of Directors is performed by looking at the Board of Directors’ criteria, then, through a proposal to the GMS with due observance of the recommendations from the Remuneration and Nomination Committee. Board of Directors who has subsequently been elected is then appointed through the GMS. According to Article 11 paragraph (10) of the Bank’s Articles of Association, members of Board of Directors are appointed and dismissed by the GMS. The Bank’s Board of Directors is appointed in the GMS as follows: Table of Basis of Appointment of the Board of Directors Name Position Basis of Appointment Achmad Baiquni President Director Annual GMS dated March 17, 2015 Herry Sidharta Vice President Director Annual GMS dated March 17, 2015, then transferred from his initial assignment as a Director to be the Vice President Director in Annual GMS dated March 16, 2017. Putrama Wahju Setyawan Director of Corporate Banking Annual GMS March 10, 2016 Tambok P. Setyawati* Director of Retail Banking Annual GMS March 20, 2018 Catur Budi Harto Director of Small Business and Network Annual GMS dated March 16, 2017 Rico Rizal Budidarmo Director of Treasury and International Banking Annual GMS dated March 17, 2015 Anggoro Eko Cahyo Director of Finance Annual GMS dated March 17, 2015 Dadang Setiabudi* Director of Information Technology and Operation Annual GMS March 20, 2018 Adi Sulistyowati Director of Institutional Relations Annual GMS dated March 17, 2015 Bob Tyasika Ananta Director of Risk Management Annual GMS dated March 17, 2015 Endang Hidayatullah* Director of Compliance Annual GMS March 20, 2018 Imam Budi Sarjito* Director of Compliance and Corporate Risk Annual GMS dated March 17, 2015 Panji Irawan* Director of Treasury and International Extraordinary GMS dated January 12, 2016 Information: *No longer in position since March 20, 2018 452 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  453. Good Corporate Governance FIT AND PROPER TEST Appointment of members of Board of Directors will be effective after obtaining approval from the Financial Services Authority based on the Fit and Proper Test , in accordance with the Financial Services Authority Regulation No. 27/POJK.03/2016 on Fit and Proper Test for the Main Entity of Financial Services Institutions as well as satisfying the applicable laws and regulations. To be eligible for Fit and Proper Test, the Bank files an application for approval of candidates of members of the Board of Directors to the Financial Services Authority. Table of Fit and Proper Test Name Position Effective Date is Based on FSA Letter Assessor Effective Date Achmad Baiquni President Director April 16, 2015 Financial Services Authority April 16, 2015 Herry Sidharta* Director of Corporate May 22, 2015 Financial Services Authority May 22, 2015 Busnine Vice President Director May 29, 2017 Financial Services Authority May 29, 2017 Putrama Wahju Setyawan Director of Corporate Banking July 15, 2016 Financial Services Authority July 15, 2016 Tambok P. Setyawati Director of Retail Banking July 5, 2018 Financial Services Authority July 5, 2018 Catur Budi Harto Director of Small Business and Network July 19, 2017 Financial Services Authority July 19, 2017 Rico Rizal Budidarmo Director of Treasury and International Banking April 16, 2015 Financial Services Authority April 16, 2015 Anggoro Eko Cahyo Director of Finance May 22, 2015 Financial Services Authority April 16, 2015 Dadang Setiabudi Director of Information Technology and Operation July 5, 2018 Financial Services Authority July 5, 2018 Adi Sulistyowati Director of Institutional Relations May 22, 2015 Financial Services Authority May 22, 2015 Bob Tyasika Ananta Director of Risk Management April 16, 2015 Financial Services Authority April 16, 2015 Endang Hidayatullah Director of Compliance July 5, 2018 Financial Services Authority July 5, 2018 Imam Budi Sarjito** Director May 22, 2015 Financial Services Authority May 22, 2015 Panji Irawan** Director April 11, 2016 Otoritas Jasa Keuangan April 11, 2016 Information: * transfer of assignment from initially Director to Vice President Director in Annual GMS dated March 16, 2017. ** no longer in position since March 20, 2018 ORIENTATION PROGRAM FOR NEW BOARD OF DIRECTORS Considering the Annual GMS for 2017 Fiscal Year held on March 20, 2018, in which there were Agenda on Changes to the members of the Company’s Board of Commissioners and Board of Directors, where members of the Board of Commissioners and members of the Board of Directors appointed have various backgrounds, therefore, BNI conducted orientation program for new members of the Board of Directors, including: 1. Discussion on the Annual Report, the Company’s Work Plan and Budget (RKAP), and the Company’s Long-term Plan (RJPP), Code of Ethics, Boards of Directors’ Guidelines for Work Conduct, Corporate Governance Handbook, and the Articles of Association. 2. Explanations relating to the delegated authority, internal and external audits, internal control systems and policies, as well as duties and roles of the Audit Committee and other committees under the Board of Directors and the Board of Commissioners. 3. Description on duties, authority, and responsibilities of the Board of Commissioners and Board of Directors. These explanations are given by way of a presentation by the related Unit to the related members of the Board of Directors as well as by conducting visit to Regional/Branch Offices. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 453
  454. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk SCOPE OF WORK AND RESPONSIBILITIES OF EACH MEMBER OF THE BOARD OF DIRECTORS In order to facilitate the implementation of the responsibilities and work of managing the Company, a division of the Board of Directors’ duties and authority has been conducted. The division of duties and authority of the Board of Directors is carried out based on the Bank’s Annual GMS Resolutions dated March 20, 2018, related to the Board of Director’s Nomenclature. In carrying out its duties and responsibilities, the Field Director has full authority over SEVP or the work unit it manages and has the authority to act for and on behalf of the Board of Directors, as long as it does not deviate from: 1. 2. 3. 4. 5. General Meeting of Shareholders Resolutions Bank’s Articles of Association Corporate Plan Board of Directors’ General Policy (KUD), and Board of Directors’ special policies stipulated in Board of Directors’ Meeting or in Board of Directors’ Decisions Letter or in other written forms. DIVISION OF DUTIES AND AUTHORITIES OF THE BOARD OF DIRECTORS In performing the duties, the Board of Directors is divided based on duties as follows: Name Achmad Baiquni Position President Director • • • • Herry Sidharta Vice President Director • • Putrama Wahju Setyawan Director of Corporate Banking • • Tambok P. Setyawati* Director of Retail Banking • • Catur Budi Harto 454 Director of Small Business and Network Adapting Quickly to Face Change Fostered Regional Office Field of Duty • • Acting for and on behalf of the Board of Directors and representing the Company Coordinating the management of the Company as set out in the Articles of Association and the Company’s GMS resolutions as well as observing the applicable provisions. Having overall responsibilities over the duties and authority of the Company’s Board of Directors. Coordinating, controlling, and evaluating the functions and areas of Internal Control and Corporate Communications & Secretariat which includes the field of Partnership and Community Development - Acting for and on behalf of the Board of Directors and representing the Company, in accordance with the job description of the duties or sector. Coordinating, controlling, and evaluating the functions and areas of Policy Governance and Subsidiary Development. - Fostered Subsidiary All Subsidiaries       Acting for and on behalf of the Board of Directors and representing the Company, in accordance with the job description of the duties or sector. Coordinating, controlling, and evaluating the functions and areas of Corporations and Multinational Business 1, Corporations and Multinational Business 2, SOE and Government Institutions and Syndication Business Denpasar Yogyakarta BNI Multifinance BNI Securities Acting for and on behalf of the Board of Directors and representing the Company, in accordance with the job description of the duties or sector. Coordinating, controlling, and evaluating the functions and areas of Consumer Product Management, Consumer Sales, Card Business, e-Banking, and Marketing Communication. Semarang Surabaya BNI Life Insurance Acting for and on behalf of the Board of Directors and representing the Company, in accordance with the job description of the duties or sector. Coordinating, controlling, and evaluating the functions and areas of Small Business, Network Management, Services Quality, and Customer Service Center. All Regional Office BNI Syariah PT Bank Negara Indonesia (Persero) Tbk
  455. Good Corporate Governance Name Rico Rizal Budidarmo Anggoro Eko Cahyo Position Director of Treasury and International Banking • Director of Finance • • • Dadang Setiabudi* Adi Sulistyowati Bob Tyasika Ananta Director of Information Technology and Operation • Director of Institutional Relations • Director of Risk Management • • • • Endang Hidayatullah Director of Compliance • • Imam Budi Sarjito* Panji Irawan* Fostered Regional Office Fostered Subsidiary Acting for and on behalf of the Board of Directors and representing the Company, in accordance with the job description of the duties or sector. Coordinating, controlling, and evaluating the functions and areas of Treasury, International, and Pension Fund of Financial Institution. Jakarta Senayan BNI Remittance Acting for and on behalf of the Board of Directors and representing the Company, in accordance with the job description of the duties or sector. Coordinating, controlling, and evaluating the functions and areas of Strategic Planning, Finance Control, Asset and Procurement Management, and Data Management. Makassar Manado - Acting for and on behalf of the Board of Directors and representing the Company, in accordance with the job description of the duties or sector. Coordinating, controlling, and evaluating the functions and areas of Solutions and Security of Information Technology; Operation of Information Technology, and e-Channel. Palembang Malang - Acting for and on behalf of the Board of Directors and representing the Company, in accordance with the job description of the duties or sector. Coordinating, controlling, and evaluating the functions and areas of Institutional Relations, Banking Transactional Services, and Wealth Management. Jakarta Kemayoran - Acting for and on behalf of the Board of Directors and representing the Company, in accordance with the job description of the duties or sector. Coordinating, controlling, and evaluating the functions and areas of Bank’s Risk Management, Corporate Credit Risk, Credit Risk for Small and Medium Enterprises, Credit Administration, and Process & Collection of Consumer Credit. Jakarta BSD - Acting for and on behalf of the Board of Directors and representing the Company, in accordance with the job description of the duties or sector. Coordinating, controlling, and evaluating the functions and areas of compliance, legal, bank’s risk management, human capital, and BNI Corporate University Bandung Banjarmasin - Acting for and on behalf of the Board of Directors and representing the Company, in accordance with the job description of the duties or sector. Coordinating, controlling, and evaluating the functions and areas of compliance, legal, policy governance, and bank’s risk management. - - Acting for and on behalf of the Board of Directors and representing the Company, in accordance with the job description of the duties or sector. Coordinating, controlling, and evaluating the functions and areas of Treasury, International, and Pension Fund of Financial Institution. - - Field of Duty Director of Compliance and Corporate Risk • Director of Treasury and International • • • Keterangan: * Berhenti menjabat sejak tanggal 20 Maret 2018. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 455
  456. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Director in Charge of Compliance Function As the complexity of the Bank’s business activities as a bank and a public company increases, mitigation of risks that may be faced by the Bank is needed. To mitigate the risk of such business activities, various preventive (ex-ante) and curative (expost) efforts are necessary. As part of preventive (ex-ante) efforts, the Bank always adheres to various applicable banking rules to reduce or minimize the risk of the bank’s business activities. In this regard, the Board of Directors has an obligation to grow and realize the implementation of Compliance Culture at all organizational levels and the Bank’s business activities. In order to enforce the Bank’s compliance function, the Bank has a Director in charge of compliance function, in which its function is guided by the Financial Services Authority Regulation No. 46/ POJK.03/2017 on Implementation of Compliance Function of Commercial Bank and Board of Directors Work Conduct. Requirements for Director in Charge of Compliance Function In relation to its function, the candidate for Director in charge of compliance function shall fulfill the following requirements: 1. Candidate for Director in charge of compliance function must have sufficient integrity and knowledge on the provisions of the Financial Services Authority, Bank Indonesia, and applicable laws and regulations. 2. The Director in charge of Compliance Function must fulfill the independence requirement. 3. The “independence requirement” means not having financial, management, share ownership, and/or family relationship up to second degree with members of Board of Commissioners, Board of Directors, and/ or Controlling Shareholders or relationship with the Bank, which may affect the ability to act independently as stipulated in the provisions of Good Corporate Governance Implementation for Commercial banks. Structure 1. The President Director and/or Vice President Director are not permitted to hold concurrent positions as Director in charge of Compliance Function. 2. The Director in charge of Compliance Function is prohibited to be in charge of the following functions: a. Business and operations b. Risk management related to decision-making for the Bank’s business activities c. Treasury d. Finance and accounting e. Logistic and goods or services procurement f. Information technology, and g. Internal audit. 456 Adapting Quickly to Face Change 3. Replacing Director who is in charge of compliance function: a. In the event that the Director in charge of Compliance function cannot carry out the office duties for more than 7 (seven) consecutive business days, the implementation of the relevant duties must be temporarily replaced by another Director until the Director in charge of Compliance function can carry out the duties again. b. In the event that the Director in charge of Compliance function is unable to remain in duty, resigns, or finishes the term of office, the Bank must immediately appoint a replacement Director in charge of Compliance function no later than 6 (six) months after the Director in charge of Compliance function is unable to remain in duty, resigns, or finishes the term of office. c. During the process of replacing the Director in charge of Compliance function, the Bank must appoint or assign one of the other Directors to temporarily carry out the duties of the Director in charge of Compliance function. d. The Director who carries out the temporary assignment as the Director in charge of Compliance function must fulfill the above conditions, it is excluded if there is no Director in the Bank who fulfills the conditions referred to. e. Temporary substitution of the position of Director in charge of Compliance function as referred to must be reported to the Financial Services Authority Duties and Responsibilities of the Director in Charge of Compliance Function The duties and responsibilities of the Director in charge of Compliance function, shall at least include: 1. Formulating strategies to encourage the creation of the Bank’s Compliance Culture 2. Proposing compliance policies or compliance principles to be stipulated by the Board of Directors 3. Establishing compliance systems and procedures to be used to develop the Bank’s internal rules and guidelines 4. Ensuring that all policies, regulations, systems, and procedures as well as business activities conducted by the Bank are in accordance with provisions of the Financial Services Authority, Bank Indonesia, and the applicable laws and regulations 5. Minimizing the Bank’s Compliance Risk 6. Taking precautionary measures so that the policies and/ or decisions taken by the Bank’s Board of Directors do not deviate from the provisions of the Financial Services Authority, Bank Indonesia, and the applicable laws and regulations PT Bank Negara Indonesia (Persero) Tbk
  457. Good Corporate Governance 7 . In the context of implementing the Anti Money Laundering (APU) and Prevention of Terrorism Funding (PPT) Program, the Compliance Director has at least the duties and responsibilities to: a. recommend strategic written policies and procedures on implementation of APU and PPT programs to the Board of Commissioners; b. ensure that there are discussions related to money laundering and/or terrorism financing in meetings of Board of Directors and Board of Commissioners; c. determine the necessary steps to ensure that the Bank has complied with Bank Indonesia regulations on APU and PPT and other relevant laws and regulations; d. ensure the coverage of the Board of Directors’ active supervision has been adequately fulfilled; e. monitor and maintain the Bank’s compliance with all commitments made by the Bank to Bank Indonesia, among others, commitments in Action Plan, Report on Data Updating Activity Plan, and Bank Indonesia monitoring results related to the implementation of APU and PPT Programs; f. monitor the duty implementation of the Special Work Unit and/or Bank officials responsible for the implementation of APU and PPT; g. recommend the President Director on officials who will lead the Special Work Unit or officials responsible for implementing APU and PPT Programs; h. approve Suspicious Financial Transaction Report (LTKM); i. propose Action Plan Report and Data Updating Plan Report before being submitted to Bank Indonesia. 8. The Director in charge of Compliance Function must submit the reports to Bank Indonesia on the duty implementation that cover: a. Compliance Work Plan contained in the Bank’s Business Plan; b. Compliance Report; and c. Special Report on policies and/or decisions of the Board of Director in which according to the Director in charge of Compliance Function has deviated from Bank Indonesia regulations and/or the applicable laws and regulations, as part of the duties of the Director in charge of Compliance Function. 9. Reporting the implementation of duties and responsibilities to the President Director with copies to the Board of Commissioners at least in a quarterly manner. 10. Performing other duties related to Compliance Function PT Bank Negara Indonesia (Persero) Tbk  DIVERSITY POLICY IN BOARD OF DIRECTORS’ COMPOSITION In the Financial Services Authority recommendation as outlined in the Attachment of Financial Services Authority Circular Letter No. 32/SEOJK.04/2015 on Guidelines of Public Corporate Governance, it is stated that the composition of Board of Directors shall observe the diversity of composition of Board of Directors. The diversity of composition of Board of Directors is a combination of necessary characteristics either the Board of Directors as an organ or as individual member of the Board of Directors, according to the needs of the Public Company. Such combination is determined by considering the expertise, knowledge, and experience in accordance with the division of duties and functions of the Board of Directors’ position in achieving the Public Company’s objectives. Therefore, the consideration of the combination of such characteristics will have an impact in the accuracy of nomination process and individual appointment of members of the Board of Directors or the Board of Directors in a collegial manner. In accordance with Article 5 paragraph (4) letter c.2 of the Bank's Articles of Association, Dwiwarna A series shareholders have the privilege to propose a candidate member of the Bank's Board of Directors. Also, based on Article 11 paragraph (10) of the Articles of Association, members of Board of Directors are appointed and dismissed by the GMS, in which the GMS is attended by Dwiwarna A Series shareholders and the meeting's resolution shall be approved by Dwiwarna A Series shareholders by observing the provisions in the Articles of Association. By observing the provisions of the Articles of Association, the determination of composition of members of Board of Directors who observe the diversity of expertise, knowledge, and experience needed as referred to in the Financial Services Authority Recommendation in the Attachment to the Financial Services Authority Circular Letter No. 32/SEOJK.04/2015 on Guidelines for Public Company Governance is carried out by Dwiwarna A Series Shareholders as shareholders entitled to propose candidate members of Board of Directors. Adapting Quickly to Face Change 457
  458. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk In 2018, the diversity of composition of Board of Directors was reflected in the education, work experience, age, and gender, as can be seen in the table below: Name Achmad Baiquni Position President Director Age Gender 62 Male Education • • Herry Sidharta Vice President Director 62 Director of Corporate Banking 49 Male • • Putrama Wahju Setyawan Tambok P. Setyawati Director of Retail Banking 55 Catur Budi Harto Director of Small Business and Network 54 Director of Treasury and International Banking 56 Rico Rizal Budidarmo Male Female • • • • Male • • Male • • • Anggoro Eko Cahyo Finance Director 50 Male • • Work Experience Bachelor of Economic Development Master of Business Management • • • Economics • BNI Consumer Director BNI Corporate Director BNI Business Director for Small, Medium, and Sharia Business BRI Finance Director Bachelor of Management Master of Business Administration • • • BNI Corporate Division Head BNI Medium Business Division Head BNI Small Business Division Head Economics Bachelor of Forestry Master of Accounting Management • BNI Corporate Credit Rescue and Settlement Division Head BNI SOE and Government Institution Division Head BNI Commercial and Small Business Credit Rescue and Settlement Division Head Business Management Bachelor of Agriculture Master of Management • Finance Director at PT Krakatau Steel (Persero) Tbk SEVP of BNI Digital Banking CEO of BNI Jakarta Kemayoran Region Business Management Bachelor of Agronomy Master of Management • BNI Corporate Credit Rescue and Settlement Division Head BNI SOE and Government Institution Division Head Business Management Bachelor of Economics Management MBA and MIS Business and Finance Doctor of Business Management • • GM/EVP of BRI Treasury BTN Risk and Compliance Director Finance Management Bachelor of Industry Management Engineering Master of Agribusiness • BNI Jakarta Kota Regional Office Head BNI Jakarta BSD Regional Office Head BNI Network and Services Division Head BNI Human Capital Division Head Supervisory Board Chairman of Bank Negara Indonesia Pension Fund Chairman of Association of Indonesian Payment Systems (ASPI) Management • • • • • • • • • • • 458 Adapting Quickly to Face Change Expertise PT Bank Negara Indonesia (Persero) Tbk
  459. Good Corporate Governance Name Position Age Gender Director of Information Technology and Operation 57 Male Director of Institutional Relations 52 Bob Tyasika Ananta Director of Risk Management 56 Endang Hidayatullah Director of Compliance 48 Male Panji Irawan * Director 54 Male Dadang Setiabudi Adi Sulistyowati Education • • Female • Work Experience Bachelor of Accounting Master of Agribusiness • Bachelor of Economics • • • • Male • Director Male Technology Management BNI Jakarta Senayan Regional Office Head BNI Network Management Division Head Economics General Manager of BNI Overseas Branch Office Hong Kong BNI International Division Head BNI Strategic Planning Division Head Finance • • • Bachelor of Law Master of Marketing Management • • BNI Legal Division Head BNI Legal Division Vice Head Legal • Bachelor of Agricultural & Resource Economics • • • • • Commissioner of PT Mandiri Sekuritas Executive Vice President Treasury Group Bank Mandiri (Persero) Tbk, Head of Association Cambiste Internationale (ACI) Indonesia Chairman of Indonesia Foreign Exchange Market Committee (IFEMC) Manajemen BNI Strategic Planning Division Head BNI Enterprise Risk Management Division Head Commissioner of PT BNI Syariah Economics • 60 SEVP of BNI Information Technology & Digital Banking Director of Information Technology at BPJS Health Head of Micro Business Work Network Division at PT Bank Rakyat Indonesia (Persero) Tbk. Bachelor of Accounting Master of Finance • • • Imam Budi Sarjito* Expertise • • Bachelor of Economics Master of Economics • • • Information: *No longer in position since March 20, 2018 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 459
  460. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BOARD OF DIRECTORS’S NUMBER AND COMPOSITION In 2018, the number and composition of the Board of Directors were amended as follows: BOARD OF DIRECTORS’S NUMBER AND COMPOSITION BEFORE ANNUAL GMS MARCH 20, 2018 The number and composition of Board of Directors before Annual GMS, March 20, 2018, was 10 (ten) people consisting of 1 (one) President Director, 1 (one) Vice President Director, and 8 (eight) Directors. All members of the Board of Directors are domiciled in BNI Head Office areas. Name Position Domicile Appointment Date Effective Achmad Baiquni President Director Jakarta March 17, 2015 April 16, 2015 Herry Sidharta Director Jakarta March 17, 2015 May 22, 2015 March 16, 2017 May 29, 2017 Putrama Wahju Setyawan Director of Medium Business Jakarta March 10, 2016 July 15, 2016 Rico Rizal Budidarmo Director of Treasury and International Banking Jakarta March 17, 2015 April 16, 2015 Anggoro Eko Cahyo Director of Finance Jakarta 17 Maret 2015 22 Mei 2015 Vice President Director Bob Tyasika Ananta Director of Risk Management Jakarta 17 Maret 2015 16 April 2015 Adi Sulistyowati Director of Institutional Relations Jakarta 17 Maret 2015 22 Mei 2015 Catur Budi Harto Director of Small Business & Network Jakarta 16 Maret 2017 19 Juli 2017 Panji Irawan* Director Jakarta 12 Januari 2016 11 April 2016 Imam Budi Sarjito* Director Jakarta 17 Maret 2015 22 Mei 2015 BOARD OF DIRECTORS’S NUMBER AND COMPOSITION AFTER ANNUAL GMS MARCH 20, 2018 The number and composition of Board of Directors after Annual GMS, March 20, 2018, was 11 (eleven) people consisting of 1 (one) President Director, 1 (one) Vice President Director, and 9 (nine) Directors. All members of the Board of Directors are domiciled in BNI Head Office areas. Name Position Domicile Effective Achmad Baiquni President Director Jakarta March 17, 2015 April 16, 2015 Herry Sidharta Director Jakarta March 17, 2015 May 22, 2015 March 16, 2017 May 29, 2017 Putrama Wahju Setyawan Director of Corporate Banking Jakarta March 10, 2016 July 15, 2016 Tambok P. Setyawati Director of Retail Banking Jakarta March 20, 2018 July 5, 2018 Catur Budi Harto Director of Small Business & Network Jakarta March 16, 2017 July 19, 2017 Rico Rizal Budidarmo Director of Treasury and International Banking Jakarta March 17, 2015 April 16, 2015 Anggoro Eko Cahyo Director of Finance Jakarta March 17, 2015 May 22, 2015 Dadang Setiabudi Director of Information Technology and Operation Jakarta March 20, 2018 July 5, 2018 Vice President Director 460 Appointment Date Adi Sulistyowati Director of Institutional Relations Jakarta March 17, 2015 May 22, 2015 Bob Tyasika Ananta Director of Risk Management Jakarta March 17, 2015 April 16, 2015 Endang Hidayatullah Director of Compliance Jakarta March 20, 2018 July 5, 2018 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  461. Good Corporate Governance AFFILIATION RELATIONSHIP OF BOARD OF DIRECTORS The Board of Directors always acts independently , in the sense that there is no conflict of interest that may interfere with the ability to perform its duties independently and critically, either in regard of relationship with one another or in regard of relationship with the Board of Commissioners. The Board of Directors has no financial relationship, management relationship, share ownership, and/or family relationship with other members of the Board of Commissioners, Board of Directors, and/or Controlling Shareholders or relationship with the Bank, therefore, the Board can perform the duties and responsibilities independently. Affiliation relationship between members of Board of Directors, Board of Commissioners, and Main and/or Controlling Shareholders includes: 1. Affiliation relationship between member of Board of Directors and other member of Board of Directors. 2. Affiliation relationship between members of Board of Directors and members of Board of Commissioners. 3. Affiliation relationship between members of Board of Directors and Main and/or Controlling Shareholders. 4. Affiliation relationship between member of Board of Commissioners and other member of Board of Commissioners; and 5. Affiliation relationship between members of Board of Commissioners and Main and/or Controlling Shareholders. Independence of the Board of Directors can be seen in the table below: Table of Board of Directors’ Affiliation Relationship Financial, Family, and Management Relationship of the Board of Directors Financial Relationship With Name Position Board of Commissioners Yes No Family Relationship With Board of Directors Controlling Shareholders Board of Commissioners Yes Yes Yes No No No Board of Directors Yes No Controlling Shareholders Management Relationship with Other Companies Yes Yes No No Achmad Baiquni President Director √ √ √ √ √ √ √ Herry Sidharta Vice President Director √ √ √ √ √ √ √ Putrama Wahju Setyawan Director of Corporate Banking √ √ √ √ √ √ √ √ √ √ √ √ √ √ Tambok P. Setyawati * Director of Retail Banking √ √ √ √ √ √ √ Catur Budi Harto Director of Small Business and Network √ √ √ √ √ √ √ Rico Rizal Budidarmo Director of Treasury and International Banking √ √ √ √ √ √ √ Anggoro Eko Cahyo Director of Finance √ √ √ √ √ √ √ Dadang Setiabudi* Director of Information Technology and Operation √ √ √ √ √ √ √ Adi Sulistyowati √ √ √ √ √ √ √ Bob Tyasika Ananta Director of Risk Management √ √ √ √ √ √ √ Endang Hidayatullah* Director of Compliance √ √ √ √ √ √ √ Imam Budi Sarjito** Director of Compliance and Corporate Risk √ √ √ √ √ √ √ Panji Irawan** √ √ √ √ √ √ √ Director of Institutional Relations Director of Treasury and International Information: *Efektif menjabat sejak tanggal 5 Juli 2018 **Berhenti menjabat sejak tanggal 20 Maret 2018 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 461
  462. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BOARD OF DIRECTORS’ CONCURRENT POSITION POLICY The provisions on concurrent position of Board of Directors are stipulated in the following regulations. 1. Based on SOE Minister Regulation Number PER-03/MBU/02/2015, members of Board of Directors are prohibited to hold concurrent position as: a. Members of Board of Directors at State-Owned Enterprise, Regional-Owned Enterprise, Private Companies; and/or b. Members of Board of Commissioners at State-Owned Enterprise; and/or c. Structural and other functional positions at central and/or regional government institutions/agencies; d. Administrator of political party and/or member/prospective member of legislature; and/or candidate for regional head/deputy head; e. Position that may cause conflict of interest and/or other position in accordance with the provisions in laws and regulations; f. Stands as a legislator candidate or regional head/deputy head candidate. 2. Based on Financial Services Authority Regulation Number 55/POJK.03/2016, members of the Board of Directors are prohibited to hold concurrent position as members of Board of Directors, members of the Board of Commissioners, or Executive Officers at other bank, company, and/or institution. Nonetheless, it does not include concurrent position in the event that the Board of Directors is in charge of monitoring Bank’s placement at subsidiary, running functional duties as members of the Board of Commissioners at non-bank subsidiary that is controlled by the Bank, as long as it does not cause the related Board of Directors to ignore the implementation of duties and responsibilities as members of the Bank’s Board of Directors. 3. Board of Directors’ concurrent position that is not included in the provisions above shall need to obtain approval from Board of Commissioners' Meeting. Board of Directors does not have concurrent position that is prohibited based on the applicable laws and regulations. Board of Directors’ concurrent position that is allowed based on the applicable Laws and Regulations is executed by the related member of Board of Directors by not ignoring the implementation of duties and responsibilities as member of the Bank’s Board of Directors. Table of Concurrent Position of Board of Directors Achmad Baiquni Herry Sidharta Putrama Wahju Setyawan TambokP. Setyawati* Members of Board of Directors at StateOwned Enterprise, Regional-Owned Enterprises, Private Companies No No No No No No Administrator of political party and/or member/candidate member of House of Representative, DPD, House of Representative Level I, and House of Representative Level II and/or candidate of regional head/ deputy head. No No No No No Other positions according to the provisions in laws and regulations. No No No No Other positions that may cause a conflict of interest. No No No No Description Catur Budi Rico Rizal Anggoro Harto Budidarmo Eko Cahyo Dadang Setiabudi* Adi Sulistyowati Bob Tyasika Endang Imam Budi Panji Ananta Hidayatullah* Sarjito** Irawan** No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No Information: *Effective in position since July 5, 2018 **No longer in position since March 20, 2018 462 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  463. Good Corporate Governance MANAGEMENT OF CONFLICT OF INTEREST OF THE BOARD OF DIRECTORS Management of the Board of Directors ’ conflict of interest is stipulated in the Guidelines for Handling Conflict of Interest Number IN/695/KMP/ 001 dated October 29, 2014. Conflict of Interest is a condition in which the Company’s economic interests contradict the personal economic interests. Regarding the above matter, members of the Board of Directors: 1. Must prioritize the Company’s economic interest over personal economic interest or family’s or other party’s. 2. Must never use their position for personal interest or for other person’s or party’s interest that is in contrary to the Company’s interest. 3. Must complete a Special Register containing their and/ or their family's share ownership that reaches 5% (five percent) or more on the Bank or other companies located inside and outside the country. 4. Must disclose financial relationship and family relationship with other members of the Board of Commissioners, members of the Board of Directors, and/ or the Company's controlling shareholders. 5. Are prohibited to take action that may harm the Company or reduce Company’s profit and must disclose conflict of interest in any decision in the event that a conflict of interest occurs. 6. Shall not participate in the discussion and decisionmaking that contains elements of conflict of interest. In order to fulfill the transparency principle in the implementation of Good Corporate Governance, with due observance to the Bank’s Articles of Association, the Board of Directors must disclose its share ownership, either at BNI or at banks and other companies domiciled inside and outside the country. As of 31 December 2018, there were no members of BNI’s Board of Directors who owned BNI shares reaching 5% or more of BNI’s paid-up capital, or in other banks or other companies, domiciled inside or outside the country. IMPLEMENTATION OF DUTIES AND DECISIONS OF THE BOARD OF DIRECTORS YEAR 2018 Throughout 2018, the Board of Directors had implemented the management duties in accordance with the applicable laws and regulations and the Company's Articles of Association, which are: 1. Preparation of the Company’s planning, among others, RBB revision 2018-2019. 2. Meeting the Company’s performance target. 3. Asset and finance management, including share participation on companies that are not listed in stock exchange. 4. Organizing Board of Directors’ meeting. 5. Attending Board of Commissioners’ meeting. 6. Convening General Meeting of Shareholders. 7. Monitoring and improving the internal business process. 8. Other duty implementation related to the Company's management. SHARE OWNERSHIP OF BOARD OF DIRECTORS Members of the Bank’s Board of Directors have an obligation to report to the Financial Services Authority on ownership and any changes in the ownership of the Bank’s shares, either directly or indirectly, as stipulated in the Financial Services Authority Regulation No. 11/POJK.04/2017 on the Report of Ownership or Any Changes in Ownership of Public Company Shares. The reporting obligation is also regulated in Board of Directors’ Decisions Letter No. KP/228/DIR/R dated 29 June 2018 on Guidelines and Work Conduct of Board of Directors Charter, which are also published on the Bank’s website. Throughout 2018, the Bank had submitted reports of share ownership or any changes to the ownership of the Board of Directors and/or Board of Commissioners to the Financial Services Authority by referring to the Financial Services Authority Regulation No. 11/POJK.04/2017 on the Report of Ownership or Any Changes in Ownership of Public Company Shares. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 463
  464. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk DECISIONS ISSUED BY BOARD OF DIRECTORS IN 2018 No. Decisions 464 Decision Matter KP/003/DIR/R Organizational Structuring of the Strategic Planning Division (REN) KP/012/DIR/R Official Travel Policies and Procedures for the Board of Commissioners and Board of Directors KP/024/DIR/R Establishment of the Consumer Business and Digital Banking Coordination Forum KP/033/DIR/R BNI’s Release Committee of Immovable Fixed Assets (ATTB) affected by the Government project KP/034/DIR/R The Jakarta BNI Taplus Proliga 2018 Committee KP/035/DIR/R Recovery Management Team KP/039/DIR/R Write-off of Immovable Fixed Assets of KCP Pemangkat’s Building KP/040/DIR/R Write-off of Immovable Fixed Assets of KCP Sahari’s Building KP/042/DIR/R BNI’s Release Committee of Immovable Fixed Assets (ATTB) affected by the Government project KP/120/DIR/R BNI’s Event Committee for the 2018 Asian Games KP/122/DIR/R Appointment of the Management of BNI’s UPZ BAZNAS KP/125/DIR/R 201-2023 Corporate Plan Preparation Team KP/127/DIR/R Establishment of Small Business Division 2 (BSL 2) KP/128/DIR/R Establishment of Small Business Division 1 (BSL 1) KP/130/DIR/R Board of Directors’ Decision on Bank Negara Indonesia Pension Fund KP/138/DIR/R Structuring the Organization of BNI’s Board of Directors KP/145/DIR/R Committee for Procurement of BSK Division Server Cloning and Relocation Services KP/153/DIR/R Team Force of Yap! Merchant Acquisition KP/158/DIR/R Write-off of Immovable Fixed Assets of KCP Kanaka’s Building KP/160/DIR/R Formation of BNI’s 2018 Subordinated Medium Term Notes (MTN) Task Force Team KP/164/DIR/R BNI's Fixed Assets (Land and Building) Revaluation Committee KP/169/DIR/R BNI’s 72nd (seventy-second) Anniversary Committee KP/182/DIR/R Organizational Structuring of Banking Transactional Services Division (TBS) KP/191/DIR/R BNI’s Event Committee for the 2018 Asian Games KP/196/DIR/R Procurement Committee of BNI’s SimPel Debit Starter Kit KP/215/DIR/R Write-off of Immovable Fixed Assets of KCP Mamuju’s Building at Jalan Urip Sumoharjo No. 125 Mamuju KP/220/DIR/R Decision Letter of IFRS 9 Implementation Team KP/232/DIR/R Beauty Contest Assessment Committee BNI’s Commercial Card Credit Insurance KP/234/DIR/R Procurement Committee of BNI’s Credit Card Billing Statement Printing Service KP/246/DIR/R Appointment as Member of Supervisory Board of Bank Negara Indonesia Pension Fund KP/247/DIR/R Structuring Organization of Operational Division KP/251/DIR/R Organization of Crisis Management Team (CMT) Head Office KP/284/DIR/R The EDW Appliance Machine Implementation Project Team KP/321/DIR/R Beyond Banking Program Implementation Team - 33 Initiatives of Corporate Plan 201-2023 KP/322/DIR/R General Policies of Board of Directors (KUD) of 2019 KP/323/DIR/R Organizational Structuring of Information Technology Solutions & Security Division (STI) KP/366/DIR/R Millennial Task Force Team KP/384/DIR/R Structuring the Organization of BNI’s Board of Directors Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  465. Good Corporate Governance No . Decisions Decision Matter KP/385/DIR/R BNI’s Long Term Plan (RJP/Corporate Plan) of 2019-2023 KP/387/DIR/R Jakarta’s Volley Team Management and Coaching of BNI 46 Pro-league Period 2019 - 2023 Dir kN KP/395/DIR/R Organizational Structuring of Information Technology Solutions and Security Division (STI) KP/396/DIR/R Assignment of Task Force 46’s Millennial Championship Program KP/400/DIR/R Assignment as the Technical Committee for the Glowing Night Run Event and the Food Coffee Festival KP/401/DIR/R Substitution Arrangement for Senior Executive Vice President (SEVP) KP/406/DIR/R Bank’s Business Plan (RBB) 2019-2021 KP/412/DIR/R Sustainable Financial Action Plan (RAKB) of 2019 KP/413/DIR/R Organizational Structuring of Corporate Credit Risk Division (BNR) KP/420/DIR/R Release and Write-off Committee of the Immovable Fixed Asset of BNI Singapore’s Caimhill Mansion Unit KP/433.1/DIR/R Assignment of BNI Cyber Squad Team THE BOARD OF DIRECTORS’ MEETINGS BOARD OF DIRECTORS’ MEETING MECHANISM The Bank’s Board of Directors’ Meetings are held by referring to the Financial Services Authority Regulation No. 33/ POJK.04/2014 on Board of Directors and Board of Commissioners of Issuers or Public Companies and Article 13 of the Bank’s Articles of Association. The Board of Directors’ Meetings are carried out with the following conditions: Organizing Meetings Calling of the Meeting 1. Board of Directors must hold the Board of Directors’ meeting at least 1 (one) time every month. 2. The Board of Directors must hold joint meeting of the Board of Directors with the Board of Commissioners periodically at least 1 (one) time in 4 (four) months 3. Board of Directors’ Meetings may be held at any time in the event that: a. a.It is deemed necessary by one or more members of the Board of Directors b. b.It is upon a written request from one or more members of the Board of Commissioners 1. Meetings can be held at the Bank’s domicile or elsewhere in the territory of the Republic of Indonesia or at the place of business of the Bank. 2. The calling of a Board of Directors’ Meeting shall be made by the member of Board of Directors who is entitled to represent the Board of Directors. 3. The calling of a Board of Directors’ Meeting shall be made in writing and submitted or delivered directly to each member of the Board of Directors with an adequate receipt or by registered mail or by courier or telex, facsimile, or e-mail no later than 5 (five) days before the meeting is held by not including the Calling Date and the meeting date or in a shorter time if in an urgent situation. 4. The calling for a meeting shall state the agenda, date, time, and place of the meeting. 5. Such calling is not required for meetings that have been scheduled based on the decisions of the Board of Directors’ Meeting held previously or if all members of the Board of Directors are present at the meeting. 1. All Board of Directors’ Meetings are chaired by the President Director. In the event that the President Director is absent or unavailable, the Vice President Director will chair the Board of Directors’ meeting or a Director who is appointed in writing by the President Director who will chair the Board of Directors’ Meeting in the event that at the same time the Vice President Director is also absent or unavailable or the Director appointed by the Vice President Director who will chair the Board of Directors’ Meeting in the event that at the same time the President Director is absent or unavailable and does not appoint anyone. Board of 2. If the GMS does not appoint a Vice President Director, then in the event that the President Director is absent or Directors Meeting unavailable, one of the Directors who is appointed in writing by the President Director will chair the Board of Chair Directors’ Meeting. 3. In the event that the President Director does not appoint anyone, one of the Directors with the longest term of office as member of Board of Directors will chair the Board of Directors’ Meeting. 4. In the event that there are more than 1 (one) members of the Board of Directors who have the longest term of office as a member of the Bank’s Board of Directors, then the Director as stated in point 3 above who is the oldest in age will act as the chair of the Board of Directors’ Meeting. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 465
  466. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Attendance 1. 1A member of the Board of Directors may be represented at the Board of Directors’ Meeting only by another member of the Board of Directors based on a Power of Attorney. A member of the Board of Directors may only represent one other member of the Board of Directors. 2. 2 Members of the Board of Directors who are unable to attend a Board of Directors’ Meeting can submit their opinions in writing and sign, then submit it to the President Director or Vice President Director or to other members of the Board of Directors who will chair the Board of Directors’ Meeting, whether or not they support the matters will be discussed and this opinion will be deemed as a vote legally issued at the Board of Directors’ Meeting. 3. 3In the event that a member of the Board of Directors is unable to attend a meeting physically, then such member of the Board of Directors may attend the meeting through teleconferencing, video conferencing, or other electronic media facilities, in accordance with the applicable regulations. 4. Each member of the Board of Directors who personally in any way, directly or indirectly, has an interest in a transaction, contract, or proposed contract, in which the Bank is one of the parties shall state the nature of interest in a Board of Directors’ Meeting, and therefore, has no right to take part in voting on matters related to such transaction or contract. Decision Making 1. Board of Directors’ Meeting is valid and entitled to make binding decisions if attended and/or represented by more than 1/2 (one half ) from the total members of the Board of Directors. 2. In the event that there is more than one proposal, a re-election is conducted so that one of the proposals gets votes more than 1/2 (one half ) part of the total votes cast. 3. Board of Directors’ Meeting Decisions shall be made based on deliberation to reach a consensus. In the event that decision based on deliberation to reach a consensus is not reached, then the decision shall be taken by voting based on the agreed votes that are more than 1/2 (one half ) part of the total valid votes cast at the related meeting. 4. In Board of Directors’ Meetings, each member of the Board of Directors is entitled to cast 1 (one) vote and 1 (one) additional vote for each other member of the Board of Directors represented. 5. Blank vote (abstention) is considered to approve the proposal submitted at the meeting. Void votes are considered non-existent and not counted in determining the number of votes cast at the meeting. 6. Voting concerning an individual shall be in folded ballots without signature, while voting concerning other matters shall be conducted orally, unless otherwise determined by the Chair of the Meeting, without any objection being raised by those present. Minutes of Meeting 1. The results of the Board of Directors’ Meeting must be stated in Minutes of Meeting. Minutes of Meeting shall be made by a person present at the meeting who is appointed by the Chair of the Meeting, and then signed by all members of the Board of Directors present and delivered to all members of the Board of Directors. 2. Results of Board of Directors’ Meetings with the Board of Commissioners must be stated in Minutes of Meeting. Minutes of Meeting shall be made by a person present at the meeting who is appointed by the Chair of the Meeting, and then signed by all members of the Board of Directors and members of the Board of Commissioners present and delivered to all members of the Board of Directors and members of the Board of Commissioners. 3. In the event that there are members of the Board of Directors and/or members of the Board of Commissioners who do not sign the meeting results as referred to in number 1 and 2 above, such member must state the reason in writing in a separate letter attached to the minutes of meeting. 4. Minutes of Meeting as referred to in number 1 and number 2 above must be documented by the Bank. 5. Minutes of the Board of Directors’ Meeting are legitimate evidence for members of Board of Directors and third parties regarding the decisions taken in the related Meeting. Decisions Outside the Board of Directors’ Meeting 466 1. Board of Directors may also make valid decision without holding Board of Director’s Meeting, provided that all members of Board of Directors have been notified in writing and all members of Board of Directors have approved the related proposal submitted in writing and have signed such approvals. 2. Decisions made by such way have the same binding power as that of made validly in Board of Director’s Meeting. Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  467. Good Corporate Governance AGENDA , DATE, AND PARTICIPANTS OF THE BOARD OF DIRECTORS’ MEETING IN 2018 Throughout 2018, the agenda, dates, and participants of the Board of Directors’ Meeting are as follows. Table of Board of Directors’ Meeting No. 1. 2. 3. 4. Date 4 January 2018 8 Januari 2018 11 January 2018 15 January 2018 Agenda 1. Capacity Planning 2. Flextime 1. Structuring BSL Organization 2. Financial Performance December 2017 Remedial & Recovery Management Strategy Participants Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Absent Adi Sulistyowati Present Bob Tyasika Ananta Absent Imam Budi Sarjito** Present Panji Irawan** Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Absent Adi Sulistyowati Present Bob Tyasika Ananta Absent Imam Budi Sarjito** Present Panji Irawan** Present Description On Leave On Leave On Leave On Leave Achmad Baiquni Absent On Duty Herry Sidharta Absent On Duty Putrama Wahju Setyawan Present Catur Budi Harto Absent Rico Rizal Budidarmo Absent On Duty Anggoro Eko Cahyo Absent On Leave On Duty On Duty Adi Sulistyowati Absent Bob Tyasika Ananta Present Imam Budi Sarjito** Present Panji Irawan** Absent On Duty Absent On Duty 1. Presentation of BNI Achmad Baiquni Corporate Recovery Plan Herry Sidharta 2. Structuring Organization of BSL Putrama Wahju Setyawan Division Catur Budi Harto PT Bank Negara Indonesia (Persero) Tbk  Attendance Present Present Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Adi Sulistyowati Present Bob Tyasika Ananta Present Imam Budi Sarjito** Present Panji Irawan** Present Adapting Quickly to Face Change 467
  468. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 5. 6. 7. 8. 468 Date 18 January 2018 25 January 2018 29 January 2018 5 February 2018 Agenda Update on YAP Launching Preparation 1. Discussion of Pre-NPL Middle Segment 2. Corporate Iconic Event 1. Establishing Corporate Securities Purchase Limit 2. Assessment Update on Criteria for Superior Performance Appraisal Update on 2018 Business Meeting Plan Adapting Quickly to Face Change Participants Attendance Description Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Adi Sulistyowati Present Bob Tyasika Ananta Present Imam Budi Sarjito** Present Panji Irawan** Present Achmad Baiquni Absent On Duty Herry Sidharta Absent On Duty Putrama Wahju Setyawan Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Adi Sulistyowati Present Bob Tyasika Ananta Present Imam Budi Sarjito** Present Panji Irawan** Absent On Leave On Duty Achmad Baiquni Absent Herry Sidharta Present Putrama Wahju Setyawan Present Catur Budi Harto Absent Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Adi Sulistyowati Present Bob Tyasika Ananta Present Imam Budi Sarjito** Present Panji Irawan** Absent Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Adi Sulistyowati Present Bob Tyasika Ananta Present Imam Budi Sarjito** Present Panji Irawan** Present On Duty On Leave PT Bank Negara Indonesia (Persero) Tbk
  469. Good Corporate Governance No . 9. 10. 11. 12. Date 8 February 2018 15 February 2018 19 February 2018 22 February 2018 Agenda 1. Update Java Jazz 2. Beauty Contest Procurement Uniform 1. Approving Product Name and Launching of BNI Mobile Remittance 2. Others 1. Beauty Contest on Frontliner Uniform Procurement 2. Finalizing PMS Score of Unit December 2017 3. BNI Chat Banking BNI Emerald Program Java Jazz 2018 PT Bank Negara Indonesia (Persero) Tbk  Participants Attendance Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Adi Sulistyowati Absent Bob Tyasika Ananta Present Imam Budi Sarjito** Present Panji Irawan** Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Description On Duty Catur Budi Harto Absent On Duty Rico Rizal Budidarmo Absent On Duty Anggoro Eko Cahyo Present Adi Sulistyowati Present Bob Tyasika Ananta Present Imam Budi Sarjito** Absent On Duty Panji Irawan** Absent On Duty Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Catur Budi Harto Present Rico Rizal Budidarmo Absent Anggoro Eko Cahyo Present On Duty Adi Sulistyowati Absent Bob Tyasika Ananta Present On Duty Imam Budi Sarjito** Absent On Duty Panji Irawan** Absent On Duty Achmad Baiquni Absent On Duty Herry Sidharta Absent On Duty Putrama Wahju Setyawan Absent On Duty Catur Budi Harto Present Rico Rizal Budidarmo Absent Anggoro Eko Cahyo Present Adi Sulistyowati Present Bob Tyasika Ananta Present Imam Budi Sarjito** Present Panji Irawan** Present On Duty Adapting Quickly to Face Change 469
  470. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 13. 14. 15. 16. 470 Date 26 February 2018 5 March 2018 12 March 2018 15 March 2018 Agenda 1. Customer Satisfaction Survey 2017 2. Progress Update on Preparation for Launching BNI Mobile Remittance (More) 1. Update on Financial Statements February 2018 and Prognosis Q1 2018 2. Issuance of Debt Instrument with Capital Characteristic Update on PIR Implementation on 92 KCP decision maker on credit approval (Standard and Consumer Credit) 1. Status Progress on Financial Information Service System (SLIK) 2. BNI Digimudik Program and Proposal of Cong AD Nyepi Adapting Quickly to Face Change Participants Attendance Description Achmad Baiquni Absent On Duty Herry Sidharta Absent On Duty Putrama Wahju Setyawan Present Catur Budi Harto Present Rico Rizal Budidarmo Absent Anggoro Eko Cahyo Present On Duty Adi Sulistyowati Absent Bob Tyasika Ananta Present Imam Budi Sarjito** Present Panji Irawan** Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Adi Sulistyowati Present Bob Tyasika Ananta Present Imam Budi Sarjito** Present Panji Irawan** Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Adi Sulistyowati Present Bob Tyasika Ananta Present Imam Budi Sarjito** Absent On Duty Panji Irawan** Absent On Duty Achmad Baiquni Absent On Duty Herry Sidharta Absent On Duty Putrama Wahju Setyawan Present Catur Budi Harto Present Rico Rizal Budidarmo Absent Anggoro Eko Cahyo Present Adi Sulistyowati Present Bob Tyasika Ananta Present Imam Budi Sarjito** Present Panji Irawan** Present On Duty On Duty PT Bank Negara Indonesia (Persero) Tbk
  471. Good Corporate Governance No . Date Agenda 17. 19 March 2018 M Project (Bank Acquisition) 18. 19. 20. 22 March 2018 26 March 2018 2 April 2018 1. Proposal of BNI’s Board of Directors’ Division 2018 2. Review on Segment Authority Prognosis Update on Financial Performance Q1 2018 1. Finalizing KPI for Supporting Unit 2018 2. Preparation of SOE PORSENI 2018 PT Bank Negara Indonesia (Persero) Tbk  Participants Attendance Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Adi Sulistyowati Present Bob Tyasika Ananta Present Imam Budi Sarjito** Present Panji Irawan** Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Absent Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Absent Dadang Setiabudi* Present Adi Sulistyowati Absent Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Absent Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Absent Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Description On Duty On Duty On Duty On Duty On Duty Adapting Quickly to Face Change 471
  472. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 21. 22. 23. 24. 472 Date 5 April 2018 9 April 2018 16 April 2018 19 April 2018 Agenda 1. Concept of BNI’s 72nd Anniversary 2. Proposal of Sharing Session in the framework of Preparing BNI’s Corporate Plan 2019-2023 Scenario Planning 1. Strategy to Improve Savings with YAP Game Changer 2. YAP Progress Update Update on 2018 Inacraft Event and Update on Corporate Advertisement for Ramadan, Vesak, and Eid Al-Fitr 1. Prognosis on Financial Performance Q2 2018 2. Workshop on “Discovery and Dream” Corporate Plan 2019-2023 3. Sharing Session Capturing the Digital Banking Opportunity Adapting Quickly to Face Change Participants Attendance Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Absent Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Absent Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Description On Duty On Duty Catur Budi Harto Absent Rico Rizal Budidarmo Present On Duty Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Absent On Duty Bob Tyasika Ananta Absent On Leave Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Absent On Duty Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Absent On Duty Rico Rizal Budidarmo Absent On Duty Anggoro Eko Cahyo Present Dadang Setiabudi* Absent Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present On Duty PT Bank Negara Indonesia (Persero) Tbk
  473. Good Corporate Governance No . 25. 26. 27. 28. Date 26 April 2018 30 April 2018 3 May 2018 7 May 2018 Agenda WMO Audit Examination Result 1. Prognosis Update on Financial Performance Q2 2018 2. Sharing Session: Unleashing the Value of Talent in a Digital Area Performance Highlights April 2018 1. PT Namasindo Plas 2. BNI Digital Transformation 3. Update on BNI Service & Sales Excellence Award Activity 2018 PT Bank Negara Indonesia (Persero) Tbk  Participants Attendance Description Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Absent Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Absent Bob Tyasika Ananta Present Endang Hidayatullah* Absent Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Absent On Duty Herry Sidharta Absent On Duty Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Absent Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Absent Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Absent Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present On Duty On Duty On Duty On Duty On Duty On Duty Adapting Quickly to Face Change 473
  474. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 29. 30. 31. 32. 474 Date 8 May 2018 14 May 2018 17 May2018 24 May 2018 Agenda B Project 1. Progress Update on Remedial and Recovery 2. YAP Progress Update 1. Homologation/ Settlement PKPU PT Intan Baruprana Finance, Tbk. And PT Namasindo Plas 2. Middle Segment Performance 3. Others: YAP! Directives 1. Credit Quality Improvement Review 2. Update on Ramadan and Eid Al-Fitr Activities Adapting Quickly to Face Change Participants Attendance Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Absent Rico Rizal Budidarmo Present Anggoro Eko Cahyo Absent Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Absent Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Absent Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Absent Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Absent Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Absent Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Description On Duty On Duty On Duty On Duty On Duty On Duty On Duty PT Bank Negara Indonesia (Persero) Tbk
  475. Good Corporate Governance No . 33. 34. 35. 36. Date 28 May 2018 4 June 2018 7 June 2018 25 June 2018 Agenda 1. Implementation of BNI Digimudik 2. Advertisement of Lebaran Agenda 1. Update on Facility Provision to Bank Bukopin 2. Update on Cyber Squad 1. Update on RBB 20182020 2. Spreading Flower in the framework of BNI’s 72nd Anniversary 1. Update on Preparation to Support IMF-WB Group Annual Meeting Bali October 2018 2. Evaluation on Limited Operational During Eid Al-Fitr Holiday 2018 3. Update on BNI’s Anniversary Preparation PT Bank Negara Indonesia (Persero) Tbk  Participants Attendance Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Absent Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Absent Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Description On Duty On Duty Adapting Quickly to Face Change 475
  476. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 37. 38. 39. 40. 476 Date 2 July 2018 9 July 2018 12 July 2018 16 July 2018 Agenda Update on Halal Bihalal Gathering Program with BNI’s Retirees’ Association BNI Financial Performance June 2018 Progress Update on Big Data 1. Building Name and Event Concept for Inaugurating Penjopongan Building 2. Execution of Corporate Plan 3. YAP Progress Update (YAP! On the move Adapting Quickly to Face Change Participants Attendance Description Achmad Baiquni Absent On Duty Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Absent Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Absent On Duty Catur Budi Harto Absent On Duty Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Absent On Duty Adi Sulistyowati Absent On Duty Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present On Duty PT Bank Negara Indonesia (Persero) Tbk
  477. Good Corporate Governance No . 41. 42. 43. 44. Date 23 July 2018 26 July 2018 6 August2018 13 August 2018 Agenda BNV Corporate Update Prognosis on Financial Performance Q3 and Q4 2018 1. Business Meeting Update 2. Merger of SMBCI and BTPN 3. Update on Asian Games Advertisement and Congratulation Advertising Update on Preparation for 73rd Anniversary of the Republic of Indonesia PT Bank Negara Indonesia (Persero) Tbk  Participants Attendance Description Achmad Baiquni Absent On Duty Herry Sidharta Absent On Duty Putrama Wahju Setyawan Absent On Duty Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Absent On Duty Anggoro Eko Cahyo Absent On Duty Dadang Setiabudi* Present Adi Sulistyowati Absent Bob Tyasika Ananta Present Endang Hidayatullah* Absent On Duty Achmad Baiquni Absent On Duty Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Absent On Duty Anggoro Eko Cahyo Absent On Duty Dadang Setiabudi* Absent On Duty Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Absent Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Absent Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Absent Bob Tyasika Ananta Present Endang Hidayatullah* Present On Permission On Duty On Duty On Duty Adapting Quickly to Face Change 477
  478. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. Date 45. 20 August 2018 46. 47. 48. 478 23 August 2018 27 August 2018 30 August 2018 Agenda 1. Proposal of Corporate Action of Commercial Bank 2. Update on Preparation to Support IMF-WB Annual Meeting Bali October 2018 3. Progress Update on Procurement for Consulting Services on Credit Quality Improvement Proposal to Name BNI’s Building BNI Services Day 2018 National Customer Day Adapting Quickly to Face Change Participants Attendance Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Absent Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Description On Duty PT Bank Negara Indonesia (Persero) Tbk
  479. Good Corporate Governance No . 49. 50. 51. 52. Date 3 September 2018 10 September 2018 13 September 2018 20 September 2018 Agenda General Policy of Board of Directors 2019 Financial Performance August 2018 and Prognosis Financial Performance 2018 1. Progress Report on Commitment of BNI’s Business Meeting Semester II - 2018, RR Sector 2. Update on Preparation to Support IMF-WB 3. Financial Performance August 2018 and Prognosis Financial Performance 2018 1. Sectoring the Board of Directors 2. Follow-up on FSA Letter regarding RBB Revision PT Bank Negara Indonesia (Persero) Tbk  Participants Attendance Achmad Baiquni Present Herry Sidharta Absent Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Absent Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Absent Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Absent Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Absent Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Absent Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Absent Description On Leave On Leave On Duty On Leave On Duty On Duty On Duty Adapting Quickly to Face Change 479
  480. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 53. 54. 55. 56. 480 Date 24 September 2018 27 September 2018 1 October 2018 4 October 2018 Agenda 1. Relocation of KCLN Singapore 2. Sectoring the Board of Directors Volatility Stress Test on Exchange Rates and Interest Rates CMRT Draft in the framework of Earthquake Management in Palu and surrounding areas 1. Progress Report on Commitment of BNI’s Business Meeting Semester II - 2018, RR Sector 2. Update on Preparation to Support IMF-WB Group Annual Meeting Bali October 2018 3. Update on Paviliun Indonesia Adapting Quickly to Face Change Participants Attendance Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Absent Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Absent Endang Hidayatullah* Present Achmad Baiquni Absent Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Absent Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Absent Herry Sidharta Present Putrama Wahju Setyawan Absent Tambok P. Setyawati* Present Catur Budi Harto Absent Rico Rizal Budidarmo Absent Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Absent Description On Duty On Duty On Duty On Duty On Duty On Duty On Duty On Duty PT Bank Negara Indonesia (Persero) Tbk
  481. Good Corporate Governance No . Date 57. 8 October 2018 58. 59. 60. 11 October 2018 15 October 2018 18 October 2018 Agenda Loan Processing Digital 1. Volatility Stress Test on Exchange Rates and Interest Rates 2. Corporate Plan 20192023 1. Executive Talent Committee 2. Follow-Up on Anticipation Plan of Qanun, a Sharia Financial Institution, in Nangroe Aceh Darussalam Province Analyst Meeting and Q&A on Issues from Analyst and Reporter PT Bank Negara Indonesia (Persero) Tbk  Participants Attendance Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Description Achmad Baiquni Absent Herry Sidharta Present On Duty Putrama Wahju Setyawan Absent On Duty Tambok P. Setyawati* Absent On Duty Catur Budi Harto Absent On Duty Rico Rizal Budidarmo Absent On Duty Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Absent Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present On Duty Adapting Quickly to Face Change 481
  482. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 61. 62. 63. 64. 482 Date 22 October 2018 25 October 2018 29 October 2018 1 November 2018 Agenda Review on Calculation of SPK Receivable as Controlled Collateral 1. Prognosis on Financial Performance Q4 2018 2. Update on SOE Millennial Program 3. Progress on Procurement for Consulting on Credit Quality Improvement Bank’s Business Plan (RBB) 2019-2021 1. Update on Volatility Stress Testing Material on Exchange Rates and Interest Rates 2. Bank’s Business Plan (RBB) 2019-2021 Adapting Quickly to Face Change Participants Attendance Description Achmad Baiquni Absent On Duty Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Absent Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Absent Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Absent Herry Sidharta Present Putrama Wahju Setyawan Absent Tambok P. Setyawati* Present On Duty On Duty On Duty On Duty Catur Budi Harto Absent Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Absent On Duty Bob Tyasika Ananta Absent On Duty Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Absent On Duty Anggoro Eko Cahyo Absent On Duty Dadang Setiabudi* Present Adi Sulistyowati Absent Bob Tyasika Ananta Present Endang Hidayatullah* Absent On Duty On Leave On Duty PT Bank Negara Indonesia (Persero) Tbk
  483. Good Corporate Governance No . 65. 66. 67. 68. Date 5 November 2018 8 November 2018 12 November 2018 15 November 2018 Agenda 1. Digitalization of Account Opening Process 2. Cooperation of BNI with WeChat and Alipay Participants Future Capability Academy PT Bank Negara Indonesia (Persero) Tbk  Description Achmad Baiquni Present Herry Sidharta Absent On Duty Putrama Wahju Setyawan Absent On Duty Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Absent Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Absent Bob Tyasika Ananta Present Endang Hidayatullah* Absent BSSN Letter - Cyber potential Achmad Baiquni threat on ‘DanaBot’ Banking Herry Sidharta Infrastructure Putrama Wahju Setyawan Progress Update on BEYOND Project 2019-2023 Attendance On Duty On Leave On Duty Present Present Absent Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Absent Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Absent Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Absent Rico Rizal Budidarmo Present Anggoro Eko Cahyo Absent Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Absent Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present On Duty On Duty On Duty On Duty On Duty On Duty Anggoro Eko Cahyo Absent Dadang Setiabudi* Present On Duty Adi Sulistyowati Absent On Duty Bob Tyasika Ananta Absent On Duty Endang Hidayatullah* Absent On Duty Adapting Quickly to Face Change 483
  484. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 69. 70. 71. 72. 484 Date 19 November 2018 22 November 2018 26 Novenber 2018 29 November 2018 Agenda 1. Level Escalation 2. Monitoring on Budget Loss of AFS Head Office Marketable Securities Sustainable Financial Action Plan (RAKB) BNI Year 2019 1. BNI’s 2018 Recovery Plan 2. Provisions for Prima Debtors 3. Update on Event Indonesia Masters 1. Progress Report on SOE Millennial Program: Glowing Night Run and Food & Coffee Festival, dated December 1, 2018 2. Proposal of Exterior and Interior Design of BNI KCLN Singapore Adapting Quickly to Face Change Participants Attendance Description Achmad Baiquni Absent On Duty Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Absent Endang Hidayatullah* Present Achmad Baiquni Absent On Duty Herry Sidharta Absent On Duty Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Absent Bob Tyasika Ananta Present Endang Hidayatullah* Absent Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Absent Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Absent On Permission On Duty On Duty On Duty On Duty PT Bank Negara Indonesia (Persero) Tbk
  485. Good Corporate Governance No . 73. 74. 75. 76. Date 3 December 2018 6 December 2018 10 December 2018 13 December 2018 Agenda Further Update on Review of Provisions for Prima Debtors Performance November 2019 and Prognosis of BNI Financial Position End of December 2018 1. Proposal of Theme & Design of BNI Annual Report Year 2018 2. Update on Activities in Welcoming Christmas and New Year 3. Finalization of BOD’s KPI Review on Provisions for Prima Debtors and Review on Financial Reference per Industrial Sector PT Bank Negara Indonesia (Persero) Tbk  Participants Attendance Description Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Absent On Duty Anggoro Eko Cahyo Absent On Duty Dadang Setiabudi* Present Adi Sulistyowati Absent Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Absent On Duty Herry Sidharta Absent On Duty Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Absent Rico Rizal Budidarmo Present Anggoro Eko Cahyo Absent Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Absent Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present On Duty On Duty On Duty On Duty Bob Tyasika Ananta Absent Endang Hidayatullah* Present On Duty Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Absent On Duty Rico Rizal Budidarmo Absent On Duty Anggoro Eko Cahyo Present Dadang Setiabudi* Absent Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present On Duty Adapting Quickly to Face Change 485
  486. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 77. 78. 79. 80. Date 17 December 2018 20 December 2018 27 December 2018 31 December 2018 Agenda Impact of Crude Palm Oil Price Decrease Against Corporate Debtor Financial Performance Prognosis of December 2018 Financial Prognosis of 2018 Fiscal Year Financial Prognosis of 2018 Fiscal Year Participants Attendance Description Achmad Baiquni Absent On Duty Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Absent Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Absent On Duty Achmad Baiquni Absent On Duty Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Absent Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present Achmad Baiquni Present Herry Sidharta Present Putrama Wahju Setyawan Present Tambok P. Setyawati* Present Catur Budi Harto Present Rico Rizal Budidarmo Present Anggoro Eko Cahyo Present Dadang Setiabudi* Present Adi Sulistyowati Present Bob Tyasika Ananta Present Endang Hidayatullah* Present On Duty On Duty Information: *Effective in position since July 5, 2018 **Not in position since March 20, 2018 486 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  487. Good Corporate Governance The agenda of joint meeting between the Board of Directors and the Board of Commissioners has been presented in the section of Board of Commissioners ' Meeting in Good Corporate Governance Chapter in this Annual Report. MEETING FREQUENCY AND ATTENDANCE THE BOARD OF DIRECTOR Throughout 2018, the Board of Directors attended the Board of Directors’ meetings for 80 (eighty) times as well as the joint meeting between the Board of Directors and the Board of Commissioners for 11 (eleven) times. The meeting frequency and attendance of each Director are as follows. Table of Meeting Frequency and Attendance of Board of Directors Name Achmad Baiquni Position President Director Board of Directors’ Meeting Joint Meeting between Board of Directors and Board of Commissioners Number and (%) of Attendance Number and (%) of Attendance Total Meetings Total Attendance % Total Meetings Total Attendance 80 54 64.56 11 4 % 36.36 Herry Sidharta Vice President Director 80 67 83.54 11 6 54.55 Putrama Wahju Setyawan Director of Corporate Banking 80 72 88.61 11 9 81.82 Tambok P. Setyawati* Director of Retail Banking 64 60 93.44 6 6 100 Catur Budi Harto Director of Small Business and Network 80 58 74.68 11 7 63.64 Rico Rizal Budidarmo Director of Treasury and International Banking 80 61 75.95 11 7 54.55 Anggoro Eko Cahyo Director of Finance 80 66 82.28 11 8 81.82 Dadang Setiabudi* Director of Information Technology and Operation 64 55 88.52 6 6 100 Adi Sulistyowati Director of Institutional Relations 80 56 72.15 11 8 72.72 Bob Tyasika Ananta Director of Risk Management 80 71 88.61 11 9 81.82 Endang Hidayatullah* Director of Compliance 64 49 76.67 6 2 33.33 Imam Budi Sarjito** Director of Compliance and Corporate Risk 17 14 88.89 2 - 0 Panji Irawan** Director of Treasury and International 17 11 72.22 2 2 100 Information: *Effective in position since July 5, 2018 **No longer in position since March 20, 2018 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 487
  488. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BOARD OF DIRECTORS’ SCHEDULED MEETINGS IN 2019 According to Article 13 of the Bank’s Articles of Association, the Board of Directors must hold the Board of Directors’ meetings periodically at least 1 (one) time every month. However, the Board of Directors’ Meeting can be held at any time if deemed necessary by one or more members of the Board of Directors or at the written request of one or more members of the Board of Commissioners. In 2019, the Board of Directors’ Meetings are scheduled to be held for 12 (twelve) times that fall on every Monday. Board of Directors’ Meeting Schedule for 2019 is as follows: No Date Agenda 1. 14 January 2019 Bank's Business Performance 2. 11 February 2019 Bank's Business Performance 3. 11 March 2019 Bank's Business Performance 4. 15 April 2019 Bank's Business Performance 5. 13 May 2019 Bank's Business Performance 6. 10 June 2019 Bank's Business Performance 7. 15 July 2019 Bank's Business Performance 8. 12 August 2019 Bank's Business Performance 9. 16 September 2019 Bank's Business Performance 10. 14 October 2019 Bank's Business Performance 11. 11 November 2019 Bank's Business Performance 12. 16 December 2019 Bank’s Business Performance BOARD OF DIRECTORS’ COMPETENCE DEVELOPMENT Board of Directors competence development can be seen the Company Profile section of this Annual Report. RISK MANAGEMENT CERTIFICATION All of BNI’s Board of Directors have passed Level 5 Risk Management Certification as it is one of the requirements to take fit and proper test, which is administered by the Financial Services Authority. BOARD OF DIRECTORS’ REMUNERATION POLICY REMUNERATION GOVERNANCE BNI already has a Board of Commissioners’ Remuneration Governance Policy, which refers to the Financial Services Authority Circular No. 40/SEOJK.03/2016 on Implementation of Governance in Providing Remuneration for Commercial Bank. In the Board of Directors Remuneration Governance Policy, it is stated that the remuneration given is of Fixed and Variable natures. The provision of remuneration that is of Fixed and Variable natures is based on business scale, business complexity, peer group, inflation rate, financial condition and capability of the Bank, as well as not contrary to the applicable laws and regulations. Regarding the determination of Fixed Remuneration, it observe the difference (gap) of remuneration between levels of position, thus, it prevents potential internal conflicts and operational risks such as fraud or other operational risks. Regarding the determination of Variable Remuneration, the Bank uses the basis of prudent risk taking which refers to the provisions of the Financial Services Authority regulating Risk Management Implementation for Commercial Banks. Based on BNI's Articles of Association, members of the Board of Directors are given honorarium and allowances/facilities including tantiem and post-retirement benefits whose types and amounts are determined by the GMS with due observance to the prevailing laws and regulations. The Board of Commissioners supervises the implementation of remuneration policies and conducts regular evaluations through the Nomination and Remuneration Committee. The Nomination and Remuneration Committee conducts evaluation on the Remuneration Policy that is based on performance, risk, fairness with peer group, targets, and the Bank's long term strategy, as well as fulfillment of reserves as regulated in laws and regulations, and the Bank’s potential revenue in the future. PROCEDURE FOR DETERMINATION OF REMUNERATION In general, the procedure for determination of the Board of Directors’ remuneration are carried out through the following stages. 1. The Nomination and Remuneration Committee evaluates the remuneration policy applicable to the Board of Directors. 2. Next, the Nomination and Remuneration Committee provides recommendations to the Board of Commissioners on the remuneration policy for the Board of Directors. 3. The Board of Commissioners submits proposals on remuneration recommendation in the form of salary/ honorarium and tantiem to be approved by the GMS. 488 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  489. Good Corporate Governance REMUNERATION STRUCTURE FOR MEMBERS OF BOARD OF DIRECTORS The remuneration structure of members of the Board of Directors refers to SOE Minister Regulation No . PER-06/MBU/06/2018 dated June 4, 2018, and SOE Minister Letter No. S-574/MBU/D5/06/2018 dated June 5, 2018, on Submission of Remuneration Determination of the Board of Directors and Board of Commissioners of PT Bank Negara Indonesia (Persero), Tbk. in 2018, as follows. Table of Remuneration Structure for Members of Board of Directors No. 1 Type of Remuneration/ Facilities Explanation Salary President Director is 100% Vice President Director is 90% of the President Director’s salary Director is 85% of the President Director’s salary. 2 3 Allowances Religious Holidays Members of the Board of Directors are given allowance for Religious Holiday for 1 (one) time salary each year. Housing Members of the Board of Directors are given housing allowances of the salary provided that the maximum allowance is IDR27,500,000. Post-Employment Insurance 1. Given during term of office 2. The premium borne by the company is maximum 25% of the annual salary 3. Selecting the post-employment insurance program is determined by each member of the Board of Directors that is coordinated by the unit managing the facilities and allowances for members of the Board of Directors and members of the Board of Commissioners. 4. Provision of premiums, fees, or other terms relevant to post-employment insurance already includes premiums for accident and death insurance. Facilities Vehicles Members of the Board of Directors are only entitled to 1 (one) Company vehicle. 1. Vehicle facilities including maintenance and operational costs are provided with due regard to the Company’s financial condition. 2. Vehicle specifications and standards are determined by the Minister. 3. Members of the Board of Directors who are no longer in position must return the official vehicle to the Company no later than 30 (thirty) days after being no longer in position. Health Health facilities are given in the forms of health insurance or reimbursement of medical expenses. 1. Health facilities are given to members of the Board of Directors and a wife/husband as well as maximum 3 (three) children who have not reached the age of 25 (twenty-five) provided in the event that the child is not yet 25 (twenty-five) years but had been married or had previously worked, the said child is not entitled to receive health facilities. Health facilities are provided in the forms of: 2. Outpatient and medicine, 3. Inpatient and medicine, 4. Medical check up provided that it is 1 (one) time every year and taken domestically. 5. In the event that the treating doctor recommends overseas treatment, the health facility may be covered fully or partially by observing the Company’s capability. Legal Assistance 1. Legal Aid facility to members of the Board of Directors is given in the event of any action/deeds for and on behalf of a position of members of the Board of Directors with the intention and objective as well as the company’s business activities. 2. Legal aid facility is at cost. 3. Legal aid facility to members of Board of Directors is budgeted at the Bank’s expense as stated in the Bank’s Work Plan and Budget (RKAP). 4. Legal aid facility can only be used in the event of a claim from third party, either during term of office or no longer in office on the policies taken during the term of office and cannot be given directly to the person concerned. 5. In the event that members of the Board of Directors use lawyers/legal consultants of their own choice, either at level of preliminary investigation/investigation, first-level court, appeal, cassation, and judicial review, then the attorney/legal consultant fee is not borne/compensated by the Bank. 6. Procedures for Board of Directors’ legal aid facility are carried out by referring to the applicable laws and regulations, specifically the Minister of State-Owned Enterprises Regulation which regulates the Guidelines for Determining the Remuneration of Board of Directors, Board of Commissioners, and Supervisory Board of StateOwned Enterprises. Housing Facilities 1. In the event that the Bank provides official house for the Board of Directors, the related Director must use the house as a housing facility and is not provided with housing allowance. 2. In the event that the Bank does not provide Board of Directors’ residential housing, then the related member of the Board of Directors shall be given a housing allowance. 3. The housing facility received by the Board of Directors include utilities and maintenance of the house of residence. 4. Details of utility amount (electricity, water, telephone, etc.) as mentioned above refer to the policies stipulated in the Bank. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 489
  490. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk INDICATORS FOR DETERMINING BOARD OF DIRECTORS’ REMUNERATION In determining the Board of Directors’ indicators, BNI refers to SOE Minister Regulation Number: PER-04/MBU/2014, which was amended by SOE Minister Regulation No. PER-06/MBU/2018 on Guidelines to Establish Remuneration of Board of Directors, Board of Commissioners, and Board of Supervisors of State-Owned Enterprise as follows: • Business scale factor • Business complexity factor • Inflation Rate • Company’s condition and financial capability • Other relevant factors, as well as not in contradiction to the laws and regulations. TOTAL NOMINAL/COMPONENT OF BOARD OF DIRECTORS’ REMUNERATION Disclosure of remuneration components for the Board of Commissioners and Board of Directors refers to Financial Services Authority Circular Number 40/SEOJK.03/2016 on Commercial Bank’s Governance Implementation in Granting Remuneration. Amount Received in 1 Year Type of Remuneration and Other Facilities Person (in million rupiah) Remuneration • Salary 11 35.396.46 • Housing Allowances 11 1.651.77 • Transportation Allowances • Religious Allowances 11 3.008.25 • Tantiem 11 128.477.99 - - Other Natura Facilities • Housing (cannot be owned) • Transportation (cannot be owned) 11 ? 7.785.97 - • Post-Employment Insurance (can be owned) 11 8.847.69 • Health (cannot be owned) 11 801.83 The remuneration in one year is grouped in income level range as follows. Table of Remuneration by Group Total Remuneration Above IDR 2 Billion Number of Person Rp Million 10 Person 165,457.41 Above IDR 1 Billion - IDR 2 Billion - - Above IDR 500 million - IDR 1 Billion - - IDR Rp500 million below - - TANTIEM Tantiem paid in 2017 was 1.17% of the Bank's net profit for the period of 1 January 2016 - 31 December 2016, which was given to the Board of Directors with a proportion of 100% for the President Director, 95% for the Vice President Director, and 90% for other members of Board of Directors. IMPLEMENTATION OF DUTIES AND RESPONSIBILITIES OF THE BOARD OF DIRECTORS 2018 Throughout 2018, the Board of Directors had implemented the management duties in accordance with the applicable laws and regulations and the Bank’s Articles of Association, which are: 1. Preparation of the Bank’s planning, among others, RBB revision 2018-2019. 2. Achieving the Bank’s performance target. 3. Asset and finance management, including share participation on companies that are not listed in stock exchange. 4. Organizing Board of Directors’ meetings. 5. Attending Board of Commissioners’ meetings. 6. Convening General Meeting of Shareholders. 7. Monitoring and improving the internal business process. 8. Other duty implementation related to the Bank’s management. 490 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  491. Good Corporate Governance BOARD OF DIRECTORS ’ PERFORMANCE ASSESSMENT The performance of the Board of Directors and each member of the Board of Directors will be evaluated by the Board of Commissioners and submitted to the Shareholders at the GMS. BOARD OF DIRECTORS PERFORMANCE ASSESSMENT USING THE SUPERIOR PERFORMANCE ASSESSMENT CRITERIA METHOD (KPKU) Ministry of SOE specifically determines the performance assessment of SOE’s Board of Directors by using KPKU method through Letter No. S-153/S-MBU/2012 dated July 19, 2012, on Performance Reporting Based on SOE's Superior Performance Assessment Criteria Approach. KPKU ASSESSMENT IMPLEMENTATION PROCEDURE The procedures for implementing KPKU Assessment are as follows 1. The Ministry of SOE establishes SOE Excellent Forum (FEB) which is tasked with implementing Assessment. 2. The Ministry of SOE delivers the FEB Team to the Bank as personnel who carries out Assessment in the Bank. 3. The FEB Team conducts Assessment and makes conclusions or assessment results. 4. The FEB team submits the Assessment results to the Ministry of SOE to be approved. 5. The Ministry of SOE determines the Assessment results. KPKU EVALUATION CRITERIA KPKU Version of Perspective Leadership, Governance, and Social Responsibility KPKU Performance Measurement Indicators ----- GCG Implementation Quality Compliance Level/fulfillment of SOE portals (assets, PKBL, FIS, HR, Public) Strategic Proper level of the Bank’s performance rating assessment program in environmental management. The suitability level of capital expenditure (capex) preparation with the company needs and synchronization with MP3E Strategic Planning --- Objective strategy development and action plan of strategy implementation. Strategy Implementation Focus on customers -- A measure that shows the Bank’s sincerity in achieving, retaining, expanding, and creating markets and customers. Focus on Manpower ---- Workforce Capability and Capacity Environment Employee Development and Engagement Effectiveness of Product and Process ------ Percentage of business process improvement The utilization level of production equipment Risk management implementation quality Measures showing the Bank’s achievements in creating value from products/services, which are realized by appropriate operational planning SOE Synergy ------ Profitability Revenue growth Efficiency/Cost Market Growth Market Control Finance and Market KPKU ASSESSORS The party conducting KPKU Assessment is the FEB Team and the Ministry of SOE. KPKU ASSESSMENT RESULTS Since MBCfPE system revision in 2015, in which the main focus of the revision result was the company's strategy, each senior leader in the company has been required to be able to develop a route of success and guarantee the survival of the company. Based on the assessment results, BNI's KPKU score always increases from time to time. The 2016 KPKU assessment results that took place at the end of January 2017 succeeded in obtaining the "Emerging Industry Leader" Band Score. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 491
  492. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk PERFORMANCE ASSESSMENT OF BOARD OF DIRECTORS’ GCG IMPLEMENTATION (SELF ASSESSMENT) ACCORDING TO PROVISIONS OF BANK INDONESIA/FINANCIAL SERVICES AUTHORITY BI/FSA specifically regulates the Board of Directors’ performance assessment based on the parameters of assessment criteria of the Duties and Responsibilities of the Board of Directors as set forth in the self assessment provisions of GCG implementation as stipulated in Bank Indonesia Circular SEOJK No. 13/SEOJK.03/2017 on Implementation of Governance for Commercial Bank. GCG SELF ASSESSMENT IMPLEMENTATION PROCEDURES The implementation procedures of GCG Self Assessment related to the Board of Directors' Performance are as follows: 1. The Board of Directors assigns the Bank’s Compliance Division (dhi. GCG unit) to carry out Self Assessment. 2. The Compliance Division coordinates all related work units including coordinating with the Board of Commissioners and the Remuneration and Nomination Committee in order to carry out the Self Assessment. 3. The Compliance Division proposes composite value recommendations including positive and negative factors to be submitted to the Board of Directors and subsequently request for approval from the Board of Commissioners. 4. The Board of Directors determines the composite value, including positive and negative factors in GCG implementation. 5. The implementation of GCG Self Assessment is conducted periodically every semester, which is then reported to BI/FSA to obtain approval. BOARD OF DIRECTORS’ SELF ASSESSMENT CRITERIA RELATED TO GCG IMPLEMENTATION The Board of Directors Self Assessment Criteria related to GCG implementation are divided into 3 (three) groups, which are Governance Structure, Governance Process, and Governance Outcome. Governance Structure consists of 16 (sixteen) indicators, Governance Process consists of 14 (fourteen) indicators, and Governance Outcome consists of 10 (ten) indicators. BOARD OF DIRECTORS SELF ASSESSMENT RESULTS RELATED TO GCG IMPLEMENTATION BNI’s GCG self assessment results for December 31, 2017, period received a composite value of 2 (good). The positive factors of Governance Structure, Governance Process, and Governance Outcome that are on the Board of Directors and outlined in the GCG Self Assessment for December 31, 2017, period are as follows: 1. The Board of Directors structure is very suitable compared to the size and complexity of the Bank’s business and has complied with the applicable regulations where the number of Board of Directors is 11 (eleven) Directors and in carrying out their duties and responsibilities, the Board of Directors have very satisfying integrity, competence, and knowledge. 2. All members of the Board of Directors do not violate the provisions of concurrent positions as stipulated in the Regulations issued by the Regulator (in this case the Financial Services Authority, Bank Indonesia, and other provisions of laws and regulations). 3. All members of the Board of Directors do not have financial, management, ownership, and family relationship with fellow members of the Board of Directors, Board of Commissioners, and/or Controlling Shareholders. 4. The Board of Directors already has a Board of Directors Work Guidance Book and is updated regularly in accordance with the applicable laws and regulations as well as best practices in GCG implementation. 5. The Board of Directors has established policies and strategic decisions through effective and efficient Board of Directors’ Meetings and every decision of the Board of Directors’ Meeting is stated in the Minutes of Board of Directors’ Meeting along with the obligation to submit follow-up reports from the implementing units. 6. The Board of Directors has accounted its duty implementation to shareholders which has been accepted by shareholders in the Annual GMS of 2017 Fiscal Year. GCG SELF-ASSESSORS The parties conducting GCG Self Assessment are Board of Directors and Board of Commissioners that shall obtain approval and monitoring from BI/FSA. 492 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  493. Good Corporate Governance KPI Based on KPKU ’s Perspective BOARD OF DIRECTORS’ PERFORMANCE ASSESSMENT THROUGH KEY PERFORMANCE INDICATOR (KPI) The Board of Directors performance assessment through KPI is carried out in a 100% collegial pattern which is measured based on 5 (five) KPKU's perspective and the achievement of the implementation of SOE tasks as an Agent of Developmen: Perspective No Finance and Market 1 Focus on Customers Effectiveness in Product and Process Focus on Manpower Leadership, Governance, and Social Responsibility Agent of Development Synergy among SOEs Downstreaming and Local Content Integrated Regional Economic Development KPI Unit Income After Tax Trilion Rp 2 Market Cap Growth % 3 NPL Ratio % 4 Cost to Income Ratio 5 Customer Satisfaction Survey Result by Independent Surveyor % 6 Implementation on PAB that has already been approved by the Financial Services Authority 7 Improvement of Digitalized Banking Products and Services 8 Growth of Branchless Banking Agent Ratings % % Total 9 Online Subrogation System Development for KUR 10 Employee Productivity Unit 11 Employee Engagement Survey Score 12 KPKU Score Score 13 Realization of Distribution of Partnership and Community Development Program 14 Corporate Governance Perception Index 1 Realization of Total Interest Income from SOE/Total Interest Income Rp/Worker to RKAP budget % Score % 2 Realization of DPK from SOE/Total DPK % 3 )Implementation of ATM, Merah Putih EDC (OPEX Efficiency % 4 Improvement of Fee Based Income Trillion Rp 5 Improvement of Non-Interest Income Trillion Rp 6 Increase in the Total Creative House Total 7 Increase in Total Village-Owned Enterprise Total Financial Independence and Value Creation 8 Financing Bank Himbara for Infrastructure Sector Government Assignment 9 Realization of KUR Distribution % 10 Realization of BANSOS and Tani Card % Trillion Rp PERFORMANCE ASSESSMENT OF COMMITTEES UNDER THE BOARD OF DIRECTORS In carrying out its management duties, the Board of Directors establishes committees at Board of Directors’ level according to BNI’s business needs and regulatory requirements, which are expected to create operational effectiveness and efficiency, including: 1. Credit Committee 2. Integrated Risk Management Committee 3. Risk and Capital Management Committee 4. Product Committee 5. Performance Management Committee 6. Technology Management Committee 7. Credit Policy and Procedure Committee 8. Human Capital Committee Assessment of members of Committees under the Board of Directors is conducted by the Board of Directors by appraising their Duties, in accordance with the Committee Charter, Competencies, and Skills, as well as Attendance Levels of the Committee members. The Board of Directors periodically assesses the performance of Committees under the Board of Directors. Throughout 2018, the performance assessment of the committees under the Board of Directors was entirely satisfying. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 493
  494. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BOARD OF DIRECTORS’ RESIGNATION AND DISMISSAL MECHANISM The mechanism of resignation and dismissal of the Board of Directors is stipulated in the Company’s Articles of Association, which refers to Financial Services Authority Regulation No. 32/POJK.04/2014 and Financial Services Authority Regulation No. 33/POJK.04/2014, stating that: 1. The GMS may dismiss members of the Board of Directors at any time by stating the reasons. 2. The reason for dismissing member of the Board of Directors are made, in the event that based on fact, the related member of the Board of Directors: a. Does not perform/underperforms in fulfilling the obligations that have been agreed upon in the management contract. b. Does not perform the duties properly. c. Violates the provisions of Articles of Association and/ or laws and regulations. d. Engaged in action that harms the Company and/or State. e. Commits action that violates ethics and/or properness that must be upheld as Board of Directors. f. Convicted by a Court decision that has permanent legal force. g. Resigns. h. Other reasons considered appropriate by the GMS for the interests and objectives of the Company. 3. The decision for dismissal shall be made after the related person has had the opportunity to defend him/herself, except for reasons as referred to in item 2 letter f and g. 4. Termination for reasons as referred to in item 2 letter d and f shall constitute dishonorable dismissal. 5. A member of the Board of Directors may resign from his/ her post before the term of office expires. In this matter, the member of the Board of Directors who resigns must state such intention in writing to the Company. 6. The Company must convene GMS to resolve the resignation proposal of members of the Board of Commissioners no longer than 90 (sixty) days after receipt of the resignation letter. 7. Member of the Board of Directors who resigns before or after his/her term of office expires, unless due to death, shall still be responsible to submit accountability for actions that have not been received by the GMS. 8. Member of Board of Directors may be dismissed temporarily by the Board of Commissioners by stating the reasons in the event that such member acts in contrary to the Articles of Association or there is an indication of doing an action that harms the Company or neglects in performing obligations or there are compelling reasons for the Company by considering the following provisions: 494 Adapting Quickly to Face Change a. Such temporary dismissal shall be notified in writing to the concerned member of the Board of Directors along with the reasons causing such action with a copy to the Board of Directors; b. The notification as referred to in item 8 letter a shall be delivered no later than 2 (two) business days after the determination of such temporary dismissal; c. The temporary dismissed member of the Board of Directors is not authorized to perform Company management in the Company’s interest in accordance with the Company’s purposes and objectives nor to represent the Company, either inside or outside court; d. Within a period of no later than 90 (ninety) days after such temporary dismissal, the Board of Commissioners shall convene the GMS to withdraw or enforce such temporary dismissal resolution; e. In the event that the time period to convene GMS as referred to in item 8 letter d has passed or the GMS cannot adopt a resolution, then such temporary dismissal shall become void; f. The limitation of authority in item 8 letter c shall be effective since the decision of temporary dismissal by the Board of Commissioners until: -- There is a GMS resolution that reinforces or cancels the temporary dismissal in item 8 letter d; or -- The time period in item 8 letter d has passed; g. In the GMS as referred to in item 8 letter d, the related member of the Board of Directors is given an opportunity to defend him/herself. h. Such temporary dismissal cannot be extended or re-established for the same reasons, in the event that such temporary dismissal is declared void as referred to in item 9 letter e. i. In the event that the GMS cancels a temporary dismissal or there are circumstances as referred to in item 8 letter e, then the related member of the Board of Directors must resume the duties properly. j. In the event that the GMS reaffirms the temporary dismissal resolution, then the related member of the Board of Directors shall be dismissed going forward. k. In the event that the temporary dismissed member of the Board of Directors is not present at the GMS after being summoned in writing, then the temporary dismissed member of the Board of Directors shall be deemed not to have exercised the right to defend him/herself in the GMS and has accepted the GMS resolution. PT Bank Negara Indonesia (Persero) Tbk
  495. Good Corporate Governance ORGANS AND COMMITTEES UNDER THE BOARD OF COMMISSIONERS In implementing its duties , the Board of Commissioners is assisted by the Secretary of the Board of Commissioners and the Supporting Committees, which are Audit Committee, Nomination and Remuneration Committee, Risk Monitoring Committee, and Integrated Governance Committee. All of these committees are chaired by Independent Commissioner. The details are as follows. 8. Performance assessment of Secretariat of the Board of Commissioners, 9. Prohibition of concurrent positions, 10. Mechanism for Coordination of the Secretariat of the Board of Commissioners with the Corporate Secretary and committees under the Board of Commissioners. SECRETARY OF THE BOARD OF COMMISSIONERS REQUIREMENTS OF SECRETARY OF BOARD OF COMMISSIONERS The Secretary of the Board of Commissioners shall fulfill the following requirements: 1. Understand SOE’s management, monitoring, and development systems; 2. Have good integrity; 3. Understand secretariat function; 4. Have the ability to communicate and coordinate properly; 5. Have sufficient time to perform the duties at the Bank. Based on BNI's Articles of Association, to facilitate its duties, the Board of Commissioners can be assisted by Secretary of the Board of Commissioners who is appointed by the Board of Commissioners. The Secretary of BNI’s Board of Commissioners comes from outside the Bank, who is appointed and dismissed by the Board of Commissioners based on the Board of Commissioners' Decision Letter and is directly responsible to the Board of Commissioners. The Secretary of BNI’s Board of Commissioners oversees the Secretariat of the Board of Commissioners, which is formed and tasked with assisting and supporting the smooth activities and duties of the Board of Commissioners and in carrying out the duties, the Secretary of the Board of Commissioners is assisted by Staff of Secretary of the Board of Commissioners, who is from outside the company and Staff who is an internal staff of the Bank. Duty implementation of the Secretary of the Board of Commissioners and the Secretariat of the Board of Commissioners are guided by the Regulation of State Minister for State-Owned Enterprises No. PER-12/MBU/2012 dated August 24, 2012, on Supporting Organs of the Board of Commissioners/Supervisory Board of State-Owned Enterprises, which among others regulates the Secretariat of the Board of Commissioners and Secretary of the Board of Commissioners. The Board of Commissioners have issued a Decision Letter of the Board of Commissioners No. KEP/041/DK/2017 dated September 28, 2017, on Guidelines and Work Conduct of the Secretariat of the Board of Commissioners, which regulates the following matters: 1. Appointment and Position of Secretary of the Board of Commissioners, 2. Term of Office of the Secretary of the Board of Commissioners and Secretariat Staff of the Board of Commissioners who is from outside the bank, 3. Requirements for Secretary of the Board of Commissioners, 4. Remuneration of the Secretary of the Board of Commissioners and Secretariat Staff of the Board of Commissioners who is from outside the bank, 5. Duties of Secretariat and Secretary of the Board of Commissioners, 6. Access to and confidentiality of information, 7. Working time of the Secretary of the Board of Commissioners and Secretariat Staff of the Board of Commissioners who is from outside the bank, PT Bank Negara Indonesia (Persero) Tbk  DUTIES AND RESPONSIBILITIES OF SECRETARY OF THE BOARD OF COMMISSIONERS The Secretary of the Board of Commissioners has duties and responsibilities to facilitate the duty implementation of the Board of Commissioners in performing the supervisory function on policies and the course of management of the bank by the Board of Directors in accordance with the applicable laws and regulations, as well as ensuring the implementation of Good Corporate Governance (GCG) in each of the Bank’s business activities. Duties and Responsibilities of the Secretary of the Board of Commissioners: 1. Coordinating the duties of the Secretariat of the Board of Commissioners in performing the following tasks: a. Preparing meeting, including briefing sheet of the Board of Commissioners; b. Preparing Minutes of Board of Commissioners’ Meeting according to the Bank’s Articles of Association, including attending and preparing Minutes of joint meeting of the Board of Commissioners and Board of Directors; c. Administering Board of Commissioner’s documents either incoming letters, outgoing letters, minutes of meeting, or any other documents; d. Drafting Work Plan and Budget of the Board of Commissioners; e. Drafting Board of Commissioners’ Reports; 2. In addition to performing duties as stated in number 1 above, the Secretary of the Board of Commissioners as the head of the Secretariat of the Board of Commissioners performs the following duties: a. Ensuring that the Board of Commissioners complies with the laws and regulations and implements Good Corporate Governance principles; b. Providing information needed by the Board of Commissioners periodically or at any time when requested; c. Coordinating Committee members, if necessary, to ensure the ease of the Board of Commissioners’ duties; d. Becoming the liaison officer between the Board of Commissioners and other parties; Adapting Quickly to Face Change 495
  496. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk e. Performing other duties given by the Board of Commissioners, among others but not limited to: -- Coordinating the draft of Board of Commissioners’ Decision Letter; -- Coordinating study/review necessary by the Board of Commissioners; -- Accompanying the Board of Commissioners during work visit/official travel at work units within the Bank’s environment and coordinating with committees under the Board of Commissioners in preparing the report of such work visit/official travel of the Board of Commissioners; -- Accompanying the Board of Commissioners in meetings with the regulators or bank’s supervisory party related to the duties and obligations of the Board of Commissioners as the bank’s supervisor. 3. In the framework of administration order and good Corporate governance implementation, the Secretariat of the Board of Commissioners must ensure that documents reflecting Board of Commissioners’ activities are well-kept at the Bank. PROHIBITION OF CONCURRENT POSITIONS FOR SECRETARY OF THE BOARD OF COMMISSIONERS The Secretary and Secretariat Staff of the Board of Commissioners who is from outside the bank cannot hold concurrent positions as: 1. Member of the Board of Commissioners/Supervisory Board at other SOE/Company; 2. Secretary/Secretariat Staff of the Board of Commissioners at other State-Owned Enterprise (SOE) of company; 3. Member of other committees at the Bank; and/or 4. Member of committee at other SOE/company. PROFILE OF SECRETARY OF BOARD OF COMMISSIONERS The Secretary of the Board of Commissioners at present is Fahrudin, who has been appointed as Secretary of BNI’s Board of Commissioners since July 3, 2017, based on Decision Letter of the Board of Commissioners No. KEP/032/DK/2017 dated July 3, 2017. Fahrudin Secretary to the Board of Commissioners Born in 1983, Graduated from Sekolah Tinggi AkuntansiNegara, Non-Degree Program in Accounting in 2005, Bachelor of Accounting, Universitas Indonesia in 2009and Master of Accounting, Universitas Gadjah Mada in 2012.Currently also serves as Head of Sub Analysis and Information Presentationat the Ministry of SOEs (2015 - present), previously served as InformationPresentation Sub Division Head at Ministry of SOEs (2014 - 2015), servedas Audit Committee Member at PT Perkebunan Nusantara XI (Persero)(2013-2016), Secretary to the Board of Commissioners PT PembangunanPerumahan (Persero) Tbk (April 2016-October 2017). Secretary to the Board of Commissioners’ Competence Development No. Training Time Place Organizer  1.  Excellence Supervisory Skills 14-15 Mei 2018 May 14-15, 2018  Jakarta  Elevate-MHG  2.  Legal for Non Legal 25-26 Oktober 2018 October25-26, 2018  Jakarta  Value Consult SECRETARY TO THE BOARD OF COMMISSIONERS’ IMPLEMENTATION OF DUTIES in 2018 During 2018, the Secretary to the Board of Commissioners carried out the functions and duties to assist and support the implementation of the duties of Board of Commissioners through the provision of information, studies and reports to the Board of Commissioners, generally including the following matters: 1. Assisting in the preparation the Board of Commissioners’ FY 2019 Work Plan and FY 2018 Work Plan Realization Report. 2. Assisting in the preparation of Board of Commissioners’draft reports which are the obligation of the Board ofCommissioners in accordance with the applicableregulators, among others: 496 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  497. Good Corporate Governance 3 . 4. 5. 6. 7. a. Reports to the SOE Ministry quarterly b. Reports to FSA c. Reports of Board of Commissioners’ working visits Monitoring, reviewing and informing the Latest legislation development to be submitted to the Board of Commissioners, including the creation, renewal/adjustment of the Board of Commissioners’ Decrees as well as charters forcommittees under the Board of Commissioners based on applicable rules and regulations. Coordinating and organizing Board of Commissioners meetings, and Board of Commissioners meetings with Board of Directors including preparing meeting schedules, materials, preparing and administering minutes of Board of Commissioners meetings, providing recommendations and opinions of Boardof Commissioners based on meetingsof the Board of Commissioners with the Boardof Directors and monitoring the follow-up of therecommendations and opinions from Board of Commissioners. Assisting and facilitating the duties of Committees under the Board of Commissioners aspart of the Board of Commissioners’ duties based on applicable laws, among others: a. Coordinating division of the committees under the Board of Commissioners. b. Coordinating and organizing meetings of committees under the Board of Commissioners, including preparing meeting materials,preparing and administering minutes of meetings, and providing recommendations and opinions on the evaluation and committee meetings to theBoard of Commissioners as input. c. Monitoring the implementation of the committees’ Work Plan under the Board of Commissioners. d. Ensuring the completion of committees’ reports under the Board of Commissioners. Carrying out administrative duties related to the smooth operation of the Commissioner’s duties, namely the management, storage and administration of minutes of meetings of the Board of Commissioners, and meetings of the Board of Commissioners with the Boardof Directors, as well as minutes of meetings ofCommittees under the Board of Commissioners, documents/correspondence of the Board ofCommissioners including preparing drafts ofapproval letters, and strategic input/advice of the Board of Commissioners submitted to the Boardof Directors or other parties. Accompanying the Board of Commissioners official visit to work units within the Company, andat meetings with regulators or bank supervisorsrelated to the duties and obligations of the Board ofCommissioners. PT Bank Negara Indonesia (Persero) Tbk  AUDIT COMMITTEE The Audit Committee is a committee formed by and responsible to the Board of Commissioners in helping carry out the duties and functions of Board of Commissioners in order to ensure good governance in the business activities, and supervision of the duties and responsibilities of the Board of Directors. AUDIT COMMITTEE FORMATION BASIS The BNI Audit Committee was established in 2000 based on the Board of Commissioners' Decree No. Kep/05/DK/2000 dated July 28, 2000 regarding the Establishment of the Audit Committee. The BNI Audit Committee Charter is continuously refined and updated in accordance with the applicable rules and regulations’ developments/amendments and current conditions. The latest amendments to BNI Audit Committee Charter were made in 2017 stipulated by the Board of Commissioners Decree No. KEP/037/DK/2017 dated September 14, 2017 regarding the Audit Committee Charter and Code of Conduct of PT Bank Negara Indonesia (Persero) Tbk, with the following rules: 1. FSA Regulation No. 55/POJK.04/2015 dated December 23, 2015, regarding the Establishment and Work Guidelines of the Audit Committee. 2. FSA Regulation No. 55/POJK.03/2016 dated December 7, 2016, regarding Implementation of Governance for Commercial Banks. 3. FSA Regulation No. 13/POJK.03/2017 dated March 27, 2017, regarding the Use of Public Accounting Services and Public Accounting Firms in Financial Service activities. 4. State Minister for State-Owned Enterprises Regulation No. PER-12/MBU/2012 dated August 24, 2012, regarding Supporting Organsof the Board of Commissioners/ Supervisory Board of State-Owned Enterprises. 5. Board of Directors of PT Bursa Efek Indonesia Decree No. Kep-00001/BEI/01-2014 dated January 20, 2014, regarding Amendment to Regulation Number I-A regarding Stock Listing and Equity-Type Securities Issued by the Listed Company. Audit Committee Charter The Audit Committee Charter covers the structure andterms of membership, tenure, duties and responsibilities, authorities, meetings of the Audit Committee, as well as reporting obligations on the Audit Committee executionof duties or activities. The Audit Committee’s Code of Conduct covers integrity, objectivity and independence, confidentiality, and competence. Adapting Quickly to Face Change 497
  498. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Audit Committee Duties and Responsibilities The Audit Committee hasduties and responsibilities to: 1. Review the financial information to be published by the Company to the public and/or authorities, such as financial statements, projections,and other statements relating to the Company’s financial information. 2. Review the adherence to laws and regulations relating to the Company’s activities. 3. Provide independent opinion in the case of: a. disagreements between management and the Accounant for services rendered; and/or b. non-compliance of the public accounting firm’s audit with applicable auditing standards. 4. 4. Provide recommendations to the Board of Commissioners on the appointment of a Public Accountant and Public Accounting Office to be submitted to the General Meeting of Shareholders. Recommendations at least consider: a. Independence of Public Accountant, Public Accounting Firm and insiders of the Public Accounting Firm; b. Audit scope; c. Remuneration of audit services; d. Expertise and experience of Public Accountant, Public Accounting Firm and Audit Team of Public Accounting Firm; e. Methodology, techniques and audit facilities used by the Public Accounting Firm; f. Fresh eye perspectives that will be obtained through the replacement of Public Accountant, Public Accounting Firm, and Audit Team from Public Accounting Firm; g. Potential risks for the use of audit services by the same Public Accounting Firm successively for a sufficiently long period of time; and/or h. Evaluation result on the implementation of audit services for annual financial information by Public Accountant and Public Accountant Office in the previous period, if any. The Audit Committee is obliged to ensure that reports on the appointment of a Public Accountant and/or Public Accounting Office in the framework of an audit of annual historical financial information attached to the document of appointment of a Public Accountant and/or Public Accounting Office accompanied by recommendations and considerations from the Audit Committee,shall be reported to the Financial Services Authority periodically every year at the latest 10 working days after the appointment of a Public Accountant and/or Public Accounting Office; 5. Evaluate the audit services for annual historical financial information by Public Accountant and/or Public Accounting Office, at least through: a. The suitability of the audit performed by the Public Accountant and/or Public Accounting Office with the applicable audit standards; 498 Adapting Quickly to Face Change 6. 7. 8. 9. 10. b. adequacy of fieldwork time; c. assessment of the scope of services provided and the adequacy of the quotation test; and d. recommendation for improvements provided by the Public Accountant and/or Public Accountant Office. The Audit Committee is obliged to ensure that the Audit Committee’s evaluation report on the execution of audit services on annual historical financial information by a Public Accountant and/or Public Accounting Office shall be reported to the Financial Services Authority periodically every 6 months after the end of the financial year; 6Review the execution of audits by internal auditors and external auditors, and overseethe implementation of follow-up actions by the Board of Directors on the auditor findings, in order to provide recommendations to the Boardof Commissioners; Review complaints relating to the Company’s accounting and reporting process; Examine allegations of errors in decisions at the Board of Directors Meetings, or irregularities in theexecution of the Board of Directors’ decisions. Such inspections may be conducted bythe Audit Committee, or an independent partyproposed by the Audit Committee and approvedby the Board of Commissioners at the expense ofBank; Review and advice the Board of Commissionersregarding potential conflict of interest;and Maintain the confidentiality of documents, data and information. In carrying out its duties and responsibilities, the AuditCommittee takes into account the Audit Committee Code of Conduct as follows: 1. Integrity Audit Committee Members are committed to always being consistent in thoughts, sayings andactions based on conscience and belief in essentialtruth principles. In performing their duties AuditCommittee Members: a. ashall carry out their duties honestly, diligently and responsibly; b. shall be subject to the law and make disclosures in accordance with the rules of law and profession; c. shall practice and encourage others to act in aprofessional manner; d. shall respect and support the established Visionand Mission of BNI; e. shall be prohibited from intentionally becoming part of illegal activities, or engaging inacts that undermine the credibility of the Audit Committee; f. shall be prohibited from deliberate misrepresentation or manipulation in carrying out the duties,responsibilities and authorities given. 2. Objective and Independent The Audit Committee members provide fair and PT Bank Negara Indonesia (Persero) Tbk
  499. Good Corporate Governance balanced assessments of all relevant conditions and are not affected by the personal or other interests of the party in expressing their opinions . In performing their duties, Audit Committee Members: a. shall pay attention to balance, and place the interests of stakeholders above other interests; b. shall disclose all material facts which, if not disclosed, may obscure the result reporting; c. shall disclose if there is a relationship that hasthe potential to affect explicit judgment andcause a conflict of interest; d. shall be prohibited from accepting anything that may, or may potentially, affect professional judgment. 3. Confidentiality Audit Committee Members shall always keep the confidentiality of information that is secret and confidential to the Bank in accordance with the Bank’s policies and prevailing regulations. Inperforming their duties, Audit Committee Members a. shall be prudent in the use and safeguard of information obtained; b. shall be prohibited from using information forpersonal or other purposes unless there is a legal obligation or professional obligation. 4. Competence Audit Committee Members use their knowledge, expertise, and experience necessary to perform the tasks, responsibilities, and authorities provided. In performing their duties, Audit Committee Member: a. shall perform the duties, responsibilities, and authorities given in accordance with their competence; b. shall maintain and improve their knowledge and expertise sustainably. Audit Committee Authorities In performing its duties, the Audit Committee has the authority to: 1. Access documents, data and information about the Company’s employees, funds, assets and resources as required. 2. Communicate directly with employees, including Board of Directors and those who performthe function of internal audit, risk management and accountant related to duties andresponsibilities of the Audit Committee. PT Bank Negara Indonesia (Persero) Tbk  3. Involve independent parties outside of the Audit Committee required to assist the implementation of the duties (if required); and 4. Perform other authorities granted by the Board of Commissioners. In exercising its authority, the Audit Committee works in cooperation with SPI. AUDIT COMMITTEE MEMBERS TERM OF OFFICE Audit Committee term of office is as follows: a. Audit Committee members term of office may not be longer than the Board of Commissioners term of office as stipulated in the Articles of Association and can be reelected only for the next 1 (one) period. b. If the member of the Commissioner who is the chairman of the Audit Committee stops before his term of office as a Commissioner of the Company, the Audit Committee is replaced by another Independent Commissioner. Audit Committee Structure, Membership and Expertise The structure of the Audit Committee is set forth in the Audit Committee Charter set by the Board of Commissioners, as follows: 1. The Audit Committee is established by and responsible to the Board of Commissioners. 2. The Audit Committee members are appointed and dismissed by the Board of Commissioners. 3. The Audit Committee members shall consist of at least: a. an independent commissioner; b. one independent party with expertise in finance or accounting; and c. one independent party with expertise in law or banking. 4. The Audit Committee Chairman may only hold the position of Committee Chairman in no more than 1 (one) other committee. 5. Audit Committee membership comprises an Independent Commissioner as Audit Committee Chairman. In the case of more than one Independent Commissionerbeing members of the Audit Committee, then one of them will act as the Audit Committee Chairman. Adapting Quickly to Face Change 499
  500. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Table of Audit Committee Structure, Membership and Expertise Nama/Name Jabatan/Position Keterangan/Description Keahlian/Expertise Pataniari Siahaan Chairman Independent Commissioner Law Ahmad Fikri Assegaf Member Independent Commissioner Law Donnaria Silalahi Member Independent Party Banking and Technology Lungguk Gultom* Member Independent Party Banking and Technology *) served as member of the Audit Committee since January 2, 2018 To comply with the FSA Regulation No. 55/POJK.04/2015 dated December 23, 2015 regarding the Implementation of Good Corporate Governance for Commercial Banks, information on the appointment and dismissal of the Audit Committee has been submitted to Financial Services Authority at a maximum of 2 (two) days after appointment ordismissal, and has been posted on the Securities Exchange Website and/or Bank’s Website. Audit Committee Profiles Audit Committee Chairman PATANIARI SIAHAAN Profile can be viewed in the Board of Commissioners section Audit Committee Member AHMAD FIKRI ASSEGAF Profils can be viewed in the Board of Commissioners section Audit Committee Member DONNARIA SILALAHI Indonesian citizen, domiciled in Jakarta. Born on September 16, 1952, 66 years old. Appointed as a Company Audit Committee member in June 2016 based on the Decree of the Board of Commissioners No.KEP/020/DK/2016 dated May 26, 2016 and Decree of the Board of Commissioners No.KEP/007/ DK/2018 dated May 24, 2018. She held several important positions in several companies, including QA & HC Operation Division Head (EVP) (20142015) and Operational DivisionHead (EVP) (2012-2013) at PT Bank Savings Pensiun Nasional Tbk. and PT Bank BTPN Syariah, Operational Risk Division Head (EVP) at PT BankOCBC NISP Tbk. (2009-2012), various positions with the last position as Operation Risk Management Head (EVP) at PT Bank Danamon IndonesiaTbk. (2001-2009), and various positions with the last position as System and Operation Policy Group Head (VP) at PT Bank Niaga Tbk. (1984-2001). 500 Adapting Quickly to Face Change Audit Committee Member LUNGGUK GULTOM Indonesian citizen, domiciled in Jakarta. Born on December 30, 1954, currently 64 years old. Appointed as a member of the Audit Committee since January 2018 based on the Decree of the Board of Commissioners No.KEP/053/DK/2017 dated December 21, 2017. He holds a Bachelor’s degree in Economics,majoring in Management from Universitas Parahyangan in 1979. He held various important positions in several companies, including as a Member of the Board of Directors (2013-2017) and Member of Audit Committee and Risk Monitoring Committee (2011-2013) at PT BPD Banten Tbk, Member of the Audit Committee and Risk Monitoring Committee at PT Bank Commonwealth Indonesia (2011-2013), Risk Management and Compliance Division Head (2002-2003) and Internal Audit Division Head (2001-2002) at PT Bank Danamon Indonesia Tbk ., Asset Management Investment Division Head at the National Bank Restructuring Agency (IBRA) (1999-2001), and various positions with the last position as Corporate Banking Group Head at PT Bank Niaga Tbk. (19821999). PT Bank Negara Indonesia (Persero) Tbk
  501. Good Corporate Governance Audit Committee Education Qualifications and Work Experience In general , the requirements of the Audit Committee are as follows: 1. Must have high integrity and good moral character, ability, knowledge, experience in accordance with the line of work and ability to communicate well; 2. Shall not be a person who works or has the authority and responsibility for planning, directing, controlling, orsupervising the activities of the company within the last 6 (six) months unless as Independent Director; 3. Shall not be a person from a public accounting firm, law firm, public appraisal services office or any other parties that have provided assurance services, nonassurance services, appraisal services and/or other consultingservices to the company within the last 6 (six) months; 4. Must understand financial statements, the Company’s businesses, particularly related to the service or businessactivities, audit process, risk management and 5. 6. 7. 8. 9. 10. 11. rules and regulations in capital marketsand other related rules and regulations; Mustbe subject to the Code of Conduct set by the Audit Committee; Shall be willing to increase their competence continuously through education and training; Must have at least one member who has an educational background and expertise in accounting and/or finance; Shall not have a direct or indirect stake in the Company; In the case of audit committee members acquiring Company’s shares either directly or indirectly as a resultof a legal event, then such shares shall be transferred to another party within a maximum period of 6 (six)months after obtaining such shares; Shall not have affiliated with members of the Board of Commissioners, members of the Board of Directors or majorshareholders of the Company; and Shall not have a business relationship, directly or indirectly related to the Company’s business activities. As of December 31, 2018, the Chairman and Members of the Audit Committee educational qualifications and work experiences are as follows. Table of Education Qualifications and Work Experiences of Audit Committee Name Pataniari Siahaan Position Education Chairman His education history can be viewed in the Board ofCommissioners DiversityComposition section • His work experience can be viewed in the Board ofCommissioners DiversityComposition section His education history can be viewed in the Board of Commissioners Diversity Composition section • His work experience can be viewed in the Board of Commissioners Diversity Composition section • QA & HC Operation Division Head (EVP)and Operational Division Head (EVP) atPT Bank Tabungan Pensiun Nasional Tbk& PT Bank BTPN Syariah Operational Risk Division Head (EVP) atPT Bank OCBC NISP Tbk Various positions with the last positionbeing Operation Risk ManagementHead (EVP) at PT Bank DanamonIndonesia Tbk Various positions with the last positionbeing System and Operation PolicyGroup Head (VP) at PT Bank Niaga Tbk Ahmad Fikri Assegaf Donnaria Silalahi Member Work Experience • • • Lungguk Gultom Member Bachelor’s degree in Economy • • • • • PT Bank Negara Indonesia (Persero) Tbk  Member of the Board of Directors as well as Member of the Audit Committee and Risk Monitoring Committee at PT BPD Banten Tbk Member of the Audit Committee and Risk Monitoring Committee at PT Bank Commonwealth Indonesia Risk Management and Compliance Division Head and Internal Audit Division Head at PT Bank Danamon Indonesia Tbk Asset Management Investment Division Head at the Indonesian Bank Restructuring Agency (IBRA) Various positions with the last position as Corporate Banking Group Head at PT Bank Niaga Tbk Adapting Quickly to Face Change 501
  502. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk AUDIT COMMITTEE INDEPENDENCE The independence of the Audit Committee is governed by the BNI Audit Committee Codeof Conducts. The Audit Committee members provide fair and balanced assessments of allrelevant conditions and are not affected by personal or other parties interests inexpressing their opinions. All Members of the Audit Committee shall be independent parties with no financial, management, share ownership and/or family relationship with the Board ofCommissioners, Board of Directors and/or Controlling Shareholders or relationship withthe Bank, which could affect their ability to act independently. No Member of the AuditCommittee can be a member of other committees. Table of Audit Committee Independence Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom No financial relationships with the Board of Commissioners and Board of Directors ü ü ü ü No management relationships inthe company, subsidiaries or affiliatedcompanies ü ü ü ü No shares in the company ü ü ü ü No family relationships withthe Board of Commissioners, Board of Directors, and/or fellow members of theAudit Committee ü ü ü ü Not serving on the board of politicalparty or government official ü ü ü ü Independence Aspect AUDIT COMMITTEE MEETING The rules of Audit Committee meeting as set forth in the Audit Committee Charter are: 1. The Audit Committee shall hold meetings at leastonce a month. 2. Decisions can be made if attended by at least 51% (fifty one percent) ofthe number of members including an IndependentCommissioner and Independent Party. 3. Decisions are doneby consensus. In the event that deliberation can not be made,it shall be decided bymajority votes. 4. The meetings will be chaired by the Audit CommitteeChairman or an Independent Commissioner memberof the Audit Committee if the Audit CommitteeChairman is unable to attend. 5. All meetings must be documented in the minutes of meetings, signed by all members present. Any dissenting opinions shall be clearly detailed in the minutes ofmeetings. AUDIT COMMITTEE AGENDA The dates, agendas and attendees of the Audit Committee Meetings in 2018 as follows Table of Audit Committee Agenda No. 502 Date Agenda Attendees 1. January 9, 2018 • Audit Progress Fiscal Year 2017 • • • • Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom 2. January 11, 2018 • Financial Statement Publication – December 31, 2017 • • • • Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom 3. January 18, 2018 • • • • • • • • • Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom • Realization of Compliance Division Review up to 4th Quarter of 2017 Compliance Division Work Plan for 2018 Anti-Fraud Strategy Program Whistleblowing System Program POJK No.14/POJK.03/2017 dated April 4, 2017 regarding Recovery Plan for Systemic Banks Audit Committee Reports for the 2017 Annual Report 4. January 25, 2018 • Establishment of KAP Procurement HPS Review for 2018 • • • Pataniari Siahaan Donnaria Silalahi Lungguk Gultom Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  503. Good Corporate Governance No . Date Agenda Attendees 5. February 1, 2018 • • Establishment of KAP Procurement HPS Review for 2018 Realization of Facilities for Board of Directors and Board of Commissioners Review – 2018 • • • • Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom 6. February 15, 2018 • • DPLK Performance Review – December 31, 2017 DPLK Risk Management Implementation Review – December 31, 2017 • • • • Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom 7. February 22, 2018 • • • • • RKAT SPI Implementation of the 4th Quarter of 2017 Evaluation Audit Results Evaluation Follow-up on SPI Inspection Follow-up on External Auditors Examination Follow-up on Fraud Case Monitoring • • • Pataniari Siahaan Ahmad Fikri Assegaf Lungguk Gultom 8. March 8, 2018 • • Recommendation for Appointment of KAP for Fiscal Year 201 The Release of Land & Building Assets Review in Parepare • • • • Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom 9. April 18, 2018 • Financial Statement Publication – March 31, 2018 • • • • Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom 10. April 26, 2018 • • Audit Progress Financial Year 2017 Credit Card Auto Write-Off Review (Board of Commissioners Meeting) • • • • Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom 11. May 17, 2018 • • • • • • SPI RKAT Implementation of the 1st Quarter of 2018 Evaluation Material SPI Findings Follow-up on SPI Inspection Follow-up on External Auditors Examination Follow-up on Fraud Case Monitoring Compliance Function Implementation and Material Cases Development (Board of Commissioners Meeting) • • • • Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom 12. May 24, 2018 • • • • • SPI RKAT Implementation of the 1st Quarter of 2018 Evaluation Material SPI Findings Follow-up on SPI Inspection Follow-up on External Auditors Examination Follow-up on Fraud Case Monitoring • • • • Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom 13. June 28, 2018 • BNI Intern Audit Function Review Year 2015-2017 • • • Pataniari Siahaan Donnaria Silalahi Lungguk Gultom 14. July 12, 2018 • Financial Statement Publication – June 30, 2018 • • • • Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom 15. August 2, 2018 • Audit Kick Off Fiscal Year 2018 (Board of Commissioners Meeting • • • • Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom 16. August 14, 2018 • • • • • SPI RKAT Implementation of the 2ndQuarter of 2018 Evaluation Audit Result Evaluation Follow-up on SPI Inspection Follow-up on External Auditors Examination Follow-up on Fraud Case Monitoring • • • • Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom 17. September 20, 2018 • • • Realization of Compliance Division Review up to the 2ndQuarter of 2018 Anti-Fraud Strategy Program Whistleblowing System Program • • • • Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom 18. October 16, 2018 • Financial Statement Publication – September 2018 • • • • Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 503
  504. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. Date Agenda 19. November 1, 2018 • • • • • SPI RKAT Implementation of the 3rd Quarter of 2018 Evaluation Audit Result Evaluation Follow-up on SPI Inspection Follow-up on External Auditors Examination Follow-up on Fraud Case Monitoring • • • Pataniari Siahaan Donnaria Silalahi Lungguk Gultom 20. November 8, 2018 • • • • Pataniari Siahaan Donnaria Silalahi Lungguk Gultom • • Review of Progress in Resolving SPI Audit Result, Recommendation for SPI & Disposition of Board of Directors of the3rdQuarter of 2018 OJK Letter No.SR-126/PB.31/2018 dated November 1, 2018 regarding Improving Effectiveness of Commissioners Duties KAP Procurement Preparation for Fiscal Year 2019 Special attention for SPI Findings • Attendees 21. November 22, 2018 • Audit Progress Fiscal Year 2018 (Board of Commissioners Meeting) • • • Pataniari Siahaan Donnaria Silalahi Lungguk Gultom 22. December 4, 2018 • • • • Realization of Compliance Division Review up to the 3rd Quarter of 2018 Anti-fraud Strategy Program Whistleblowing System Program Compliance Division Work Plan Year 2019 • • • • Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom 23. December 5,2018 • • RKAT and SPI Audit Methodology 2019 SPI ORSA • • • • Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom AUDIT COMMITTEE MEETING FREQUENCY AND ATTENDANCE In 2018, the Audit Committee held 23 (twenty three) meetings, such as internal Committee meetings, joint meetings Sector Directors and related Divisions, as well as Board of Commissioners Meetings attended by Audit Committee Members so that substantive matters could be immediately reported to the Board of Commissioners. The followings are the Audit Committee Meetings frequency and attendance Name Position Number of Meetings Attendance Percentage Pataniari Siahaan Chairman 23 23 100% Ahmad Fikri Assegaf Member 23 18 78,26% Donnaria Silalahi Member 23 22 95,65% Lungguk Gultom Member 23 23 100% BRIEF REPORT OF AUDIT COMMITTEE ACTIVITIES IN 2018 n order to carry out good management of the Company (Good Corporate Governance), the Board of Commissioners has established an Audit Committee with reference to the prevailing regulations. The Audit Committee Duties and Responsibilities, as well as Code of Conduct are governed by the Audit Committee Charter, and the Code of Conduct was established by the Board of Commissioners. To comply with OJK Regulation No. 55/POJK.04/2015 dated December 23, 2015, BNI has posted the Audit Committee Charter and other information required in the OJK Regulations on Bank’s Web Site. In 2018, the Audit Committee has performed its dutiesand responsibilities as follows: 1. Review the financial information to be issued to the public and/or the authorities. 2. Review the compliance with laws and regulations related to the Company’s activities. 3. Evaluate the effectiveness of the audit/servicesimplementation provided by the Public Accounting Firm (KAP), including reviewingindependence and objectivity. 4. Provide recommendations to the Board of Commissioners regarding the appointment of Public Accountants and KAP for the audit of FiscalYear 2017. 5. Review the conduct by internal auditors and external auditors audits, and overseeing the implementation of follow-up actions by the Boardof Directors on the auditor findings. 504 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  505. Good Corporate Governance 6 . 7. 8. 9. 10. a. Review the planning and implementation forSPI audits and consultations, as well as follow-up supervision for the SPI examination results. b. bReview the Compliance Division’s review (KPN) planning and implementation, as well as follow-up supervision for KPN Division review results. c. cReview the OJK Examination, as well as follow-up supervision of the OJK examination results. d. dReview the execution of BPK Audits, as well as follow-up supervision of the BPK audit results. e. Review the execution of KAP Inspection, and followup supervision of KAP results (Management Letter). f. Monitor the Board of Directors and Board of Commissioners reports preparation on theaudit results points. g. Monitor the progress of employee case settlement, and follow-up of cases related to Fraud. Conduct BNI Internal Control System assessment a. Evaluate the Whistleblowing System (WBS). b. Evaluate the Anti-Fraud Strategy Review the Company’s monthly performance report. Review Management proposals that require Board of Commissioners approval. Prepare reports related to implementation of Audit Committee’s duties. Coordinate between Committees In fiscal year 2018, the Audit Committee through Committee meetings has discussed with related partiesthe following matters: a. Management The Audit Committee reviews the audited and unauditedfinancial statements which will be published in2018, to ensure that the content and disclosureof information is in accordance with accountingstandards and applicable regulations. Evaluation ofaudit effectivenessby the external auditors.The Independence, objectivity, and adequacy of theexamination are also carried out by the AuditCommittee through discussions with management.The Committee also held discussions and follow-upmonitoring regarding the Audit findings, bothInternal and External Audit Completion, follow-up monitoring settlement of cases that occurr toaccelerate the settlement and actions necessary forany administrative sanctions. To improve the Bank credit quality, Audit Committee through the Board of Commissioners has made recommendation to Management to thoroughly review BNI credit process. b. External Auditor In the framework of financial statement audit per December 31, 2018 conducted by PublicAccounting Firm (KAP), the Audit Committeediscusses the audit plan, monitors the audit PT Bank Negara Indonesia (Persero) Tbk  progress including findings that required adjustments, evaluates internal control, including internal control over Company financialreporting, as well as the quality of the Company’soverall financial reporting. To monitor the results of audits conducted by external auditors, namely Bank Indonesia (BI)/Financial Services Authority (FSA), Badan PemeriksaKeuangan (BPK), Pusat Pelaporan dan AnalisisTransaksi Keuangan (PPATK), and KAP, the Audit Committee evaluates the follow-up actions conducted by themanagement on the intended results from theexternal auditors audit. A review and evaluation on the external audit results was conducted by theAudit Committee at the end of 2018 as follows: -- BI audit completion is 100% or all recommendations have been followed-up. -- FSA audit completion is 93.70% with a total pending of 87 recommendations. -- BPK audit completion was 87.94% with a total pending of 48 recommendations. -- PPATK audit completion is 85.71% with a total pending of 1 recommendation. -- Management Letter KAP Purwantono, Sungkoro & Surja (member of Ernst & Young) completion is 85.71% with a total pending of 4 recommendations. The Audit Committee prepares an Evaluation Report onthe Audit Service for the Annual Historical Financial Information Year 2017 by KAP Purwantono, Sungkoro & Surja(member of Ernst & Young). To comply with the FSA Regulation No. 13/POJK.03/2017 dated March 27, 2017regarding the Use of Public Accountant Services andPublic Accounting Firm in Financial Services Activities,the Company has reported the Audit Committee’s Evaluation Result Report to FSA in June 2018. c. Internal Control Unit The Audit Committee reviews the annual internal audit plan, monitors the implementation and results of the audit, and follows- up untilcompletion by the Company’s Management. TheAudit Committee also discusses with the InternalAudit Unit (SPI), in an effort to encourage theeffectiveness and strengthen SPI function. The result of the KAP Siddharta Widjaja dan Rekan (KPMG) review of the SPI function for the 3-year period ending December 31, 2017, is concluded that in general the SPI function fulfills (Generally Conform) the provisions in the Commercial Bank Internal Audit Function Standards ( SPFAIB) based on Bank Indonesia Regulations, and in general the implementation of audit Adapting Quickly to Face Change 505
  506. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk using Information Technology has referred to the FSA Regulations on the Application of Risk Management in the Use of Information Technology by Commercial Banks, although there are necessary improvements to some applicable regulations or standards but do not affect the achievement of internal audit objectives in fulfilling its responsibilities within reasonable limits. Based on RKAT SPI in 2018, the realization of the planned activities carried out by SPI is as follows: No Activity Plan Realization 1 General Audit 316 318 2 Information Technology Audit 13 14 3 Issue Audit 7 7 4 In-depth Audit - 21 5 Consultation Total - 8 336 368 Based on the review and evaluation of the SPI audit follow-up up to the end of 2018, there were 143 (one hundred and forty three) follow-up actions that are still in the process of completion, each consisting of 5 (five) follow-up actions for the 2016 SPI audits, 106 (one hundred and six) follow-up actions for the 2017 SPI audits and 32 (thirty two) follow-up actions for the 2018 SPI audits. Based on the review and evaluation of the employee case completion process, in 2018 there are 95 (ninetyfive) cases. As many as 62 (sixty two) cases have been processed, while 33 (thirty three) cases are still in the process of being resolved. Employees who are proven to have committed violations and fraud are immediately given layoff sanctions (Termination of Employment) to 32 (thirty two) employees, Demotion sanctions to 13 (thirteen) employees, STK sanctions (Stern Written Warning) to 16 ( sixteen) employees, STE sanctions (Letter of Reprimand) to 52 (fifty two) employees, and SP sanctions (Development Letter) to 84 (eighty four) employees. With regard to efforts to further optimize the functions of the SPI, the Audit Committee has recommended to SPI to continue to improve auditor capabilities, so that SPI auditors are expected to have adequate expertise both in banking and technology, as well as in various industrial sectors in relation to the distribution of bank credit facilities. 506 Adapting Quickly to Face Change d. Director of Compliance Based on the Audit Committee review on Compliance Report to Banking provisions and other related legislations, the report shall be delivered in the form of Duty Implementation Report of Director of Compliance. In 2018, The Bank has routinely submitted the report to the Financial Services Authority No. 46/POJK.03/2017 on Implementation of Compliance Function of Commercial Bank. Also, the Audit Committee conducts a review anddiscussion on the Compliance Division work plan,employee cases, Whistleblowing System (WBS) implementation and the application of the Anti-Fraud Strategy Program. The Compliance Division work plan discussion is done to encourage effective synergies between theCompliance Division and SPI in conducting oversight functions, especially the Company’scompliance with applicable regulations. Based on the WBS reports review and evaluationin 2018, there are93 (ninety three) reports submitted through WBS, consisting of 42 (forty two) reportsoutside the WBS scope, 22 (twenty two) reports withinsufficient evidence, 1 (one) report proven to be relatedto conflict of interest, 2 (two) reports proven to berelated disorderly conduct, 7 (seven) reports proven to be related to fraud, 7 (seven) reports proven to be related to violation of law, 12 (twelve) follow-up reports still in the process of completion. The Anti-Fraud Strategy for the second half of 2017was reported to FSA in January 2018 and in the first half of 2018 was reported to FSA in July 2018. In 2018, there was 2 (two) fraud cases reported as an incidental reports to FSA. Based on the review and evaluation of the Anti-Fraud Strategy in 2018, the number of internal fraud that occurred was 7 (seven) incidents and the number of externalfraud was 1 (one). e. The Board of Commissioners Duties and responsibilities, as well asthe Audit Committee recommendations, havebeen periodically reported to the Board ofCommissioners, as follows: -- Review the proposed KAP appointmentand the Audit Committee recommendation tothe Board of Commissioners to appoint KAPPurwantono, Sungkoro & Surja (memberof Ernst &Young) to conduct an audit ofthe BNI Consolidated Financial Statementsended December 31, 2018, and to reviewthe effectiveness of the Public PT Bank Negara Indonesia (Persero) Tbk
  507. Good Corporate Governance --- -- -- --- Accounting Office Audit Services including aspects ofindependence and objectivity . Review the Published Financial Reports. Review the effectiveness of the internal auditfunction with regard to realization of RKAT, the findings and recommendations including compliance audit on Internal Control, riskmanagement and corporate governance (GCG) processes. Review the effectiveness of the follow-up onthe completion of Internal Auditor and ExternalAuditors (FSA, CPC, PPATK) findings. Review the Company’s monthly performance report, RBB revision proposal 2018-2020 and RBB proposal 2019-2021 submitted by Management. Review Management’s proposals thatrequire the Board of Commissioners approval. Prepare the Audit Committee Suggestionsand Recommendations based on the Audit CommitteeMeeting results, and recommended to theBoard of Commissioners to submit the AuditCommittee Recommendations and Opinions to Management forfollow-up. NOMINATION AND REMUNERATION COMMITTEE BNI’s Board of Commissioners has formed a Nomination and Remuneration Committee to assist the Board of Commissioners in relation to nomination and remuneration policies. NOMINATION AND REMUNERATION COMMITTEE BASIS OF FORMATION The Nomination and Remuneration Committee was established in 2002 by virtue of a decision by the Board ofCommissioners No. Kep/01/DK/2002 dated December2, 2002 regarding the Establishment of the Nominationand Remuneration Committee. The Nomination and Remuneration Committee is established by the Board ofCommissioners and carries out their duties according to regualtions, which are as follows: 1. Minister of State-Owned EnterprisesRegulation Number PER-12/MBU/2012 dated August 24, 2012 regarding the Supporting Organs of the Board of Commissioners/ Supervisory Board of State-Owned Enterprises. 2. Financial Services Authority Regulation number 34/ POJK.04/2014 dated December 8, 2014 regardingthe Nomination and Issuer Remuneration Committee or Public Company. PT Bank Negara Indonesia (Persero) Tbk  3. Financial Services Authority Regulation Number45/ POJK.03/2015 dated December 23, 2015regarding the Implementation of CorporateGovernance in Remuneration forCommercial Banks. 4. Financial Services Authority Circular Letter Number40/ SEOJK.03/2016 dated September 26, 2016regarding the Implementation of CorporateGovernance in Remuneration forCommercial Banks. 5. Financial Services Authority Regulation Number 55/ POJK.03/2016 dated December 7, 2016 regarding theImplementation of Corporate Governance forCommercial Banks. 6. Financial Services Authority Circular Letter Number 13/SEOJK.03/2017 dated March 17, 2017 regarding theImplementation of Corporate Governance for Commercial Banks. Nomination and Remuneration Committee Charter The Company has a Nomination and RemunerationCommittee Charter that is continually refined andupdated, in accordance with the developmentof rules and regulations, and current conditions. Renewal/ improvement of the BNI Remuneration andNomination Committee Charter was last conducted in 2017 as stipulated in the Decree of the Board of Commissioners of PT Bank Negara IndonesiaTbk No. KEP 030/ DK/2017 dated June 08, 2017 regarding the Nominationand Remuneration Committee Charter. The Nominationand Remuneration Committee Charter contains: 1. Legal Basis; 2. Organizational structure and Nomination and Remuneration Committee membership; 3. Membership requirements; 4. Responsibilities; 5. Duties; 6. Rights and obligations; 7. Meetings; 8. Term of office. DUTIES AND RESPONSIBILITIES OF NOMINATION AND REMUNERATION COMMITTEE To evaluate, prepare and provide recommendationsto the Board of Commissioners regarding thenomination and remuneration system/policy for the Board of Commissioners, Board of Directors, executive officers andemployees overall. Adapting Quickly to Face Change 507
  508. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Nomination and Remuneration Committee Duties 1. Related to nomination: a. Provide recommendations to the Board of Commissioners on: -- composition of members of the Board of Directors and/or members of Board of Commissioners; -- policies and criteria required in the Nomination process; and -- performance evaluation policy for members of the Board of Directors and/or membersof the Board of Commissioners. b. Assist the Board of Commissioners to assess the performanceof members of the Board of Directors and/or members of the Board of Commissionersbased on benchmarks that had been developedas an evaluation. c. Provide recommendations to the Board of Commissioners regarding the capacity building program of members of Board of Directors and/ ormembers of Board of Commissioners. d. Provide proposals/recommendations forcandidates who qualify as members of the Board of Directors and/or members of theBoard of Commissioners to the Board of Commissioners to be submitted to the GeneralMeeting of Shareholders. e. e. Develop and provide recommendations to the Board of Commissioners regarding the systems and procedures and/or replacement of members of Board of Commissionersand members of Board of Directors to the Board of Commissioners to be submitted to the General Meeting of Shareholders. f. Provide recommendations to the Board of Commissioners for Independent Parties to become a member of the Audit Committee and Risk Oversight Committee. 2. Related to remuneration: a. Evaluate remuneration system/policy based onperformance, risk, fairness against peer group,target, and long term Bank strategy, fulfillmentof reserves as regulated in rules and regulations andfuture potential of Bank earnings. b. Develop and provide recommendations to theBoard of Commissioners regarding: -- remuneration structure; -- remuneration policy; and -- amount of remuneration; The structure, policies and amount of remuneration for the Board of Commissioners and Board of Directors are evaluated by the Nomination and Remuneration Committee at least once a year. c. Deliver evaluation results and provide recommendations to the Board of Commissioners on: 508 Adapting Quickly to Face Change -- remuneration policy for the Board ofnDirectors and Board of Commissioners to be submitted to the GMS. -- remuneration policy for executive officers and employees overall to be submitted to the Board of Directors. d. Ensure that the remuneration policy is in compliance with applicable regulations. e. Conduct periodic evaluations of the implementation of remuneration policies. f. Assist the Board of Commissioners in assessing the compatibility between performance and remuneration received for each member of the Board of Directors and/or members of the Board of Commissioners. 3. Carry out other tasks given by the Board of Commissioners related to the nomination and remuneration functions. 4. The procedures for duties and functions of Nominationand Remuneration Committee shall be conducted in accordance with FSA Regulations governing the Nominationand Remuneration Committees of Commercial Banks, FSA Regulationsgoverning the Nomination and RemunerationCommittee of Issuers or public company as well as FSA Regulations governing governance in applicable remuneration for commercial banks. Nomination and Remuneration Committee Responsibilities Evaluate, prepare and provide recommendations to the Board of Commissioners regarding the nomination and remuneration system/policy for Board of Commissioners, Board of Directors, executive officers and employees overall. Nomination and Remuneration Committee Rights and Obligations 1. Based on a written assignment from theBoard of Commissioners, Nomination andRemuneration Committee may access the recordsor information about employees, funds, assets, andother resources owned by the company relating tothe performance of its duties. The Committee shallreport in writing the result of the assignment to theBoard of Commissioners. 2. 2. To carry out its duties, Nomination and Remuneration Committee shall cooperate with the HumanCapital Division and other relevant Divisions. 3. 3. Nomination and Remuneration Committee,with the approval of the Board of Commissioners,reserves the right to appoint a third party (person or entity) to assist their duties. 4. 4. Members of the Nomination and RemunerationCommittee shall perform their duties properly andmaintain the confidentiality of all documents, dataand company information from both internal andexternal parties and use them only for the PT Bank Negara Indonesia (Persero) Tbk
  509. Good Corporate Governance benefit of theCommittee ’s duties. 5. The Nomination and Remuneration Committee, relatedto the remuneration policy, shall take into account at least: a. Financial performance and reserves as set forth in the applicable legislation. b. Individual job performance. c. fairness of peer groups, and d. Consideration of the Bank’s long-term goals and strategies. e. Before the end of the current financial year,Nomination and Remuneration Committeeshall prepare and submit work plan and annual budget to the Board of Commissionersto be set, and a copy of which will be deliveredby the Board of Commissioners to the Boardof Directors. The implementation of Nomination and Remuneration Committeework plan and annual budget will be reportedto the Board of Commissioners. f. Nomination and Remuneration Committeeshall prepare and submit reports on their tasks,responsibilities and procedures to the Boardof Commissioners. TERM OF OFFICE OF NOMINATION AND REMUNERATION COMMITTEE MEMBER 1. The term of office for Nomination and Remuneration Committee member who is a Boardof Commissioners member is equal to the period oftheir appointment as a Commissioner as determined by the General Meeting of Shareholders. 2. Nomination and Remuneration CommitteeMember who is Board of Commissioners member shall cease if the term of office as amember of the Board of Commissioners ends. 3. If a Board of Commissioners member appointed as a member of the Nomination and Remuneration Committee resigns from his/her position as Board ofCommissioners member before his/her term of office is completed, then the said Committee member may be replaced by other member of the Board of Commissioners. 4. If a member of the Board of Commissioners who serves as the Nomination and Remuneration Committee Chairman resigns from their position as a member of the Board of Commissioners,the Nomination and Remuneration CommitteeChairman shall be replaced by other memberfrom the Independent Board of Commissioners within 30 (thirty) days at the latest. 5. A replacement of Nomination and RemunerationCommittee member who is not from the Boardof Commissioners shall take place no laterthan 60 (sixty) days after the Nomination andRemuneration Committee member ceases performing their functions. PT Bank Negara Indonesia (Persero) Tbk  6. The term of office for member of Nomination and Remuneration Committee from independent party is 3 (three) years and this can be extended once for 2 (two) years, sothe accumulation tenure in the company is for amaximum of 5 (five) years, but not prejudicing therights of the Board of Commissioners to discharge any member of the Committee at any time. NOMINATION AND REMUNERATION COMMITTEE STRUCTURE, MEMBERSHHIP AND EXPERTISE The Nomination and Remuneration Committee structure and membership is set forth in the Nomination and Remuneration Committee Charter as follows: 1. The Nomination and Remuneration Committee is established by the Board of Commissioners. The Board ofCommissioners can establish a separate Nomination and Remuneration Committee. 2. The Nomination and Remuneration Committee shall act in an independent and responsible manner reporting directly to the Board of Commissioners. 3. Appointment of Nomination and Remuneration Committee Members for the Board of Directors is based ondecisions made by the Board of Commissioners. 4. The Nomination and Remuneration Committee consists of at least three (3) members, namely 1 (one) Independent Commissioner serving as Chairman, 1 (one) Commissioner and 1 (one) company executiveofficer in charge of human resources, or those who occupy managerial positions below the Board of Directorsin charge of human resources at BNI. 5. Nomination and Remuneration Committee Members, other than those mentioned in point d above maycome from other Board of Commissioners members and those from outside BNI. 6. In the event that the membership of the Nomination and Remuneration Committee is more than 3 (three)persons, committee members who are Independent Commissioners shall be at least 2 (two) persons. 7. Other Nomination Committee members as referred to in point e cannot come from a managerial party underthe Board of Directors in charge of human resources. 8. The Nomination and Remuneration Committee Chairman will be an Independent Commissioner at BNI. 9. The Nomination and Remuneration Committee Chairman shall not concurrently serve as chairman in morethan 1 (one) other committee, and may only concurrently serve as Committee Chairman in at most 1 (one)other committee in BNI. 10. Nomination and Remuneration Committee Members shall not be allowed coming from the Board ofDirectors, either in BNI or other Banks. 11. If deemed necessary, the Committee may appoint a Secretary to the Committee with the assignment, rights,powers and responsibilities established by the Chairman of the Committee. Adapting Quickly to Face Change 509
  510. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk In 2018, the structure and membership of the Nomination and Remuneration Committee underwent several changes as explained in the table below JANUARY 1, 2018 – APRIL 5, 2018 Name Position Description Expertise Ahmad Fikri Assegaf Chairman Independent Commissioner Law Wahyu Kuncoro Member Vice President Commissioner Management Economics Revrisond Baswir Member Independent Commissioner Accounting Pataniari Siahaan Member Independent Commissioner • • Bistok Simbolon Member Commissioner Law Joni Swastanto Member Commissioner Economics Marwanto Harjowiryono Member Commissioner Economics Reny Wiriandhani Member Independent Party Psychology Ayu Sari Wulandari Member Head of Human Capital Management Division • • Civil Engineering Law Industrial Engineering Finance APRIL 5, 2018 – SEPTEMBER 3, 2018 Name Ari Kuncoro*) Position Chairman Wahyu Kuncoro Description Expertise President Commissioner/Independent Commissioner • Economics Vice President Commissioner • Management Economics Revrisond Baswir Member Independent Commissioner • Accounting Pataniari Siahaan Member Independent Commissioner • • Civil Engineering Law Bistok Simbolon Member Commissioner • Law Joni Swastanto Member Commissioner • Economics Marwanto Harjowiryono Member Commissioner • Economics Ahmad Fikri Assegaf**) Member Independent Commissioner • Law Reny Wiriandhani Member Independent Party • Psychology Ayu Sari Wulandari Member Head of Human Capital Management Division • Industrial Engineering Finance • Information: *) Served as Chairman of the NRC since April 5, 2018 **) Again as a member of the NRC since April 5, 2018 510 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  511. Good Corporate Governance SEPTEMBER 3 , 2018 – SEPTEMBER 13, 2018 Name Ari Kuncoro Position Chairman Wahyu Kuncoro Description Expertise President Commissioner/Independent Commissioner • Economics Vice President Commissioner • Management Economics Revrisond Baswir Member Independent Commissioner • Accounting Pataniari Siahaan Member Independent Commissioner • • Civil Engineering Law Bistok Simbolon Member Commissioner • Law Joni Swastanto Member Commissioner • Economics Marwanto Harjowiryono Member Commissioner • Economics Ahmad Fikri Assegaf Member Independent Commissioner • Law Reny Wiriandhani Member Independent Party • Psychology Ayu Sari Wulandari*) Member Head of Human Capital Management Division • • Industrial Engineering Finance • • Psychology Administration Efita Praharani**) Member Head of Human Capital Management Division Information: *) Ceased serving as member of the NRC since September 3, 2018 **) Served as member of the NRC since September 3, 2018 NOMINATION AND REMUNERATION COMMITTEE PROFILE Brief profile of the Chairman and Members of BNI Bank Nomination and Remuneration Committee as of December 31, 2018 is as follows: Nomination and Remuneration Committee Chairman Ari Kuncoro Profile can be viewed in the Board of Commissioners section Member of Nomination and Remuneration Committee Wahyu Kuncoro Profile can be viewed in the Board of Commissioners section Member of Nomination and Remuneration Committee Revrisond Baswir Profile can be viewed in the Board of Commissioners section Member of Nomination and Remuneration Committee Pataniari Siahaan Profile can be viewed in the Board of Commissioners section PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 511
  512. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Member of Nomination and Remuneration Committee Joni Swastanto Profile can be viewed in the Board of Commissioners section Member of Nomination and Remuneration Committee Bistok Simbolon Profile can be viewed in the Board of Commissioners section Member of Nomination and Remuneration Committee Marwanto Harjowiryono Profile can be viewed in the Board of Commissioners section Member of Nomination and Remuneration Committee Ahmad Fikri Assegaf Profile can be viewed in the Board of Commissioners section Nomination and Remuneration Committee Member Ayu Sari Wulandari Indonesian citizen, domiciled in Bogor. Born on December 1, 1969. 50 years old. Appointed Member of the Company’s Remuneration andNomination Committee in January 2016 based on Board of Commissioners Decree No. KEP/002/ DK2016 dated February 29, 2016. Holds a Bachelor’s degree in Agricultural Industrial Engineering from Institut Pertanian Bogor and obtained a Master’s degree in Applied Finance from The University of Melbourne. Has served as Deputy Head of Small Business Division at PT Bank Negara Indonesia Tbk (2010-2011), Deputy Head of Small Business at PT Bank Negara Indonesia Tbk (2011-2012), Deputy Head of BUMN and Institutions Division at PT Bank Negara Indonesia (2012-2014), Division Head of Market Intelligence & Portfolio at PT Bank Negara Indonesia (Persero) Tbk (2014-2015). Currently serving as Division Head of Human Capitalat PT Bank Negara Indonesia (Persero) Tbk (January 2016-present). Nomination and Remuneration Committee Member Efita Praharani Indonesian citizens, domiciled in Bekasi, West Java. Born on September 14, 1967. 51 years old. Appointed as Nomination 512 Adapting Quickly to Face Change and Remuneration Committee Member for the Company since September 2018 based on the Decree of the Board of Commissioners No. KEP/018/DK/2018 dated December 17, 2018. She holds a Bachelor's degree in Psychology from Universitas Gadjah Mada and obtained a Master of Science degree in Administration from the University of Indonesia. She once served as the Head of Regional Banking Consumer Leader - Jakarta Kemayoran Regional Office of PT Bank Negara Indonesia (Persero) Tbk (2016-2018), and Deputy Head in the Consumer Product Management Division of PT Bank Negara Indonesia (Persero) Tbk (May-September 2018). Currently she is the Head of the Human Capital Management Division of PT Bank Negara Indonesia (Persero) Tbk (September 2018-now). Nomination and Remuneration Committee Member Reny Wiriandhani Indonesian citizens, domiciled in Jakarta. Born on April 29, 1969. 49 years old. Appointed as an Independent Member of Nomination and Remuneration Committee since January 2018 based on the Decree of the Board of Commissioners No. KEP/055/DK/2017 December 21, 2017. She holds a Bachelor's degree in Psychology from Universitas Indonesia in 1995 and a Master of Human Resources Management from Monash Univesity Melbourne, Australia. She served as Head of Human Resources for Consumer Banking at Standard Chartered Bank (2004-2011), Head of Human Resources at PT Bank ICBC Indonesia (2011-2015) and Head of Human Resources for Permata Bank (2015-2016). NOMINATION AND REMUNERATION COMMITTEE EDUCATION QUALIFICATIONS AND WORK EXPERIENCE Requirements for Nomination and Remuneration Committee members include: 1. Nomination and Remuneration Committee Members should meet the following conditions: a. Have high integrity, skills, knowledge and sufficient work experience in Nomination and Remuneration Committee tasks, and have an understanding of banking. b. Have no personal interests/links that may have negative impact and conflict of interest to the Company. PT Bank Negara Indonesia (Persero) Tbk
  513. Good Corporate Governance c . Provide enough time to complete tasks. d. dAble to cooperate and communicate well and effectively. 2. In addition to the requirements referred to in point a above, the Nomination and Remuneration Committeemembers who are independent parties must meet the following requirements: a. Have no affiliation or financial relationship, management relationship, ownership and/or family relationship with members of the Board of Commissioners, members of the Board of Directors and/orSeries A Dwiwarna BNI Shareholders or relations with BNI that may affect their ability to act independently.The definition of an Independent Party in the Charter shall be guided by the provisions governing theindependent committee under the Board of Commissioners in the prevailing laws and regulations, inparticular Financial Services Authority Circulars governing the Implementation of Governance for CommercialBanks and Financial Services Authority Regulations governing the Nomination Committee and Remunerationof Issuers or Public Companies. b. Have experience related to nomination and/or remuneration. c. Not an employee of BNI. d. Not concurrent as: -- Member of the Board of Commissioners/Supervisory Board in State-Owned Enterprises (SOEs)/other companies; -- Secretary / staff Secretary to the Board of Commissioners / Supervisory Board in SOEs / Other Companies. -- Other committee members in the company. e. The executive officer in charge of human resources must have knowledge of the remuneration and/ornomination systems and the bank’s succession plan. f. BNI shall examine the validity of all documents or data supporting the fulfillment of the Independent Partyrequirements, including personal statements of integrity from independent parties. As of December 31, 2018, the educational qualification and work experience of the Chairman and Members of the Remuneration and Nomination Committee are as follows. Table of Educational Qualification and Work Experience of Nomination and Remuneration Committee Name Position Education Work Experience Ari Kuncoro* Chairman His Work Experience History can be seen in the Board of Commissioners Composition Diversity. • His Work Experience History can be seen in the Board of Commissioners Composition Diversity. Wahyu Kuncoro Member His Work Experience History can be seen in the Board of Commissioners Composition Diversity. • His Work Experience History can be seen in the Board of Commissioners Composition Diversity. Revrisond Baswir Member His Work Experience History can be seen in the Board of Commissioners Composition Diversity. • His Work Experience History can be seen in the Board of Commissioners Composition Diversity. Pataniari Siahaan Member His Work Experience History can be seen in the Board of Commissioners Composition Diversity. • His Work Experience History can be seen in the Board of Commissioners Composition Diversity. Joni Swastanto Member His Work Experience History can be seen in the Board of Commissioners Composition Diversity. • His Work Experience History can be seen in the Board of Commissioners Composition Diversity. Bistok Simbolon Member His Work Experience History can be seen in the Board of Commissioners Composition Diversity. • His Work Experience History can be seen in the Board of Commissioners Composition Diversity. Marwanto Harjowiryono Member His Work Experience History can be seen in the Board of Commissioners Composition Diversity. • His Work Experience History can be seen in the Board of Commissioners Composition Diversity. Ahmad Fikri Assegaf Member His Work Experience History can be seen in the Board of Commissioners Composition Diversity. • His Work Experience History can be seen in the Board of Commissioners Composition Diversity. Sigit Widyawan** Member His Work Experience History can be seen in the Board of Commissioners Composition Diversity. • His Work Experience History can be seen in the Board of Commissioners Composition Diversity. Ayu Sari Wulandari*** Member Bachelor of Agriculture Industrial Engineering Master of Finance • • • • BNI,Deputy Head of Small Business f BNI, Division Head of Business BNI,Deputy Division Head of BUMN and Institution BNI,Deputy Division Head of Market Intelligence & Portfolio BNI,Division Head of Market Intelligence & Portfolio BNI,Division Head of Human Capital • • Efita Praharani**** Bachelor of Psychology Master of Administration Science • • • PT Bank Negara Indonesia (Persero) Tbk  S2 Administration Sciencer - Jakarta Kemayoran. BNI, Deputy Head of Consumer Product Management Division. BNI, Head of Human Capital Management Division. Adapting Quickly to Face Change 513
  514. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Name Renny Wiriandhani Position Member Education Work Experience Psychology • • • Standard Charter Bank, Head of Human Resources for Consumer Banking. PT Bank ICBC Indonesia, Head of Human Resources. Permata Bank,Head of Human Resources. Information: *) Served as Chairman of NRC since April 5, 2018. **) Served as Chairman of Nomination Remuneration Committee since September 13, 2018. ***) Ceased serving as member of Nomination Remuneration Committee since September 3, 2018. ****) Served as member of Nomination Remuneration Committee since September 3, 2018. NOMINATION AND REMUNERATION COMMITTEE INDEPENDENCE Nomination and Remuneration Committee members shall provide fair and balanced assessments on all relevant conditions and shall not influenced by personal interests or any other parties in conveying their opinions. Table of Nomination and Remunerasi Committee Independence Independence Aspect Joni Bistok Marwanto Swastanto Sombolon Harjowiyono Ahmad Sigit Fikri Widyawan Assegaff Ari Kuncoro Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Ayu Sari Wulandari Efita Renny Praharani No finansial affiliation with the Board of Directors Commissioners and Board of Directors √ √ √ √ √ √ √ √ √ √ √ √ No management affiliation in the company, subsidiaries or affiliated companies √ √ √ √ √ √ √ √ √ √ √ √ No shares in the company √ √ √ √ √ √ √ √ √ √ √ √ No family affiliation with the Board of Commissioners, √ √ √ √ √ √ √ √ √ √ √ √ Not serving on the board of political party, government official √ √ √ √ √ √ √ √ √ √ √ √ NOMINATION AND REMUNERATION COMMITTEE MEETINGS 1. Nomination and Remuneration Committee meetings shall be held in accordance with the needs of theCompany, at least four (4) times a year. 2. Nomination and Remuneration Committee meetings may only be held if attended by a majority of members, with the majority thereof being the Chairman and 1 (one) Executive Officer in charge of Human Resources, or the partyoccupying a managerial position under the Board of Directors in charge of Human Resources. 3. The meetings shall be chaired by the Chairman, and if he/she is unable to attend the meeting, it shall be chaired by a senior committee member appointed/agreed upon in the meeting. 4. Decision making of the meetings shall be conducted basedon consensus agreement. In the absence of consensus, decision shall be made on the basis of majority votewith the principle of 1 (one) person 1 (one) vote. 514 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  515. Good Corporate Governance 5 . If the result of voting is a tie, then the decision shall be made on the basis of amajority vote with the principle of 1 (one) person 1 (one) vote, excluding the votes from the ExecutiveOfficer of Human Resources, or the party occupying a managerial position under the Board of Directors in charge of Human Resources. 6. The result of meeting will be recorded in the minutes ofmeeting signed by all members of the Committee and properly documented. 7. Any dissenting opinions that occurred in the meeting shall be clearly detailed in the minutes of meeting. 8. The minutes of meeting, as referred to in item 6 above, shall be submitted in writing by Nomination and Remuneration Committee to the Board of Commissioners. 9. Members attendance at meetings will be reported in thequarterly report and the annual report of the Nomination and Remuneration Committee. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 515
  516. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk NOMINATION AND REMUNERATION COMMITTEE MEETING AGENDA In 2018, NRC held 8 (eight) meetings with the explanation table as follows .No 1. Date February 08, 2018 Agenda Attendance Report from Humab Capital’s Senior Executive Vice President (SEVP) regarding: • • • • • • • Ahmad Fikri Assegaf* Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Joni Swastanto Reny Wiriandhani Ayu Sari Wulandari**** 1. Proposing candidates for members of the Subsidiary’s Board of Directors • • • • • • • • • Ahmad Fikri Assegaf* Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Reny Wiriandhani Ayu Sari Wulandari**** 1. Risk Taker Material 2. Update for Human Capital Architecture and Talent Management 2. 516 3. February 15, 2018 1. Presentation of Willis Tower Watson Consultant on the Draft of Remuneration Study of Board of Directors and Board of Commissioners in 2018 and tantiem in 2018. 2. Board of Directors’ performance assessment in 2017 3. Board of Directors’ performance assessment Format and KPI in 2018 4. Granting mandates and powers to the Chairman of the NRC to: Present, vote and recommend in a meeting with the Evaluation Team of prospective BNI management candidates and the signing of related documents. • • • • • • • • • Ahmad Fikri Assegaf* Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Reny Wiriandhani Ayu Sari Wulandari**** 4. March 15, 2018 1. Discussion of prospective management of the Company in the context of BNI’s annual GMS • Proxy of KNR members to KNR Chair Ahmad Fikri Assegaf. 5. March 20, 2018 1. Report from Humab Capital’s Senior Executive Vice President (SEVP) regarding: a. Update for implementation of employee remuneration system b. Update for improving Talent Management System • • • • • • • • • • Ari Kuncoro** Wahyu Kuncoro Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowirjono Ahmad Fikri Assegaf Reny Wiriandhani Ayu Sari Wulandari**** 6. May 17, 2018 1. Report of the Senior Capital Executive Vice President (SEVP) on the system of sanctions for employees 2. Proposed remuneration of the Board of Directors on the allocation of Long Term Incentive. • • • • • • • • Ari Kuncoro** Wahyu Kuncoro Revrisond Baswir Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Reny Wiriandhani Ayu Sari Wulandari**** 7. August 16, 2018 1. Nomination system of members of the Board of Directors and Board of Commissioners 2. Review of senior staff with prohire status 3. Proposed candidates for the President Director of the Subsidiary Company • • • • • • • • • Ari Kuncoro** Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Reny Wiriandhani Efita Praharani***** Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  517. Good Corporate Governance .No 8 Date Agenda November 08, 2018 Attendance Review of HCA BNI Road Map based on Core Plan 2019-2023, including: 1. Sustainability of Human Capital Architecture (HCA) • Management Talent Strategy for critical role • Leadership Program • Improvement of Performance Management System 2. Result of the 2018 Employee Engagement Survey (EES) and follow-up 3. Work plan of Human Capital division and coordination with Corporate University Division in order to prepare the organization. • • • • • • • • • • Ari Kuncoro** Revrisond Baswir Pataniari Siahaan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono Ahmad Fikri Assegaf Sigit Widyawan*** Reny Wiriandhani Efita Praharani***** Information: *) Ceased serving as Chairman of Nomination Remuneration Committee and return to being a member of Nomination Remuneration Committee since April 5, 2018. **) Served as Chairman of Nomination Remuneration Committee since April 5, 2018. ***) Served as member of Nomination Remuneration Committee since September 13, 2018. ****) Ceased serving as member of Nomination Remuneration Committee since September 3, 2018. *****) Served effectively as member of Nomination Remuneration Committee since September 3, 2018. FREQUENCY AND ATTENDANCE MEETING OF NOMINATION AND REMUNERATION COMMITTEE Frequency and attendance of Nomination and Remuneration Committee meetings can be viewed in the table below. Table of Frequency and Attendance of Nomination and Remuneration Committee Meeting Name Position Total Meeting Number of Meeting Percentage Ari Kuncoro* Chairman 4 4 100% Wahyu Kuncoro Member 6 8 75% Revrisond Baswir Member 8 8 100% Pataniari Siahaan Member 7 8 87,5% Joni Swastanto Member 8 8 100% Bistok Simbolon Member 6 8 75% Marwanto Harjowiryono Member 7 8 87,5% Ahmad Fikri Assegaf Member 8 8 100% Sigit Widyawan** Member 1 1 100% Reny Wiriandhany Member 8 8 100% Ayu Sari Wulandari*** Member 6 6 100% Efita Praharani**** Member 2 2 100% Information: *) Served effectively as Chairman of Nomination Remuneration Committee since April 5, 2018. **) Served effectively as member of the Nomination Remuneration Committee since September 13, 2018. ***) Ceased serving effectively as member of the Nomination Remuneration Committee since September 3, 2018 ****) Served effectively as member of the Nomination Remuneration Committee since September 3, 2018 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 517
  518. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BRIEF REPORT ON NOMINATION ANDREMUNERATION COMMITTEE ACTIVITIES 2018 In 2018 the Nomination and RemunerationCommittee implemented all the Programs/Work Plansestablished at the beginning of the year in order toassist the execution of the Board of Commissionersduties: 1. Implementation of nomination duties a. Conduct a review of internal candidates for BNI managers and providing suggestions/ recommendations on BNI management candidates that meet the requirements to be proposed in the BNI GMS through the Series A Dwiwarna Shareholders. b. Conduct a review of complete requirements of BNI management candidates for fit and proper test to the Financial Services Authority. c. Conducting a review of candidates for BNI subsidiary companymanagement that will be proposed to the Series A Dwi Warna Shareholders (Ministry of SOE). d. Provide recommendations on the Capacity Building Program for members of the Board of Directors and the Board of Commissioners. e. Provide recommendations on Nomination System of Members of the Board of Directors and Board of Commissioners. f. Conduct performance appraisal of members of the Board of Directors and the Board of Commissioners. g. Review Human Capital Architecture (HCA) system. h. Review Board of Directors’ Performance Appraisal in 2017 as well as the format and Key Perfomance indicator (KPI) of BOD performance appraisal in 2018. i. Evaluate talent management system. j. Evaluate employee sanction system. k. Conduct a review onpro-hire senior employees. 2. Implementation of remuneration duties a. Evaluate remunerationpolicies for members of the Board of Directors andBoard of Commissioners, executive officials and employees overall. b. Review of Board of Directors and Board of Commissioners remuneration 2018 and tantiem 2017 c. Evaluate and provide recommendation on remuneration structure, policy and number for members of the Board of Directors and Board of Commissioners to be submitted to the GMS through Serie A Dwiwarna Shares including a review on Board of Directors remuneration recommendation related to Long Term Incentive allocation. d. Ensure that employee remuneration policy is in accordance with applicable provision by periodically evaluating the implementation of employee remuneration policy. 518 Adapting Quickly to Face Change Board of Directors Succession Policy To prepare for future leadership regeneration, theCompany’s internal programs have been harmonizedwith SOE Ministry Regulation No. PER- 03/MBU/02/2015dated February 17, 2015 regarding Requirements,Procedure for Appointment and Termination ofDirectors of SOEs. In this program potential employees who enter the Talent Pool will have the opportunityto attend a training or activities related to the field ofmanagement, business strategy, strategic planning, riskanalysis and business potential, analysis of operationaland financial performance as well as a variety of othersimilar programs. With this program, if the Company requires leadershipreplacements, the Company will apply for internalcandidates from the program participants, facilitatedby the Board of Commissioners, after consideringthe Nomination and Remuneration Committee recommendations. Furthermore, the results of theinternal candidate selection will be submitted to theMinistry of SOE to conduct a fit and proper test. RISK MONITORING COMMITTEE The Risk Monitoring Committee assists the Boardof Commissioners in carrying out the functions andduties of Board of Commissioners in the application of the principles of Good Corporate Governance, particularly with regard to risk management. RISK MONITORING COMMITTEE APPOINTMENT BASIS BNI’s Risk Monitoring Committee was formed in 2004 based on the Board of Commissioners Decree No. Kep/002/DK/2004 dated March 1, 2004 regarding theEstablishment of Risk Monitoring and ComplianceCommittee.The Risk Monitoring Committee wasestablished by the Board of Commissioners and carryout their duties according to regulations, as follows: 1. Ministry of State-Owned Enterprises Regulation PER-12/ MBU/2012 dated August 24, 2012 regarding Board of Commissioners/Supervisory Board Supporting Organs of State-Owned Enterprises (SOEs). 2. Financial Services Authority Regulation Number 33/ POJK.04/2014 dated December 8, 2014 regardingBoard of Directors and Board of Commissioners ofIssuers or Public Companies. 3. Financial Services Authority RegulationNumber 55/POJK.03/2016 dated December 7, 2016 regardingImplementation of Good Corporate Governance forCommercial Banks. 4. Financial Services Authority Circular Letter Number13/SEOJK.03/2017 dated March 17, 2017 regardingImplementation of Good Corporate Governance for Commercial Banks. PT Bank Negara Indonesia (Persero) Tbk
  519. Good Corporate Governance Risk Monitoring Committee Charter The Company ’s Risk Monitoring Charter which continuously refined and updated is in accordance with developments/ amendments in applicable laws as well ascurrent condition. The latest renewal/revision of BNI Risk MonitoringCommittee Charter was carried out in 2017, asstipulated in the Board of Commissioners Decree Number KEP/028/DK/2017 dated May 18, 2017 on “Risk Monitoring Committee Charter.” The Risk MonitoringCommittee Charter includes basis of formation and implementation of tasks, goals and objectives, formation and structure, membership requirements, duties, powers, rights and obligations, meetings and term of office formembers of the Risk Monitoring Committee. Risk Monitoring Committee Duties and Responsibilities The Risk Monitoring Committee duties and responsibilities shall be: 1. To evaluate the suitability of risk managementpolicies and the implementation of Bank policies,which include: a. Evaluating the conformity between the bank’s risk management policy with the implementation of other policies, including credit risk, market risk, liquidity risk, operationalrisk, strategic risk, legal risk, compliance risk,and reputation risk. b. Evaluating the conformity between the integrated risk management policy with the implementation of other policies, consisting of the 8 (eight),as well as insurance risk and the risk ofintra-group transactions. c. Providing recommendations to the Board of Commissioners on the suitability of risk management and integrated risk management policies to ensure that BNI has adequately managed risks. d. Exploring and gives an opinion to the Board of Commissioners over public policy on the other credit along with the policies that is required by a regulator that delivered member Board of Directors to obtained approval from the Board of Commissioners. 2. To review and provide opinions to the Board of Commissioners on the General Policy of Credit andother policies required by the regulator submittedby the Board of Directors to obtain approval fromthe Board of Commissioners: a. To monitor the implementation of Risk Management Work Unit work plan and the Risk Management Committee duties. b. Monitoring the work unit work plan integrated risk management and duties integrated risk management committee. c. To provide recommendations to the Board ofCommissioners to enhance the effectiveness of risk management implementation at BNI,including the implementation of integrated risk management in the subsidiaries. PT Bank Negara Indonesia (Persero) Tbk  d. To provide evaluation result on risk-related regulator assessment to the Board of Commissioners. 3. Carrying out other certaintasks relatedto the function and scope of RiskMonitoring Committee assigned by the Boardof Commissioners. Risk Monitoring Committee Authorities 1. Based on written assignment from the Board of Commissioners, Risk Monitoring Committee can access records or information about employees, funds, assets and other resources owned by BNI relevant to the performance of its duties.The Committee shall report in writing the result of the assignment to the Board of Commissioners. 2. Risk Monitoring Committee is authorized to conduct testing and perform inspections of BNI branches/representatives/ regions and business units, if necessary. 3. Members of Risk Monitoring Committee shall be authorized to communicate directly with partiesrelated to Risk Monitoring Committee duties,including communicating matters related tofinancial and management information. 4. To carry out its duties,Risk Monitoring Committee in cooperation with Risk Management Committee, Integrated Risk Management Committee, Risk Management Work Unit and relevant work units. RIGHTS AND OBLIGATIONS OF THE RISK MONITORING COMMITTEE 1. Members of the Risk Monitoring Committee must carry out their duties properly by referring to the Risk Monitoring Committee Charter. 2. 2Members of the Risk Monitoring Committee from independent parties have the right to receive honorarium from BNI, in which the amount is determined by the Board of Commissioners based on the applicable laws and regulations. 3. Members of the Risk Monitoring Committee must maintain the confidentiality of all documents, data, information, and everything related to the duty implementation of the Risk Monitoring Committee. 4. Before the current fiscal year, the Risk Monitoring Committee must prepare and submit the Annual Work Plan and Budget to the Board of Commissioners for determination, in which copies of it is submitted by the Board of Commissioners to the Board of Directors for information. Implementation of the Annual Work Plan and Budget of the Risk Monitoring Committee is reported to the Board of Commissioners. 5. Members of the Risk Monitoring Committee must prepare and submit the report to the Board of Commissioners, which is signed by Committee Chair and Committee Members as follows: a. Report on each duty implementation is accompanied by recommendations if deemed necessary. b. Quarterly report and annual report. Adapting Quickly to Face Change 519
  520. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 6. Every year, the Committee through the Board of Commissioners reports to the General Meeting of Shareholders on the responsibilities and achievements as well as other information that needs to be delivered. 7. Members of the Risk Monitoring Committee are prohibited from accepting gifts or gifts of any kinds related to their position. 8. Members of the Risk Monitoring Committee must provide sufficient time to carry out their duties and responsibilities optimally. 9. Committee members from independent parties must attend the Company’s working days and hours under the following conditions: a. At least 1 (one) day in one week according to the day and attendance schedule determined by the Board of Commissioners and/or Committee Chair, among others, to attend the Committee Meetings and carry out other duties according to assigned duties and obligations; as well as b. If necessary, at the request of the Board of Commissioners and/or Committee Chair, Committee members from independent parties must attend the Company or at Board of Commissioners’ Meetings or Committee Meetings, or at activities that must be attended by the Board of Commissioners in accordance with the requirements outside the day and routine attendance schedule. 10. In order to avoid overlapping duty implementation among the Committees under the Board of Commissioners and cooperation in the duty implementation, the Risk Monitoring Committee must coordinate with other Committees under the Board of Commissioners. 520 Adapting Quickly to Face Change TERM OF OFFICE OF RISK MONITORING COMMITTEE MEMBERS 1. Term of office of Risk Monitoring Committeemember who is Board of Commissioners member is equal to the period of their appointmentas Board of Commissionersmember as determined by GMS. 2. Risk Monitoring Committee member who is also Board of Commissioners member shall ceaseif his/her term of office as member of the Board of Commissioners ends. 3. If the Board of Commissioners member who serves as Risk Monitoring Committee Chairman resigns from his/her position as member of the Boardof Commissioners, Risk Monitoring Committee Chairman shall be replaced by other Independent Commissioner. 4. Term of office of independent Risk MonitoringCommittee membershall be 3 (three) years andcan be extended once for 2 (two) years, sothe accumulation tenure in the company is amaximum of 5 (five) years, but not prejudicing therights of the Board of Commissioners to dischargeany member of the Committee at any time. 5. Board of Commissioners, taking into account the proposal from Risk Monitoring CommitteeChairman, may terminate any independent partymember of Risk Monitoring Committee if he/she does not perform the duties and obligations as member of the committeeasstipulated in the appontment decreeand/or work agreement between the committeemember concerned with BNI, as well as underapplicable regulations. 6. In the event that the member of the Board of Commissioners whoserves as Risk Monitoring Committee Chairman resigns from his/her position as member of Board of Commissioners, Risk MonitoringCommittee Chairman shall be replaced by othermember from the Board of Commissioners within30 (thirty) days at the latest. PT Bank Negara Indonesia (Persero) Tbk
  521. Good Corporate Governance RISK MONITORING COMMITTEE STRUCTURE , MEMBERSHIP AND EXPERTISE The structure and membership of Risk Monitoring Committee are as follows: 1. Risk Monitoring Committee is established by decision at Board of Commissioners’ meeting and in a Board of Commissioners’ Decree. 2. Risk Monitoring Committee is under the coordination of the Board of Commissioners and is directly responsible to the Board of Commissioners. 3. Appointment of Risk Monitoring Committee Members shall be conducted by Board of Directors based on decision at Board of Commissioners’Meeting. 4. Risk Monitoring Committee shall at least consist of: a. 1 (one) Independent Commissioner as concurrent as chairman b. 1 (one) person from an independent party withexpertise in risk management. c. 1 (one) person from an independent party withexpertise in finance. 5. Independent Commissioners and independentparties who are members of Risk MonitoringCommittee shall at least make up 51% (fiftyonepercent) of the total members of RiskMonitoring Committee. 6. Risk Monitoring Committee Chairman is an Independent Commissioner concurrent as member as stipulated in the decision of Board ofCommissioners’ meeting and in a Boardof Commissioners Decree. 7. Risk Monitoring Committee Chairman may only concurrently hold 1 (one) other Committee Chairman position at BNI. 8. Former member of BNI Board of Directors and former executive officer or party with links toBNI that may affect the ability to act independently,who may become an independent member of Risk Monitoring Committee, shall be subjectto a 6 (six) month long cooling off period. The cooling off provision shall not apply to former member of Board of Directors and former BNI executive officerwhose duties are only to performa supervisory function for at least 6 (six) months. The term “cooling off” refers to the cooling off period as stipulated in FSA Regulations and Circular on the Implementation of Governance for Commercial Banks. 9. Member of Risk Monitoring Committee from independent party may not concurrently hold positions as: a. Member of the Board of Commissioners/Supervisory Board of SOE/other companies; b. Secretary/Secretariat staff to the Board of Commissioners/Supervisory Board of SOEs/other companies. 10. Board of Directors shall appoint and dismiss of member of Risk MonitoringCommittee from independent party based on Board of Commissioners decisionand Board of Commissioners’ Decree. 11. Risk Monitoring Committee Chairman shall havethe right to propose the replacement of RiskMonitoring Committee member to Board ofCommissioners if one of the members of the RiskMonitoring Committee ends their term, resigns oris dismissed. 12. Risk Monitoring Committee memberis prohibited from being member of BNI’s Board ofDirectors or other banks. 13. Risk Monitoring Committee shall work collectivelyin performing its duties to assist Boardof Commissioners. 14. Risk Monitoring Committee shall be independent both in the execution of its duties and reporting, and directly responsible to Boardof Commissioners. 15. In performing daily tasks, the Committee shall beassisted by external staff or secretary to the Committee. The staff or secretary shall be appointed on the basis of decision of Board ofCommissioners Meeting and Board ofCommissioners’ Decree. In 2018, the structure and membership of Risk Monitoring Committee was amended several times asexplained in the tables below: Name Position Description Expertise Revrisond Baswir Chairman Independent Commissioner • Economics Bistok Simbolon Member Commissioner • Law Joni Swastanto Member Commissioner • Banking Irwan Rinaldi Member Independent Party • • Banking and Risk Management Kartika Siwi Member Independent Party • Banking PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 521
  522. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk RISK MONITOR COMMITTEE PROFILE A brief profile of the Chairman and Members of Risk Monitoring Committee as of December 31, 2018 as follows: Chairman of Risk Monitoring Committee Revrisond Baswir Profiles can be viewed in the Board of Commissioners section Member of Risk Monitoring Committee Joni Swastanto Profiles can be viewed in the Board of Commissioners section Member of Risk Monitoring Committee Bistok Simbolon Profiles can be viewed in the Board of Commissioners section Member of Risk Monitoring Committee Irwan Rinaldi Indonesian citizen, domiciled in Jakarta. Born on July 6, 1960. 56 years old. Appointed as Member of Company’s Risk Monitoring Committee in August 2016 based on Decree of Board of Commissioners No.KEP/026/DK/2016 dated August 16, 2016. Has a Bachelor’s degree in Economics majoring inAccounting from Universitas Andalas in 1985 and a Master’sdegree in Management from Institut Pertanian Bogor in 1999. Served as Deputy Head of Management and FinanceAccounting Division at PT Bank Rakyat Indonesia Tbk (2006-2013), DivisionHead of Risk Management at PT Bank Rakyat Indonesia Tbk (2013-2016) and attaended various training, such as theAssociation of Indonesian Audit Committee (2015), Association of Regional Development Banks/ Asbanda(2015), BARa Risk Forum (2016). Member of Risk Monitoring Committee Kartika Siwi Indonesian citizen, domiciled in Jakarta, born on October 11, 1959. 59 years old. Appointed as Member of the Company's Risk Monitoring Committee since January 2018 based on the Decree of Board of Commissioners No. KEP/054/DK/2017 December 21, 2017. Has a Bachelor’s degree in Economics majoring in Financial Management from Universitas Jayabaya in 1992 and obtained a Masters in Management from Universitas Gadjah Mada in 1998. Served as Deputy Head of the Information Technology Division of PT Bank Negara Indonesia (Persero) Tbk (2004-2008), Deputy Head of Internal Control Unit of PT Bank Negara Indonesia (Persero) Tbk (2009-2010), and Head of Operational Division of PT Bank Negara Indonesia (Persero) Tbk (2011-2014). 522 Adapting Quickly to Face Change EDUCATION QUALIFICATION AND WORK EXPERIENCE OF RISK MONITORING COMMITTEE Requirements for Member of Risk Monitoring Committee shall be based on Risk Monitoring Committee Guidelines and Work Order: 1. General Requirements a. Have integrity, good character and morals and sufficient work experience related to the duties of other committees. b. No personal interests/relationships that can have negative impact and conflict of interest with BNI. 2. Competency Requirements a. Have expertise, ability, knowledge and adequate experience in economics, finance and banking or risk management in accordance with the requirements stipulated by Financial Services Authority Regulations regulating requirements for member of Risk Monitoring Committee. b. Able to work together and have the ability to communicate well and effectively and provide sufficient time to carry out duties. c. Have sufficient knowledge and understanding of the laws and regulations in the banking sector, Capital Market, SOE and other laws and regulations, especially those relating to BNI’s operational activities, implementation of Good Corporate Governance and risk management. Independence Requirements Risk Monitoring Committee member from independent parties: a. Shall be external party with no relation to financial, management, share ownership and/or family relations with the Board of Commissioners, Board of Directors and/or Series A Dwiwarna Shareholders or relationships with banks that can affect their ability to act independently, based on applicable legislation. b. No business relationship either directly or indirectly related to BNI’s business activities. c. In the last 1 (one) year before being appointed as member of Risk Monitoring Committee, he/she shall not work in Public Accounting Office or a consultant who provides audit services, risk management services and/or non-audit consultations to BNI. d. Not an employee of Bank. PT Bank Negara Indonesia (Persero) Tbk
  523. Good Corporate Governance As of December 31 , 2018, educational qualifications and work experiences of the Chairman and Members of Risk Monitoring Committee are as follows. Table of Education Qualification and Work Experience of Risk Monitoring Committee Name Position Revrisond Baswir Chairman • Educational Experience can be viewed on Board of Commissioners’Composition Diversitysection • Work Experience can be viewed on Board of Commissioners’Composition Diversity section Joni Swastanto Member • Educationa Experience can be viewed on Board of Commissioners’ Composition Diversitysection • Work Experience can be viewed on Board of Commissioners’Composition Diversity section Bistok Simbolon Member • Educational Experience can be viewed on Boardof Commissioners’Composition Diversitysection • Work Experience can be viewed on Board of Commissioners’Composition Diversity section Irwan Rinaldi Member • • Bachelor’s degree in Acounting Master’s degree in Management • BRI Deputy Head of Management and Finance Accounting Division BRI Head of Risk Management Division • • Bachelor’s degree in Economic Master’s degree in Management • Kartika Siwi Member Education Work Experience • • • Vice Head of BNI Information Technology Division. Vice Head of BNI Internal Audit Unit. Head of BNI Operations Division Risk Monitoring Committee Independence All members of Risk Monitoring Committee shall be independent from financial, management, share ownership and/or family relationships from Board of Commissioners, Board of Directors and/or controlling shareholder or any relationships with the Bank, which may affect their ability to act independently. Table of Risk Monitoring Committee Independence Independence Aspect Revrisond Baswir Joni Swastanto Bistok Sombolon Irwan Rinaldi Kartika Siwi No financial relationship with Board ofCommissioners and Board of Directors √ √ √ √ √ No management relationship in the company, subsidiaries or affiliated companies √ √ √ √ √ No shares in the company √ √ √ √ √ No family relationship with Board ofCommissioners, Board of Directors and/ or fellow membersof Risk Monitoring Committee √ √ √ √ √ Not serving on boards of political parties, government officials √ √ √ √ √ Risk Monitoring Committee Meetings 1. Risk Monitoring Committee shall meet at least 1 (one) time in 1 (one) month. 2. Risk Monitoring Committee Meetings shall only be conducted if attended by at least 51% (fifty one percent) of the total number of members including an Independent Commissioner and Independent Party members. 3. Risk Monitoring Committee meeting shall be led by Risk Monitoring Committee Chairman or mostsenior Risk Monitoring Committee Member, if absent. 4. If deemed necessary, Risk Monitoring Committee may invite other parties related to the meeting to attend Risk Monitoring Committee Meeting. 5. Committee meetings decisions shall be made on the basis of consensus. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 523
  524. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 6. In the absence of consensus, decision-making shall be based on majority votes with principle of 1 (one)person 1 (one) vote. 7. Risk Monitoring Committee meetings decisions shall be considered valid if approved by more than ½ (one-half ) of Risk Monitoring Committee members present. The principle of votes for members shall be 1 (one) person 1 (one) vote. 8. Committee meetings results shall be recorded in minutes of meeting signed by all members of Committee present and documented in accordance with the laws and regulations. 9. Any dissenting opinions that occur in committee meetings shall be clearly detailed in the minutes of meeting. 10. Committee Meetings minutes of meeting shall be recorded by Committee Secretary, or by one Committeemember who is an independent party, in the absence of Committee Secretary. 11. Committee Meetings Minutes of meeting shall be submitted in writing by Risk Monitoring Committee to Boardof Commissioners. 12. Attendance of Committee Members at meetings shall be reported in the quarterly reports and annual reports of the Committee. Risk Monitoring Committee Meeting Agenda In 2018, Risk Monitoring Committee (RMC) held 8 (eight) meetings,either internal meetings or joint meetings with related divisions with the following agenda: No. 524 Date Agenda Attendance 1. February 01, 2018 KPR meeting with Enterprise Risk Management Divisionregarding realization of work plan of the Enterpise Risk Management Division in the fourth quarter of 2017 and ERM Division’s work plan for 2018. • • • • Revrisond Baswir Joni Swastanto Irwan Rinaldi Kartika Siwi 2. February 22, 2018 KPR meeting with Enterprise Risk Management Divisionregarding Risk Profile for Quarter IV-2017 and Bank BNI Semester Soundness LevelII-2017. • • • • • Revrisond Baswir Joni Swastanto Bistok Simbolon Irwan Rinaldi Kartika Siwi 3. March 15, 2018 KPR meeting with Enterprise Risk Management Division, Credit Administration Division, Treasury Division and Internal Control Unit regarding in-depth Credit Risk, Market Risk and Liquidity Risk. • • • • • Revrisond Baswir Joni Swastanto Bistok Simbolon Irwan Rinaldi Kartika Siwi 4. April 26, 2018 KPR meeting with Enterprise Risk Management Division regarding Quarterly Risk Profile I-2018 and evaluation of the implementation of Risk Management Committee’s work. • • • • • Revrisond Baswir Joni Swastanto Bistok Simbolon Irwan Rinaldi Kartika Siwi 5. June 28, 2018 Meeting with Enterprise Risk Management Division, Information Technology Operations Division, Legal Division, Compliance Division, and Information Technology Solutions & Security Division regarding key issues of Operational Risk, Legal Risk and Compliance Risk. • • • • • Revrisond Baswir Joni Swastanto Bistok Simbolon Irwan Rinaldi Kartika Siwi 6. August 23, 2018 Meeting with Enterprise Risk Management Division, Strategic Planning Division and Corporate Communication and Secretariat Division regarding Bank BNI Soundness Level, as well as Main Issues of Strategic Risk and Reputation Risk. • • • • • Revrisond Baswir Joni Swastanto Bistok Simbolon Irwan Rinaldi Kartika Siwi 7. October 25, 2018 Meeting with Enterprise Risk Management Division and Subsidiary Development Division regarding Integrated Risk Profile of Semester I-2018 with in-depth on Intra-Group Transaction Risk and Insurance Risk, Report on Implementation of Integrated Risk Management Committee Meeting for Semester I-2018 and BNI Risk Profile Quarter III-2018. • • • • • Revrisond Baswir Joni Swastanto Bistok Simbolon Irwan Rinaldi Kartika Siwi 8. November 29, 2018 Joint meeting with Enterprise Risk Management Director and Bank Risk Management Division regarding BNI Recovery Plan Document 2018. • • • • • Revrisond Baswir Joni Swastanto Bistok Simbolon Irwan Rinaldi Kartika Siwi Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  525. Good Corporate Governance FREQUENCY AND ATTENDANCE OF RISK MONITORING COMMITTEE MEETING In 2018 , Risk Monitoring Committee conducted 8 (eight) KPR meetings, both internal meetings and joint meetings with divisions or units. The total attendance of each KPR member in the KPR Meeting is as shown in the table below: Name Position Total Meeting Number of Meeting Percentage Revrisond Baswir Chairman 8 8 100% Joni Swastanto Member 8 8 100% Bistok Simbolon Member 8 7 87% Irwan Rinaldi Member 8 8 100% Kartika Siwi Member 8 8 100% BRIEF REPORT OF RISK MONITORING COMMITTEE ACTIVITIES IN 2018 In 2018, Risk Monitoring Committee completed all Programs/Work Plans established at the beginningof the year in order to assist the execution of Board of Commissioners duties.Implementation of activities/duties is done through: • KPR meetings including inviting related divisions/units. • Review/evaluation outside the forum of meetings Results of the meetings and monitor, review and evaluation of KPR shall be submitted to Board of Commissioners as reports and recommendations either in writing or within Board of Commissioners Meeting forum. The Monitoring Committee activities generally covered the following matters: 1. Soundness Level per semester and Risk Profile per Quarter. 2. Bank Business Plan 2019-2021 and BNI Corporate Plan 2019-2023. 3. Compliance Report submitted by the Compliance Director to the Board of Commissioners. 4. Credit lending to related parties submitted by Board of Directors to Board of Commissioners for approval. 5. BNI Recovery Plan Document 2018. 6. Anti-Money Laundering and Terrorism Funding Prevention (APU PPT) report. 7. In-depth on the main issues of Risk Profile. 8. Request for credit consultation submitted by Board of Directors to Board of Commissioners. 9. BNI Financial Performance and BNI Subsidiary Company Performance. 10. Work Plan and realization of Risk Management Work Unit Plan, as well as the realization and result of Risk Management Committee’s work plan and Integrated Risk Management Committee quarterly. 11. General Policy for Risk Management, Company Guidelines for Internal Control System, as well as General Policy for Integrated Risk Management and Integrated Capital Management. 12. BNI Financial Institution Pension Funds Risk Management Guidelines. INTEGRATED GOVERNANCE COMMITTEE The Integrated Governance Committee in PT BankNegara Indonesia (Persero)Tbk was established based onthe legislation in force, in particular with referenceto Financial Services Authority regulation No. 18/POJK.03/2014 dated November 18, 2014 regardingIntegrated Governance for Finance Conglomerateand Ministry of State-Owned Enterprises No. PER12/MBU/12/2012 dated August 24, 2012 on Supporting Organs of SOE’s Board of Commissioners/Supervisory Board. INTEGRATED GOVERNANCE COMMITTEE APPOINTMENT BASIS Establishment of Integrated Government Committee for Financial Conglomerate in BNI is based on Board of Commissioners of PT Bank Negara Indonesia(Persero)Tbk Decree No. Kep/006/DK/2015 dated June22, 2015 regarding the Establishment of Integrated Governance Committee.The Integrated GovernanceCommittee shall be independent both in the execution of itsduties and reporting and directly responsible to the Main Entity of Board of Commissioners. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 525
  526. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk INTEGRATED GOVERNANCE COMMITTEE CHARTER The Company has an Integrated Governance Committee Charter that is continuously refined and updated in accordance with progress/amendment of applicable laws and current conditions. The renewal/revision of the latest BNI RiskMonitoring Committee Charter was carried out in 2017,as stipulated in the Board of Commissioners Decree No. KEP/044/DK/2017 dated October 12, 2017 on The Integrated Governance Committee Charter. TheIntegrated Governance Committee Charter containslegal basis; definition; establishment and committee structure; committeemembers requirements; committee membership; committee’ duties and responsibilities; committee’s authorities, rightsand obligations; committee member’s appointment, dismissal and term of office; and committee meetings. Integrated GovernanceCommittee Duties and Repsonsibilities Integrated Governance Committee’s duties and responsibilities including: 1. Evaluating Integrated Governance implementation at least through assessment of adequacy of internal controls, implementation of integrated compliance functions and implementation of IntegratedGovernance Guidelines. In conducting theevaluation, Integrated Governance Committee obtains information from evaluations of internal audit and compliance functions of each Financial Services Institute from membersof Board of Commissioners of each Financial Services Institution where members are in the Integrated Governance Committee. 2. Providing recommendations to the Main EntityBoard of Commissioners regarding the evaluationof Integrated Governance and improvement ofIntegrated Governance Guidelines. Integrated Governance Committee works collectively in carrying out its duties to assist the Main Entity Board of Commissioners. Integrated Governance Committee Authorities Integrated Governance Committee Authorities: 1. Integrated Governance Committee may requestan explanation or the necessary information aboutemployees, funds, assets, and other resourcesrelated to the performance of its duties to theInstitute of Financial Services in the BNI financialconglomerate, with due regard to the prevailingregulations.The Committee shall report in writingthe result of the assignment to the Boardof Commissioners. 526 Adapting Quickly to Face Change 2. Members of Integrated Governance Committee shall be authorized to communicate directly with the parties related to the Integrated Governance Committee duties. 3. To carry out its duties, the Integrated Governance Committee can cooperate or coordinate with otherCommittees under the Board of Commissioners, aswell as relevant divisions/units/ work units on thenMain Entity or others in the Institute of Financial Services in the BNI Financial Conglomerate. 4. Integrated Governance Committee membersnshall be independent parties who have the right to receive anhonorarium from BNI as determined by Boardof Commissioners under the applicable rules. 5. Member of Main Entity Board of Commissioners, Member of Board of Commissioners and Supervisory Board of Financial Services Institution who becomes Chairman/ member of Integrated Governance Committee shall not receive additionalincome other than income from their office as member of Board of Commissioners/Supervisory Board Members. 6. Integrated Corporate Governance CommitteeMembers shall perform their duties properly andmaintain confidentiality for all documents, data, information and everything related to the IntegratedCorporate Governance Committee’s tasks used strictly only for their duties. 7. Integrated Corporate Governance Committee shallbe required to evaluate the compatibility between Integrated Governance policies and the implementation of these policies, and provide recommendations to the Main Entity Board of Commissioners regarding Integrated Governance policies and their implementation, to ensure that Integrated Governance managementhas been conducted adequately. 8. Before the current financial year, Integrated Governance Committee shall prepare and submit Business Plan and Annual Budget to Main Entity Board of Commissioners to be established, a copy of which is delivered by the Main Entity Boardof Commissioners to the Main Entity Board ofDirectors for their infomation. The Work Plan andAnnual Budget implementation, by the Integrated Corporate Governance Committee, shall be reportedto the Main Entity Board of Commissioners. 9. Integrated Corporate Governance Committee shall prepare and submit reports on the executionof their tasks, if necessary, with recommendationto the Main Entity Board of Commissioners signedby Committee Chairman and Members. PT Bank Negara Indonesia (Persero) Tbk
  527. Good Corporate Governance TERM OF OFFICE OF MEMBER OF INTEGRATED GOVERNANCE COMMITTEE 1 . Chairman and members of Integrated Governance Committee shall be appointed and dismissed by Main Entity Board of Commissioners. 2. Member of Integrated Governance Committeewho is a member of Main Entity Board of Commissioners or Board of Commissionersand Supervisory Board of Financial Services Institution: a. Term of office shall be equal to the period of appointment as member of Board of Commissioners or Supervisory Board stipulated by the GMS. b. Ceases by itself if the term of office as memberof Board of Commissioners or SupervisoryBoard ends. 3. Term of office of member of Integrated GovernanceCommittee member from independent party shallbe 3 (three) years, and may be renewed once for2 (two) years so that the total term shall be a maximum of 5 (five) years without prejudicing the right of Main Entity Board of Commissioners to dismiss any committee member at any time. 4. Main Entity Board of Commissioners may dismiss any member of Integrated Governance Committee if he/ she is deemed to have not performed his/her duties as member of the committee as set forth in the Decree of appointment of committee member concerned. 5. In the event that member of Main Entity Board of Commissioners who concurrently servesas Chairman of Integrated Corporate Governance Committee resigns as member of Main Entity Board of Commissioners, the Chairman of the Committee shallbe replaced by other member of Main Entity Independent Board of Commissioners who is Chairman of one of Committee in Main Entity within 30 (thirty) days at the latest. 6. Dismissal and appointment of Committee members shall be reported to the GMS. PT Bank Negara Indonesia (Persero) Tbk  INTEGRATED GOVERNANCE COMMITTEE STRUCTURE, MEMBERSHIP AND EXPERTISE The structure and membership of Integrated Governance Committee are as follows: 1. Integrated Governance Committee is formed based on decision of Board of Commissioners’ meeting and settled in a Decree of Board of Commissioners. 2. Integrated Governance Committee shall be under the coordination of Board of Commissioners and directly responsible to Board of Commissioners. 3. Members of Integrated Governance Committee at least consist of: a. An Independent Commissioner who is the Chairman of one of the committees at the Main Entity, and concurrently serves as member; b. An independent Commissioner who represents and is appointed by each Financial Services Institution in the BNI Financial Conglomerate, as member; c. An independent party who serves as member. An independent party can come from an independent party member of the Committee in the Main Entity; d. Members of the Sharia Supervisory Board of Financial Service Institution that carry out business activities based on Sharia principles in the BNI Financial Conglomerate as members, whose numbers are adjusted to the needs of BNI Financial Conglomerate as well as the efficiency and effectiveness of the duties of the Integrated Governance Committee. 4. 4. The number and composition of Independent Commissioners who are members of the Integrated Governance Committee as referred to in point 3 letter b above are adjusted to the needs of the BNI Financial Conglomerate as well as the efficiency and effectiveness of the duties of the Integrated Governance Committee taking into account the least representation of each financial services sector. 5. The membership of Independent Commissioner in Integrated Governance Committee as referred to in point 3 above can be in the form of permanent and nonpermanent membership, in accordance with the needs of BNI Financial Conglomerate, where if necessary the Main Entity can add a non-permanent membership to the Independent Commissioner who is not yet member of Integrated Governance Committee. 6. Membership of Independent Commissioners, Independent parties and members of Sharia Supervisory Board as referred to in letter 3 above to Integrated Governance Committee in BNI Financial Conglomerate are not considered as concurrent positions. In 2018 period, the structure and membership and expertise of Integrated Governance Committee are as explained in the table below. Adapting Quickly to Face Change 527
  528. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk In 2018 period, the structure and membership and expertise of Integrated Governance Committee are as explained in the table below. Name Position Description Expertise Revrisond Baswir Chairman Independent Commissioner of PT Bank Negara Indonesia (Persero) Tbk Economics Joni Swastanto Member Commissioner of PT Bank Negara Indonesia (Persero) Tbk Banking Krisna Wijaya*) Member President/Independent Commissioner of PT BNI Life Insurance Banking and Economics Parikesit Suprapto**) Member President/Independent Commissioner of PT BNI Life Insurance Economic Development Utang Ranuwijaya Member Sharia Supervisory Board of PT BNI Life Insurance Sharia Economic Rizqullah Member Independent Commissioner PT Bank BNI Syariah Sharia Economics and Finance General and Sharia Banking Hasanuddin Member Sharia Supervisory Board of PT Bank BNI Syariah Sharia Economic Law Rosa Lima Dwi Mutiari Member President/Independent Commissioner of PT BNI Multifinance Banking (Credit) Eddy Siswanto Member President/Independent Commissioner of PT BNI Aset Management Finance, tax and accounting, capital market, pension fund Suhendry Hafni**) Member Independent Commissioner of PT BNI Sekuritas Management Setyowati Member Independent Party Risk Management & Compliance Banking Information: *) Ceased as member of Integrated Governance Committee since June 26, 2018 **) Served as member of Integrated Governance Committee since December 13, 2018 INTEGRATED GOVERNANCE COMMITTEE PROFILE Chairman of the Integrated Governance Committee REVRISOND BASWIR Profile can be viewed in the Board of Commissioners section Member of Integrated Governance Committee JONI SWASTANTO Profile can be viewed in the Board of Commissioners section Member of Integrated Governance Committee KRISNA WIJAYA (President/Independent Commissioner of PT BNI Life Insurance) Born in 1955. Obtained his Bachelor’s Degree in Agricultural Socioeconomic from Institut Pertanian Bogor (1980), Master’s Degree in Agribusiness Management from Universitas Gajah Mada (1990) and PhD Degree in Interdisciplinary Studies from Universitas Gajah Mada. Member of BNI’s Integrated Governance Committee since November 2015, previously served as Board Member Commissioner/Chief ExecutiveOfficer (CEO) of Lembaga Penjamin Simpanan (2005-2007), Commissioner of PT Bank Danamon Indonesia Tbk. (2008-2010) and IndependentCommissioner of PT Bank Mandiri Tbk (2010-2015). He has been President /Independent Commissioner of PT BNI Life Insurance since October 2015. Other positions to date are Director of Indonesian Banking Development Institute, Chairman of Independent Commissioner and Audit Committee of PT Adira Finance Tbk, Independent Commissioner of PT Mahaka Radio Tbk, Member of Sharia Supervisory Board of PT Chubb Syariah Insurance. 528 Adapting Quickly to Face Change Member of Integrated Governance Committee PARIKESIT SUPRAPTO (President Commissioner/Independent of PT BNI Life Insurance) Born in 1951. Obtained a Bachelor of Economics (1980) from the College of Industrial Management, Master of Economic Development (1990) from Indiana University, USA, PhDin Economic Development (1995) from the University of Notre Dame, USA. Member of BNI’s Integrated Governance Committee since December 2018. Previously served as an Independent Commissioner at Bank Bukopin (2013-2018), Deputy of Services Business in the Ministry of SOE (2010-2012), Deputy Minister of SOE for Banking and Financial Industry (2008-2010) , Expert Advisor for Small Business for Minister of SOE (2006-2008), Assistant Deputy Minister of SOE in Finance and Development Industry Restructuring and Privatization (2002-2005), Director of Restructuring and Privatization, Director General of SOE, Ministry of Finance (20012002). Member of Integrated Governance Committee UTANG RANUWIJAYA (Member of Sharia Supervisory Board at PT BNI Life Insurance) Born in 1958. Obtain a Bachelor’s degree from Syari’ah IAIN “SGD” Bandung (1984), Master’s degree (S2) from IAIN “Syahid” Jakarta (1992), and PhDdegree from IAIN “Syahid” Jakarta (1999). Member of BNI Integrated Governance Committee since January 2017. Previously served as Dean of Faculty of Sharia and Islamic Economicsof IAIN “SMH” Banten (2011-2015), Director of PostgraduateProgram of IAIN SMH Banten (2015-2017). PT Bank Negara Indonesia (Persero) Tbk
  529. Good Corporate Governance Member of the Integrated Governance Committee RIZQULLAH (Independent Commissioner of PT Bank BNI Syariah) Born in 1957. Graduated with a Bachelor’s degree in Economics from Universitas Islam Indonesia Yogyakarta in 1982, obtained his Master’s degreein International Business from University of Baldwin Wallace College, Ohio, USA in 1986 and earned his PhD degree in Islamic Economics &Finance from Universitas Trisakti in 2013. Member of the Company’s Integrated Corporate Governance Committee since October 2016. He held important positions in various companies,including Director of PT Sarana Multigriya Finansial (2005-2007), Head of Credit Risk Division of PT Bank Negara Indonesia (Persero) Tbk. (2007--2008), Project Head of Bank Syariah Establishment of PT Bank Negara Indonesia (Persero) Tbk. (2008-2010), President Director of PT Bank BNISyariah (2010-2012), Director of Islamic Economics & Finance,Postgraduate Program, Universitas Trisakti (20132015), Independent Commissioner of PTAsuransi Tripakarta (2015-2016), Independent Commissioner of PT Grha 165 , Tbk (2015-2017). Member of the Integrated Governance Committee HASANUDDIN (Member of Sharia Supervisory Board of PT Bank BNI Syariah) Born in 1961. Obtained his Bachelor’s degree in Sharia Faculty of Universitas Islam Tribhakti, Kediri in 1985, Master’s degree from Sharia Faculty, InstitutAgama Islam Negeri (IAIN- now UIN) Syarif Hidayatullah, Jakarta in 1997, and completed his PhD Program in Sharia Assessment Studies inthe same university. Member of BNI Integrated Governance Committee since January 2017. Served as member of LP POM-MUI Expert Team in 2006, currently serving as Deputy Head of National Board of Executives of National Sharia Board (BPH - DSN) MUI. Active in academic activities and served as Dean of Faculty of Shariah IIQ, Jakarta in 1993-1997 and 1999-2002 and as lecturer of Islamic Law in UIN and IIQuntil now. Member of the Integrated Governance Committee ROSA LIMA DWI MUTIARI (President/Independent Commissioner of PT BNI Multifinance) Born in 1956. Obtained a Bachelor’s Degree in Economics from Universitas Diponegoro (1980) and Master’s Degree from Sekolah Ilmu Ekonomi IPWI (1995). Member of BNI Integrated Governance Committee since October 2016. Previously held various positions from 2004 with the last position as Head of BUMN and Government Institutions Division at PT Bank Negara Indonesia (Persero) Tbk. (2012-2014), Indonesian Professional CertificationAuthority, Competency Assessor at Banking Profession Certification Institute (LSPP) (2012-Now), Lecturer and Credit Consultant at BNI CorporateUniversity of PT Bank Negara Indonesia (Persero) Tbk. (2014-present). PT Bank Negara Indonesia (Persero) Tbk  Member of Integrated Governance Committee EDDY SISWANTO (President/Independent Commissioner of PT BNI Asset Management) Born in 1956. Graduated with Bachelor’s degree in Accounting from Universitas Sumatera Utara - Medan (1982) and Master’s degree in Finance and Banking from Universitas Gadjah Mada - Yogyakarta (1993). Has tax brevet A, B and C as well as WMI,WPPE, WPEE Capital Market certifications. Member of Integrated Governance Committee since September 2017. Previously served at BNI Group from 1982 and from 20012010, as Accountant in Finance Division of PT BNI Sekuritas (2001-2004), Director of Investment at BNI Pension Fund (2004- 2006), Head of Budgeting &Financial Control Division at PT Bank Negara Indonesia (Persero) Tbk (2006-2009), President Director of PT BNI Sekuritas (2009-2010), and President Director of PT Tri Handayani Utama (subsidiary of Dana Pensiun BNI) (2011-present). Member of Integrated Governance Committee SUHENDRY HAFNI (Independent Commissioner of PT BNI Securities) Born in 1958. He received a Bachelor's degree from UNKRIS and Master of Management from Universitas Gadjah Mada in 1995. He participated in various domestic and foreign seminars, including the World Bank Management Audit Framework held by the Internal Audit Association in Washington, United States of America in 2012 and the Executive Leadership Workshop held by Marcus Evan in Kuala Lumpur in 2011. In 2012, he attended the Ethic and Compliance Forum seminar, held by the Ethic and Compliance Forum in Shanghai. Member of Integrated Governance Committee since December 2018. Previously held various strategic positions at BNI Group, including Deputy Leader of the Institutional Financial Services Division of PT BNI (Persero) Tbk, Denpasar, Regional Head of PT BNI (Persero) Tbk, Head of PT BNI Compliance Division (Persero) Tbk, and Commissioner of PT BNI Sekuritas (2015-2018). Member of Integrated Governance Committee SETYOWATI (Integrated Corporate Governance Committee, Independent Party) Born in 1958. Obtained a Bachelor’s degree in Economics, Universitas Diponegoro (1982). Became Member of Integrated Governance Committee of PT Bank Negara Indonesia (Persero) Tbk on November 16, 2015. Previously served at PT Bank Niaga 1983-2001 with the last position as Head of Compliance Group, Commissioner of Niaga Securities (2000-2001) , Credit & MarketRisk Management of PT Bank Danamon (2001-2006), Head of Corporate Credit Audit Department of PT Bank Mandiri (Persero) Tbk (2006-2007), Head of Credit Risk & Policy Group of PT Bank Mandiri (Persero) Tbk (2007-2009 ), Head of Policy, System & Procedure Group of PT Bank Mandiri (Persero) Tbk(2010-2014), advisor at PT Bank Syariah Mandiri (2015-2017) Adapting Quickly to Face Change 529
  530. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk EDUCATIONAL QUALIFICATIONS AND WORK EXPERIENCES OF INTEGRATED GOVERNANCE COMMITTEE Requirements for Integrated Governance Comittee MembersiPersyaratan Umum 1. General requirements a. Have good integrity, character, moral and sufficient work experience related tocommittee duties; b. Have no personal interests/links that mayhave negative impact and conflict of intereston the Financial Services Institutions in BNI’sFinancial Conglomerate. 2. Competency Requirements a. Have adequate educational background, ability, knowledge and experience in banking or other financial services institutions; b. Able to work together, have the ability tocommunicate properly and effectively, and provideenough time to carry out their duties; c. Have sufficient knowledge and understanding of the principles and processes of Good Corporate Governance in general, as well as laws and regulations in the banking sector and other financial services institutions, especially related to operational activities of banking and other financial services institutions. 3. Independence Requirements Independent Members of Integrated Governance Committee: a. Shall beexternal party who has no financial relationship, stewardship, share ownership and/or family relationship with Board of Commissioners, Board of Supervisors, Board of Directors and/or Controlling Shareholders of Financial Services Institutions in the BNI Financial Conglomerate, or relationship with Financial Services Institutions in BNI’s Financial Conglomerate that may affect their ability to act independently. Financial relationship, stewardship, share ownership and/or family relationship as referred to above shall be in accordance with applicable rules and regulations; b. Has no direct or indirect business relationship relating to Financial Services Insitution in BNI’s Financial Conglomerats. Table of Educational Qualifications and Work Experiences of Integrated Governance Committee Name Position Education Revrisond Baswir Chairman His education history can be viewed in the Board ofCommissioners DiversityComposition section His work experience history can be viewed in the Board ofCommissioners DiversityComposition section Joni Swastanto Member His education history can be viewed in the Board of Commissioners Diversity Composition section His work experience history can be viewed in the Board of Commissioners Diversity Composition section Krisna Wijaya*) Member • • • • Bachelor of Economics Master of Economic Development PhDin Economic Development Work Experience • • • • • • Parikesit Suprapto**) Member • • • Bachelor of Economics Master of Economic Development PhDin Economic Development • • • • • Utang Ranuwijaya 530 Member • • • Bachelor of Religious Courts Master of Islamic Studies PhD in Islamic Studies Adapting Quickly to Face Change • • Member of Board of Commissioners/Chief Executive (CEO) of Deposit Insurance Corporation Commissioner of PT Bank Danamon Indonesia (Tbk) Independent Commissioner of PT Bank Mandiri (Tbk) Director of Indonesian Banking Development Institute Independent Commissioner and Chairman of Audit Committee of PT Adira Finance Tbk Independent Commissioner of PT Mahaka Radio Tbk Member of Sharia Supervisory Board of PT Chubb Syariah Insurance. Independent Commissioner at Bank Bukopin) Deputy for Services Business at the Ministry of SOE Deputy Minister of SOE for Banking and Financial Industry Expert Advisor for Small Business for Minister of State-Owned Enterprises (2006-2008), Assistant Deputy Minister of SOE, Finance and Development Industry Restructuring and Privatization Director of Restructuring and Privatization, Director General of SOE, Ministry of Finance Dean of Faculty of Sharia and Islamic Economics of IAIN “SMH” Banten Director of PostgraduateProgram of IAIN SMH, Banten PT Bank Negara Indonesia (Persero) Tbk
  531. Good Corporate Governance Name Position Rizqullah Member Education • • • Bachelor of Economics Master of International Business PhD in Islamic Economy and Finance Work Experience • • • • • • • • • • • Hasanuddin Member • • • • Rosa Lima Dwi Mutiari Member • • Diploma from Sharia Faculty,Universitas Islam Tribhakti Bachelor of Sharia Faculty, IAIN (now UIN) Master of Religion in Islamic Studies (concentration of sharia) from IAIN Syarif Hidayatullah PhD in Islamic Studies (focus on sharia) from IAIN SyarifHidayatullah. • • • • Bachelor of Corporate Economics Master from IPWI School of Economics • • • • • • • Eddy Siswanto Member • • Bachelor of Accounting Master of Finance and Banking • • • • • General Manager of Bank BNI – London Branc, England Regional Head of Bank BNI - East Java Division Head of Bank BNI - Sharia Business Unit Director of PT Sarana Multigriya Finansial Head of Bank Division, BNI Credit Risk Division Project Head of Establishing a Sharia Bank Assessor of Public Banking and Bank Risk Management Managing Director of PT Bank BNI Syariah Trisakti University Program Director - Islamic Economics & Finance Masters Program Independent Commissioner of PT Asuransi Tripakarta Independent Commissioner of PT Grha 165, Tbk Vice Chairman of MUI Fatwa Commission Member of LPPOM-MUI Expert Team in 2006 Member of Syariah Accounting Committee (KAS)-IAI in 2006. Dean of Faculty of Syariah IIQ, Jakarta in 1993-1997 and 19992002. Instructors in Islamic Law at UIN and IIQ and served as Deputy Head of National Sharia Board (BPH-DSN) Daily Council of MUI. Sharia Supervisory Board at PT Bank BNI Syariah since 2010 Head of SOE Division and Government Institution at PT Bank Negara Indonesia (Persero) Tbk. Head of Corporate Division 1 at PT Bank Negara Indonesia (Persero) Tbk Indonesian Professional Certification Authority Competency Assessor at Banking Professional Certification Institute (LSPP) Lecturer and Credit Consultant at BNI Corporate University, PT Bank Negara Indonesia (Persero) Tbk Accountant in Finance Division of PT BNI Securities Director of Investment in BNI Pension Fund Head of PT BNI (Persero) Tbk. Budgeting & Financial Control Division Managing Director of PT BNI Sekuritas President Director of PT Tri Handayani Utama (BNI Pension Fund Subsidiary) Suhendry Hafni**) Member • • Bachelor of Management Master of Management • • • • • Deputy Head of PT BNI (Persero) Tbk. Financial Services Division Head of PT BNI (Persero) Tbk Denpasar Head of Compliance Division of PT (BNI) Persero Tbk Commissioner of PT BNI Sekuritas Setyowati Member • Bachelor of Economics • • • • Head of PT Bank Niaga Compliance Group Commissioner of Niaga Securities Credit & Risk Management of PT Bank Danamon Head Department of Corporate Credit Audit of PT Bank Mandiri (Persero) Tbk. Group Head of PT Bank Mandiri (Persero) Tbk. Credit Risk & Policy Group Head of PT Bank Mandiri (Persero) Tbk’s Policy, System & Procedure Advisor at PT Bank Syariah Mandiri • • • Information: *) Ceased as member of Integrated Governance Committee since June 26, 2018 **) Served as member of Integrated Governance Committee since December 13, 2018 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 531
  532. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk INTEGRATED GOVERNANCE COMMITTEE INDEPENDENCE Member of Integrated Governance Committee coming from independent party shall not have financial, management, share ownership and/or family relations with Board of Commissioners, Board of Directors and/or controlling Shareholders or relations with the Bank, which can affect their ability to act independently. Table of Integrated Governance Committee Independence Revrisond Baswir Joni Swastanto Krisna Wijaya*) Parikesit Suprapto**) Utang Ranuwijaya Rizqullah Hasanuddin Rosa Lima Dwi Mutiari Eddy Siswanto Suhendry Hafni**) Setyowati No financial relationship with Board of Commissioners and Board of Directors √ √ √ √ √ √ √ √ √ √ √ Nomanagement relationship in companies, subsidiaries or affiliated companies √ √ √ √ √ √ √ √ √ √ √ No shares ownership in the Company √ √ √ √ √ √ √ √ √ √ √ No family relationship with Board of Commissioners, Board of Directors and/or fellow members of Integrated Governance Committee √ √ √ √ √ √ √ √ √ √ √ Not serving as political party manager, government official √ √ √ √ √ √ √ √ √ √ √ Independence Aspect Information: *) Ceased as member of Integrated Governance Committee since June 26, 2018 **) Served as member of Integrated Governance Committee since December 13, 2018 INTEGRATED GOVERNANCE COMMITTEE MEETINGS 1. Integrated Governance Committee shall hold meetings of at least 1 (one) time per semester. 2. Integrated Corporate Governance Meeting may only be held if it is attended by at least 51% (fifty one point per one hundred) of the total members. 3. Integrated Governance Committee meeting is chaired by the Chairman of Integrated GovernanceCommittee or the most senior member of Integrated Governance Committee if the Chairman of Integrated Governance Committee is absent. 4. If deemed necessary, Integrated Governance Committee may invite other parties related to the agenda/discussion of the meeting to attend Integrated Governance Committee Meeting. 5. The committee meeting shall be attended by each Independent Commissioner of the Financial Services Institution in the BNI Financial Conglomerate who are members of Integrated Governance Committee. In the event that independent Commissioners are unable to attend Integrated Governance Committeemeeting, other Commissioners who are not members of Integrated Governance Committee or officials ofthe respective Financial Services Institutions may be required to attend the meeting by filling out the attendance list of the meeting, but are not counted in the quorum of attendance andthe votes to reach decisions at the meeting. 532 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  533. Good Corporate Governance 6 . Decisions of the Committee meetings shall be based on consensus deliberation. 7. In the absence of consensus deliberation, decision-making is based on the majority of votes. Meeting decisions are considered valid if approved by more than (one-half ) the number of members of IntegratedGovernance Committee present. The votes of members of the Committee shall be based onthe principle 1 (one) person 1 (one) vote. 8. Committee meetings may be conducted through teleconferencing media, video conferences, or other means of electronic media. 9. The result of meetings shall be recorded in minutes of meetings signed by all Committee members present and be properly documented. 10. Dissenting opinions that occur at the meetings will be clearly stated in the minutes of meeting along with the reasons for the dissent. 11. Attendance of Committee members at meetings will be reported in committee quarterly reports and annual reports. INTEGRATED CORPORATE GOVERNANCE COMMITTEE MEETING AGENDA In 2018, the Integrated Governance Committee has conducted 5 (five) meetings, both internal meetings and meetings by inviting relevant Directors or Divisions/Units. The agenda of 2018 Integrated Governance Committee meeting is as follows. Table of Integrated Governance Committee Meeting Agenda No. Date Agenda Attendee 1. January 25, 2018 Compliance Division (KPN) and Internal Control Unit (SPI) Presentation: 1. Problems and Improvements to Integrated Compliance Function 2. Follow-up to FSA Recommendations 3. Adequacy, Methodology and Problems of Integrated Internal Control based on the Integrated Internal Audit Results 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Revrisond Baswir Joni Swastanto Krisna Wijaya Utang Ranuwijaya Rizqullah Hasanuddin Rosa Lima Dwi Mutiari Eddy Siswanto Suhendry Hafni*) Setyowati 2. April 12, 2018 BNI Compliance Director Presentation: 1. Integrated Risk Profile 2. Integrated Risk Appetite Statement, Limit All Integrated Exposures and Stress Tests 3. Results of the Self Assessment of Integrated Management Evaluation in Semester II/2017 1. 2. 3. 4. 5. 6. 7. 8. Revrisond Baswir Krisna Wijaya Utang Ranuwijaya Rizqullah Rosa Lima Dwi Mutiari Eddy Siswanto Suhendry Hafni*) Setyowati 3. May 24, 2018 BNI Finance Director PresentationI: 1. Financial Performance of Subsidiary Companies in Quarter I/2018 2. Subsidiary Business Development Strategy 1. 2. 3. 4. 5. 6. 7. 8. 9. Revrisond Baswir Joni Swastanto Krisna Wijaya Rizqullah Hasanuddin Rosa Lima Dwi Mutiari Eddy Siswanto Suhendry Hafni*) Setyowati 4. August 30, 2018 1. SPI Presentation: FSA Recommendation Follow-Up Progress related to Integrated Governance 2. Corporate Communication & Secretariat Division (KMP) Presentation: Review of Integrated Governance Policy Guidelines 1. 2. 3. 4. 5. 6. 7. 8. Revrisond Baswir Joni Swastanto Parikesit Suprapto**) Rizqullah Rosa Lima Dwi Mutiari Eddy Siswanto Suhendry Hafni*) Setyowati 5. November 1, 2018 1. Subsidiary Development Division (PPA) Presentation: Quarterly/2018 Subsidiary Company Performance 2. Internal TKT Committee: 2019 Integrated Governance Committee Work Program 1. 2. 3. 4. 5. 6. 7. 8. 9. Revrisond Baswir Joni Swastanto Parikesit Suprapto**) Rizqullah Hasanuddin Rosa Lima Dwi Mutiari Eddy Siswanto Suhendry Hafni*) Setyowati Information: *) Present as a representative of PT BNI Sekuritas **) Present as a representative of PT BNI Life PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 533
  534. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk FREQUENCY AND ATTENDANCE LEVEL OF MEETINGS OF INTEGRATED GOVERNANCE COMMITTEE In 2018, Integrated Governance Committee has conducted 5 (five) meetings, both internal meetings and meetings by inviting relevant Directors or Divisions/Units. With the change in membership in 2018, the percentage of attendance of each member of Integrated Governance Committee as shown in the table below is adjusted to the effective time as member of Integrated Governance Committee. Table of Attendance Level of Integrated Governance Committee Meeting Name Position Total Meeting Number of Meeting Percentage Revrisond Baswir Chairman 5 5 100% Joni Swastanto Member 5 4 80% Krisna Wijaya*) Member 3 3 100% Parikesit Suprapto**) Member - - - Utang Ranuwijaya Member 5 2 40% Rizqullah Member 5 5 100% Hasanuddin Member 5 3 60% Rosa Lima Dwi Mutiari Member 5 5 100% Eddy Siswanto Member 5 5 100% Suhendry Hafni**) Member - - - Setyowati Member 5 5 100% Information: *) Ceased as member of Integrated Governance Committee since June 26, 2018 **) Served as member of the Integrated Governance Committee since December 13, 2018 BRIEF REPORTON INTEGRATED GOVERNANCE COMMITTEE ACTIVITIES 2018 In 2018, Integrated Governance Committee has implemented all programs/work plans that have been established in order to assist the implementation of Board of Commissioners' duties by monitoring, reviewing/providing advice on matters relating to the functions and duties of Integrated Governance Committee through conducting internal meetings and discussions with relevant Directors or Divisions/units and by conducting reviews/evaluations as well as discussions with related divisions/units outside the meeting forums where the results are submitted to Board of Commissioners as a report either in writing or in a forum meeting the results of which are submitted to Board of Commissioners as a report, either in writing or in a forum meeting of Board of Commissioners. In 2018, Integrated Corporate Governance Committee conducted the following activities: 1. Reviewing and discussing subsidiaries’ performance following the company’s growth strategy in line withPT Bank Negara Indonesia (Persero)Tbk vision to be a financial institution that excels in service andperformance, so that corporate plan of subsidiaries are integrated with corporate plan of parent company. 2. Encouraging the improvement of synergy of subsidiaries as part of BNI Group, including synergy in terms financing cooperation, sharing “know your customer” information, exploration of prospective new products and optimization of business opportunities from PT Bank Negara Indonesia (Persero) Tbk as parent company. 3. Evaluating implementation of Integrated Governance covering the adequacy of integrated internal control; integrated compliance functions; Integrated Governance Guidelines; integrated risk management, and subsidiary performance. 4. Evaluating implementation of Integrated Governance Policy and Integrated Risk Management Policy. 5. Evaluating the adequacy of methodology and integrated internal control problems based on the results of integrated audit. 6. Evaluating integrated risk profile, integrated risk appetite, limits on all integrated exposures and integrated stress tests. 7. Encouraging the acceleration of BNI Incorporated, so the impact on the profitability of each subsidiary, accompanied by risk control, fulfillment of quality human resources and good governance. 534 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  535. Good Corporate Governance 8 . Discussing and recommending settlement of the issues raised in the company’s subsidiariesand improvement of integrated compliance function. 9. Reviewing and ensuring Integrated Governance Report to FSA identifies strengths andweaknesses of implementation of integrated governance and ensures the weaknesses that exist havecreated an action plan/ improvement measures. 10. Preparing an Evaluation Report on the Application of Integrated Governance to Board of Commissioners. 11. Reviewing and revising/updating Integrated Governance Policy Guidelines. 12. Reviewing and monitoring financial performance of subsidiaries in the context of achieving business targets as a result of integrated governance. 13. Reviewing the subsidiary companies proposal for additional capital for BNI Syariah, acquisition of BNI Asset Management shares, and additional credit to BNI Multifinance. 14. Promoting joint commitment for all commissioners of subsidiary companies and all members of Integrated Governance Committee that monitoring should be based on the context of risks to main entities. 15. Monitoring and ensuringFSA findings have been followed up and provide ecommendations for improvements related to human resources, database needs, complete rules including conflicts of interest. 16. Ensuring that subsidiaries has anticipated changes in external conditions, namely the fluctuation of rupiah exchange rate and the digital era which is currently becoming a trend and developing in the community. 17. Conducting a review of the effectiveness of internal controls carried out by Integrated Governance Committee. 18. Reviewing the revisions to Integrated Risk Management Policy and Integrated Capital Management. 19. Performing duties of Integrated Governance Committee quarterly to Board of Commissioners. 20. Developing a working program for Integrated Governance Committee in 2019 with a focus on: ensuringthe structure of Integrated Governance functions optimally; ensuring the Integrated Governance processworks properly; evaluating the results of Integrated Governance. PT Bank Negara Indonesia (Persero) Tbk  ORGANS AND COMMITTEES UNDER THE BOARD OF DIRECTORS CORPORATE SECRETARY BNI’s Corporate Secretary shall be directly responsible to the President Director and in charge of expanding the mission to support the creation of a consistent and continuous good corporate image through an effective management communication program to all stakeholders, including Financial Services Authority, Indonesia Stock Exchange and public at large.Corporate Secretary shall has access to relevant information and material relating to the Company and control of capital market legislation, especially with regard to information disclosure. CORPORATE SECRETARY APPOINTMENT BASIS Regulations used in the formation, recruitment, and implementation of the CorporateSecretary, include: 1. BNI’s Articles of Association. 2. FSA Regulation No. 35/POJK.04/2014 regarding Corporate Secretary of Issuers of Public Company. 3. Decree of PT. Bursa Efek Indonesia’s Board of Directors No. Kep-00001/BEI/01-2014 regarding Amendments to Law No. I-A: regarding Registration of Shares and Equity In addition to Shares Issued by the Listed Company. 4. Ministry of SOE Regulation No. PER-01/MBU/2011 regarding Implementation of Good Corporate Governance (GCG) in SOE, as amended by PER-09/ MBU/2012. 5. Law No.19 Year 2003 on State-Owned Enterprises. 6. Decree of Ministry of SOE KEP117/M-MBU/2002 dated July 31, 2002. 7. Decision of BEJ’s Board of Directors No. 339/BEJ/072001 dated July 20, 2001 regarding Amendment to Provision letter C.2.e Listing Rule Number I-A: regarding General Provision on the Registration of Equity Securities Exchange. 8. Regulation No.IX.I.4 Decree of Bapepam Chairman No. Kep 63/PM/1996 dated January 17, 1996. Adapting Quickly to Face Change 535
  536. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk CORPORATE SECRETARY STRUCTURE Related to the Company organizational structure, Corporate Secretary shall be responsible directly to the PresidentDirector in providing guidance and monitoring the activities of working units according to their respectivesectors, including investor relations, corporate branding, external communications, internal communications, legal and GCG monitoring, as well as protocol, secretarial and housekeeping. The following is the organizational structure of Corporate Communication and Secretariat Division. DIRECTOR OF FINANCE DIRECTOR OF TREASURY AND INTERNATIONAL BANKING INSTITUTION RELATION CORPORATE SECRETARY AND COMMUNICATION DIVISION DEPUTY HEAD OF CORPORATE COMMUNICATION DIVISION INVESTOR RELATIONS EXTERNAL COMMUNICATION GROUP BOARD OF COMMISSIONERS PRESIDENT DIRECTOR INTERNAL COMMUNICATION GROUP RESEARCH AND INTERNAL COMMUNICATION MEDIA RELATION HEAD DEPUTY OF CGC AND BUREAU DIRECTORS DIVISION COMMUNITY DEVELOPMENT GROUP DEVELOPMENT GROUP COMMUNITY DEVELOPMENT RESEARCH DEVELOPMENT AND REPORTING PENGELOLAAN PENGEMBANGAN PROGRAM BINA LINGKUNGAN & CS,R GCG REGULATIONS AND MONITORING GROUP PERSONAL ASSISTANT OF DIRECTORS GCG REGULATIONS AND MONITORING BUREAU OF DIRECTORS GROUP COMMISSIONERS SUPPORTING SECRETARIAT DEPARTMENT EMPLOYEE SERVICE PROTOCOL HUMAN CAPITAL REPRESENTATIVE ELECTRONIK COMMUNICATION BUSINESS PARTNER AND SPONSORSHIP 536 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  537. Good Corporate Governance CORPORATE SECRETARY FUNCTIONS AND DUTIES In BNI , Corporate Secretary function shall be handled by the Communications and Secretariat Division. BNI’s Corporate Secretary shall be directly responsible to the President Director and serves a mission to support the creation of consistent and continuous good corporate imagethrough an effective management communication program to all stakeholders. Corporate Secretary shall have access to relevant information and material relating to the Company and control of rules and regulations in the field of capital markets, especially with regard to disclosure of information. Referring to the FSA Regulation No. 35/POJK/2014 regarding Corporate Secretary of Public Company, Corporate Secretary functions include: 1. Following the development of Capital Market, especially the legislation in force in the Capital market. 2. Providing input to Board of Directors and Board of Commissioners to comply with the rules andregulations in the Capital Market. 3. Assisting Board of Directors and Board of Commissioners in the implementation of corporategovernance including: a. Disclosure of information to the public, including the availability of information on the Company website. b. Submiting timely reports to FSA. c. Implementing and documenting General Meeting of Shareholders. d. Implementing and documenting Board of Directors and/or Board of Commissioners Meetings. e. Implementing the Company’s orientation program for Board of Directors and/or Board of Commissioners. 4. Acting as a liaison between the Issuer or a Public Company with shareholders of the Issuer orPublic Company, FSA and other stakeholders. In line with the FSA Regulations mentioned above and in the achievement and implementation, the Corporate Secretary vision and mission shall be aligned with BNI vision and mission and BNICorporate Secretary functions andduties as set out in the Corporate Communications and Secretariat Division Guidelines are as follows. 1. The principal of Corporate Secretary main functions are as follows: a. Following the development of Capital Markets, particularly the regulations prevailing in the Capital Market. b. Providing the public with any information needed by investors (investor relations) with respect to the Bank condition. c. Providing the public with all information needed by stakeholders (public relations) related to the Bank condition. d. Providing input to Board of Directors to comply with the provision of Law No. 8 Year 1995 regarding CapitalMarkets and its regulations. e. As a contact person between the Bank and FSA and the public. 2. In addition to implementing these main functions, Corporate Secretary shall also perform the following duties. a. Attends Board of Directors meetings and takes the minutes of the meeting. b. Establishes a Special Register related to the Board of Directors, Board of Commissioners and their familiesboth in the Company and its affiliates which include stock ownership, business relations and other roles that may give rise to a conflict of interest with the Company. c. Prepares a List of Shareholders including those with ownership of 5% (five percent) or more. d. Organizes GMS.Prepares materials required with regard to reports/routines of Board of Directors to be submitted to external parties. Prepares materials needed with regard to Board of Directors’s decisions with respect to theCompany’s management. e. Organizes meetings within Board of Directors, both routine and non-routine. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 537
  538. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk CORPORATE SECRETARY PROFILE Since April 25, 2016-present, the Corporate Secretary position has beenheld by Mr. Kiryanto. KIRYANTO (April 25, 2016-present) Indonesian citizen, domiciled in Jakarta, 50 years old. Earned his Bachelor’s degree in FinancialManagement from Universitas Gajah Mada (1992) and Master in Economic Management from Universitas Indonesia (2000). Previously served as BNI Senior Economist, Strategic Planning Division (2006-2016) and AssistantVice President of Corporate Communications and Secretariat Division (2004-2006). In addition, he is a professional Indonesian economist whose work has been published in several print media andprovides training to bank employees. The appointment of Mr Kiryanto as Corporate Secretary was based on Decree of BNI’s Board of Directors Number KP/184/DIR/R dated April 29, 2016. On January 29, 2019, BNI appointed Meiliana as Temporary Substitute of Corporate Secretary to replace Kiryanto. MEILIANA (January 29, 2019 - Present) Indonesian citizen, domiciled in Jakarta. 46 years old. Earned her Master’s degree in Agribusiness from the Bogor Agricultural Institute. She has had a career since 1997 as a Credit Analyst. After that, she has taken part in product development sector as Taplus Manager since 2010 and Head of Corporate Communication Group in 2010. In 2014, she became the Vice Head of Marketing Communication Division. She was the Vice Head of Corporate Communication and CSR Division since 2016 and currently, he is the PGS Head of Corporate Communication and Secretarial Division and a Temporary Substitute of the Corporate Secretary. The basis of his appointment as a Provisional Substitute of the Corporate Secretary based on BNI Directors Decree No. KP/01.005265/2019/HCT/R dated January 28, 2019. 538 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  539. Good Corporate Governance CORPORATE SECRETARY IMPLEMENTATION OF DUTIES – 2018 Several stakeholders activities undertaken by the Corporate Secretary in 2018 includes: 1. Organizing Corporate Actions, namely: a. Annual GMS on March 20, 2018. b. Dividend Payment on April 20, 2018. 2. Following development of Capital Market in accordance with the applicable provisions of Capital Market. 3. Creating GCG awareness for BNI’s Board of Directors and Board of Commissioners including updates onnew policies and issues concerning GCG. 4. Making disclosures in accordance with applicable regulations. 5. Managing communications with the capital market community, especially investors and analysts toensure transparency of information, BNI held Analyst Meeting and Public Exposes, receiving Investors/Analyst Conference Calls and Visits, organizing Analyst Gatherings, Economic Outlooks and publishing BNIMonthly Report. 6. Following the Non-Deal Roadshow both at home and abroad in Asia, Europe and USA. 7. Providing up to date information access to public at large, such as shaing databases, website applications,preparing Annual Report for Fiscal Year 2018. 8. Optimizing strategy through GCG implementation, GCG Self-Assessment and Integrated Governance Self-Assessment, as well as GCG socialization in several Head Office Divisions, Regional offices and Subsidiary Company representatives. 9. Submitting regular and incidental reports to regulators, among others, Securities Holders Register statements,Register of Shareholders, Report of Foreign Debt, etc. 10. Arranging Fit and ProperTest for Board of Directors and Board of Commissioners. 11. Documenting legality of data, among others GMS Deed, Deed of Amendment of Management Composition, etc. 12. Holding press conferences and teleconferences with stakeholders. 13. Establishing communication with Ministry of State-Owned Enterprises, Ministry of Finance, StateSecretary, Financial Services Authority, Self-Regulatory Organizations (Indonesia Stock Exchange, Indonesian Central Securities Depository and Indonesia Clearing and Guarantee), Securities Administration Bureau, andother relevant institutions. 14. Actively participating in hearings and working visits to the House of Representatives. 15. Attending Board of Commissioners and Board of Directors meetings and taking minutes of Meetings. Corporate Secretary Reports 2017 Corporate Secretary’s reports are set forth in Article 11 of Financial Services Authority Regulation No. 35/POJK/2014 which states that: 1. Corporate Secretary shall make a report at least 1 (one) time in 1 (one) year regarding the CorporateSecretary functions to Board of Directors and copied to Board of Commissioners. 2. Issuer or Public Company must disclose a brief description of Corporate Secretary functions and information about education and/or training undertaken by Corporate Secretary in the Public Companyannual report. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 539
  540. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Guided by the foregoing, BNI’s Corporate Secretary had prepared a report regarding Corporate Secretary to Board of Directors and Board of Commissioners, which was delivered via Memo No.KMP/7/1716 dated May 4, 2018 and Board of Directors’ Letter No.DIR/320 dated May 9, 2018 The report among others contains about: Implementation of Corporate Secretary's Functions Based on Pojk No. 35/POJK.04/2014. No. 1. Function According to FSA Following the development of Capital Market particularly applicablelaws and regulations in Capital Market Program Realization Following the development of Capital Market in accordance with Capital Market laws and regulationsto coordinate with other Divisions in relation to the fulfillment of prevailing Capital Market provisions. Created operational guidelines for all divisions and conducting disseminationrelated to Information Disclosure to comply with FSA Regulation No. 31/POJK.04/2015 on Disclosure of Information or Material Facts by Issuers orPublic Companies.Prepared a Periodical Report on the Implementation of CorporateSecretary Function and reported it to the President Director and the Board of Commissioners.Conveyed a concept response for the Amendment to Indonesia StockExchange Regulation Number II-H and Number III-1. Conducted a juridical analysis of FSA Regulation No. 29/POJK.04/2016regarding the Issuer or Public Company Annual Report.Compiled the Corporate Secretary WorkGuidelines approved by theCompany President Director through Directors’Decree No. AHR. KP/356/DIR/R dated September 2nd, 2016 and published it on the Company’s website. In addition to that in 2017, the implementation of such functions is carried out by: 1. Coordinated with the Commissioner Support Unit to be submitted to Board of Commissioners of legal analysis in connection with the Regulation of Financial Services Authority No. 13/POJK.03/2017 regardomg the Use of Public Accountant Services and Public Accounting Firm in Financial Services Activity through Intern Note No. GCG/204 dated May 3, 2017. 2. Conveyed to Finance Budgeting and Controlling Division through Memo No. KMP/7/1789 dated May 18, 2017 regarding the appeal of Financial Services Authority to BNI as the LCR reporting bank in connection with the obligation to submit LCR Report through APOLO online media. 3. Submitted legal review to Board of Directors through Memo No. KMP/7/2437 dated July 6, 2017 regarding Submission of Financial Services Authority Provisions regarding obligation to report on Shares Ownership. 4. Filed an affirmation to all Divisions/Units by Memo Number KMP/7/3106 dated August 31, 2017 regarding Submission of Information Reports and/or Material Facts of the Bank. 5. Submitted legal review to the Treasury Division through Memo No. KMP/7/3485 dated September 18, 2017 regarding obligation to report the use of Public Offering Fund. Fulfillment of POJKon Integrated Governance of Financial Conglomeration In the framework of perfecting the BNI Integrated Governance Manual forFinancial Conglomeration (TKT Guidelines) and following-up the v Regulation no. POJK No. 8/POJK.03/2014, review of Integrated Governance Guidelines had been conducted. Conducting a Review of Integrated Governance Guidelines In order to improve the Integrated Governance Guidelines, BNI Financial Conglomeration (Guidelines for TKT), and to follow-up on the provisions of the Financial Services Authority Regulation No. POJK No. 18/POJK.03/2014, Guidelines and Code of Conduct for Integrated Governance Committee approved by Board of Commissioners through Decree of Board of Commissioners No. KEP/006/DK/2015 dated June 22, 2015 and Integrated Governance Guidelines have been approved by Board of Commissioners through Letter of Board of Commissioners No DK/71 dated July 8, 2015. With respect to the enhancement of Good Corporate Governance in the Company as the Main Entity and to all of the Company’s Subsidiaries, which are Members of the Company’s Financial Conglomeration, through the letter of Board of Commissioners DK/109 dated November 20, 2017, Board of Commissioners has provided inputs and directives related to the guidelines for Integrated Governance of Company Financial Conglomeration submitted by Board of Directors through DIR/695 letter dated November 2, 2017. 540 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  541. Good Corporate Governance No . Function According to FSA Program Realization Establishment of the Integrated Governance Committee The establishment of the Financial Conglomeration Integrated Governance Committee was chaired by Decree of Board of Commissioners No. KEP/006/ DK/2015 dated June 22, 2015 regarding the Establishment of Integrated Governance Committee. The Integrated Governance Committee shall be independent in the performance of its duties and reporting, and shall be directly responsible to Board of Commissioners of the Main Entity. Integrated Governance Committee Charter The Company has Governance Committee Charter which is continuously refined and renewed in accordance with the current legal developments/ amendments. The renewal/refinement of the Company’s Risk Committee Charter which is last conducted in 2017, stipulated in the Decree of Board of Commissioners No. KEP/044/DK/2017 dated October 12, 2017 regarding the “Integrated Governance Charter.” The Integrated Governance Committee Charter contains basis of law; definition; establishment and structure of the committee; requirements of committee members; membership; duties and responsibilities of the committee; authority, rights and obligations of the committee; appointment and termination of members and meetings. 2. Provide input to Public Company’s Board of Directors and Board of Commissioners to comply with the rules and regulations in Capital Market. GCG Awareness for the BOC and BOD includes new and updated policies regarding corporate governance issues Have done and present Juridical Studies/ Analysis: Has drafted and delivered the Juridical Analysis of Procedure Amendment to State Capital Investment in relation to the developing issue of Financial Services Holding SOE Plan to the President Director via Vice President Director through Memo No. KMP/0286 dated January 23, 2017. Has drafted Juridical Analysis regarding Amendment to Company’s Articles of Association regarding written consent for Directors’ actionsfrom Board of Commissioners and/or Shareholders of A Dwiwarna Series to Secretary of Board of Commissioners through Memo No. KMP/1/1594 dated May 4, 2017. Has compiled and submitted Juridical Review on updating of Financial Services Authority Regulation Number 31/POJK.04/2017 regarding Share Expenditures with Nominal Differences to all Board of Directors by Memo Number KMP/7/3157 dated August 23, 2017. Has drafted and submitted Juridical Review of on Provision of Financial Services Authority Regulation Number 30/POJK.04/2017 on Share Buy Back issued by Open Company to all Board of Directors through Memo Number KMP/7/3156 dated August 29, 2017. Have arranged and submitted Juridical Review on Financial Services Authority Regulation No. 51/POJK.03/2017 on the Implementation of Sustainable Finance for Financial Services Institutions, Issuers and Public Companies to Board of Directors through Memo No. KMP/7/3739 dated October 6, 2017. 3. Assist Board of Directors and Board of Commissioners in the implementation of corporate governance Disclosure of information to thepublic, includingvthe availability ofinformation on thePublic Companywebsite Guarantee transparency of corporateinformation either financial or nonfinancial, to keep such information conveyedin a reasonable andproper manner. Compiled, performed and communicated: Information Disclosure on all BNI corporate actions; Publiished Information Disclosure in print media, BNI website, Issuer Reporting System (SPE), FSA and e-reporting at Indonesia Stock Exchange(idx.net);Information Disclosure Letter to FSA and/or Indonesia Stock Exchange. Intensification ofthe publication ofthe material andinformation company performance Compiled, performed and conveyed: Published Company Financial Statements in Local Media; Corporate Presentation Materials; Smartbook; Published financial reports highlights in print and in foreign media PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 541
  542. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. Function According to FSA Program Realization Provision of information on a regular basisabout the company’sperformance, the BNI shares’ performance and marketoutlook Provided regular information on company performance, BNI stock performance as well as overall market outlook through Weekly, Monthly,Quarterly and Annual Reporting; Submitted Monthly updates to internal and external parties regarding market developments and company stock performance. Providing up to date information where access is widelyaccessible by the public through updated digital media material in order to provide easier and broader access. Built a database of stocks, investor data and input/feedback as a basis forfutureimprovements; Provided up-to-dateinformation on corporate performance and corporategovernance through digital media (websites); Developed Applications and Content Website. Access to Company Information as well as corporate actionrelated data can be accessedthrough the official Company website at http://bni.co.id/. Persons requiringfurther information relating to corporate actions or Company data may contact via phone at 021-5728387, Fax at 6221-5728053 or email to: investor. relations @ bni.co.id. Upgrading BNI website material in accordance with POJK No. 8/ POJK.04/2015 regarding Issuer Web Site (material coordinated with Division/ Units related cfm KMP Memo No. KMP/7/2128 dated 19 August 2015). Submission ofreports to Financial Services Authority in a timely manner Preparing summarized management reports in the Annual Report Organized an Annual Report Team Coordinated with internal and external parties in the preparation of Annual Report TB 2018. Optimizing GCG implementation and monitoring strategy Conducting the GCG Self-Assessment submitted to the Financial Services Authority along with the Bank’s Health Level document by letter No. DIR/055 dated January 22, 2018 and BNI received Composite 2 (PK-2) or “Healthy” Rating. Conducting GCG Self-Assessment submitted to the Financial Services Authority along with the Bank’s Health Level document by letter No. DIR/468 dated July 21, 2017 and BNI received Composite 2 (PK-2) or “Healthy” Rating. Presentation of TKS Self-Assessment Report as follows: ConductingTKT Self-Assessment submitted to the Financial Services Authority through Letter Number DIR/125 dated February 13, 2018 and BNI received Stage 2(Good). ConductingTKT Self-Assessment submitted to the Financial Services Authority through Letter No. DIR/474 dated July 27, 2017 and BNI received Stage 2 (Good). 542 Routine report delivery to the FSA Securities Registration Report every month. Report of 10 Largest Shareholders every quarter. Forex Payable Report every month. Incidental report delivery to the FSA Incidental reports in compliance with FSA provisions submitted by mail and SPE FSA uploads including, among others, Disclosure Reports on corporate actions. Implementation and documentation of the General Meeting of Share holders Organizing the Annual General Meeting of Shareholders (AGMS) Held the Annual GMS on March 20, 2018, as stated in the Deed of Minutes of Annual GMS No. 37 dated March 20, 2018, made before Notary Fathiah Helmi, S.H. Arranging the Fitand Proper TestFor Board of Directors and Board of Commissioners Coordinated with FSA for the implementation of fit and proper test for 1 Board of Directors candidate and 4 Board of Commissioners candidates. All prospectivemembers of Board of Directors and Board of Commissioners who followedthe fit and proper test in 2017 passed the FSA fit and proper test and have beenincluded in an Amendment to Board Composition Deed made by Notary Fathiah Helmi, SH Implementation and documentation of Board of Directorsand/ or Board of CommissionersMeetings GCG data documentation, suchas minutes of AGMS and Board ofDirectors meetings forCorporate database Has prepared hardcopy and softcopy administration through filling and scanning of company documents such as GMS Deeds and Minutes of Board of Directors Meeting. Implementation of orientation programs to Board of Directors and/or Board of Commissioners Orientation programcarried out to increase the competence for Board of Directors and Board of Commissioners Has been outlined in the 2018 Year Book Annual Report. Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  543. Good Corporate Governance No . Function According to FSA Other GCG related implementation Program Realization Supporting Board of Commissioners Carried out strategic initiatives to support the smooth functioning of Board of Commissioners in implementing GCG and improved the qualityof services through the support for the TKT, administration for the newCommissioners to ensure GCG and GSM, enhanced the quality of juridicaland strategic services as references for Board of Commissioners indecision making, improved the quality of reports containing analysis or reviews to comply with the regulatory requirements, and prepared theCommissioners Meetings and Committee Meetings Reports and followed-upthe meetings results in accordance with applicable provisions and principlesof GCG. Supported the BoC program based on the Work Plan and Budget of the Board of Commissioners for 2017. Promoting GCG Principles effectively and efficiently, thus improving the BNI image and providing added value for thecompany (valuecreation) Created a GCG Commitment signed by all BNI Personnel at the beginning of each year. Developed BNI Integrity Pact signed by all Board of Directors. Conducted Anti Gratification publications through external and internal media. Stock Management Conducted stock administration managementin coordination with BNISekuritasAdministration Agency (PT DatindoEntrycom). Future BNI SekuritasRegistration Monthly Statements will be conveyed to FSA and IDX through the FSA and IDX reporting system. Dividen Payment The Corporate Secretary has coordinated with various parties in connection with the dividend payment for fiscal year 2016 on April 20, 2017. The dividend paid amounted toRp2,859,459,907,905 so every 1 (one) share is entitled to receive dividend of Rp122,533827 per share. GCG Socialization Conducted GCG socialization including GCG principles, implementation examples, up to the latest GCG related provisions, at Head Office, RegionalOffices and vendor gatherings. External GCG Assessment Rating has been made by 3 independent rating agencies, with the followingassessment results: The Indonesian Institute for CorporateGovernance with the result of theMost Trusted Company Based on CorporateGovernance Perception Index2016 with a score of 88.38. Indonesian Institute for Corporate Directorship with a “Good” Predicateand a total score of 88.60 for the assessment of the ASEAN CorporateGovernance Scorecard. Ministry of State-Owned Enterprises withCriteria for Superior Performance Assessment for SOEs with an assessment of Emerging Industry Leader. 4. As a liaison between the Issuer or a Public Companyby the shareholders of the Issuer or a Public Company, FSA and other stakeholders Optimize strategiesrelated to BNI capitaland rating Has implemented: the intensification of effective communication with the Rating Agency. BNI rating review activities through rating agencies of S & P, Moody’s, Fitch, and Pefindo. Intensify effectivecommunication with thepublic/investors so asto improve stakeholdersatisfaction. Has intensified effective communication with the public/investors through Investor Relations activities, among others through the activities of Analyst Meeting, Public Expose, Domestic and Overseas Non-Deal Road Show, Investor and Analyst Visit, TeleConference, Analyst Gathering, Economic Outlook, and BNI’s Monthly Report to External. Intensify effective communication with analysts by holding analyst meetings Held Financial Performance analyst meeting as follows: 1. Full Year 2016: January 26, 2017 2. 1Q 2017: April 12, 2017 3. 2Q 2017: July 12, 2017 4. 3Q 2017: October 12, 2017 Organize Public Expose Held Financial Performance Public Expose, September 2017 onAugust 7, 2017 through Public Expose marathon 2017 organized by PT Bursa Efek Indonesia. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 543
  544. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. Function According to FSA Program Realization Implementation of GCG Partnership Program with Institutions/ Agencies Worked with The Indonesian Institute for Corporate Governance, the Indonesian Institute for Corporate Directorship, theNational Committee on Governance Policy and Board of Commissioners and Board of Directorsof Indonesia. Act as liaison between the company and stakeholders Conducted company promotions and other information publishing. Managed communication with SOE Ministry on regular basis. Managed communications and correspondence with investors, capitalmarket analysts, fund managers, securities firms, regulatory agencies and rating agencies. Updated system support (Bloomberg, Orient) etc.Held shareholder meetings, press conferences, conferences, investor meetings/forums, investor/analyst visits, private meetings with investors(“one-on-one” briefings).Managed databases of investors, company performance as well as peersand analyst mailing lists. Liaison between the company and the media, for example in the preparationof Press Releases. Acted as company Spokesperson. Minimized negative news regarding BNI’s reputation. INVESTOR RELATIONS FUNCTION Investor Relations activities shall be part of the CorporateSecretary function and the main function shall be tosupport the Corporate Secretary in their efforts tobuild relationships and enhance conducive Investor Relations program intensively, systematicly and well-planned,by: 1. Being a liaison between the company and its stakeholders by managing communication and correspondence with investors, stock market analysts, fund managers, securities firms, regulators and rating agencies. 2. Ensuring the transparency of corporate information either financial or non-financial, to convey such information in a reasonable and proper manner. 3. Maintaining confidentiality of information about the company or the customers and not use theconfidential information for personal benefit oradvantage of other parties. 4. Holding shareholder meetings, press conferences, conferences, investor meetings/forums, investor/analyst visits, private meetingswith investors (“one-on-one” briefings). 5. Preparing company performancepublications. 6. Preparing company promotions and other information. 7. Submitting monthly reports (Monthly updates)to internal and external parties regardingmarket developments and the company’sstock performance. 8. Preparing summarized management reports forthe Annual Report. 9. Providing information on the company’sperformance through digital media (website) to provide easier and wider access. 10. Managing the investor database, the company’s performance as well as peers and analystmailing lists. Here are the activities of Investor Relations together with the Corporate Secretary in the framework of Implementation Investor Relations Function. Investor Relation Acitivity 544 2018 Conference Call 26 Meeting With Investor 133 Non Deal Roadshow/Conference Local 6 Non Deal Roadshow/Conference Foreign 19 Public Expose 4 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  545. Good Corporate Governance INTERNAL AUDIT UNIT BNI ’s Internal Control System implementation has been carried out through the separation of functions between Risk Taking Unit (1st Line of Defense), Risk Control Unit (2nd Line of Defense) and Risk Assurance Unit (3rd Line of Defense). Acting as the 3rd Line of Defense (Risk Assurance Unit), the Internal Audit Unit (SPI) ensures that internal control at each line of defense has gone well. The activities carried out by the SPI aim to encourage improvements in the effectiveness and efficiency of performance, the quality and effectiveness of risk management, and the adequacy and effectiveness of internal controls, with the scope of covering assurance and consultation. The function of consultation is done informally and formally, among others, by conducting an independent review of new products launch (according Financial Services Authority provisions) and special assignments upon request, management and at the initiative of SPI. To that end, SPI continues to establish improvements in audit methodologies and tools so that the audit is in accordance with business developments. In addition, in line with POJK No.18/POJK.03/2014 regarding the Implementation of Integrated Governance for Financial Conglomerate, the function of the Integrated Internal Audit Unit is to be conducted by an Internal Audit Unit. Associated with this role, SPI has regularly established communication and collaboration with theSubsidiaries’ Internal Audit Units, through communication forums, knowledge sharing, integrated audits and reporting, to support the integrated governance for BNI Financial Conglomerate. SPI ORGANIZATION STRUCTURE General Meeting of Shareholders Board of Commissioners Audit Committee President Director Compliance Director SPI Head Audit Office & Business Banking Head IT Audit Leader, Consumer Business & Networking Audite Group Head Office Group Information Technology Audit Audit Group Business Banking Consumer Business & Networking Audit Group Employee Cases Processing Group Special Audit & Survelliance Group Regional Audit Head Pemimpin1-2 Audit Wilayah Area Audit Group Kelompok Audit Area (1-2) Regional Area Audit Group Kelompok Audit Wilayah (1-17) Planning & Development Group Audit Quality Contol Group Internal Control KCLN External Audit Relations & Support Group SPI POSITION IN THE ORGANIZATION STRUCTURE SPI functions within the organization of BNI shall be under anddirectly responsible to the President Director andcan communicate with the Board of Commissionersthrough the Audit Committee.The position of SPI in the BNI organization wasestablished in 2016, in accordance with Decree of Board ofDirectors No KP/430/DIR/R datedNovember 15, 2016. SPI organization structure shall be conducted by re-grouping to strengthen the auditfunction especially in the Region (Regional Audit), with the following set-up: 1. Head Office Audit, Business Banking Audit, CaseProcessing Staff. 2. Information Technology Audit, Consumer & NetworkBusiness Audit, Special Audit & Surveillance. 3. Regional Audits (Region 1 Audit and Region 2 Audit), consisting of: Audit Area Groups (2 Groups)and Regional Audit Groups (17 Groups) dividedbased on geographical area. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 545
  546. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk HEAD OF SPI PROFILE Since January 4, 2017, the Internal Audit Unit has been led by Muhammad Gunawan Putra, SE AK, MBA, CA (47years), with the position of Executive Vice President, based on Decree of Board of Directors No. KP/482/DIR/R 2016. A brief profile of the Head of SPI as follows: M GUNAWAN PUTRA Graduated with a Bachelor’s degree in Accounting in 1995, and obtained his MBA degree in Strategic Management from Universitas Gadjah Mada in 2009. He started his career as BNI’s SPI auditor in 1997 and possessed long standing experience in the field of internal audit, banking operations and risk management. The positions that have been held are SPI Credit & Network Group Head (October 2007 - September 2010), Deputy SPI Leader (October 2010 - November 2012), Medan Region Head of Network & Services (December 2012 - May 2014), CEO of Padang Regional Office (June 2014 - December 2015), Risk and Commercial Business Division Leader (January 2016 - December 2016) and BNI Multifinance Commissioner (June 2016 - December 2016). In addition, he is active in the stewardship of a professional organization in Internal Audit, holding position as Secretary General of Banking Internal Auditor Association for 2017 – 2020 period. HEAD OF SPI APPOINTMENT AND DISMISSAL The Head of SPI shall be appointed and dismissed and directly responsible to President Director with the approval of Board of Commissioners and/or the Audit Committee, having been reported to Bank Indonesia/Financial Services Authority. SPI CHARTER SPI has an Internal Audit Charter established by the President Director and Board of Commissioners, through Decree of Boardof Directors No.KP/106/DIR dated11-03-2016. The Internal Audit Charter is prepared using Internal Audit Bank Standard (SPFAIB) from Bank Indonesia, and FSA Regulation No. 56/POJK.04/2015 dated December 23, 2015 regardingthe Establishment and Guidelines for Internal AuditCharter, as well as applicable best practices standards. The Internal Audit Charter contains SPI’s Vision and Mission, Structure and Position, Duties and Responsibilities, Powers, Code of Conduct, Independence and Objectivity, aim and scope of activities, AuditorRequirements and Development, Audit Risk and Legal Protection for Head and Auditor, Quality Control Audit Program, SPI Function in Integrated Governance andSPI Relations with the external auditor. SPI DUTIES AND RESPONSIBILITIES In carrying out its functions, SPI tasks and responsibilities shall be to: 1. Develop and implement Audit Plan and Annual Consultation. 2. Report realization of Audit Plan and Annual Consultation to the President Director and Board of Commissioners each semester/quarter, or agreed period. 3. Examine and assess efficiency and effectiveness in finance, accounting, operations, humanresources, marketing, information technology, and other activities. 4. Test and evaluate the implementation of internal control and risk management systems in accordance with BNI policy. 5. Provide recommendations for improvements, and information on the activities examined, at all levels of management. 6. Prepare Audit Reports for submission to Board of Directors and Board of Commissionerswith a copy to Director of Compliance and Enterprise Risk. 7. Provide consulting services to BNI internal parties to provide added value and improvement ofquality control, risk management and corporate governance to the extent it does not affect theindependence and objectivity of SPI, and provide adequate resources. 8. Audit requests from Board of Directors and/or Board of Commissioners, or follow-up results of a general audit of an object or event that is thought to contain indications of irregularities and/or fraud if necessary. 9. Carry out follow-up monitoring of audit results and submit a report on Pending Follow-up Auditto President Director and Board of Commissioners periodically. 10. Conduct case processing as well as enhance and develop processes and processing functions in BNI cases. 11. Report immediately any audit findings that could affect the survival of a bank to PresidentDirector and Board of Commissioners. 546 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  547. Good Corporate Governance 12 . Establish written policies and procedures to guide the internal auditors in performing their tasks. 13. Request an annual budget and report to President Director the realization each semester. 14. Establish an Implementation Report and Audit Principles and submit to FSA after being signed by the President Director and Board of Commissioners. SPI AUTHORITIES SPI authority in carrying out its functions shall be based onthe internal audit charter, as follows: 1. To access fully, freely and not limited to records, information, employees, funds, assets, locations/areas, and other BNI resources, including in the subsidiaries/affiliates /financial services institutions owned by BNI, in realtionship to audit and consulting; 2. To verify, interview, confirm, and other examination techniques, customers or other parties related tothe audit and consulting; 3. To communicate directly with Board of Directors, Board of Commissioners and/orAudit Committee, as well as members of Board of Directors, Board of Commissionersand/or Audit Committee; 4. To conduct regular and incidental meetings with Board of Directors, Board of Commissioners and/or Audit Committee; 5. To allocate audit resources, determine audit purpose, scope and plan or schedule, as well as establish the methodology, technique, devices, and audit approach to performbasic tasks that have been assigned; 6. To request help from other work units, or use the services of external parties in audit if deemed necessary; 7. To coordinate and build synergistic relationships with the units/functions, other assurance (compliance unit and risk management), in order to obtain comprehensive and optimal audit results. CODE OF ETHICS OF AUDITOR In carrying out its functions and duties, SPI auditors shall implement and uphold the code of ethics stated in the Internal Audit Charter, as follows: 1. Integrity a. Carrying out the duties honestly, diligently, and responsibly; b. Complying with the law and making disclosures in accordance with the laws and regulations and the profession; c. Not intentionally/consciously involved in prohibited/ illegal activities, not taking actions that can damage SPI’s credibility and internal audit profession; d. Supporting goals of BNI and SPI. 2. Objectivity a. Not involved in activities or having a relationship that will cause a conflict of interest; PT Bank Negara Indonesia (Persero) Tbk  b. Not accepting anything that has an impact or is alleged to have an impact on professional judgment; c. Always using professional judgment in carrying out duties in any conditions and situations; d. Revealing all known facts. 3. Confidentiality a. Being careful in using and maintaining information obtained in duty implementation; b. Not using information for the benefit of anyone and/ or in any way that would conflict with the law and/or Company provisions. 4. Competence a. Carrying out duties in accordance with the knowledge, skills, and experience possessed; b. Carrying out audits in accordance with the Standards for Implementation of the Bank's Internal Audit Function (SPFAIB) and/or other applicable audit standards; and c. Improving competence continuously. QUALITY DEVELOPMENT STANDARD Audits shall be based on Banking Internal Audit Standards (SPFAIB) and Corporate Internal Audit Guidelines. In order to improve the quality of audits, SPI continuouslydevelops audit methodology and enhances its audit programs to comply with the development of existingbusiness processes and best practices, including The Institute of Internal Auditors (IIA) andthe Information Systems Audit and Control Association (ISACA). In accordance with SPFAIB, the effectiveness of the SPI functions and its compliance with the applicable standards of performance, periodically at least once every three (3) years, they shall be evaluated. In 2018, an evaluation / review was conducted by KPMG Siddharta Advisory on the SPI function for a period of 3 years ending on December 31, 2017, which concluded that in general (Generally Conform) the SPI function had fulfilled the provision in the Bank's Internal Audit Function Implementation Standard (SPFAIB) is based on Bank Indonesia Regulations, and the audit of information technology usage has referred to the Financial Services Authority Risk Management Regulations in the Use of Information Technology (MRTI). SPI RELATIONS WITH EXTERNAL PARTIES SPI can exchange information and coordinateactivities with the external auditors activities, which can be conducted through periodic meetings, in order to obtain comprehensive and optimal audit results. Coordination can be conducted to discuss matters that are consideredimportant to both parties. The realization of SPI’s responsibility to external parties shall be as follows: Adapting Quickly to Face Change 547
  548. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 1. Knowledge Transfer SPI actively transfer knowledge related to the methodology/development in the areas of internal audit both the Internal Audit Subsidiary as well as to other organizations, among others, active in the CAE Forum ‘’The Millenialsin Internal Audit:Understanding and Managing the Next Generation of Auditors‘’ andparticipation in the discussion of Indonesian National Working Competency Standardsfor Internal Audit. 2. Active in professional organizations, namely the Association of Bank Internal Auditors(IAIB), IIA Indonesia and the Institute of Banking Profession Certification (LSPP) and SPICommunication Forum. 3. Implementation of Benchmarking BNI SPI actively conducts benchmarking with other bank internal audits and is active in benchmarking forums, namely: -- Implementation of benchmarking in the role and function of internal audit, organization, development of good practice internal audit andhuman resource management. -- Participation in audit methodology benchmaring forum by IAIB (Audit Rating & Reporting and Implementation of Quality Assurance Improvement Program) SPI PERSONNEL COMPOSITION Internal Audit Unit is supported by 723 employees spread across BNI Head Office and operational areas, as illustrated in the following diagram: EVP INTERNAL AUDIT UNIT LEADER AVP INTERNAL AUDIT UNIT VICE LEADER 1 4 AVP HEAD OFFICE AUDIT GROUP LEADER AVP HEAD OFFICE GROUP LEADER 7 4 AVP REGIONAL AUDIT GROUP LEADER AVP MAIN AUDITOR 17 4 MGR HEAD OFFICE AUDITOR 65 17 MGR HEAD OFFICE MGR REGIONAL AUDITOR MGR BRANCH AUDITOR DEDICATED 59 3 MGR AUDITOR DEDICATED 180 AMGR HEAD OFFICE AUDITOR 65 11 AMGR HEAD OFFICE 65 AMGR REGION AUDITOR 215 AMGR AUDITOR DEDICATED ADMINISTRATION ASSISTANT 548 Adapting Quickly to Face Change 6 PT Bank Negara Indonesia (Persero) Tbk
  549. Good Corporate Governance SPI PROFESSIONAL CERTIFICATION SPI is committed to continually improving the competence and knowledge of auditors , through continuing education and training so that they are able to meet adequate qualifications. Certification obtained by SPI employees up to 2018 is as follows: National Certificate 649 377 324 100 66 60 30 4 5 5 5 SMR Lv. 1 SMR Lv. 2 SMR Lv. 3 SMR Lv. 4 CBIA Lv. 1 CBIA Lv. 2 LSPP Kepatuhan CA Credit Skill OMEGA CITPE ISO 9001-2015 Information: SMR : Risk Management Certification CBIA : Certified Bank Internal Audit LSPP CA : Banking Professional Certification Institute : Chartered Accountant CITPE : Certified IT Procurement Expert International Certificate 11 7 6 5 3 2 1 2 CIA CBA CISA CFE CISM CEP-PM CHFI IT IL Foundation R Keterangan: CIA : Certified Internal Auditor CBA : Certified Behavioral Analyst CISA : Certified Information System Auditor CFE : Certified Fraud Examiner PT Bank Negara Indonesia (Persero) Tbk  CISM: Certified Information Security Manager CEP-PM : Certified E-Business Professional in Project Management CHFI : Computer Hacking Forensic Investigation IT IL : Information Technology Infrastructure Library Adapting Quickly to Face Change 549
  550. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk COMPETENCE DEVELOPMENT OF INTERNAL AUDIT UNIT The Competence Development of the Internal Audit Unit has been presented in the sub chapter of Competence Development of Internal Audit Unit in the Company Profile Chapter. BRIEF REPORT ON 2018 INTERNAL AUDIT ACTIVITIES BNI's vision to become a financial institution that excels in service and performance, with BNI's policy direction in line with the Corporate Plan, is to focus on being a bank with superior performance by strengthening synergies between units to accelerate business supported by improved service levels. SPI seeks to carry out the internal supervision function and integrate with the SPI of the Subsidiaries, while remaining a professional, independent and objective business partner for management to support the realization of BNI's vision. SPI oversees the acceleration of BNI's business through the alignment between the SPI strategy and BNI's business strategy, to provide added value in increasing the effectiveness of risk management, control and governance processes. SPI has compiled and stipulated a 2018 Audit and Consultation Work Plan that is in line with BNI's main focus. Through the 2018 Audit and Consultation Work Plan, SPI wants to ensure the quality of BNI's business growth which is balanced with the determination of strong corporate governance in all operational areas. SPI WORK PROGRAM Based on the results of reviews of the company direction in 2018, risk assessments, auditpriorities, and availability of SPI staff, the 2018 audit and consultation plan resulted in 336 thematic audit assignments, IT audits and routine audits, which included: 1. Thematic Audit on small business credit activities, middle segment credit activities, consumer segment credit activities, network & services activities, optimization of customer transactions through closed loop transaction, and effectiveness of HR management, 2. Mandatory Audit, 3. Audit Unit including the Audit Division, domestic and overseas branches, regional offices, Small Loan Centres, Medium Loan Centres and Loan Consumer Centres, 4. IT Activities and Audit Application, 5. Consultation either informally or formally through independent review of new product/activity launches. The thematic audit results are more comprehensive and are expected to provide strategic recommendations (touching the root cause) to management for BNI business process improvements. In addition, the existence of a dedicated auditor on each delivery channel oriented to Internal Control Review is expected to be an early warning tool for irregularities. 550 Adapting Quickly to Face Change AUDIT METHOD SPI developed an Audit and Consulting Plan for 2018, with the risk-based approach through the stages of macro risk assessment and micro risk assessment. Macro Assessments are carried out on performance indicator and overall BNI risk with the aim of identifying the theme, whichwould become the focus of the audit with orientation on business process impovement. The selection of the audit theme begins withidentifying and reviewing activities related to Board of Directors General Policy (KUD) BNI 2018, BNI Risk profile in accordance withthe Risk Management Committee (RMC), input or concern from Board of Directors and Senior Management, conditions/issues that occur according to BNI business development and SPI internal review. In addition, there are also assessments of particular units that will become the audit focus with the orientation towards compliance & control assurance. Audit object assessments shall begin by identifying and assessing the risk level of the auditee unit through risk level assessment of the units according to the risk factors and control elements. 2018 AUDIT METHODOLOGY DEVELOPMENT During 2018, several audit improvement and development initiatives have been implemented by SPI as follows: 1. Implementation of the audit management system to support the activities of dedicated auditors through the AUDIGI application that accommodates the entire audit cycle up to monitor the follow-up of the results of dedicated auditor review. 2. Development of a management system audit application, to support the audit team’s activities. 3. Improving the audit report reporting format, updating the coding of audit findings in the IAMS application to encourage recommendations for improvements in the effectiveness of performance, quality of risk management and adequacy of internal controls by the auditee and supervisory control of auditee’s supervisors. 4. Updating the implementation mechanism of the dedicated auditor review. 5. Evaluation and review of audit programs how to (user manual audit). 6. Enhancement audit analytics to improve the surveillance function in supporting audits. 7. Identification of the database report structure of transactions originating from the core banking system and other Surrounding. 8. Development of knowledge sharing media (audit programs, guidelines, selected reports & exception reports) through the SPI database. 9. Consult with KPMG on the implementation of analytical data activities in improving surveillance functions. PT Bank Negara Indonesia (Persero) Tbk
  551. Good Corporate Governance 10 . Preparation of Risk and Fraud Awareness through lesson learned socialization to the business unit and the creation of awareness materials related to the cement industry, steel industry, consumer debtors and maintenance of outlet codes as an effort to create a culture of control. 2018 AUDIT ACTIVITIES The total audit coverage reached 94.15% in 2018 with a 100% coverage delivery channel, increasing compared to total audit coverage in 2017 at 75.07%. Audit and consultation in 2018 is 368 audit assignments or 109.52% of the annual audit plan target (336 audit assignments), with details as follows: 2018 Audit Planning 286 16 3 20 8 3 Audit Delivery Channel Audit Divisi Audit Cabang LN Audit Subsidiaries (Perusahaan Anak) Audit Mandatory Audit Tematik/Aktivitas IT & Non IT/End to End 2018 Additional audit 21 9 1 PT Bank Negara Indonesia (Persero) Tbk  1 Audit Divisi Audit Cabang LN Audit Aktivitas IT Audit Pendalaman Adapting Quickly to Face Change 551
  552. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk AUDIT FINDINGS AND FOLLOW-UP ACTIONS As part of the overall audit process/phase, after audit reporting, audit activities to beundertaken shall be monitoring of auditee or auditable activities. The monitoring activity shall be an activity to understand and believe the audit result follow-up by both the auditeeor other related parties. Follow-up results of the audit including the completion of SPIRecommendations and Board of Directors Dispositions. SPI data analysis submitted by the auditees determines the status of completion of the audit result follow-up. The follow-up status of the audit result has grouped into 3 (three), i.e., findings that have not been followed-up, findings that are being followed-up and findings that have been Followed-up. Every Quarter, SPI submits the progress on audit result follow up completion in theform of Audit Result Follow-Up Pending Report to Board of Directors and Board of Commissioners through the Audit Committee. The following is the follow-up data on the completion of SPI recommendation and the disposition of Board of Directors on the results of the SPI audit in 2018. 35.928 34.868 97.05% 23.491 20.167 19.380 16.630 86.41% 11.556 9.986 85.85% 85.81% Jun-17 Des-17 Total Jun-18 Settlement Des-18 Progres/Presentasi Penyelesaian = Progress In addition to audit result monitoring by SPI, SPI acts as a liason with external parties (FSA, BI, BPK and KAP),SPI also monitors the follow-up of external audit result. In 2017, follow-up of external audit results arereflected in the following graphs. Audit Year 2018 Done In Progress Done In Progress 38 9 47 0 Financial Services Authority (OJK) 1771 57 1295 87 RI Audit Board (BPK RI) 504 64 504 48 - - 20 4 Bank Indonesia Public Accounting Firm (KAP) 552 Year 2017 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  553. Good Corporate Governance SPI PROGRAM AND STRATEGY IN 2019 To support achievement of BNI ’s 2019 strategy, SPI has developed initiative strategy inthe SPI 2019 Business Plan, as follows: 1. To conduct audit to safeguard against the emergence of significant business risksthrough the fulfillment of audit coverage (100%). 2. To improve Business Process through audit activities in accordance with end to end edit approach in accordance with current critical and risk issues, and IT audit activities in accordance with Major IT Risk andIT Transformation. 3. To conduct mandatory audit in accordance with the provisions of the regulators. 4. To implement value-added services through Consultation/Independent Reviews inaccordance with user demand. 5. To implement internal control review to safeguard against the emergence of criticalrisk to operational outlet activities. 6. To optimize Integrated Internal Audit Work Units in Subsidiaries effectiveness. 7. To improve Audit Result Report Quality. 8. To optimize surveillance function for unusual transaction detection and/orpotential credit shift as an Early Warning System. 9. To improve learning and growth through refinement of audit methodologies and tools, improve and support IT infrastructure, and improve employee competencies. PT Bank Negara Indonesia (Persero) Tbk  COMMITTEES UNDER THE BOARD OF DIRECTORS In carrying out its tasks, Board of Directors has established committees at the level of Board of Directors,in accordance with BNI business needs and regulatory provisions, which are expected to assist with operationaleffectiveness and efficiency, including: 1. Credit Committee 2. Integrated Risk Management Committee 3. Risk and Capital Management Committee 4. Product Committee 5. Performance Management Committee 6. Technology Management Committee 7. Credit Policies and Procedures Committee 8. Human Capital Committee KOMITE KREDIT CREDIT COMMITTEE STRUCTURE AND MEMBERSHIP Credit Committee comprises of 4 (four) levels, each of which has a membership composition and authority limitof its own, namely: 1. Credit Committee at Board of Directors level 2. Credit Committee at Director level: a. Sector Director + Director *) + President Director b. Sector Director + Director *) c. Sector Director 3. 3. Credit Committee at Head Office level: a. a. Head Office 2 (KP-2) b. b. Head Office 1 (KP-1) 4. 4. Credit Committee at Regional level: a. Credit Committee Regional Office 2 b. Credit Committee Regional Office 1 c. Medium Credit Committee d. Business Marketing Group Credit Committee (RTC) Remote e. Small Credit Committee 2 f. Small Credit Committee 1 g. Credit Committee Branch 2 h. Credit Committee Branch 1 Adapting Quickly to Face Change 553
  554. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Credit Committee at Board of Directors Level Credit Approval Authority Maximum Credit Committee Member Necessary Committee Member Corporate Segment up to BMPK Board of Directors Member President Director, Vice President Director, Director of Corporation, Director of Risk Management Medium Segment up to BMPK Board of Directors Member President Director, Vice President Director, Director of Small Business and Network, Director of Risk Management Small Segment up to BMPK Board of Directors Member President Director, Vice President Director, Director of Small Business & Network, Director of Risk Management Overseas Branches up to BMPK Board of Directors Member President Director, Vice President Director, Director of Treasury & International Banking, Director of Risk Management Bank Financial Institution up to BMPK Board of Directors Member President Director, Vice President Director, Director of Treasury & International Banking, Director of Risk Management Credit Committee at Board of Director Level Credit Approval Authority Corporation Segment Segmen Menengah/ Medium Segment Small Segment Unorganic Consumer Segment Organic Consumer Segment Overseas Branch Office 554 Maximum Credit Credit Approval Officer Business Risk s.d House Limit President Director Vice President Director Director of Corporate Business Director of Risk Management s.d Rp750 miliar Vice President Director Director of Corporate Business Director of Risk Management s.d Rp500 miliar Director of Corporate Business Director of Risk Management s.d House Limit President Director Vice President Director SEVP Medium Enterprises Director of Risk Management s.d Rp750 miliar Vice President Director SEVP Medium Enterprises Director of Risk Management up to Rp500 billion SEVP Medium Enterprises Direktur Manajemen Risiko / Director of Risk Management up to House Limit President Director Vice President Director Director of Small Business & Network Director of Risk Management up to Rp750 billion Vice President Director Director of Small Business & Network Director of Risk Management up to Rp500 billion Director of Small Business & Network Director of Risk Management up to House Limit President Director Vice President Director Director of Corporate Business Director of Risk Management up to Rp750 billion Vice President Director Director of Corporate Business Director of Risk Management up to Rp500 billion Director of Corporate Business Director of Risk Management up to House Limit President Director Vice President Director Director of Retail Banking Director of Risk Management up to Rp150 billion Vice President Director Director of Retail Banking Director of Risk Management Rp30 billion up to Rp75 billion Director of Retail Banking Director of Risk Management up to House Limit President Director Vice President Director Director of Treasury & International Banking Director of Risk Management up to USD 50 million Vice President Director Director of Treasury & International Banking Director of Risk Management up to USD 30 million Director of Treasury & International Banking Director of Risk Management Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  555. Good Corporate Governance Credit Approval Authority Bank Financial Institution Credit Approval Officer Maximum Credit Business Risk up to House Limit Vice President Director Director of Treasury & International Banking Director of Risk Management up to USD 200 million Director of Treasury & International Banking Director of Risk Management CREDIT COMMITTEE DUTIES AND RESPONSIBILITIES Credit Committee Job Description is as follows: 1. Approve or reject proposals in accordance with the credit limit or types of credit authority established by the Board of Directors. 2. Coordinate with the Treasury Division on credit funding aspects. 3. Be responsible for credit decisions based on financing feasibility, credit safety considerations, compliance with lending policies and procedures as well as the provisions of credit limit. 4. Reject the request and or influence of the parties with an interest in the credit applicants that provides credit that is merely a formality. 5. Carry out their duties, especially in connection with the provision of appropriate credit approval authority based on professional, honest, objective, accurate and thorough skills. CREDIT COMMITTEE DUTIES 2018 Credit Approval Authority of Corporation Segment Credit Committee Level of Directors Credit Committee Maximum Credit Number of Meeting > House Limit up to BMPK 5 Level of Directors Credit Committee • President Director, Vice President Director, Director of Corporate Business, Director of Risk Management > Rp. 750 billion up to House Limit 63 • Vice President Director, Director of Corporate Business, Director of Risk Management > Rp. 500 billion up to 750 billion 33 • Director of Corporate Business, Director of Risk Management > Rp 400 billion up to 500 billion 31 Total 132 Credit Approval Authority of Middle Segment Credit Committee Level of Directors Credit Committee Maximum Credit > House Limit up to BMPK Number of Meeting - Level of Directors Credit Committee • President Director, Vice President Director, SEVP Medium Enterprises up to House Limit - • Vice President Director, SEVP Medium Enterprises up to Rp. 750 billion 3 • SEVP Medium Enterprises up to Rp. 500 billion 2 Total 5 Credit Approval Authority of Organic Consumer Segment Komite Kredit Maximum Credit Number of Meeting Level of Directors Credit Committee President Director, Vice President Director, Director of Retail Banking, Director of Risk Management RP150 billion up to House Limit 1 Vice President Director, Director of Retail Banking, Director of Risk Management Rp75 billion up to 150 billion 1 Director of Retail Banking, Director of Risk Management Rp30 billion up to 75 billion Total PT Bank Negara Indonesia (Persero) Tbk  12 14 Adapting Quickly to Face Change 555
  556. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Credit Approval Authority of Overseas Branch Office Segment Branch Office of Hongkong Credit Committee Maximum Credit Level of Directors Credit Committee Number of Meeting - Level of Directors Credit Committee • President Director, Vice President Director, Director of Treasury & International Banking, Director of Risk Management up to House Limit 1 • Vice President Director, Director of Treasury & International Banking, Director of Risk Management up to USD 75 million - • Director of Treasury & International Banking, Director of Risk Management up to USD 50 million - Total 1 Branch Office of Singapore Credit Committee Maximum Credit Level of Directors Credit Committee Number of Meeting - Level of Directors Credit Committee up to House Limit - Vice President Director, Director of Treasury & International Banking, Director of Risk Management up to USD 75 million 1 Director of Treasury & International Banking, Director of Risk Management up to USD 50 million 2 • President Director, Vice President Director, Director of Treasury & International Banking, Director of Risk Management • • Total 3 Branch Office of New York Credit Committee Maximum Credit Level of Directors Credit Committee Number of Meeting - Level of Directors Credit Committee • President Director, Vice President Director, Director of Treasury & International Banking, Director of Risk Management up to House Limit 1 • Vice President Director, Director of Treasury & International Banking, Director of Risk Management up to USD 75 million - • Director of Treasury & International Banking, Director of Risk Management up to USD 50 million - Total 1 Kantor Cabang Tokyo Credit Committee Maximum Credit Level of Directors Credit Committee Number of Meeting - Level of Directors Credit Committee up to House Limit - Vice President Director, Director of Treasury & International Banking, Director of Risk Management up to USD 75 million - Director of Treasury & International Banking, Director of Risk Management up to USD 50 million 1 • President Director, Vice President Director, Director of Treasury & International Banking, Director of Risk Management • • Total 556 Adapting Quickly to Face Change 1 PT Bank Negara Indonesia (Persero) Tbk
  557. Good Corporate Governance Credit Approval Authority of Bank Financial Institution Segment Credit Committee Maximum Credit Level of Directors Credit Committee Number of Meeting up to BMPK Vice President Director , Director of Treasury & International Banking, Director of Risk Management Director of Treasury & International Banking, Director of Risk Management up to House Limit 11 up to USD 200 million 12 Total 23 INTEGRATED RISK MANAGEMENT COMMITTEE BNI as part of the financial services sector that has several subsidiaries incorporated in a Financial Conglomerate also implements Risk Management in an integrated manner. Integrated Risk Management Committee (KMRT) is a Non Structural Committee formed based on Directors Decree No. KP / 193 / DIR / R dated May 26, 2015 which has been updated in accordance with the changes in the organization of the Directors of CFM. Directors Decree No. KP / 384 / DIR / R November 9, 2018. INTEGRATED RISK MANAGEMENT COMMITTEE STRUCTURE AND MEMBERSHIP No. INTEGRATED RISK MANAGEMENT COMMITTEE STRUCTURE AND MEMBERSHIP a. Chairman : Director of Risk Management – BNI, as the Director oversees the Bank's Risk Management function b. Secretary : Division Head Risk Management - BNI c. Permanent Member : • • • • • • • • • • • • • • • • • d. Non-permanent Member : BNI or Subsidiary Director and Division /Unit Head associated with the meeting. Director of Finance – BNI Director of Compliance – BNI Internal Control Unit Head – BNI Subsidiary Development Unit Head –BNI Strategic Planning Division Head – BNI Legal Division Head – BNI Corporate Communications and Secretariat Division Head – BNI Director in charge of Risk Management – BNI Syariah Director in charge of Risk Management – BNI Sekuritas Director in charge of Risk Management – BNI Life Director in charge of Risk Management – BNI Multifinance Director in charge of Risk Management – BNI Assets Management Division Head in charge of Risk Management – BNI Syariah Division Head in charge of Risk Management – BNI Sekuritas Division Head in charge of Risk Management – BNI Life Division Head in charge of Risk Management – BNI Multifinance Division Head in charge of Risk Management – BNI Assets Management INTEGRATED RISK MANAGEMENT COMMITTEE DUTIES AND RESPONSIBILITIES Duties and Responsibilities of Integrated Risk Management Committee shall be to provide recommendations to Board of Directors including: 1. Preparation of Integrated Risk Management policy 2. Integrated Risk Management policy repairs or improvements based on evaluation results.conglomerate. 3. Determinantion of methodology and evaluation of integrated risk profile for BNI Financial Conglomerate. INTEGRATED RISK MANAGEMENT COMMITTEE DUTIES IMPLEMENTATION 2018 During 2018, Integrated Management Risk Committee held 2 (two) meetings with the following agenda: No. 1. 2. Date February 07, 2018 August 08, 2018 Agenda • • • Approval of Integrated Risk Profile Self-Assessment Result, December 31, 2017 Approval of Calculation of Integrated Minimum Capital Adequacy Requirement (KPMM) Result, December 31, 2017. Approval of Integrated Risk Appetite Statement (RAS) Agreement 2018. • • Approval of the Integrated Risk Profile Self-Assessment Results for June 30, 2018 Approval of Results of Calculation of Integrated Minimum Capital Adequacy Ratio (KPMM) for June 30, 2018 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 557
  558. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk RISK AND CAPITAL COMMITTEE Risk and Capital Committee (KRK) is a permanent committee in BNI that has the authority and function: 1. Determination of policies and risk management in all BNI organization units, including managing capital adequacy to cover risks and support the bank’s business strategy. 2. Determination of policies and management of assets and liabilities. 3. Determination of policies and management of anti fraud strategies in all organization units. Risk and Capital Committee (KRK) was formed based on the Directors' Decree, most recently amended based on Directors Decree No. KP / 483 / DIR / R dated December 21, 2016 which has been updated in accordance with the changes in the organization of the Directors of CFM. Directors Decree No. KP / 384 / DIR / R dated November 9, 2018, chaired by the President Director and as Vice Chairman is the Vice President Director. Risk and Capital Committee has 3 (three) sub Committees, namely: 1. Risk Management Sub Committee (RMC) 2. Asset and Liability Sub Committee (ALCO) 3. Anti Fraud Sub Committee RISK AND CAPITAL COMMITTEE - RISK MANAGEMENT SUB COMMITTEE (KRK-RMC) Structure and Membership of Risk and Capital Committee - Risk Management Sub-Committee (KRK-RMC) .No )Membership Composition of Risk and Capital Committee (KRK I. Chairman : President Director II. Vice Chairman : Vice President Director A. I. Membership Composition of KRK – Risk Management Sub Committee (RMC) Chairman : Director of Risk Management II. Secretary : Division Head Risk Management (concurrently a permanent member) III. Permanent Member : • • • • • • • • • • • • • • • • • • • • • • Non-permanent Member : Director / SEVP / Division/Unit Head associated to the Meeting materials Director of Compliance Director of Corporate Banking Director of Retail Banking Director of Treasury & International Banking Director of Information Technology & Operation Director of Small Business & Network Director of Finance SEVP Medium Enterprises SEVP Rescue & Loan Settlement Division Head Treasury Division Head Corporate Credit Risk Division Head Medium & Small Enterprises Credit Risk Division Head Consumer Credit Processing and Billing Division Head Strategic Planning Division Head Compliance Division Head Budgeting and Financial Control Unit Head Internal Control Division Head Legal Division Head Corporate Communications & Secretariat Division Head Governance Policies Unit Head Customer Analysis & Management Portfolio Division Head Credit Administration Duties and Responsibilities of Risk and Capital Committee - Risk Management Sub Committee (KRK-RMC) Duties and responsibilities of KRK – RMC are to evaluate and provide recommendations related to Risk Management, which at least includes: 1. Develop Risk Management Policies and Strategies and their changes. 2. Develop a Risk Management framework and contingency plan to anticipate the occurrence of abnormal conditions. 3. Improve the Risk Management process periodically and incidentally as a result of a change in the external and internal conditions of the Bank that affect the adequacy of Capital, Bank Risk Profiles, and ineffective implementation of Risk Management based on the evaluation results. 558 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  559. Good Corporate Governance 4 . Establish policies and / or business decisions that deviate from normal procedures, such as exceeding significant business expansion compared to the Bank’s predetermined Business Plan or taking positions / risk exposures that exceed the prescribed limits. 5. Establish a capital adequacy management policy to protect risks and support the Bank’s business strategy, including measurement, structure (tier 1 / tier 2), capital allocation and contingency plans. Duty Implementation of Risk and Capital Committee - Risk Management Sub Committee (KRK-RMC) in 2018 Throughout 2018, KRK – RMC has held 4 (four) meetings with the following agenda: No Date of Implementation Agenda 1 January 18, 2018 • • Assessment Result of BNI Individual Health Index on December 31, 2017 BNI Risk Profile Individually on December 31, 2017 2 April 18, 2018 • BNI Risk Profile individually on March 31, 2018 3 July 19, 2018 • • Assessment Result of BNI Individual Health Index on June 30, 2018. BNI Risk Profile individually on June 30, 2018 4 October 17, 2018 • • BNI Risk Profile individually on September 30, 2018. Review on BNI 2019 Risk Appetite Statement. RISK AND CAPITAL COMMITTEE – ASSET AND LIABILITY SUB COMMITTEE (ALCO) Structure and Membership of Risk and Capital Committee – Asset and Liability Sub Committee (ALCO) Chairman Director of Treasury & International Secretary Division Head Treasury (concurrently a permanent member) Permanent Member • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Non-Permanent Member SEVP / Division Head / Unit / Units associated with the Meeting materials. Director of Compliance & Risk Director of Corporate Business Medium Business Director Director of Consumer Banking Director of Planning & Operations Director of Risk Management Director of Institutional Relations & Transactional Banking SEVP Information Technology SEVP Network & Service SEVP Digital Banking Division Head Bank Risk Management Division Head Corporate Credit Risk Division Head of Credit Risk Medium & Small Enterprises Division Head Processing & Billing Consumer Credit Division Head Strategic Planning Division Head Compliance Division Head Budgeting and Financial Control Division Head International Division Head Governance Policies Division Head Corporate & Multinational Business 1 Division Head Corporate & Multinational Business 2 Unit Head Syndication Division Head SOEs and Government Institutions Division Head Medium High End Business Division Head Medium Business Division Head Small Business Unit Head Customer Analysis & Portfolio Management Division Head Consumer Product Management Division Head Transactional Banking Services Division Head Institutional Relations Division Head Network Management Division Head Wealth Management Asset and Liability Sub Committee (ALCO) Duties and Responsibilities Asset and Liability Sub Committee duties and responsibilities include: 1. Define BNI ALMA goals and objectives and formulate policies and strategies required. 2. Provide instructions and asset management for BNI obligations. 3. Establish and maintain the amount of liquid assets corresponding to liquidity needs and Bank Indonesia requirements. 4. Maintain a funds balance from fund sources. 5. Establish a good fund placement policy for Primary Reserve, Secondary Reserve, Tertiary Reserve and Loan. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 559
  560. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 6. Analyze the balance sheet structure and review all risks arising from exposure owned by BNI in the form of interest rate risk, foreign exchange risk and liquidity risk. 7. Evaluate the economic indicators progress and prospects and analyze the impact on the savings and loanposition, foreign exchange position, interest rates, foreign exchange and BNI profitability. 8. Establish lending rates (base rate) and interest rates for deposits (demand deposits, savings and timedeposits). Asset and Liability Sub Committee Duties Implementation in 2018 In 2017, the Asset and Liability Sub Committee held Eleven(11) meetings with the following agenda: No. Date Agenda 1. January 09, 2018 Quota allocation and flow of authority decides on special rates for Demand Deposits and Savings 2. February 07, 2018 The rates for Rupiah Deposit board for all tenors reviewed decreased by 0.25% as of 0.75% 3. March 08, 2018 • • • 4. April 26, 2018 Asset & Liability Management 5. May 28, 2018 • • 6. July 20, 2018 Balance tiering changes and apply USD Deposit board rates 7. August 28, 2018 Quota allocation and flow of authority cut the Giro special rates 8. September 27, 2018 In order to support the Government’s program to stabilize the Rupiah exchange rate and support the achievement of business units until the end of 2018, the Export Oriented Credit Program was decided 9. October 25, 2018 • • 10. November 28, 2018 Review of Rupiah Deposit board rates 11. December 18, 2018 Monitoring Performance Conditions of Market Liquidity and BNI Exchange Rate Risk Management Interest Rate Risk Management Monitoring DPK board rate Monitoring credit base rate Asset & Liability Development Performance monitoring Anti Fraud Sub-Committee In accordance with SEBI No. 13/28/DPNP dated December 9, 2011 regarding the Application of Anti-Fraud Strategy for Banks, as a commitment to improve the effectiveness of the Anti FraudStrategy, BNI formed the Anti Fraud Committee to foster a culture of anti-fraud awareness at all levels in the organization. Anti-Fraud Sub-Committee Structure and Membership Based on Board of Directors’ Decision Letter No. KP/384/DIR/R dated November 9, 2018, with cfm. REN Memo No. REN/2/1489 Dated December 11, 2018, on Changes in Composition of Risk Management and Capital Committee (KRK), the Structure and Composition of the Anti-Fraud Sub-Committee of Risk and Capital Committee are as follows: 560 Chairman Director of Compliance Secretary Head of Compliance Division (concurrent as member) Permanent Members Director of Risk Management Director of Retail Banking Director of Small Business and Network Division Head Bank Management Risk Division Head Governance Policies Unit Head Internal Control Division Head Human Capital Management Division Head Legal Division Head Network Management Division Head Consumer Credit Processing and Billing. Non-Permanent Members Sector Director/SEVP/Division/Unit Head associated with the meeting Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  561. Good Corporate Governance Description of Duties and Responsibilities of the Anti-Fraud Sub Committee of Risk Committee The Anti-Fraud Sub-Committee Duties and responsibilities include : 1. Identify, evaluate and assign follow-up in event of fraud derived from activities in all BNI work units. 2. Develop a culture and concern for anti-fraud at all levels of the organization. 3. Establish anti-fraud policy and strategy. 4. Monitor the implementation of anti-fraud policy and strategy in BNI and periodically review the impact of policy and strategy. In carrying out its duties and responsibilities, The Anti Fraud Sub-Committee is assisted by the Compliance Division and has the following functions: 1. Managing the implementation of Anti Fraud policy and strategy, in coordination with the units/divisions concerned; 2. Reviewing Anti Fraud strategy SOP; 3. Reporting regularly and incidentally to Internal parties (President Director and Board of Commissioners) and external (Financial Services Authority) associated with Anti-Fraud Strategy; 4. Acting as reporting and data liaison with Divisions/other Units and external interestedparties regarding Anti-Fraud Strategy and managing database-related fraud in BNI; 5. Monitoring the initiation and implementation of Anti-Fraud Strategy and improvements. Anti-Fraud Sub-Committee Duties in 2018 The Anti-Fraud Committee (KAF) meeting in 2018 was carried out with results namely: 1. Awareness a. More in-depth Anti-fraud socialization and awareness in accordance with profiling of fraud perpetrators. b. Spiritual training to all employees. c. Mandatory e-learning Anti Fraud Awarenessby all employees. d. Submission of lessons learned from fraud cases. e. Tips for securely transacting through e-Channel to all BNI customers and card holders. 2. 2. Preventive a. Each account opening customer can be equipped with a customer's self photo and an ESVS signature which can later be stored on the system and can be accessed by any frontliner and credit unit. b. Changes in parameters/conditions that cause a dormant account become active and the authority to activate dormant accounts, so that activation of dormant accounts can be immediately monitored. c. The addition of a passbook numerator in the iCons system, so when the passbook is turnover or issued, history of the saving book can be immediately viewed. d. Input of Debit Card PIN at PINPAD without swipe cards for debit card replacement transactions without having to carry a passbook and non-pinpad transactions at Teller. e. Issuance of CS Journal/Supervisor, so CS/Supervisor activities can be monitored through CMOD. f. Transaction normalization (authority of transactions and loss PINPAD), which will be developed with SSO modules (single sign on). g. Conduct more intensive monitoring of areas where the ATM management is still in the branch and develop standard mitigation for ATMs that have not been managed by the vendor. h. h. Installation of online/live CCTV in high risk locations. 3. 3. Actions a. Implementing Bulk PIN. b. Optimizing of the use of CMOD reports (exception report). c. Implementing credit administration organization structure in branch offices and credit centers as well as increasing the competence of credit administration officers. d. Reviewing BNI Development for credit administration and customer service positions including the issue of authority and its career path. e. Affirming of the four eyes principle for application of credit card applications. f. Increasingthe use of mobile banking by customers. g. Ensuring that in PKS with BNI Life there is a compensation clause for fraud. h. Confirmingresponsibility/guarantee related to anti-skimming tools from ATM machine vendors. i. Trial of debit roaming program and regular force pins for BNI employees. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 561
  562. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 562 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  563. Good Corporate Governance PRODUCT COMMITTEE The Product Committee (PRC) is policy processes and monitoring products/activities in BNI to ensure their success in creating maximum profit. The Product Committee was established by Decree of Board of Directors No. KP/364/DIR/R dated November 9, 2018 KMRT membership composition has been changed with cfm.Memo REN No. REN / 2/1397 dated November 21, 2018 concerning Changes in Membership of the Product Committee (PRC). PRODUCT COMMITTEE STRUCTURE AND MEMBERSHIP Chairman President Director Deputy Head Accredited as Permanent Member Vice President Director Permanent Member • • • • • • • • • • • • • Non-Permanent Member Member of Board of Directors who act as Sponsor Director, Chief Business Risk Officer, Division/Unit Head and Subsidiary Head related to the topics covered Secretary Division Head Strategic Planning Supporting Staff Group • • • • • • • • • • • • • Director of Finance Director of Small Business and Network Director of Risk Management Director of Information Technology and Operation Director of Compliance Head of Policy Governance Division Head of Budgeting and Finance Control Division Head of Network Management Division Head of Bank’s Risk Management Division Head of Consumer Credit Processing and Collection Division Head of Information Technology Solutions and Security Division Head of Operations Division Head of Compliance Division Head of Management and Organization Research Group –Strategic Planning Division Head of Strategic Planning Group – Strategic Planning Division Head of Corporate Policy and Guidance System Group – Corporate Governance Division Head of Financial Performance Analysis Group – Budgeting and Finance Control Division Head of Accounting Policy Development Group – Budgeting and Finance Control Division Head of Corporate Budget Group – Budgeting and Finance Control Division Head of Business Performance Monitoring Group – Budgeting and Finance Control Division Head of Risk Integration Group – Bank’s Risk Management Division Head of Fraud Authorization and Control Group – Consumer Credit Processing and Collection Division Head of Business Partner Group – Information Technology Solutions and Security Division Head of Operational Development Group – Operational Division Head of Regulatory and Policy Compliance Group – Compliance Division Head of Legal Study and Development Group – Legal Division Product Committee Duties and Responsibilities The duties and responsibilities of Product Committee, include: 1. Establishing major strategy and business development for BNI products/activities. 2. Conducting comprehensive testing and deciding “feasibility” of products/activities especially related to cross-sectoral alliances/segments and strategic alliances with subsidiaries/other companies outside BNI by inviting the relevant Sector Director. 3. Monitoring products/activities implemented in BNI and making decisions on the sustainability of products/activities on the recommendations of Supporting Staff Groups/product owners. 4. Acting as an arbitration institution in issues related to the Performance Management System (PMS) for new products/ activities. Product Committee Duties Implementation and Frequency of Meetings PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 563
  564. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk In 2018, Product Committee held 4 (four) meetings with agendas as follows: No. Date Agenda 1. April 19, 2018 Update Progress of Proposed New Products/Activities in Revised RBB 2018-2020. 2. May 18, 2018 SSG Product Committee regarding Proposed New Products and/or Activities in the Revised RBB 2018-2020. 3. October 5, 2018 Discussions related to Implementation of the Product Committee in the Context of RBB Document Preparation 2019-2021. 4. October 8, 2018 Product Committee Preparation for RBB Document Preparation 2019-2021. PERFORMANCE MANAGEMENT COMMITTEE Performance Management Committee (PMC) shall be a permanent committee in BNI as a forum for policymanagement, budget monitoring and expediting the process of performance management in BNI to ensure alignment of strategic planning, facilitating the process of setting targets and performance assessment in accordance with Decree of Board of Directors No. KP/353/DIR/R dated June 21, 2017 regarding Performance Management Committee (PMC). PERFORMANCE MANAGEMENT COMMITTEE STRUCTURE AND MEMBERSHIP Chairman President Director Deputy Head Accredited as Permanent Member Vice President Director Permanent Members • • • • • • • • • • • • • Non-Permanent Members Division/Unit Head related to the topics covered Secretary 1 (Target Setting) Division Head Budgeting and Financial Control Secretary 2 (Strategic Planning) Division Head Strategic Financial Planning Supporting Staff Group • • • • • • • • All Members of the Board of Directors and SEVP Division Head Strategic Planning Division Head Budgeting and Financial Control Division Head Human Capital Management Division Head Network Management Division Head Internal Control Division Head Data Management Division Head BUMN & Government Institution Division Head Small Business Division Head Consumer Product Management Division Head Institutional Relations Division Head Treasury Division Head E-BankingNon Division Head Budgeting and Control Division Head Budgeting and Financial Control Division Head Strategic Planning Division Head Strategic Planning Division Head Network Management Division Head Human Capital Head Internal Control Unit Head Data Governance Unit PERFORMANCE MANAGEMENT COMMITTEE DUTIES AND RESPONSIBILITIES Performance Management Committee Duties include: Target Setting 1. Approve and establish an annual schedule and responsible for planning and budgeting. 2. Supervise and monitor the planning and budgeting activities development. 3. Decide CAPEX proposals with certain criteria (business cases). Strategic Planning 1. Review and ensure alignment between RBB, Corporate Plan and budgets, and recommend adjustmentsas needed. 2. Review and approve recommended targets/budget adjustments (forecasting) and recommend RBB/Corporate Plan changes if necessary as arbitrator on issues related to performance measurement. 564 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  565. Good Corporate Governance Performance Assessment 1 . Review and approve KPI at the sector level. 2. Review and make BNI KPI recommendations 3. Provide recommendations to sectors and divisions during the process of determining and decreasing KPIs and targets. 4. Review the Performance Management process on an ongoing basis/suggest policy initiatives/amendments to improve efficiency. 5. Provide KPI Business Unit & Functional Unit design insight. 6. Review and decide on PMS scores (Q1, Q2 and Q3) 7. Review the feedback from the Sector Director and provide PM4 Q4 insight score before being cut in the PMC Forum. Duties Implementation and Meeting Frequency In 2018, the Performance Management Committee held 3 (three) meetings with the following agenda: No. Date 1. February 19, 2018 2. April 2, 2018 3. September 13, 2018 Agenda Finalization of Unit Scores and Q4 Sub Unit2017 Determination of KPI Functional Unit 2018 Finalization of Board of Directors KPI Scores Q1 & Q2 2018 TECHNOLOGY MANAGEMENT COMMITTEE The Technology Management Committee shall be one of permanent committees in BNI which has the authority as an Information Technology Steering Committee (IT Steering Committee) in providing recommendations to Board of Directors regarding formulation, determination of policies and strategies to develop BNI information technology. This committee is formed with the aim of assisting Board of Commissioners and Board of Directors to monitor Information Technology (IT) activities. Technology Management Committee was established based on Decree of Board of Directors No. KP/201/DIR/R dated June 14, 2011 regarding the Arrangement of the Technology Management Committee, which was last updated through Memo Strategic Planning Division No. REN/2/528 dated April 30, 2018 regarding Changes to Committee Membership. Technology Management Committee Structure and Membership Chairman Director of Information Technology & Operation Deputy Head Accredited as Permanent Member Director of Small Business & Network PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 565
  566. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Permanent Members • • • • • • • • • • • • • • • • • • Director of Retail Banking Director of Finance Director of Compliance Division Head Information Technology Solution and Security Division Head Data Management Division Head Consumer Product Management Division Head Card Business Division Head E-Banking Division Head International Division Head Budgeting and Financial Control Head E-Channel Unit Division Head Operational Division Head Risk Management Division Head Strategic Planning Head Internal Control Unit Division Head Asset & Procurement Management Division Head Compliance Head Customer Analysis & Portfolio Management Unit Non-Permanent Members Board of Directors, Head, Division/Unit and Subsidiary’s President (related to the topics covered) Secretary Division Head Solution & IT Security Supporting Staff Group Related Division TECHNOLOGY MANAGEMENT COMMITTEE DUTIES AND RESPONSIBILITIES The duties and responsibilities of the Technology Management Committee consist of various fields, namely: 1. IT Policy Formulation a. Provide recommendations to Board of Directors regarding key IT policies andprocedures, specifically related to aspects of developing and procuring IT systems, IT and communication network operational activities, information security, end user computing, e-banking activities, use of IT service providers, and policies and procedures related to application of risk management to the use of BNI IT. b. Review and approval of IT budget and information security recommendations. c. Determine and evaluate IT Governance. 2. IT and Business Strategy Alignment a. Provide recommendations to Board of Directors regarding the Information Technology Strategic Plan (ITSP) in accordance with BNI’s strategic business plan, by considering efficiency, effectiveness and roadmap, resources needed, as well as cost and benefit which will be obtained when the plan is implemented. b. Evaluate and recommend the suitability of projects approved with the IT Strategic Plan. c. Establish the priority status of IT projects that are critical and have a significant impact onBNI’s operational activities. d. Evaluate the suitability of IT with the needs of management information systems that support the management of BNI’s business activities in the IT sector so that these investments can contribute to the achievement of BNI’s business objectives. 3. IT Risk Management a. Provide recommendations to Board of Directors regarding the formulation of key IT policies and procedures, specifically related to aspects of the development and procurement of IT systems, IT and communication network operational activities, information security, end user computing, e-banking activities, use of IT service providers. As well as policies and procedures related to the application of risk management to the use of BNI’s IT. b. Ensure the effectiveness of risk minimization measures for BNI investments in the IT sector so that these investments can contribute to achieving BNI’s business objectives. c. Facilitate relations between Divisions/Units to resolve various IT related problems. 4. IT Performance Measurement and Evaluation a. Conduct analysis and recommendations on the suitability of implementation of IT projects with project charter in a service level agreement (SLA). b. Monitor IT performance and improvement efforts. 566 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  567. Good Corporate Governance TECHNOLOGY MANAGEMENT COMMITTEE DUTIES AND FREQUENCIES MEETING In 2018 , Technology Management Committee held 2 meetings with the following agenda: Date Agenda June 5, 2018 1. 2. 3. 4. Update IT Project Status 2018. Overseas Branch Office IT Project (Closing Project). Realization of the 2018 CAPEX and Efficiency Program. BNI Cloud Roadmap and Cyber Security. December 19, 2018 1. 2. 3. 4. IT Projects 2018and Project Plans2019. Upgrade IT Infrastructure. Update ITSO Status 201-2023. IT Project Management Office (PMO) Review. CREDIT POLICY AND PROCEDURE COMMITTEE Credit Policy and Procedure Committee (KKP) was established based on the Board of Directors’ Decision Letter No. KP/106/ DIR/R dated April 03, 2014, and its last amendment cfm. Board of Directors’ Decision Letter No. KP/384/DIR/R dated November 9, 2018. CREDIT POLICY AND PROCEDURE COMMITTEE STRUCTURE AND MEMBERSHIP Chairman President Director Deputy Head Vice President Director Permanent Members • • • • • • • • • Non-Permanent Members Division/Unit Head associated with the Meeting material Director Compliance and Enterprise Risk (concurret as Secretary) Director Medium Business Director Small Business & Network Director Consumer Busines Director Financial and Credit Risk Division Head Governance Policies Division Head Bank Risk Management Division Head Compliance Division Head Internal Control SUB-COMMITTEE ON CREDIT PROCEDURE (KPP) MEMBERSHIP Chairman Members Director Compliance and Enterprise Risk • • • • • • Secretary Vice President Director (specifically related to Corporate Segment material) Director Medium Business (specifically related to Medium Segment material) Director Small Business & Network (specifically related toSmall Segment material) Director Consumer Banking (specifically related to Consumer Banking material) Director Financial and Credit Risk (specifically related to Credit Risk and Credit Administrationmaterial) Director Treasury and International (specifically related to Treasury and InternationalBusiness material) Division Head Governance Policies CREDIT POLICY AND PROCEDURE COMMITTEE DUTIES AND RESPONSIBILITIES The duties and responsibilities of the Credit Policy and Procedures Committee shall be as follows: 1. Establish Bank Credit Policy (KPB) particularly with regard to formulation of theprecautionary principle in credit subject to the approval of Board of Commissioners. 2. Establish Treasury and International Business/Financial Institution Policies, especially with regard to the formulation of the precautionary principle. 3. Supervise so that such KPB can be applied and enforced consequently and consistently and do a review if there are PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 567
  568. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk barriers/obstacles in the implementation of KPB. 4. Conduct periodic review on the maximum period of three 3 (three) years of the KPB and if necessary set changes/ improvements to KPB. 5. Monitor and evaluate: a. Development and overall quality of credit portfolio. b. Improve implementation of loan approval authority. c. Improve granting process, development and quality of loans granted to parties related tothe Bank and certain large debtors. d. Improve implementation of BMPK, Good Corporate Governance and Risk Management. e. Adherance to legislation and other regulations provisions in the implementation of credit provision. f. Complete problem loans in accordance with established KPB. g. Bank’s efforts in meeting the adequacy of allowance for credits. 6. Deliver periodic written reports to Board of Commissioners, on the resultsof monitoring the application and implementation of KPB and the results ofmonitoring and evaluating of matters referred to in point 4 above. 7. Formulate and recommend measures to perfect the implementation of Bank Credit activities. 8. Review the Sub Committee credit procedures decision through Credit Policy andProcedures Committee mechanisms and procedures. Sub Committee duties and responsibilities and procedures are as follows: 1. Establish procedures and operational Credit provisions. 2. Establish Lending Model. Lending Model is operating policies and procedures related to specific credit financing schemes with the terms and conditions specially adapted to the market segment, industry or area of interest with regard to prudential banking principles and good corporate governance. 3. Establishing operational procedures and provisions for Treasury and International Business/Financial Institutions 4. Deliver Credit Procedure Sub-Committee’s decision reports periodically to the Credit Policy and Procedures Committee. DUTIES IMPLEMENTATION AND MEETING FREQUENCYN In 2018, the Credit Policy and Procedures Committee held 17 (seventeen) meetings with the following agenda: No. 568 Date Agenda 1 January 15, 2018 • • BNI as an investor in Fixed Income Investment Funds (RDPT). BNI as an investor in Money Market Investment Funds (RDPU). 2 February 20, 2018 • • Provisions on Granting of Loans to Subsidiaries from Business Groups that Have Become Corporate Segment Debtors. Provisions for Top Up Facility Investment Credit (KI) in Property Business. 3 March 3, 2018 • • Determination of Purchase Limit of Corporate Securities in the Interim Period. Determination of Purchase Limit for Non Debtor Securities. 4 March 5, 2018 • • • • • • • • Provisions for Granting BNI Pension Flexions (BFP) to Retired Candidates: Status of Applicant (PT Taspen, PT ASABRI, Active Employees of Retired SOE Institutions) Work Period/Pre-retirement Period Payment of Salaries and Distribution of Pension Benefits Completeness of Administrative Data Duration Refund Criteria for Company/SOE Institutions (Including Groups and Subsidiaries) 5 May 15, 2018 • Authority to Decide Corporate Segment Loans for Head Office Levels. 6 May 15, 2018 • Review of Authority Provision to Decide the First Time Credit Disbursement for New/Additional Debtors that was decided by Head Office Credit Committee in the Middle Segment. 7 May 24, 2018 • Minimum and Maximum Nominal Provision for BNI Credit Griya Multiguna. Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  569. Good Corporate Governance No . Date Agenda 8 May 24, 2018 • Provisions for removing invoices for fines and BDO fees for debtors in the category of loan at risk in the framework of Phase Out. 9 August 20, 2018 • Provisions on Centralization of Appointment of Independent Appraisers or Public Appraisal Service Offices (KJPP) by Credit Administration Unit. 10 August 20, 2018 • Granting of Credit Termination Authority to CST Leader. 11 August 21, 2018 • Provisions for the Closing of Small Segment Guarantee/Credit Insurance for Limited R/C KMK. 12 August 21, 2018 • Authority to Decide Restructuring of Non-Performing Loan (NPL) Credit up to IDR10 Billion. 13 August 23, 2018 • Review Provisions on Financing for Work/Projects funded by the State Budget through the State Treasury and Budget System (SPAN). 14 September 5, 2018 • • Improvement of Authority to decide Organic Consumer Loans processed by LNC Units. Authority to Decide Organic Consumer Loans above Branch Offices. 15 September 20, 2018 • Provisions for Establishing Authority to Decide the Amount of Fee for Brokers/Property Agents in the Context of Collateral Sales. 16 November 26, 2018 • Domestic Non-Deliverable Forward (DNFD). 17 November 31, 2018 • Review the provisions of Prime Debtors and Review Financial References per Industrial Sector. HUMAN CAPITAL COMMITTEE The Human Capital Committee is a permanent committee in BNI, staffed by all members of the Board of Directors and several Division Heads, with the following powers: 1. Decide on policies/regulations in the field human resource management related: a. Planning Officer b. Recruitment and Selection c. Training and Competence Development d. Employee Performance Assessment e. Career Path and Succession f. Remuneration g. Industrial relations h. Work culture 2. Decide on approval for the mutation/promotion program for the positions of Division Head and Region Head 3. Evaluate the performance of Division Head and Region Head 4. Decide on the approval for administrative sanctions for the positions of Division Head and Region Head 5. Approve the delegation of authority in human resource management Human Resources Committee is established based on Decree of Board of Directions No. KP/235/DIR/R dated July 18, 2011 regarding Amendment Human Capital Committee. With the issuance of this Decree, Board of Directors Decree No. KP/078/DIR/R dated February 9, 2004 regardingHuman Capital Committee and Board of Directors Decree No. KP/637/DIR/R dated October 5, 2004 regarding the Disciplinary Committee are no longer valid. HUMAN CAPITAL COMMITTEE STRUCTURE AND MEMBERSHIP Chairman President Director Permanent Members Director who supervises Human Capital Division (Concurrent as Chairman) *) Director who supervises Compliance Division *) Non-Permanent Members Sector Director and/or Officials who supervise Division/Unit (if there is no Sector Director) associatedwith the meeting *) Secretary Division Head Human Capital (HCT) *) In the absence of the Director position, then the position is replaced by SEVP or Officer who supervises the Division / Unit associated with the field. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 569
  570. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk HUMAN CAPITAL COMMITTEE DUTIES AND RESPONSIBILITIES The Human Capital Committee duties and responsibilities are as follows: 1. Ensure that policies/provisions in the field of human capital are consistent and aligned with strategic policyplanning. The human capital policies/provisions include Human Capital management, Remuneration System management and Reward and Punishment mechanisms for all BNI employees. 2. Ensure the availability of qualified human resources and placing them in the right positions to support the leadership positions including Division Head and Regional Head. 3. Evaluate the performance of the labor force Division Head. 4. Ensure that the delegation of authority in the field of human resource management is in accordance with the needs and purposes. TEAMSUNDER THE HUMAN CAPITAL COMMITTEE Team of Policy Assessment and Formulation for Human Capital Management System Chairman • Division Head Human Capital (HCT) Permanent Members • • Division Head of Strategic Planning (REN) (Accredited Chairman Substitute) Division Head Compliance (KPN) Non-Permanent Members • Division Head/Unit associated with the meeting *) Secretary • Group Head in Human Capital Division (HCT) related to the agenda (Not Accredited Member) Team of Policy Assessment and Formulation for Human Capital Management System Duties and Responsibilities include: 1. Manage the research, assessment and evaluation of the effectiveness and quality as well as recommend proposed changes/improve operational policies and mechanisms for policies related to human capital management: a. Employee planning b. Recruitment & selection c. Training and competence development d. Employee performance assessment e. Career paths and succession f. Remuneration g. Industrial relations h. Corporate Culture 2. Managing the proposed delegation of authority in human capital management. Team of Mutation ConsiderationManagement Chairman • Division Head Human Capital (HCT) Permanent Members • • Division Head/Unit who supervises the relevant units (Accredited Chairman Substitute) Division Head/Unit/ associated with the meeting Secretary • Group Head in Human Capital Division (HCT) related to the agenda (Not Accredited Member) The Duties and Responsibilities of the Team Leader of Transfer Consideration are managing the activities of planning and searching of candidates based on the pre-determined requirements and recommending the said candidates to be transferred/ promoted as leaders. 570 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  571. Good Corporate Governance Administrative Sanctions Consideration Team Head Office Chairman Head of Human Capital (HCT) Division (Concurrently a Member) Member Head of Compliance Division (KPN) Head of Legal Division (HUK) Head of Division/Unit related to the event/case or the proxy. Secretary Head of Internal Audit Unit (SPI) (Not Concurrently a Member) Regional Office Chairman Head of Region (CEO Region) Permanent Member Vice Regional Head supervising unit where the event/case occurs Another Vice Regional Head appointed by the Head of Region (CEO Region) Head of Division/Unit related to the event/case or the proxy. Secretary Head of Regional Internal Control (Not Concurrently a Member) Duties and Responsibilities of the Team Leader Transfer Consideration are managing the analysis and assessment of recommendations for administrative sanctions received from the division processing the case and then recommending them to the decision maker or imposing decisions of administrative sanctions on employees related to the case according to the applicable authority matrix. DUTY IMPLEMENTATION OF HUMAN CAPITAL COMMITTEE Throughout 2018, the Employee Transfer Consideration Team (TPMTP) scheduled regular meetings for 2 (two) times a week to discuss the transfer of Branch Manager, Center. Next, the transfer decisions for the position of CEO of GM and CEO of the Region were conducted through Board of Directors Meetings amounting to 15 (fifteen) meetings. Meanwhile, the Administrative Sanctions. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 571
  572. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk EXTERNAL AUDIT FUNCTION The independent monitoring function of the Bank’s financial aspects is carried out by conducting an External Audit by the Public Accounting Firm (KAP). External Auditors who examine BNI’s financial statements for 2018 fiscal year are determined through the Annual GMS by considering the proposal of the Board of Commissioners with due regard to the recommendations of the Audit Committee. The selection process is done according to the applicable mechanism of procurement of goods and services. To ensure independence and quality of audit results, the designated External Auditors shall not have a conflict of interest with the Bank. IMPLEMENTATION OF EXTERNAL AUDIT FUNCTION In carrying out operational activities, in addition to internal auditors and the Financial Services Authority, it is also supervised by external auditors of Bank Indonesia, Audit Board of the Republic of Indonesia, the Financial Services Authority, and Public Accountant Firm. APPOINTMENT OF PUBLIC ACCOUNTANT Following up on the resolutions of General Meeting of Shareholders (“GMS”) for 2017 fiscal year, through the Board of Commissioners’ Letter No. DK/040 dated April 02, 2018, the Board of Commissioners determined KAP Purwantono, Sungkoro, and Surja (member of Ernst and Young) as the external auditor in conducting audit of the Bank’s Financial Statements and Other Reports for 2018 fiscal year. The 2018 fiscal year is the third audit year for KAP Purwantono, Sungkoro, and Surja (member of Ernst and Young). Basis of appointment is as follows: 1. Based on the Financial Services Authority Regulation No. 13/POJK.03/2017 dated March 27, 2017, on the Use of Public Accountant Services and Public Accountant Firm in Financial Service Activities in Article 16 paragraph 1, it is stated that the Party carrying out financial service activities must limit the use of audit services on the annual historical financial information from the same AP to as many as 3 (three) reporting fiscal years of audit period consecutively. 2. Based on Copy of Financial Services Authority Regulation No. 32/POJK.03/2016 on Amendment to Financial Services Authority Regulation No. 6/ POJK.03/2015 dated March 31, 2015, on Transparency and Publication of Financial Statements in conjunction with the Financial Services Authority Circular Letter No. 11/SEOJK.03/2015 on Transparency and Publication of Conventional Commercial Bank Reports in Article 18 paragraph 6, it is stated that Banks must include the name of the Public Accountant Firm that conducts the annual financial statements audits and the name of the Public Accountant, partner in charge of the audit including the opinion given in the announcement of the Quarterly Publication Report for the position of end of December. 3. The appointment process of KAP Purwantono, Sungkoro and Surja (member of Ernst and Young) as the external auditor was carried out through Auction mechanism. PUBLIC ACCOUNTANT FIRM, ACCOUNTANT NAME, AND FEE Here is the list of Public Accountant Firm, accountant name, fee, and KAP license for the last 6 years Table of Public Accountant Firm, Accountant Name, Fee, and KAP License for the Last 6 Years Year Public Accountant Firm Accountant's Name (Partner in charge) Period Audit Services Fee (in million Rupiah)* KAP License 2018 KAP Purwantono, Sungkoro dan Surja (Ernst and Young) Danil Setiadi Handaja 1 year 8,500,000,000 603/KM.1/2015 2017 KAP Purwantono, Sungkoro dan Surja (Ernst and Young) Yasir 2 year 7,200,000,000 603/KM.1/2015 2016 KAP Purwantono, Sungkoro dan Surja (Ernst and Young) Yasir 7,200,000,000  603/KM.1/2015 2015 KAP Tanudiredja, Wibisana, Rintis & Rekan (Pricewaterhouse Coopers) Angelique Daryanto 1 year 8,390,000,000 241/KM.1/2015 2014 KAP Tanudiredja, Wibisana & Rekan (Pricewaterhouse Coopers) Haryanto Sahari 3 year 13,215,125,000 151/KM.1/2010 Information: *Including External Auditor Fee for Subsidiaries 572 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  573. Good Corporate Governance The audit scopes for KAP Purwantono , Sungkoro and Surja (member of Ernst and Young) for 2018 fiscal year are: 1. Audit of Publication Financial Statements. 2. Audit of Financial Statements of Partnership and Community Development Program. 3. Audit of Financial Statements of Financial Institution Pension Funds. 4. Audit of Investment Report of Financial Institution Pension Fund. 5. Audit of the Implementation of Mutually Agreed Procedures for the Operations of BNI’s Custodian Department. 6. Audit of PSA 62 Report. 7. Review on BNI’s Performance Evaluation Result Report. 8. Management Letter The fees mentioned in the audit fee table already include the scope of other services as mentioned above. EXAMINATION RESULT Results of the Examination conducted by the external auditor are submitted in the form of a Financial Statement Opinion. From 2011 to 2018, BNI’s Consolidated Financial Statements obtain Fair Opinion. This shows that BNI has presented the Consolidated Financial Statements accurately and in accordance with the applicable standards and are free from material misstatements. This shows that BNI has presented the Consolidated Financial Statements accurately and in accordance with the applicable standards and are free from material misstatements. AUDIT SERVICES FEE The audit services fee for the annual Financial Statements, financial statements of BNI’s partnership and community development program (PKBL), and other audit services for 2018 fiscal year is Rp7,284,000,000.00 (including out of pocket expense (OPE) and value added tax (VAT)). OTHER SERVICES PROVIDED BY THE ACCOUNTANT Rendered other services accountant in 2018 services the mentoring consultant implementation of IFRS 9/PSAK 71 Rp8.000.000.000,00. PUBLIC ACCOUNTANT COMPANY PROFILE KAP Purwantono, Sungkoro & Surja (Member of Ernst and Young) Indonesia Stock Exchange Building Tower 2,7 th floor Jl. Jend. Sudirman Kav. 52-53 Jakarta 12190 INDONESIA Telephone Number: [62] (21) 52895000 Facsimile Number: [62] (21) 52894100 COORDINATION OF EXTERNAL AUDITOR AND AUDIT COMMITTEE In order to carry out the monitoring function on the results of audit conducted by external auditors, which are Bank Indonesia (BI)/Financial Services Authority (FSA), the Supreme Audit Agency (BPK), the Financial Transaction Reporting and Analysis Center (PPATK), and KAP, the Audit Committee has evaluated the follow-up actions taken by the Management on the results of audit of the said external auditor. Complete coordination can be seen in the description of the Audit Committee Report. EFFECTIVENESS OF EXTERNAL AUDIT IMPLEMENTATION AND BANK COMPLIANCE WITH PROVISIONS ON RELATIONSHIP BETWEEN THE BANK, PUBLIC ACCOUNTANT, AND BANK INDONESIA BNI has carried out an external audit and Bank compliance with the provisions on relationship between the Bank, the Public Accountant, and Bank Indonesia for the Bank effectively, including the following: a. As stated in PBI No. 7/50/PBI/2005 on Amendment to PBI No. 3/22/PBI/2001 on Transparency of Bank’s Financial Conditions, in providing audit assignments on Financial Statements, BNI must appoint a Public Accountant and Public Accountant Firm that has been registered with Bank Indonesia. With Board of Commissioners Letter No. DK/076 dated July 21, 2016, the Board of Commissioners appointed KAP Purwantono, Sungkoro and Surja (member of Ernst and Young) as the external auditor to conduct audits of the Bank’s Financial Statements and Other Reports for 2017 fiscal year. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 573
  574. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk b. Based on the Financial Services Authority Regulation No. 13/POJK.03/2017 dated March 27, 2017, on the Use of Public Accountant Services and Public Accountant Firm in Financial Service Activities in Article 16 paragraph 1, it is stated that the Party carrying out financial service activities must limit the use of audit services on the annual historical financial information from the same AP to as many as 3 (three) reporting fiscal years of audit period consecutively. c. The appointment of the same Public Accountant and/or Public Accountant Firm by BNI must be based on a work agreement. d. The Public Accountant who conducts audits on the Bank’s Annual Financial Statements must conduct the audit in accordance with the Public Accountant Professional Standards and the work agreement as well as the audit scope. The Public Accountant and/or Public Accountant Firm must observe the Bank’s confidential provisions as stipulated in Law No. 7 of 1992 on Banking as amended by Law No. 10 of 1998. e. In the framework of audit preparation and implementation, the Public Accountant can request information from Bank Indonesia on the condition of the Bank to be audited. f. Bank Indonesia and/or FSA can request information from the Public Accountant even though the work agreement has ended. RISK MANAGEMENT To anticipate the domestic and global economic challenges and increase the risk exposure faced by BNI, an effective and integrated risk and capital management system is needed, which is able to support the achievement and growth of sustainable performance while increasing the competitiveness of the Bank. As one of the Financial Services Institutions that has several subsidiary companies incorporated in BNI’s Financial Conglomeration, in addition to implementing individual risk management, BNI also implements integrated risk management. Some regulations related to the implementation of Bank’s Risk Management are as follows: 1. Risk Management Implementation a. POJK No. 18/POJK.03/2016 dated March 16, 2016, on Risk Management Implementation for Commercial Bank. b. SEOJK No. 34/SEOJK.03/2016 dated September 1, 2016, on Risk Management Implementation for Commercial Bank 2. Implementation of Consolidated Risk Management with Subsidiaries a. POJK No. 38/POJK.03/2017 dated July 12, 2017, on Consolidated Risk Management Implementation for Banks Exercising Control over Subsidiaries. b. SEOJK No. 43/SEOJK.03/2017 dated July 19, 2017, on Prudential Principles and Report in the Framework of Implementation of Consolidated Risk Management for Banks Exercising Control over Subsidiaries. 3. Implementation of Integrated Risk Management for Financial Conglomeration a. POJK No. 17/POJK.03/2014 dated November 18, 2014, on Implementation of Integrated Risk Management for Financial Conglomeration. b. POJK No. 26/POJK.03/2015 dated December 04, 2015, on Integrated Minimum Capital Adequacy Requirement for Financial Conglomeration 4. Risk Management for Commercial Bank Products and Activities, including: a. POJK No. 36/POJK.03/2017 dated July 12, 2017, on Prudential Principles in Capital Participation Activities. b. POJK No. 38/POJK.03/2016 dated December 01, 2016, on Implementation of Risk Management in the Use of Information Technology for Commercial Bank. c. SEOJK No. 12/POJK.03/2018, dated August 6, 2018, on the Implementation of Digital Banking Services by Commercial Banks 5. Internal Control System. SEOJK No. 35/SEOJK.03/2017 dated July 07, 2017, on Guidelines for Standards of Internal Control System for Commercial Banks. 574 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  575. Good Corporate Governance RISK MANAGEMENT ORGANIZATIONAL STRUCTURE The organization and functions of BNI ’s Risk Management and Integrated Risk Management for BNI’s Financial Conglomeration are prepared and determined as follows: Audit Committee Board of Commisioner Director Risk Monitoring Committee Nomination & Remuneration Committee President Director Integrated Governance Committee Vice President Director Recomendation Director Director in charge of Risk Management function Risk Management Unit concurrently Integrated Risk Management Unit Komite Manajemen Risiko Terintegrasi (Non Struktural) Integrated Risk Management Commitee (Non Stuctural) BNI Financial Financial Services Conglomerate Member Institutions 1. BNI’s Board of Directors and Board of Commissioners are authorized and responsible for ensuring the implementation of BNI’s Risk Management individually or in an integrated manner. 2. In carrying out its functions to supervise the implementation of BNI’s Risk Management and Integrated Risk Management, BNI’s Board of Commissioners in its implementation is assisted by the Risk Monitoring Committee, Audit Committee, Remuneration Committee, and Integrated Governance Committee. 3. BNI’s Board of Directors who oversees the Risk Management function in addition to carrying out the function of implementing Risk Management for BNI also implements the Integrated Risk Management function for BNI’s Financial Conglomeration. 4. In carrying out its functions of implementing effective risk management, the Board of Directors is assisted by Risk Management sub-committee of the Risk and Capital Committee (KRK-RMC) and the Integrated Risk Management Committee (KMRT). 5. If necessary, the Director in charge of Risk Management function can discuss Risk Management issues in other committee meetings at Board of Directors’ level or Board of Directors’ meetings. 6. In implementing BNI’s Risk Management, the Board of Directors is assisted by the Risk Management Work Unit (SKMR) which also functions as an the Integrated Risk Management Work Unit (SKMRT). 7. The Risk Management Unit is responsible for facilitating and coordinating with risk management units in BNI and all LJK members of the Financial Conglomeration in managing 8 (eight) types of risks in BNI, which are credit risk, market risk, liquidity risk, operational risk, legal risk , strategic risk, compliance risk, and reputation risk, and 10 (ten) types of risks in BNI’s Financial Conglomeration, including intra-group transaction risk and insurance risk. 8. The Risk Management Work Unit in carrying out its functions and authorities and responsibilities is independent to the Operational Work Unit (risk taking unit) and does not carry out activities related to the Bank’s business. 9. In carrying out its functions, the Risk Management Work Unit can escalate issues that occur to Risk Management subcommittee of the Risk and Capital Committee (KRK-KMR) or the Director in charge of the Risk Management function. Whereas the Integrated Risk Management Work Unit escalates issues to the Integrated Risk Management Committee or Director in charge of the Integrated Risk Management function PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 575
  576. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BANK’S RISK MANAGEMENT DIVISION Hierarchically, the organization of the Bank’s Risk Management Division (ERM) acting as the Risk Management Work Unit (SKMR) and the Integrated Risk Management Work Unit (SKMRT) at BNI is under and directly responsible to the Director of Risk Management as the Director in charge of Risk Management function and Integrated Risk Management function. STRUKTUR DIVISI MANAJEMEN RISIKO BANK Risk Management Division Deputy Leader Sector Market Risk & Credit Risk Credit & Portfolio risk management Group Model Validation Management of Credit & Portfolio Risk Management Customer & Industrial Ranking Modeling Group Management of Customer & Industrial Rankings Consumer & Retail Credit Scoring and Modeling Group Market Risk Management and Liquidity Group Management of Consumer & Retail Credit Scoring & Modeling Management of Market and Liquidity Risk Management Information: The General Function follows the centralization of functions of the Head Office's Employee Service The Human Capital function follows the policy of centralization of the Human Capital functions of Head Office - HC Representative 576 Adapting Quickly to Face Change Deputy Leader Sector Market Risk & Credit Risk Market and Liquidity Risk Development and Policy group Management of Capital Market Risk & Liquidity Development Management of Office Models Risk Integration Group Management of Risk Integration Integrated Conglomerate Risk Management Business Banking Operational Risk Management Group Management of Business Banking Operational Risk Management Consumer Operational Risk Management Management of Consumer Operational Risk Management Operational Risk & Business Continuity Management Group Management of Operational Risk Management Management of Business Continuity Management General Section Human Model Representative PT Bank Negara Indonesia (Persero) Tbk
  577. Good Corporate Governance PROFILE OF RISK MANAGEMENT DIVISION HEAD The head of the Bank ’s Risk Management Division is directly responsible to the Director of Risk Management. Since September 2018, the Bank’s Risk Management Division has been led by Drs. Aryanto Purwadi, MM. Drs. Aryanto Purwadi, MM (August 03, 2018 - Present) Indonesian citizen, 52 years old, obtained Bachelor degree from the Faculty of Biology, Universitas Jendral Soedirman Purwokerto (1990), and Master’s degree from the Business School of Bogor Agricultural Institute (2004). Appointed as the Head of the Bank’s Risk Management Division based on Board of Directors Decision Letter No. KP/274/DIR/R dated August 3, 2018. Previously, he served as the Head of Subsidiary Development Division and Head of Strategic Planning Division DUTIES AND RESPONSIBILITIES OF RISK MANAGEMENT DIVISION As a Risk Management Work Unit (SKMR) and Integrated Risk Management Work Unit (SKMRT), the Bank’s Risk Management Division has the following functions: 1. Risk Management Work Unit Duties and responsibilities of the Risk Management Work Unit are as follows. a. Preparing proposal for strategy and bank’s risk management policy. b. Monitoring overall risk position (composite), per type of risks, and per type of functional activity, as well as performing stress testing; c. Developing and evaluating the accuracy of models used to measure risk. d. Reviewing new product and activity proposal from risk aspects. e. Providing recommendations to operational work unit (risk taking unit) according to the authority owned. f. Evaluating the independence and effectiveness of bank’s risk management infrastructure on a regular basis. g. Supervising the implementation of risk management, among others, through the implementation of an integrated risk control system and risk exposure limit determination. h. Preparing and submitting risk reports regularly to the Board of Directors through the Director in charge of risk management function. i. Independent of the risk taking unit in carrying out the risk management monitoring function. The supervisory function aims to ensure that the risks and portfolios of the bank are well managed, among others, through the determination of risk parameters and limits. j. Responsible for managing 4 (four) main risks, which are credit risk, market risk, liquidity risk, and operational risk, including measuring credit, market, and operational risks, including through the Internal Rating System, Market Risk Management Model, and Operational Risk Tools PT Bank Negara Indonesia (Persero) Tbk  2. Integrated Risk Management Work Unit Duties and responsibilities of the Integrated Risk Management Work Unit are as follows. a. Giving input to the Board of Directors of the Main Entity such as related to the preparation of Integrated Risk Management Policies. b. Monitoring the implementation of Integrated Risk Management Policies including developing the procedures and tools for risk identification, measurement, monitoring, and control. c. Monitoring Risks in BNI’s Financial Conglomeration based on the assessment result of -- The Risk Profile of each Financial Services Institution (FSI) in Financial Conglomeration. -- The integrated Risk Level of each type of risk. -- Integrated Risk Profile. d. Preparing the proposal for determination of Risk Appetite Statement in an integrated manner. e. Conducting stress testing. f. Periodically reviewing to ensure the adequacy of Integrated Risk Management implementation and Risk Management implementation in each FSI of members of Financial Conglomeration. g. Reviewing proposal of new line of business that is strategic in nature and has significant influence to the exposure of Financial Conglomeration Risk. h. Providing information to the Integrated Risk Management Committee on matters requiring follow-up from the evaluation result of the Integrated Risk Management implementation. i. Providing input to the Integrated Risk Management Committee for the preparation and refinement of the Integrated Risk Management policies. j. Preparing and submitting the Integrated Risk Profile report regularly to the Board of Directors of the Main Entity in charge of Integrated Risk Management function and to the Integrated Risk Management Committee. Adapting Quickly to Face Change 577
  578. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk COMPETENCE DEVELOPMENT IN BANK’S RISK MANAGEMENT SECTOR The competence development programs participated by members of Bank’s Risk Management Division throughout 2018 are as follows: Table of Competence Development of Bank’s Risk Management Division No 578 Name of Employee Education and Development Name of Organizer Implementation Date 1 Introduction R Programming (Introduction to Machine Learning) Enigma January 2018 2 Writing Report Value Consult January 2018 3 Integrated Digital Marketing C&G Training January 2018 4 Cybersecurity Risk Management E-Learning melalui edx.org February - March 2018 5 Gap Analysis IFRS 9 KPMG 8-9 March 2018 6 Refreshment IFRS9 KPMG 1 March 2018 7 Renewable Energy: Biodiesel Directorate General of EBTKE May 2018 8 Workshop on Introduction to Asset Liability Management Lentera Pro 18 - 20 July 2018 9 Workshop on Preparation for Implementation of Interest Rate Risk in the Banking Book (IRRBB) BNV & TRS - BNI 1 July 2018 10 Workshop on Early Warning System (EWS) of Financial Conglomeration FSA 27 July 2018 11 IFRS9 KPMG + PKU 1 July 2018 12 Implementation of Risk Culture in Financial Conglomeration from Monitoring Aspect FSA 2 August 2018 13 Best Practice in Risk Culture Implementation Center For Risk Management Studies Indonesia 3 August 2018 14 Training for Trainer Jakarta Consulting Group 28-29 August 2018 15 Training & Benchmark of IFRS 9 with Central Bank of the Philippines EY + PKU August 2018 16 Advanced Workshop on Implementation of the Interest Rate Risk in the Banking Book (IRRBB) BNV & ERM - BNI 1 September,2018 17 Sustainable Energy BNI (in cooperation with USAID) 13 September 2018 18 Digital Transformation Roadmap Online Course Udemy 15 October 2018 19 Building Cashless Society - Grab Ovo Kudo Study Case QB Consult 28 - 20 October 2018 20 E-Channel The Spearhead of Banking and Financial Industry Asia Anti Fraud 20-21 October 2018 21 Economic Modeling BI Institute October 2018 22 Implementing Sustainable Innovation System PPM Manajemen 31 October - 01 November 2018 23 Aligning Liquidity Risk Management One Point 01 November 2018 24 Asset & Liability Management One Point 01 November 2018 25 Fintech: Digital Financial Innovation in Financial Sector One Point Indonesia 8 - 9 November 2018 26 Fintech Digital Banking Golden Regency Training & Konsulting 10 - 11 November 2018 27 Happy employee is productive employee QB Consult 9 - 10 November 2018 28 The Annual Indonesia Cyber Security Summit (ICSS) All-Day Conference Focused On Investing And Developing The Infant Cyber Security Industry In Indonesia And The Region. Indonesia Cyber Security Forum 18 - 19 November 2018 29 Creative Problem Solving & Decision Making M-Knows Consulting 24 - 25 November 2018 30 Classification in Machine Learning I Algoritma Course November 2018 31 Classification in Machine Learning II Algoritma Course November 2018 32 Creative Thinking & Decision Making M-Knows November 2018 33 Problem Solving M-Knows November 2018 34 Leadership Program M-Knows November 2018 35 Fintech Markplus, Kanaka Training November 2018 36 Business Communication and Personal Development Global Strategic Consulting 30 November - 1 December 2018 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  579. Good Corporate Governance No Name of Employee Education and Development Name of Organizer Implementation Date 37 Creative Problem Solving and Decision Making M-Knows 24 - 25 November 2018 38 Selling Yourself Dr . Personality Power 01 - 02 December 2018 39 Capital Market Training Bina Insan Learning Center 13 - 14 December 2018 40 Seminar Of Digital Business Transformation 2018 Xanoco Digital Indonesia 8 December 2018 41 Quantitative Risk Management Under Basel III and Basel IV Indonesian Association of Bachelor of Economics (ISEI) 11 - 12 December 2018 42 Neural Network & Deep Learning Algoritma Course 1 December 2018 43 Soul of Speaking The Soul of Speaking Organizer 13-14 December 2018 44 Financial Statement Analysis & Risk Based Bank Rating Bina Insan 13-14 December 2018 45 Certified Risk Management Professional (CRMP) LSPP December 2018 RISK MANAGEMENT CERTIFICATION Table of Competence Development of BNI’s Risk Management Employees through Risk Management Certification throughout 2018. Table of Risk Management Certification Certification Level 1 2 3 4 5 Position Total Employees Assistant 16 Assistant Manager 887 Manager 77 Assistant Vice President 6 Assistant 1 Assistant Manager 55 Manager 212 Assistant Vice President 106 Manager 30 Assistant Vice President 164 Vice President 4 Assistant Vice President 3 Vice President 39 Senior Vice President 4 Executive Vice President 1 Vice President - Senior Vice President - Executive Vice President - RISK MANAGEMENT SYSTEM TARGET AND STRATEGIC INITIATIVES FOR 2018 RISK MANAGEMENT IMPLEMENTATION Throughout 2018, the Bank’s Risk Management Division set targets and carried out strategic initiatives as follows: 1. Credit Risk a. Preparing review document of Credit Risk Management Policies and Procedures. b. Prepare a review of the standard financial ratios per industry for 2018. c. Prepare a review of the Industry Risk Rating (IRR) in 2018. d. Prepare a review of Industrial Risk in the Priority Economic Sector. e. Implement an Internal Rating System (IRS) for FI/Banks. f. Review IRS Middle Segment. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 579
  580. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk g. Monitor the debtor rating system of Business Banking in the corporate and middle segment. h. Perform Risk Weighted Assets (RWA) calculations of Credit Risk using the Standardized method. i. Prepare quantitative publication reports on Credit Risk exposure. j. Prepare stress testing credit risk reports and Action Plans. k. Develop credit risk measurement (sustainable). l. l.Prepare a review of the calculation of Premium Credit Risk (CRP). m. Conduct analysis/review of loan portfolios, study of 25 core debtors, Non-Performing Loans (NPL) analysis, and space available loans on a regular basis. n. Analyze performance monitoring, review, calibration, and development of new scoring and modeling for consumer credit products (including Credit Cards and BNI Griya) and mass retail (including BNI Entrepreneurship and KUR). o. Piloting/full implementation of the application/ behavior/collection scorecard for consumer credit and mass retail products (including BNI Entrepreneurship and KUR) on the loan application system/scoring engine. p. Develop Impairment Models related to the application of the latest accounting standards (IFRS 9). q. Validate the Credit Risk models for the Business Banking (Medium and Small) Segments and Consumer Segments (consumer and mass retail) for either the new rating/scoring model or the existing model proposed for validation. r. Analyze Credit Risk appraisal/assessment on new/ existing products, activities, and transactions of the Bank. s. Compile a review of Credit Risk Risk Appetite. t. Develop a review of parameters, measurement/ methodology of Credit Risk Profile and monitor the implementation of concerns regarding improvement of Credit Risk. 2. Market Risk a. Preparing review document of Market Risk Management Policies and Procedures. b. Prepare a review and development of Market Risk Management Policies, Procedures, and Methodologies, for Treasury portfolios and Overseas Branch Offices. c. Monitor transactions and limit of significance of Securities. d. Monitor and review Treasury and KCLN budget loss limits. e. Monitor transaction/deal size dealer authority of Treasury and KCLN. 580 Adapting Quickly to Face Change f. g. h. i. j. k. l. m. n. o. p. q. r. Prepare quantitative publication reports on Market Risk exposure. Prepare reports on measurement, monitoring, and analysis, as well as control in the framework of managing market risk. Prepare stress testing reports on exchange rates and interest rates according to schedule (business as usual), monitor and analyze the development of incidental stress testing parameters of market risk and recovery plan. Prepare a backtesting report on Value at Risk (VaR). Prepare Risk Weighted Assets (RWA) calculation document on Market Risk using the Standardized method. Develop Market Risk model validation. Analyze Market Risk appraisal/assessment on new/ existing products, activities, and transactions of the Bank. Compile a review of Market Risk Risk Appetite. Arrange review of parameters and measurement of Market Risk Profile. Evaluate Net Open Position (NOP) calculations. Evaluate the calculation of the Interest Rate Risk in Banking Book (IRRBB) Compile a review of the calculation of the risk level of forex transactions, derivatives and reverse repo. Monitor limits regarding concentration of securities. 3. Liquidity Risk a. Management of Liquidity Risk of Domestic and Overseas Branch Offices. b. Preparing policy documents, procedures, methodologies, and reporting on LCR (Liquidity Coverage Ratio) on BNI only and consolidated. c. Preparing policy documents, procedures, methodologies, and reporting on NSFR (Net Stable Funding Ratio) on BNI only and consolidated. d. Monitor and analyze cash management per region. e. Prepare quantitative publication reports on Liquidity Risk exposure. f. Prepare reports on measurement, monitoring, and analysis, as well as control in the framework of managing Liquidity Risk. g. Prepare stress testing reports on Liquidity Risk according to schedule (business as usual), monitor and analyze the development of incidental stress testing parameters of Liquidity Risk and recovery plan. h. Analyze Liquidity Risk appraisal/assessment on new/ existing products, activities, and transactions of the Bank. i. Compile a review of Liquidity Risk Risk Appetite. j. Arrange review of parameters and measurement of Liquidity Risk Profile. PT Bank Negara Indonesia (Persero) Tbk
  581. Good Corporate Governance 4 . Operational Risk a. Preparing review of Operational Risk Management Policies and Procedures. b. Prepare a review of Business Continuity Management (BCM) Policies and Procedures. c. Analyze operational risk identification by reviewing risk issues in all organizational units. d. Prepare quantitative publication reports on Operational Risk exposure. e. Prepare reports related to Operational Risk for Internal and External needs. f. Perform Risk Weighted Assets (RWA) calculations of Operational Risk using the Basic Indicator Approach method. g. Prepare the results of Operational Risk Monitoring in all organizational units. h. Prepare an Operational Risk Review. i. Development of Self-Assessment Application and its implementation in Divisions /Units/Regions/ Domestic and Overseas Branches and Centers. j. Prepare the development results of the Loss Event Database (LED) Application and its Implementation in Divisions/Units/Regions/Domestic Branches and Centers. k. Prepare the development results of the Key Risk Indicator (KRI) Application and its Implementation in the Division/Unit. l. l.Procurement of Operational Risk Management Solution (ORMS). m. Evaluation on documents of Business Continuity Management (BCM), Risk and Threat Analysis (RTA), and Business Impact Analysis (BIA). n. Prepare the results of Monitoring and Evaluation of BCM implementation in all organizational units. o. Prepare the results of Monitoring and Evaluation of the Optimization of Data Center (DC) function, Disaster Recovery Center (DRC), and Command Center (CC), as well as the determination of Alternate Site in all organizational units. p. Analyze Operational Risk appraisal/assessment on new/existing products, activities, and transactions of the Bank. q. Compile a review of Operational Risk Risk Appetite. r. Prepare a review of parameters and measurement of Operational Risk Profile. s. Complete and update BNI’s Recovery Plan Documents. 5. Legal Risk a. Review Legal Risk Management Policies. b. Review Legal Policies. c. Conduct analysis/legal review in the form of giving written and oral advice. d. Carry out legal counseling/training. e. Perform legal review of non-standard agreements using the scoring system calculation method. PT Bank Negara Indonesia (Persero) Tbk  f. Mentor the business units related to business activities. g. Handle and settle legal cases. h. Supervise case handling. i. Analyze Legal Risk appraisal/assessment on new/ existing products, activities, and transactions of the Bank. j. Prepare a review of parameters and measurement of Legal Risk Profile. 6. Reputation Risks a. Review Reputation Risk Management Policies. b. Submit a letter of answer/response to the mass media regarding customer complaints/grievances against BNI. c. Maintain BNI’s reputation and image of all stakeholders. d. Analyze Reputation Risk appraisal/assessment on new/existing products, activities, and transactions of the Bank. e. Prepare a review of parameters and measurement of Reputation Risk Profile. 7. 7. Strategic Risk a. Review Strategic Risk Management Policies. b. Sharpen the long-term strategies and targets in the Corporate Plan 2019-2023 which focuses on developing digital-based businesses. c. Prepare a short-term plan in the General Policy of the Board of Directors (KUD) by considering the macroeconomic conditions and industrial competition, as well as competitive assessment of peers. d. Develop a medium-term plan in the Bank’s Business Plan (RBB) by strengthening the alignment of unit strategies in an effort to achieve corporate strategies and targets. e. Disseminate the strategies and targets set in KUD and RBB to all Divisions/Units/Regions. f. Continuously improve the organization, especially by strengthening branch and regional offices, structure the business support functions, and review the organizational business processes that are related to digital business models. g. Sharpen information and reviews on the economic and business conditions of the world, national, regional, and the latest business potential of the subsidiary to broaden the horizons and assist in strategic decision making. h. Prepare Review related to BNI’s priority sectors (including Industry Overview, industry characteristics, Key Success Factors, and Key Risk Factors, reviewed Industry development, BNI’s financing portfolio, and Lesson learned of such financing, and Industry Outlook). Adapting Quickly to Face Change 581
  582. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk i. Evaluate and monitor the realization of the achievement of strategies and targets set in KUD, RBB, and Business Plan Unit. j. Review and monitor new products and activities specifically related to digital products and activities. k. Analyze Strategic Risk appraisal/assessment on new/ existing products, activities, and transactions of the Bank. l. Prepare a review of parameters and measurement of Strategic Risk Profile. 8. Compliance Risk a. Review Compliance Risk Management Policies. b. Realize the Compliance Culture at every level of organization and business activities of the Bank. c. Ensure that the Policies, Regulations, Systems, and Procedures, as well as Business Activities conducted by the Bank are in accordance with the Regulatory Requirements and the applicable laws and regulations. d. Monitor and maintain the Bank’s compliance with commitments to Bank Indonesia, Financial Services Authority, and other authorities. e. Manage the Whistle Blowing System (WBS) and Anti-Fraud Strategy. f. Develop and refine compliance tools/systems and communication media (Compliance Forum). g. Implement and evaluate compliance index. h. Analyze Compliance Risk appraisal/assessment on new/existing products, activities, and transactions of the Bank. i. Prepare a review of parameters and measurement of Compliance Risk Profile. IMPLEMENTATION OF BNI’S RISK MANAGEMENT BNI’s Risk Management implementation has the following objectives: 1. Managing risks inherent in BNI’s relatively complex products, activities, and business activities. 2. Providing an overview to the Management of possible losses that may occur in the future. 3. Improving methods and systematic decision-making process based on the availability of information. 4. Maintaining and improving BNI’s Risk Profile assessment in either individual, consolidated, or integrated manner as a Financial Conglomeration. 5. Managing adequate capital structure to cover risks that may arise. 6. Providing more accurate basis for measuring performance. 7. Creating and maintaining BNI’s strategic position and reputation. 8. Creating competitive advantage and maintaining sustainable growth so that it can increase BNI’s shareholder value. 582 Adapting Quickly to Face Change BNI’s Risk Management implementation is carried out in accordance with the provisions of the regulator, which is by applying the 4 (four) pillars of Risk Management implementation as follows: ACTIVE MONITORING OF BOARD OF DIRECTORS AND BOARD OF COMMISSIONERS Active monitoring of Board of Directors is performed among others by: 1. Preparing risk management policies, strategies, and framework, including the limit of risks, by considering the risk appetite and risk tolerance according to BNI’s condition, and measuring the risk impact on the capital adequacy. 2. Preparing, determining, and updating the procedures and tools to identify, measure, monitor, and control risks in BNI. 3. Preparing and establishing transaction approval mechanisms, including those that exceed the limits and authority for each level of position. 4. Evaluating and/or updating risk management policies and strategies. 5. Determining BNI’s organizational structure, including clear authority and responsibilities at every level of position related to the risk management implementation. 6. Implementing risk management policies, strategies, and framework that has been approved by the Board of Commissioners, and evaluating and providing guidance based on reports submitted by the Risk Management Work Unit, including BNI’s Risk Profile Assessment. 7. Ensuring that all of BNI’s material risks and the impact caused by such risks have been addressed. 8. Ensuring the implementation of corrective actions on issues found by the Internal Audit Work Unit (SKAI). 9. Ensuring the adequacy of quantity and quality of human resources to support BNI’s risk management implementation effectively. 10. Developing risk management culture in BNI that includes risk awareness at all organizational levels. 11. Ensuring that risk management function has been applied independently Implementation of Board of Directors’ supervisory function is carried out through forums such as Board of Directors’ Meetings (Radisi), Meetings of Risk and Capital Committee (KRK), Risk Management Sub-Committee (RMC), Assets & Liabilities Sub-Committee (ALCO), Anti Fraud SubCommittee (KAF), Credit Policy Committee (KKP), and Credit Procedure Committee (KPP). PT Bank Negara Indonesia (Persero) Tbk
  583. Good Corporate Governance Active monitoring of Board of Commissioners is performed among others by : 1. Approving BNI’s risk management policies, including risk management strategy and framework determined according to the risk appetite and risk tolerance. 2. Evaluating risk management policies and strategy. 3. Evaluating the Board of Directors’ responsibilities and giving directions to improve the implementation of BNI’s risk management policies. 4. Ensuring that risk management policies and process are performed effectively and integrated comprehensively in BNI’s risk management process Implementation of Board of Commissioners’ supervisory function is carried out through forums such as Meetings of the Board of Directors and the Board of Commissioners (Radikom), meetings of Risk Monitoring Committee, Integrated Governance Committee, and Audit Committee. In order to implement Risk Management effectively, the implementation is based on the applied Risk Governance. Risk Governance clearly regulates the roles and responsibilities, the decision making process, the connectivity among Risk Management functions, and the determination of policies to ensure that the Risk Management is well managed Risk Governance in BNI Oversight Oversight & Execution Board of Comissioners Ensure the adequate implementation of risk management in line with the Bank’ business characteristics, complexity and risk profile. The Risk Monitoring Committee assists this implementation. Board of Directors Responsible for the adequate implementation of risk management in line withthe Bank’ business characteristics, complexity and risk profile. Assisting the Board of Directors in risk management policies, development and implementation as well as escalating issues to the Board of Directors. Excalation Implementation & Control Mechanism Risk Management Commitee Risk Taking Unit Risk Control Unit Risk Assurance Unit Internal Control Implement risk management in accordance with each respective role: »» Risk owner (risk taking), managing risks inherent in the respective business and functions. »» Risk Control, developing risk management framework, policies, principles, and methodology. »» Risk Assurance, performing independent assessment of the effectiveness of the implementation of risk management and internal control. ADEQUACY OF POLICIES, PROCEDURES, AND LIMIT ESTABLISHMENT To support the implementation of Risk Management effectively, BNI has developed comprehensive and integrated Risk Management policies and procedures. BNI already has Risk Management General Policies as the policies that become the strategic and comprehensive basis of reference in implementing Risk Management. Risk Management Procedures are procedures that guide the implementation of Risk Management. As the guidelines in implementing Risk Management, Banks must manage 8 (eight) types of Risks, BNI already has policies and procedures as the basis for managing each Risk. The detailed provisions of each procedure are regulated in technical instructions. The hierarchy of policy, procedure, and technical guidelines is illustrated in the following chart: PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 583
  584. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Hierarchy Formulation of Policies POLICY POLICY TECHNICAL INSTRUCTIONS As one of the risk control methods, BNI also already has Risk limit. The risk limit is a threshold for determining the intensity level of risk mitigation that will be implemented by the management. Determination of BNI’s risk limits includes limits per Risk (credit risk, market risk, and liquidity risk), limits per functional activity or limit as a whole. Risk management policies and procedures as well as Risk limits are regularly reviewed with the approval of the Board of Directors through committee meetings or circulation to the Board of Directors in accordance with the authority level. ADEQUACY OF PROCESS OF RISK IDENTIFICATION, MEASUREMENT, MONITORING, AND MANAGEMENT, AS WELL AS RISK MANAGEMENT INFORMATION SYSTEM. BNI’s risk management process covers the process of identifying, measuring, monitoring, and controlling risk continuously on all material risk factors supported by the Risk Management Information System. The risk identification process is carried out to analyze the source, the level of possible risks and impacts. Several matters that are considered in risk identification process are 1. Identification of all risks is performed regularly. 2. Having a method or system to identify risks in all BNI’s products and business activities. 3. Specifically identifying risks to new products and activities, before the new products/activities are introduced or implemented The risk measurement process is carried out to determine the risk exposure level as a reference in controlling risk. Risk measurement is carried out quantitatively and/or qualitatively according to the measurement method set by 584 Adapting Quickly to Face Change the regulator or by using internal method for methods that have not been specifically determined. To anticipate extreme conditions, risk measurement in BNI is also complemented by stress testing for credit risk, market risk, and liquidity risk. The risk monitoring process is carried out to ensure that risks have been managed properly, among others, through monitoring on mitigation and predetermined risk limits. Risk monitoring is carried out by either the Operational Work Unit (risk taking unit) as the risk owner or by the Risk Management Work Unit as the risk control unit. The monitoring results are presented in periodic reports, among others, Loan Portfolio Review, Market Risk Monitoring and Liquidity Risk Report, Operational Risk Expense Report, Feedback of Operational Risk Self Assessment, Internal Risk Report, Risk Profile Assessment, Bank Soundness Level Assessment, and Calculation of Minimum Capital Requirement (KPMM) according to the Risk Profile. The risk control process is carried out primarily to manage risks that can disrupt BNI’s business continuity. The risk control strategy carried out by BNI is to reduce risk (risk mitigation), accept risk (risk acceptance), avoid risk (risk avoidance), and move risk (risk transfer). BNI’s Risk Management Information System was developed to support the process of identifying, measuring, monitoring, and controlling risks, and to ensure the availability of accurate, complete, informative, timely, and reliable information so that it can be used in the framework of decision making process by the Management. Several risk management applications have been prepared to support the implementation of timely and accurate risk management processes including Credit Risk Management System (CRMS), Internal Rating System, Scoring System, Operational Risk Tools (PERISKOP), and market risk management applications. BNI has prepared risk management solutions that are in line with the IT Strategic Plan, such as: 1. Preparing front end applications for credit risk, market risk, and operational risk 2. Preparing data storage and information system. 3. Capital calculation engine INTERNAL CONTROL SYSTEM The internal control system in BNI is implemented using the Three Lines of Defense model which consists of: First line of defense, which is carried out by the Operational Work Unit (risk taking unit) as the risk owner who manages risks against risks inherent in the business and its functions (day-to-day risk management and control). PT Bank Negara Indonesia (Persero) Tbk
  585. Good Corporate Governance Second line of defense or risk control unit , which is carried out by the Bank’s Risk Management Division, the Policy Governance Division, and the Compliance Division that are tasked to encourage all organizational levels to carry out their functions according to the internal regulations. Third line of defense or risk assurance unit, in which BNI has an Internal Monitoring Unit or as the Internal Audit Work Unit (SKAI). The Risk Assurance unit evaluates independently the suitability of the process of implementing Risk Management and the internal control system with the policies and procedures that are set internally as well as conformity with regulatory requirements. RISK MANAGEMENT STRATEGY In the implementation of risk management, it is necessary to align the strategies and business objectives with the risk strategy and risk appetite. The risk strategy and risk appetite is translated into governance, processes, policies and tools, and methodologies supported by information technology, human resources, and a strong risk culture.. Strategies and Business Objectives Alignment Growth & earning Target segment, customer products Risk Strategy and Risk Appetite Establish risk tolerance based on risk capacity that coordinated with business strategy Risk Operating Model Governance Proses Kebijakan Information Technology HC & Risk Culture Purpose Tujuan Tool & Method Risk assessment and control mechanisms Inherent risk Capital allocation risk Risk based performance Operational Efficiency Competence and Integrity Risk awareness and behavior Risk management strategies are formulated according to the overall business strategy by considering the level of risk that will be taken (risk appetite) and risk tolerance. The purpose of establishing a risk management strategy is to ensure that risk exposures have been managed in a controlled manner in accordance with internal policies and procedures as well as applicable laws and regulations and other regulations. The risk management strategy consists of several principles, which are: 1. Long-term oriented to ensure the BNI’s business continuity. 2. Comprehensive in nature, can control and manage BNI’s risk both individually and on a consolidated basis with Subsidiaries and integrated into BNI’s Financial Conglomeration. 3. Fulfillment of the required capital adequacy and adequate allocation of resources PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 585
  586. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk The risk management strategy is prepared by considering the following matters: 1. Economic and industrial developments and their impact on BNI’s risk exposure. 2. BNI organization, including the adequacy of human resources and supporting infrastructure. 3. Financial conditions include the ability to generate profits, and BNI’s ability to manage risks arising as a result of changes in external and internal factors. 4. Mix and diversify the internal portfolio.. The risk management strategy is formulated according to the business strategy and shall be able to provide overall direction in the risk management activities. The risk management strategy consists of 4 (four) main components, which are: 1. The risk level to be taken (risk appetite) and risk tolerance 2. Risk management principles and policies 3. Risk governance 4. Types of risk exposure and market conditions The type and magnitude of risk exposures are measured using a risk measurement methodology that is in accordance with the Regulatory provisions and shall be linked to risk appetite, risk tolerance, predetermined limit, and capital availability and planning. Governance of risk management strategies 1. The Risk Management Strategy becomes one of the basis (references) in determining the business strategy as outlined in BNI’s Bank Business Plan (RBB) which is determined on an annual basis and submitted to the Regulator. 2. The risk management strategy is drafted and prepared by the Risk Management Work Unit, decided by the Board of Directors through the Risk Management Sector of the Risk and Capital Committee Meeting, as well as approved by the Board of Commissioners. The Risk Management Strategy is communicated by the Board of Directors to the Divisions/Units/Work Units and is regularly reviewed in line with changes in business strategies, by considering the economic conditions, banking business, changes in regulations by the Regulator and their impact on the Bank’s financial performance. 586 Adapting Quickly to Face Change RISK PROFILE AND ITS MANAGEMENT TYPE OF RISKS There are at least 10 (ten) types or risks that shall be managed, which are: 1. Credit Risk Credit risk is risk due to the failure of other party to meet the obligation to the Bank, including Credit Risk due to debtor’s failure, credit concentration risk, counterparty credit risk, and settlement risk. Credit risk can derive from various bank business activities, such as credit provision, securities purchases, acceptances, interbank transactions, trade finance transactions, exchange value and derivative transactions, as well as commitment and contingency obligations, where credit provision is the largest source of credit risk. 2. Market Risk Market Risk is a risk in balance sheet and administrative account positions including derivative transactions, due to overall changes in market conditions, including the risk of changes in option prices. Market risks include interest rate risk, foreign exchange risk, equity risk, and commodity risk. As a Bank, BNI is prohibited from conducting equity (stock) and commodity transactions. The implementation of risk management for equity and commodity risk is applied in the case of consolidating with Subsidiaries. 3. Liquidity Risk Liquidity risk is a risk due to the Bank’s inability to meet the obligations due from the cash flow source of fund and/or from high quality liquid assets that can be pledged, without disturbing the Bank’s activity and financial condition. BNI’s Liquidity Risk can occur due to the inability to obtain cash flow source of fund caused by: a. Inability to generate cash flows from productive assets or from the sale of assets including liquid assets; and/or b. Inability to generate cash flows from fund raising, interbank transactions, and loans received. 4. Operational Risk Operational Risk is risk due to inadequacy and/or malfunction of internal process, human error, system failure, and/or external incidents affecting the Bank’s operations. Operational risk arises among others from internal process, human resources, information technology system and infrastructure, and external events. PT Bank Negara Indonesia (Persero) Tbk
  587. Good Corporate Governance 5 . Legal Risk Legal Risk is a risk as a result of lawsuits and/or weakness of juridical aspect. BNI’s Legal Risk may arise among others from absence of supporting laws and regulations, or weak agreement such as unfulfilled valid terms of a contract and incomplete collateral binding. 6. Reputation Risk Reputation risk is a risk due to the decreasing level of stakeholders’ trust caused by negative perception towards the Bank. BNI’s Reputation Risk may among others arise due to negative media reporting and/ or negative rumor about BNI, and BNI’s ineffective communication strategy. 7. Strategic Risk Strategic Risk is a risk due to incorrectness in making and/or implementing a strategic decision, as well as failure in anticipating changes in the business environment. BNI’s strategic risk may occur, among others, due to determining strategy that is not in line with BNI’s vision and mission, a non-comprehensive analysis of strategic environment, and/or inconsistency of a strategic plan between levels. Furthermore, BNI’s strategic risk may also occur due to failure in anticipating changes in business environment, including failure in anticipating technological changes, macro economic changes, dynamics of competition in the market, and changes of policy by the relevant authorities. 8. Compliance Risk Compliance Risk is a risk due to the bank does not comply with and/or does not implement the applicable laws and regulations and provisions. BNI’s compliance risk may arise from legal behavior, which is BNI’s behavior/activity that deviates or violates the provisions or laws and regulations, and organizational behavior, which is BNI’s behavior/activity that deviates or in contrary to the general standards. 9. Inter-Group Risk. Risk due to the dependence of an entity, either directly or indirectly, on other entities in one Financial Conglomeration in order to fulfill written and unwritten agreement obligations, followed by transfer of funds and/or not followed by transfer of funds. 10. Insurance Risk. Risk due to failure of the insurance company in meeting its liability to the policyholders as a result of insufficient risk selection process (underwriting), premium determination (pricing), use of reinsurance, and/or claim handling. PT Bank Negara Indonesia (Persero) Tbk  BNI’S RISK MANAGEMENT EFFORTS To manage risk effectively and comprehensively, a risk management infrastructure is needed that includes Governance and Organization (including HR), Policies and Procedures, Risk Management Process, Measuring Tools and Methods (including Quantification of Risk Models), which is supported by Information Technology and strong Risk Culture. The Risk Management process for each risk that has been developed and implemented in BNI is as follows: Credit Risk Credit risk identification is carried out in order to analyze the sources and possibilities of credit risk to arise and its impacts, which are carried out periodically according to the product characteristics and types of activities. Credit risk identification is also carried out by preparing Industry Risk analysis in the priority economic sector. Credit risk measurement is an integral part and series of the process of implementing credit risk management and is used as a reference for risk control. To process the individual exposure of the business banking segment, BNI already has a debtor rating model in the form of an internal rating system, while for consumer segment, debtor scoring system is used to assist in analyzing the quality of debtors in the credit process. To regulate the composition of portfolio, BNI already has a Loan Exposure Limit (LEL) which serves to limit the risk of concentration of loan exposure in each economic sector in each segment, and serves as a guideline for business units in expanding loans. To assess the risk of each type of industry, BNI already has an Industry Risk Rating (IRR) and a Financial Ratio Standard that is used as one of the factors in assessing the quality of debtors from an industry side. BNI uses the Standardized Approach method for calculating Risk Weighted Assets (RWA) for Credit Risk in assessing the adequacy of the Minimum Capital Requirement (KPMM). Currently, BNI is also developing an Impairment Model related to the application of the latest accounting standards (IFRS 9). Adapting Quickly to Face Change 587
  588. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk In order to complement the credit risk measurement system, stress testing is carried out by estimating the bank’s potential loss in abnormal market conditions by using certain scenarios to see the sensitivity of BNI’s performance against changes in risk factors and to identify factors that have a significant impact on BNI’s portfolio and capital adequacy. Stress testing is carried out periodically or can be done at any time according to the needs by considering the economic conditions or according to the needs/requirements of the regulator. The ERM Division prepares stress testing methodology/ model for credit risk by considering the characteristics of the product or activity and harmonizing it with the rules/ requirements of the regulator. Credit risk monitoring aims to see and ensure that the implementation of the entire credit risk management process is running well and the potential credit risk is still within the permissible risk limit. Monitoring of credit risk is carried out through monitoring loan portfolios, which are growth, quality and concentration of loans, monitoring loan exposure compared to Loan Exposure Limit, and monitoring the Legal Lending Limit. Credit Risk Control is carried out in order to prevent the occurrence of bigger losses due to Credit Risk which is supported by several credit risk management tools both at the individual and portfolio exposure level. Market Risk Identification, measurement, monitoring, and control of market risk is carried out by a unit that is independent from the business unit. Market Risk Identification is mainly carried out for each new product or activity. The objectives of Market Risk Identification include: 1. Determining transactions/products exposed to Market Risk. 2. Grouping the Market Risk based on the existing criteria. 3. Facilitating the measurement of Market Risk and its control. Periodic Market Risk Measurement is carried out on all trading book and banking book portfolios exposed to Market Risk. BNI conducts Risk Market measurement by using Standardized Method and Internal Method. Standardized Method is used to calculate the Minimum Capital Reserve Requirement (KPMM) of Market Risk, while daily Market Risk management uses Internal Method (Value at Risk). The portfolio coverage calculated in KPMM by using Standardized Method is the trading book portfolio for interest rate risk and the trading book and banking book portfolio for domestic and overseas branch office’s exchange rate risk. 588 Adapting Quickly to Face Change The process of monitoring and reporting Market Risk is conducted periodically, including: 1. Monitoring and reporting the amount of Market Risk on all Bank portfolios exposed to Market Risk. 2. Monitoring and reporting on compliance with Market Risk limit (realization of Market Risk exposures compared to their limits). 3. Recommendation for follow-up on the occurrence of exceeding limits and/or the occurrence of abnormal market conditions, and/or the occurrence of other conditions that lead to increased Market Risk potential. Market Risk Control is carried out in order to prevent the occurrence of bigger losses due to Market Risk through the establishment of market risk limits in the Treasury Division and Overseas Branch Offices, among others as follows: 1. Value at Risk Limit (VaR Limit), which is the maximum potential loss that may occur at any time in the future with certain confidence level. 2. Stress Value at Risk Limit (Stress VaR Limit), which is a measurement of market risk adjusted to abnormal conditions in the market or maximum potential loss when the market is not normal. 3. Budget Loss Limit which is used to limit the realization of loss of business activities. 4. Management Action Trigger (MAT), which is the Limit to take action against the risk of changes in loss value (early warning signal). MAT completes the loss limit in the form of a certain percentage of the loss limit. 5. Limit on securities purchases, which is used to limit the concentration of purchases of corporate securities by rating and type of currency of the securities 6. Limit of asset and liability repricing gap (Interest Rate Risk in Banking Book) to limit the interest rate risk in banking book. 7. Nominal of open position limit, which is the maximum nominal of open position limit that a dealer can use. 8. Overall NOP internal limit (absolute), which is the maximum limit of NOP management. Risiko Likuiditas Liquidity Risk Identification is the process of obtaining and analyzing the sources of Liquidity Risk that are inherent in all business activities/transactions/products that can have a financial impact on the Bank. Every activity/product/ transaction is analyzed and differentiated to ensure that every Liquidity Risk has been identified, measured accurately, managed according to the right method, and well controlled. Liquidity risk management aims to minimize the possibility of the Bank’s inability to obtain cash flow source of fund, and build the strength of the structural liquidity of the bank’s balance sheet in order to support sustainable long-term growth. PT Bank Negara Indonesia (Persero) Tbk
  589. Good Corporate Governance Liquidity Risk Measurement Methods include liquidity ratio , maturity profile, cash flow projection, stress testing, and Liquidity Coverage Ratio (LCR). The process of monitoring and/or reporting Liquidity Risk is conducted periodically, including: 1. Monitoring and reporting the amount of Liquidity Risk on all Bank activities/products exposed to Liquidity Risk. 2. Monitoring and reporting on compliance with Liquidity Risk limit (realization of Liquidity Risk exposures compared to their limits). 3. Monitoring early warning indicators (internal and external) to determine the potential for increased Liquidity Risk. 4. Recommendation for follow-up on the occurrence of exceeding limits and/or the occurrence of abnormal market conditions, and/or the occurrence of other conditions that lead to increased Liquidity Risk potential. In managing liquidity, in addition to managing the primary reserve (cash and GWM), BNI holds and maintains secondary reserves to ensure that liquidity is at a safe level. For the reserve of secondary reserve, BNI holds and maintains tertiary reserve. Determination and monitoring of limits, which are Cash Limit of BNI Wide, limit of Secondary Reserve Ideal (SR Ideal), Maturity Profile limit, and restriction of Foreign Exchange Credit based on the Availability of Fund is conducted periodically by the Bank’s Risk Management Division (ERM) Division. Whereas, the availability of the entire reserve is monitored daily, weekly, and monthly by the Treasury Division (TRS) Division and ERM Division. Operational Risk BNI’s operational risk management consists of 5 (five) main continuous processes, which are identification, assessment, measurement, monitoring, and control. 1. Risk Identification The methods used to identify and measure operational risk among others include: Risk Control Self-Assessment (RCSA), risk mapping, Key Risk Indicators (KRI), scorecards, event analysis, frequency matrix, quantitative methodologies, and qualitative methodologies. The implementation of the methods of identification and measurement of operational risk in BNI is summarized in an application, namely PERISKOP (Operational Risk Tool). PERISKOP is a tool or device used in managing operational risk including recording loss events, compiling follow-up actions, and mitigating them. 2. Risk Assessment Performed by each risk-owner unit through operational risk self assessment methods, including assessment of impacts, frequency, and causes of risks and their solutions. PT Bank Negara Indonesia (Persero) Tbk  3. Risk Measurement In accordance with the Regulatory provisions, the current operational risk measurement is the Basic Indicator Approach method. 4. Risk Monitoring Performed by all units as the first line of defense on the main risks during ongoing operational activities. The Bank’s Risk Management Division evaluates and gives report/feedback on risk assessments based on self assessment results as well as realization on operational risk losses that happen that includes: a. Report feedback for all divisions/units/areas/ branches. b. Monthly reports on Operational Risk Expenses Monitoring, submitted to the Board of Directors c. Operational Risk Profile Report 5. Risk Control The mechanism for operational risk mitigation is reflected in the internal control processes by implementing the 4 (four) risk mitigation strategies, which are avoiding, mitigating, transferring, and accepting. The four risk mitigation strategies are stated in the Operational Risk mitigation procedures that include procedures of control, transaction settlement, accounting, asset and custodial storing, product supply, and fraud prevention. Business Continuity Management Disruptions or disasters caused by nature factors, human actions, and systems may happen to BNI’s critical business functions, causing disruptions on BNI’S business activities and services. To anticipate such events, BNI has implemented a Business Continuity Management (BCM) in every domestic and overseas unit that is expected to be able to minimize operational risk in emergency event or disaster situation. The development of this tool is in line with the Regulatory requirements requiring banks to implement risk control process to manage risks that could compromise a bank’s business continuity, and also in line with the Basel II document requiring banks to have business continuity management and contingency plans to ensure the bank’s ability to keep operating and to limit losses due to disruption on their business activities. Beside the provisions of the Regulator and Basel II for Overseas Branch Office, BCM is implemented by fulfilling BCM regulations in the local country. Adapting Quickly to Face Change 589
  590. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Legal Risk The legal risk identification process is carried out by analyzing all legal risk sources, which at least carried out on legal risk from BNI’s products and business activities, as well as the new products and business activities through legal risk management control process before they are introduced or implemented. The process of identifying legal risks inherent in the Bank is carried out using indicators/parameters of: 1. Litigation Factor 2. Weak Binding Factor 3. Factor of Absence/Amendment to Laws Legal risk measurement is carried out based on calculations using indicators/parameters in identifying legal risks compared to Bank capital. The results of legal risk measurement are reflected in the Legal Risk Profile. Monitoring legal risk is carried out by evaluating the exposure of inherent legal risk, especially of material nature or that has impact on BNI’s capital. The monitoring results which includes evaluation of legal risk exposure are reported regularly including the necessary follow-up actions. The implementation of the legal risk control process is used by BNI to manage legal risks especially those that could endanger BNI’s business continuity. Legal Risk control process is carried out among others by: 1. Conducting evaluation/assessment in the form of judicial reviews in the event of new products or new activities, or changes in/additional features on BNI’s products. 2. Providing legal advice and/or legal assistance in the event of Legal Risks in the operational activities. 3. Periodically reviewing standard agreement formats, in particular credit agreements, in order to ensure compliance with laws and regulations and other applicable provisions. 4. Periodically reviewing contracts and agreements between BNI and other parties, especially for nonstandard agreements or agreements that have not been standardized in the Company Guidelines. 5. Conducting intensive monitoring on legal issues, particularly lawsuits based on Act Against the Law involving the Bank as Defendant or Co-defendant. Reputation Risks To identify and measure the impact of Reputation Risk, BNI uses several sources of information including mass media coverage, Bank websites, and analysis of social networks, customer complaints through customer service ,and customer satisfaction questionnaires. Monitoring of news management and crisis communication management and monitoring of news media/social media 590 Adapting Quickly to Face Change opinions/comments is conducted in a coordinated manner between the Bank’s Risk Management Division and the Corporate Communication and Secretariat Division, while management of complaints/customer grievances is carried out in collaboration with BNI Contact Center (BCC). The Corporate Communication and Secretariat (KMP) Division monitors and reports Reputation Risk that occurs to the Board of Directors both incidentally at the time of the incident and periodically including the necessary followup actions. BNI has developed mechanism in performing effective reputation risk control measures. In general, reputation risk control is carried out through 2 (two) activities, which are: 6. Prevention of events leading to reputation risk 7. Recovery of the Bank’s reputation after an incident arising reputation risk occurs. Compliance Risk Compliance risk identification is carried out by analyzing several factors that can increase compliance risk exposures such as the type and complexity of BNI’s business activities, including new products and activities, the volume and materiality of the Bank’s non-compliance with internal policies and procedures as well as the applicable laws and regulations and provisions as well as sound business ethics and practices. Compliance Risk Measurement is carried out by using indicators/parameters such as: 1. Types and significance of violations committed; 2. Frequency of violation (BNI’s compliance track record); 3. Violation against certain financial transaction provisions. As part of the compliance risk measurement, the indicators/ parameters and the amount of weight and ratio used to measure the compliance risk profile are determined by the Compliance Division with due regard of input from the Board of Directors, the Bank’s Risk Management Division (ERM), and other Units as well as Regulatory provisions, if any. Compliance Division carries out monitoring and reporting the Compliance Risk that occurs to the Board of Directors either incidentally at the time Compliance Risk occurs or periodically. Compliance Risk Control is carried out by conducting actions or measures that are preventive to ensure that policies, provisions, systems, and procedures, as well as business activities carried out by BNI are in accordance with the Regulatory provisions and applicable laws and regulations, as well as to ensure BNI’s compliance with the commitments made to the Regulators and/or other authorized supervisors. Compliance Risk Control is not only carried out on organizational units in the country but also includes organizational units overseas. PT Bank Negara Indonesia (Persero) Tbk
  591. Good Corporate Governance Strategic Risk Strategic risk identification is carried out to identify strategic risk factors inherent in every functional activity that potentially harms BNI for example due to inappropriate policy , less responsive to changes that occur, implementation of policies that are not according to plan, or because the implementation is not in line with the predefined schedule. Assessment of inherent Risk is carried out by considering quantitative and qualitative parameters/indicators. Determination of inherent risk level for each type of risk refers to the general principles of assessing the Sound Level of Commercial Bank. Determination of inherent risk level for each type of risk is categorized into rank 1 (low), rank 2 (low to moderate), rank 3 (moderate), rank 4 (moderate to high), and rank 5 (high). Risk measurement approach used in measuring Strategic Risk Profile is using 4 (four) parameters, which are: strategy suitability with the business environment conditions, highrisk strategies and low-risk strategies, BNI’s business position against competitors, and the achievement of Bank’s Business Plan (RBB) realization. RISK MANAGEMENT IMPLEMENTATION QUALITY ASSESSMENT The quality assessment of Risk Management implementation reflects the assessment of the adequacy of Risk control system that covers all pillars of the implementation of Risk Management as stipulated in the provisions of the Financial Services Authority on the implementation of Risk Management for Commercial Banks. The implementation of Bank Risk Management varies greatly according to scale, complexity, and level of risk that the Bank can tolerate. Thus, in assessing the Quality of Risk Management Implementation, it is necessary to consider the characteristics and complexity of the Bank’s business. The quality assessment of Risk Management implementation is an assessment of 4 (four) interrelated aspects, which are: 1. Risk governance; 2. Risk Management framework; 3. Risk Management process, adequacy of human resources, and adequacy of management information systems; and 4. Adequacy of the Risk control system, by considering the characteristics and complexity of the Bank’s business. Strategic Planning Division (REN) monitors the realization of Business Plan Strategies for each Division/Unit so that problems can be identified in implementing strategies and work programs in order to be corrected immediately so that the financial targets that have been set can be achieved. Inter-Group Risk Risk due to the dependence of an entity, either directly or indirectly, on other entities in one Financial Conglomeration in order to fulfill written and unwritten agreement obligations, followed by transfer of funds and/or not followed by transfer of funds. Insurance Risk Risk due to failure of the insurance company in meeting its liability to the policyholders as a result of insufficient risk selection process (underwriting), premium determination (pricing), use of reinsurance, and/or claim handling. BNI’S RISK ASSESSMENT Risk Profile Assessment is an assessment of inherent Risk and Quality of Risk Management Implementation in the Bank’s operational activities. Risks that must be assessed consist of 8 (eight) types of risks. In assessing the Risk Profile, the Bank must also pay attention to the scope of the application of risk management as regulated by the regulator. INHERENT RISK ASSESSMENT Inherent Risk Assessment is an assessment of the risks inherent in the Bank’s business activities, whether they can be quantified or not, which has the potential to affect the Bank’s financial position. The characteristics of the Bank’s inherent risk are determined by internal and external factors, including business strategy, business characteristics, complexity of products and activities of the Bank, industry in which the Bank conducts business activities, and macroeconomic conditions. PT Bank Negara Indonesia (Persero) Tbk  RISK PROFILE ASSESSMENT RESULT The self-assessment result of BNI’s Risk Profile (Bank only) for the position of December 31, 2018, was a score of 2 (Low to Moderate), with the Inherent Risk Score of Low to Moderate, and Risk Management Implementation Quality (KPMR) is Satisfactory. BASEL III IMPLEMENTATION Referring to Financial Services Authority Regulation No. 11/ POJK.03/2016 dated February 02, 2016, on Minimum Capital Requirement (KPMM) for Commercial Banks, as amended by Financial Services Authority Regulation No. 34/POJK.03/206 that the Bank must provide minimum capital in accordance with the Risk Profile. In addition to the obligation to provide minimum capital in accordance with the Risk Profile, the Bank is also required to form additional capital as a buffer which includes Capital Conservation Buffer, Countercyclical Buffer, and Capital Surcharge for Systemic Banks. Based on the calculation result of BNI’s capital adequacy position per December 31, 2018, BNI’s CAR of 18.5% is still above the mandatory capital requirement of 12.9%, which Adapting Quickly to Face Change 591
  592. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk is a requirement in accordance with the Risk Profile (rank 2) and additional buffer capital, which are Conservation Buffers of 1.875%, Countercyclical Buffer of 0%, and Capital Surcharge of 1.125%. In addition, to anticipate Basel III implementation related to liquidity, BNI has also improved its liquidity risk management in the form of applying Liquidity Coverage Ratio (LCR) calculations and calculation of Net Stable Funding Ratio (NSFR) which aim to strengthen and improve the quality of liquidity risk management. The LCR calculation aims to improve the short-term liquidity resistance of the Bank by maintaining adequate High Quality Liquid Assets (HQLA) to meet liquidity needs over the next 30 days in crisis conditions, while NSFR aims to reduce liquidity risk related to funding sources for longer time periods long by requiring BNI to fund activities with adequate stable funding sources in order to mitigate the risk of future funding difficulties. Based on the calculation result per December 31, 2018, position, BNI’s LCR was 192% and BNI’s NSFR trial was 134%, both were still above the minimum requirement of 100%. IMPROVEMENT AND REFINEMENT OF RISK MANAGEMENT For future development, BNI has planned several initiatives to improve the capability and quality of risk management implementation, including: 1. Increased Credit Risk Capability a. Improve risk management and credit processes Synchronization of Watchlist and IRS Online with the Development Project of Internal Rating Based (IRB) Model along with the Rating System Structure, which aims as a solution for: i. Providing the best results (best return), evaluating and analyzing strategies, and supporting the decision-making process by developing risk-based pricing, risk-based performance, and portfolio management. ii. Monitoring (monitoring tools) on the performance of corporate, medium, and small debtors. iii. Calculation of CKPN is in accordance with PSAK 71. The benefits of developing IRB Model for BNI include: i. Improving BNI’s credit quality. ii. Assisting business units in selecting prospective debtors. 592 Adapting Quickly to Face Change iii. Becoming an early warning signal in monitoring managed debtors to reduce the provision that needs to be established. b. Implementing the Integrated Decision Automated System (IDEAS) which can be a tool for BNI to move more flexibly and quickly in capturing dynamic and competitive market changes, while still minimizing risk through the implementation of credit scorecard through more comprehensive use of customer data on all customer life cycles. 2. Increased Operational Risk Capability To meet the regulatory provisions and support better and more comprehensive operational risk management of BNI, a tool/solution is needed that can carry out the process of identifying, measuring, monitoring, and controlling operational risk, including Business Continuity Management (BCM). This tools/solutions in the form of applications for Operational Risk Management (ORM) solutions and Business Continuity Management (BCM) have the capability of: a. Risk Control Self-Assessment (RCSA). b. Loss Event Database (LED). c. Key Risk Indicator (KRI). d. Business Continuity Management (BCM). The existence of operational risk management tools/ solutions can provide substantial benefits to BNI as follows: a. Carry out operational risk management process in all BNI units in an integrated solution that is expected to be able to improve the Bank’s risk management quality. b. Have a comprehensive, accurate, and timely operational risk database. c. Provide data analysis and reporting on Operational Risk Management. d. Better operational risk management and BCM. 3. Increased Market Risk Capability In accordance with the regulatory provisions, in 2019 all Banks are required to measure the impact of changes in interest rates on the Banking Book (Interest Rate Risk in The Banking Book/IRRBB). The calculation method is carried out with 2 (two) approaches, namely Net Interest Income (NII) method and Economic Value of Equity (EVE) method. Banks are required to simulate interest rates shock with 6 (six) scenarios according to Basel and see the impact on the Bank’s profitability and capital. By considering the complexity of data, products, and models used, IRRBB calculation application is currently being developed so that the results obtained are expected to be more accurate. PT Bank Negara Indonesia (Persero) Tbk
  593. Good Corporate Governance 4 . Increased Risk Integration Capability One of the initiatives to improve the Quality of Risk Management Implementation is through developing strong risk culture. Risk culture is a collective form of values, attitudes, and perceptions of each individual or group in the company regarding risk and its management. The existence of Risk Culture greatly influences the effectiveness of risk management implementation and ultimately the achievement of sustainable corporate performance. Matters that will be conducted are evaluating the risk culture in BNI at this time by using survey method, identifying gaps or weaknesses based on the survey results, identifying gaps or weaknesses based on the survey results, and developing strategies for improvement efforts. IMPLEMENTATION OF INTEGRATED RISK MANAGEMENT Generally, the regulation scope of the Integrated Risk Management according to the Financial Services Authority Regulation No. 17/POJK.03/2014 on Implementation of Integrated Risk Management for Financial Conglomeration is as follows: 1. The Financial Conglomeration (KK) must implement the Integrated Risk Management. 2. The Financial Conglomeration includes the types of Financial Services Institutions (FSI) as follows: a. Bank b. Insurance/Reinsurance Company c. Securities Company d. Financing Companies 3. The Financial Conglomeration must have Main Entity. In the event that the Financial Conglomeration structure consists of parent FSI and subsidiary FSI, the Main Entity is the parent FSI. BNI has formed its Financial Conglomeration Structure, BNI as the holding company is the Main Entity and has 5 (five) Financial Services Institutions as members of BNI’s Financial Conglomeration, namely BNI Syariah, BNI Multifinance, BNI Life, BNI Sekuritas, and BNI Asset Management. BNI’s Financial Conglomeration Structure was submitted to the Financial Services Authority cfm. Board of Directors’ Letter No. Dir/102, dated March 13, 2015, as follows: BNI’s Financial Conglomeration Structure Diagram ENTITAS UTAMA 99,99% 75,00% 60,00% 99,90% Pembiayaan Sekuritas Asuransi Jiwa Perbankan Syariah 99,9% Asset Management In implementing the Integrated Risk Management, BNI’s Financial Conglomeration has a joint commitment to perform duties and responsibilities of each FSI as stated in the Integrated Risk Management Pact that has been approved and signed by the President Director and President Commissioner as well as the entire FSI Members of BNI’s Financial Conglomeration. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 593
  594. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Based on POJK No. 17/POJK.03/2014, Financial Conglomeration must implement an effective Integrated Risk Management that covers the following 4 (four) pillars: 1. Monitoring of the Main Entity’s Board of Directors and Board of Commissioners; 2. Adequacy of policies, procedures, and limit establishment of the Integrated Risk Management; 3. Adequacy of process of risk identification, measurement, monitoring, and control in an integrated manner, and the Integrated Risk Management Information System; 4. Overall internal control system on the implementation of Integrated Risk Management. In implementing the Integrated Risk Management, BNI as the Main Entity has carried out the following matters: 1. Pillar I: monitoring of the Main Entity’s Board of Directors and Board of Commissioners, by:: a. Establishing BNI’s Financial Conglomeration Structure; b. Appointing a Director in charge of Integrated Risk Management function; c. Establishing the Integrated Risk Management Committee and the Integrated Risk Management Work Unit; d. Preparing the Integrated Risk Management Pact which has been signed by the President Director and President Commissioner and the entire FSI Members of BNI’s Financial Conglomeration; e. Conducting the Integrated Risk Management Committee (KMRT) at least 2 (two) times in a year; f. The Board of Directors prepares the Integrated Risk Management General Policies (KUMRT) and the Integrated Capital Policies as well as conducts review at least 1 (one) time in 1 (one) year; g. The Board of Commissioners gives approval of the Integrated Risk Management General Policies(KUMRT) and the Integrated Capital Policies as well as conducts evaluation at least 1 (one) time in 1 (one) year; h. Determining the integrated risk appetite and risk tolerance in BNI’s Financial Conglomeration. 2. Pillar II: Adequacy of policies, procedures, and limit establishment of the Integrated Risk Management, by: a. Preparing and reviewing the Integrated Risk Management General Policies (KUMRT) and the Integrated Capital Management; b. Preparing the Integrated Risk Management Procedures including Inter-Group Transaction Risk Management Procedures; 594 Adapting Quickly to Face Change c. Preparing the Integrated Risk Profile Assessment Procedures; d. Preparing the Integrated Capital Management Procedures; and e. Establishing the integrated risk limit and mechanism of escalation of limit excess. 3. Pillar III: Adequacy of process of risk identification, measurement, monitoring, and control in an integrated manner, and the Integrated Risk Management Information system, by: a. Establishing the Integrated Risk Profile methodology and assessing every semester and reporting to FSA. b. Establishing the Integrated Mandatory Minimum Capital Requirement (KPMM), calculating every semester and reporting to FSA. c. Determining the integrated risk appetite parameter and methodology, monitoring every quarter, and reporting to the Director in charge of the Integrated Risk Management. d. Determining the Integrated Risk Limit parameter and methodology, monitoring every quarter, and reporting to the Director in charge of the Integrated Risk Management. e. Determining the Leading Risk Indicator (LRI) assessment parameter and methodology, monitoring every month, and reporting to the Director in charge of the Integrated Risk Management. f. Conducting the integrated stress testing on volatility of exchange rates and interest rates in BNI’s Financial Conglomeration. g. Developing technology-based Integrated Risk Management Information System. 4. Pillar IV: Overall internal control system on the implementation of Integrated Risk Management, by: a. Disseminating the Integrated Risk Management to the entire FSI Members of BNI’s Financial Conglomeration on a continuous basis. b. Monitoring the Integrated Risk Management implementation of the entire FSI Members of BNI’s Financial Conglomeration. INTEGRATED RISK PROFILE ASSESSMENT RESULT The assessment result on the Integrated Risk Profile which was conducted to 10 (ten) types of Risks for the position of December 31, 2018, was score 2 (Low to Moderate), with the Inherent Risk Score of Low to Moderate, and Risk Management Implementation Quality (KPMR) Assessment is Satisfactory. PT Bank Negara Indonesia (Persero) Tbk
  595. Good Corporate Governance INTERNAL CONTROL SYSTEM CONTROL ENVIRONMENT An effective Internal Control System (SPI) is an important component of the Bank’s management and serves as a basis for the Bank’s sound and secure operational activities. The Internal Control System implementation is the responsibility of all parties involved in the Internal Control System, which is stated in the duties and responsibilities of each party. BNI’s Internal Control System (SPI) refers to Financial Services Authority Circular Letter No. 35/SEOJK.03/2017 dated July 07, 2017, on the Internal Control System Standard Guidelines for Commercial Banks, and has been in line with the COSO framework as well as the Basel Committee - Internal Control by covering the 5 (five) main interconnected elements in the Bank’s internal control system as follows: 1. Management supervision and control culture 2. Risk Identification and assessment 3. Activities of control and separation of functions 4. Accounting, information, and communication systems 5. Monitoring activities and corrective actions for deviation/weakness CONTROL OBJECTIVES The purposes of Internal Control System in BNI are: 1. Compliance with the provisions and laws and regulations (Compliance Objective). This is Intended to guarantee that all BNI’s business activities have been carried out in accordance with the provisions and laws and regulations, either provisions issued by the government, the Financial Services Authority, or internal policies and procedures established by BNI. 2. The availability of complete, accurate, effective, and timely financial and management information (Information Objective). This is intended to guarantee the availability of complete, accurate, effective, and timely reports necessary in order to make appropriate and accountable decisions. 3. The effectiveness and efficiency in BNI’s business activities (Operational Objectives). This is intended to increase the effectiveness and efficiency of the use of assets and other resources in order to protect BNI from the risk of loss. 4. Increasing the effectiveness of risk culture in BNI’s organization as a whole (Risk Culture Objective). This is intended to identify weaknesses and assess deviations early, as well as reassess the reasonableness of the policies and procedures in BNI on an ongoing basis. PT Bank Negara Indonesia (Persero) Tbk  Control environment reflects the overall commitment, behavior, concern, and steps of the Board of Directors and Board of Commissioners in implementing BNI’s operational control activities. Elements of control environment in BNI include: 1. Sufficient organizational structure; 2. BNI’s leadership style and management philosophy; 3. Integrity and ethical values, as well as employees’ competence; 4. Human Resources policies and procedures; 5. Attention and direction of BNI’s management and other committees, such as Risk Management Committee. 6. External factors affecting BNI’s operations and the risk management implementation. BNI’s Internal Control System covers: 1. Strategic control, aiming at ensuring that each strategy or policy that has been determined is in accordance with BNI’s objectives, vision and mission. 2. Operations control, aiming at achieving operational efficiency and effectiveness. 3. Reporting control, aiming at ensuring the quality of each information/reporting produced and used in decision making either internally or externally. 4. Obedience control, aiming at ensuring the level of compliance with law, regulations and laws related to operations. RISK ASSESSMENT The risk assessment (measurement) system is used to measure risk exposure as a reference in controlling risk. Risk assessment for 8 (eight) types of risks that must be managed by BNI are as follows: 1. Credit Risk Assessment. Credit Risk Assessment is carried out including the following aspects: a. Amount, quality, and composition of exposure of balance sheet and administrative accounts. b. The level of credit risk of debtors/counterparties. c. Credit characteristics. d. Business environment condition. e. Rating system and scoring system. f. Stress testing. 2. Market Risk Assessment. Market risk assessment is carried out on all portfolios of trading book and banking book. Adapting Quickly to Face Change 595
  596. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Market risk assessment on the trading book includes: a. Measurement of market risk sensitivity - standard method. b. Aggregation uses Value at Risk (VaR) - internal model. c. Stress Testing. 5. Legal Risk Assessment. Legal risk assessment/measurement can use indicators/ parameters in the forms of potential losses arising from litigation, weaknesses in binding, and the absence/ occurrence of changes in laws/regulations underlying the issuance of a product or service. Market risk assessment on the banking book, among others, includes: a. Measurement of interest rate risk on the banking book. b. Measurement of exchange rate risk on the banking book. 6. Strategic Risk Assessment. Strategic risk assessment/measurement can use indicators/parameters in the forms of strategy suitability with business environment conditions, high-risk strategies, and low-risk strategies, BNI’s business position towards competitors, and the achievement of Bank’s Business Plan (RBB) realization. 3. Operational Risk Assessment.. One method that can be used to assess operational risk in BNI is Self Assessment, which is a series of activities carried out by each unit (risk owner) in identifying operational risk issues in each unit, looking for causes, measuring potential losses that may arise, and finding solution to overcome them. Operational risk is classified into categories and sub categories to facilitate risk assessment, control, and reporting for 7 (seven) operational risk events, which are: a. Internal fraud; b. External crime; c. Employment and occupational safety practices; d. Clients, products, and business practices; e. Damage to physical assets; f. Business interruption and system failure; and g. Execution, shipping, and process management. 7. Compliance Risk Assessment. Compliance risk assessment/measurement can use indicators/parameters in the forms of type, significance, and frequency of violations against the applicable provisions and violations against provisions of certain financial transactions. 8. Reputation Risk Assessment.. Reputation risk assessment/measurement can use indicators/parameters in the forms of reputation influence from the owner of BNI and related company, violation of business ethics, product complexity, and BNI’s business cooperation, frequency and materiality of the Bank’s negative reporting, as well as frequency and materiality of customer complaints. 4. Liquidity Risk Assessment. Liquidity risk assessment is carried out to measure and monitor the need for sustainable net funding. The liquidity risk assessment process includes: a. Assessment of liquidity ratios. b. Assessment of maturity profile. c. Cash flow projection. d. Stress Testing 596 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  597. Good Corporate Governance CONTROL ACTIVITIES Control activities are carried out to ensure that appropriate actions have been taken in controlling a risk . Control Activities. a. General Control Activities. Control activities shall involve all employees including the Board of Directors, be planned and carried out to ensure that management directives have been carried out. Control activities shall be contained in policies and procedures to ensure that every activity is carried out effectively and to encourage anticipatory actions against the risks inherent in each operational activity. b. Control Activities according to Organizational Functions. An effective Internal Control System requires an establishment of a control structure in accordance with the organizational structure, which includes: 1). Top Management Reviews The Board of Directors actively requests presentations and performance reports on a regular basis, in order to evaluate BNI’s progress towards its intended objectives. Determination of objectives shall be in accordance with the risk management policy prepared by considering the risk level to be taken (risk appetite), the level and type of risk that is maximally set (risk tolerance), and limit setting. 2). Operational Performance Review (Functional Reviews) The review is carried out by the Internal Audit Unit periodically. 3). Information System Control This includes verification of the accuracy and completeness of transactions and authorizations, general control and application control. 4). Physical Asset Control Control activities include securing assets, limiting access to computers and data files. 5). Documentation, including documentation of accounting policies, procedures, systems & standards as well as audit processes adequately. c. Control activities according to the type of risk Control activities have been set out in policy and procedure documents to identify risks (ie. risks of market, liquidity, credit, operation, legal, compliance, reputation, and strategic). PT Bank Negara Indonesia (Persero) Tbk  1). Credit Risk Control.. a. Credit supervision covers all credit aspects and all objects of supervision without exception b. Credit internal control 2). Market Risk Control. For control purposes, the process of identifying and measuring market risk is carried out by units that are independent of the business activities, in this matter, it is carried out by the Risk Management Work Unit: The authority and responsibilities of the Risk Management Work Unit in controlling market risk are a. Approving and validating the proposed model/ method that can be used in measuring market risk. b. Developing market risk measurement models. c. Checking the correctness of market risk calculations based on the risk reports received. d. Determining the confidence level used. e. Establishing parameters for market risk stress testing. f. Proposing model and parameters used in measuring market risk by the Treasury Division. g. Measuring market risk. h. Conducting back testing and stress testing; 3). Operational Risk Control. Management and control of operational risk is carried out through coordination between the Risk Management Work Unit and the Operational Work Unit in stages. The roles and supports needed from the Operational Work Unit are: a. Submitting the risk exposure report periodically/incidentally to the Risk Management Work Unit b. Ensuring that risk management is within each Operational Work Unit (risk taking unit/risk owner), therefore, such unit shall be responsible for managing the risks inherent in transactions/ activities on a daily basis. Adapting Quickly to Face Change 597
  598. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Procedure of Business Continuity Plan (BCP). Operational risk control also includes procedure of Business Continuity Plan (BCP). BCP is a formal mechanism/plan that is a combination of strategies, policies, procedures, and organizations developed to ensure the continuity of operations of critical business functions at certain level of services during a disruption or disaster. 4). Liquidity Risk Control. Liquidity risk control is carried out by: a. Monitoring and taking alternative strategies for each Secondary Reserve (SR) traffic light, which are: Dark Green, Light Green, Light Yellow, Dark Yellow, and Red. b. Conducting funding strategies, managing liquidity position and daily liquidity risk, managing liquidity position and inter-group liquidity risk as regulated in the Global Funding Policy, Asset Management Policy, and Asset & Liability Management Policy. 5). Legal Risk Control. Legal risk control is carried out by ensuring that BNI’s agreements with third parties have secured BNI’s interests. Legal risk control is carried out by a Work Unit functioning to manage legal risk, among others, through: a. Assessment in the form of juridical study, in the event of a plan to add/develop new products or activities. b. Provision of legal advice and/or legal assistance in the event of legal risks in operational activities. c. Reviewing contracts and agreements with other parties periodically. 6). Strategic Risk Control. Strategic risk control is carried out by: a. Conducting an effective, independent, and objective review of the strategic policies outlined, among others, in the form of a review of the implementation and achievement of performance against the targets set out in the Bank’s Business Plan through meetings of the Board of Directors and Board of Commissioners (Radikom), Board of Directors Meetings (Radisi), Sectoral Meetings, and Business Review. b. Adequate testing and reviewing of the management information systems. 598 Adapting Quickly to Face Change 7). Compliance Risk Control. Compliance risk control is carried out through exante (preventive) actions aimed at: a. Ensuring that policies, provisions, systems, and procedures, as well as business activities in BNI are in accordance with the provisions of the Regulators and applicable regulations. b. Ensuring compliance with the established commitments. 8). Reputation Risk Control. Reputation risk control is carried out by: a. Managing, following up, and resolving customer complaints and lawsuits that can immediately increase reputation risk. b. Developing a reliable mechanism for effective reputation risk control measures. INFORMATION AND COMMUNICATION The information system shall be able to produce reports on business, financial conditions, risk management implementation, and fulfillment of provisions that support the duty implementation of the Board of Directors and Board of Commissioners. Such information includes: 1. Internal and external information obtained and submitted to the Management is related to the performance of achieving the Bank’s goals. 2. The resulting information is sufficient and timely, therefore, it can carry out its responsibilities effectively and efficiently The necessary information system includes: 1. Development and up-grade of information systems, based on information system strategic plans and associated with the Bank’s overall strategies and achievement of the Bank’s goals. 2. The system used to produce information, both electronic and manual systems, shall meet the following requirements: a. Secure; b. Monitored independently; and c. Supported by provisions of adequate contingency plan. When processing information in electronic format, the system used shall have adequate audit trail. PT Bank Negara Indonesia (Persero) Tbk
  599. Good Corporate Governance MONITORING ACTIVITIES Monitoring of BNI ’s activities in business units and functional units is carried out through three lines of defenses, which are: 1 st Risk Taking Unit or 1st Line of Defense 2 nd Risk Control Unit or 2nd Line of Defense 3 rd Risk Control Unit or 2nd Line of Defense Risk Owner, is responsible for the risks taken, executed, and the results (day to day risk management and control) Risk Control, is responsible for preparing the Bank's risk management framework, policies, principles, and methodologies Risk Assurance, is responsible for independently assessing the effectiveness of the risk management implementation and internal control • Responsible for managing and controlling risk inherent on day-to-day business activities or functions • Identification, measurement, mitigation, monitoring, and reporting of risks inherent in business activities/functions in accordance with the risk strategies/policies/parameters set by the 2nd line of defense. • Preparing proposals of risk management strategies and policies, including risk appetite and risk limit • Developing framework, policies, principles, tools, methodologies, and standards of risk management • Acting as a risk oversight unit, carrying out aggregation and risk reporting in overall • Providing advice or recommendations to the 1st line of defense in implementing the risk policies according to the authority • Escalating important issues/ decisions to the Senior Management/Board of Directors and/or the Risk Management Sub Committee of the Risk and Capital Committee and/or the Integrated Risk Management Committee (Risk Management Committee). • Conducting independent and periodic internal audit on risk management implementation and internal control • Preparing recommendations of corrective actions and monitoring the implementation • Reporting the audit results to the Audit Committee and key stakeholders according to their authority EVALUATION OF INTERNAL CONTROL SYSTEM IMPLEMENTATION The Corporate Guidelines (PP) of the Internal Control System are evaluated at least 1 (one) time in 1 (one) year or in the event of significant changes in factors affecting BNI’s business activities. In general, for 2018, the factors influencing changes in PP of Internal Control System are Regulatory updates, related to: 1. Credit restructuring 2. Implementation of anti-money laundering and prevention of terrorism funding programs in the banking sector. The self-assessment results of adequacy of Internal Control System of BNI (Bank only) for 2018 are as follows: BNI Only Score Credit Risk Market Risk Liquidity Risk Operational Risk Legal Risk Strategic Risk Compliance Risk Reputation Risk Composite Risk 2.51 1.93 1.60 2.29 1.50 1.90 1.88 1.55 2.08 The composite score of BNI’s Internal Control System adequacy is 2 (Low to Moderate), which means sufficient. In case there are still minor weaknesses that need management attention. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 599
  600. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk COMPLIANCE FUNCTION BNI is a financial institution that carries out activities based on the principle of trust. In order to grow in a healthy and sustainable manner, it requires strong foundation of good corporate governance and consistent implementation of prudential banking principles, one of which is through bank compliance. From the above awareness, BNI has targeted one of the Bank’s targets in the Bank’s fifth mission, which is “Becoming the Reference for Compliance and Good Corporate Governance Implementation for the Industry”. Based on the mission, the Bank, the executor of compliance, not only fulfill compliance with regulations but also as organization’s needs. Thus, compliance shall be built into an internalized and organized culture. ORGANIZATIONAL STRUCTURE OF COMPILANCE DIVISI KEPATUHAN WAKIL PEMIMPIN DIVISI KELOMPOK KEPATUHAN BISNIS BANK KELOMPOK KEPATUHAN PERATURAN & KEBIJAKAN KELOMPOK ANTI PENCUCIAN UANG KEPATUHAN BISNIS BANK PENGELOLAAN KEPATUHAN PERATURAN & KEBIJAKAN BIDANG PERKREDITAN, TRESURI & INTERNASIONAL PENGELOLAAN KEBIJAKAN & PENGEMBANGAN ANTI PENCUCIAN UANG PENGELOLAAN KEPATUHAN WILAYAH PENGELOLAN KEPATUHAN PERATURAN & KEBIJAKAN BIDANG DANA, JASA & UNIT FUNGSIONAL PENGELOLAAN ANALISA & PELAPORAN ANTI PENCUCIAN UANG PENGELOLAN TATA KELOLA KEPATUHAN TERINTEGRASI KELOMPOK MANAJEMEN KEPATUHAN PENGELOLAAN MANAJEMEN ETIKA BAGIAN UMUM PENGELOLAAN MIS KEPATUHAN PERWAKILAN MODAL MANUSIA Cfm SK Dir No. KP/431/DIR/R Tanggal 28 September 2015 Update Cfm Memo Ren No. REN/2/271 tanggal 02 Maret 2017 dan Memo REN No. REN/2/948 tanggal 27 Juli 2017 In implementing compliance, BNI has a Director who oversees the compliance function and establishes the Compliance Division as the executor of compliance function. In addition to this, BNI’s Board of Commissioners is also involved in carrying out active supervision of the implementation of bank compliance. ACTIVE MONITORTING OF THE BOARD OF COMMISSIONERS ON COMPLIANCE FUNCTION The implementation of the Board of Commissioners’ active monitoring function and the fulfillment of PBI related to the Implementation of Commercial Bank Compliance Functions are carried out by: 1. Evaluating the implementation of bank compliance function at least 2 (two) times a year. 2. Providing suggestions in order to improve the quality of implementation of bank’s compliance function. BNI’s Board of Commissioners directly or through the Committee under the Commissioner actively supervises and provides suggestions for improvements through meeting facilities or through periodic reports, such as: 1. Periodic meeting of the Board of Commissioners and Director in charge of Compliance function; 2. Periodic Meetings of Committees under the Board of Commissioners (Audit Committee, Risk Monitoring Committee, and/ or Integrated Governance Committee) with Director in charge of compliance function and/or Compliance Division; 600 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  601. Good Corporate Governance 3 . The periodically submitted reports include Compliance Reports, Reports on implementation of Integrated Governance, Reports related to implementation of Anti Money Laundering and Prevention of Terrorism Funding (APU-PPT) programs, compliance test Reports on decisions of Board of Directors’ Meetings, and Reports on implementation of Anti-Fraud Strategies. DIRECTOR IN CHARGE OF COMPLIANCE FUNCTION The current Director in charge of compliance function in BNI is Mr. Endang Hidayatullah as BNI’s Director of Compliance. The appointment and duty implementation of the Director in charge of compliance function is carried out based on the applicable provisions, particularly the provisions on the Implementation of Compliance Function, General Provision, Provision of Fit and Proper Test, as well as provisions on the Use of Foreign Workers in Banking Sector, which among others regulate: 1. Must obtain approval from the Financial Services Authority (FSA) before carrying out their duties and functions in their positions. Based on the Financial Services Authority Letter No. 13/KDK.03/2018 dated July 5, 2018, the Financial Services Authority approved the appointment of Mr. Endang Hidayatullah as Director of Compliance. 2. Must fulfill independence requirements, which are not having financial, management, share ownership, and/or family relationship to the second degree with members of Board of Commissioners, Board of Directors, and/or Controlling Shareholders or relationship with the Bank that can affect their ability to act independently. 3. Must have adequate integrity and knowledge on banking provisions and the applicable laws and regulations. 4. Prohibited to be held or use foreign workers. 5. Not concurrently serving as the President Director and/or Vice President Director. 6. Not in charge of functions: operational business, risk management that makes decisions on activities of the bank, treasury, financial, accounting, logistics, procurement, information technology, and internal audit. Based on BNI’s organizational structure, BNI’s Compliance Director oversees the organization as follows: a. Compliance Division b. Legal Division c. Human Capital Management Division d. BNI Corporate University In general, the duties and responsibilities of the Director in charge of compliance function are: 1. Formulating strategies to encourage the growth of the Bank’s compliance culture; 2. Proposing compliance policies or compliance principles to be stipulated by the Board of Directors; 3. Establishing compliance systems and procedures to be PT Bank Negara Indonesia (Persero) Tbk  used to develop the Bank’s internal rules and guidelines; 4. Ensuring that all policies, regulations, systems, and procedures as well as business activities conducted by the Bank are in accordance with provisions of the Financial Services Authority, Bank Indonesia, and the applicable laws and regulations. 5. Minimizing the Bank’s Compliance Risk. 6. Taking precautionary measures so that the policies and/ or decisions taken by the Bank’s Board of Directors do not deviate from the provisions of the Financial Services Authority, Bank Indonesia, and the applicable laws and regulations. 7. Performing other duties related to Compliance Function, such as monitoring and maintaining Bank compliance with commitments made by the Bank to Financial Services Authority, Bank Indonesia, and other authorized supervisory authorities. 8. In addition to the above duties and responsibilities, in the framework of implementing integrated compliance function, the Director in charge of compliance function has duties to direct, monitor, and evaluate the implementation of Integrated Compliance function and following-up direction or advice of the Main Entity Board of Commissioners or the Integrated Governance Committee in order to improve the Integrated Compliance Function. COMPLIANCE UNIT The work unit that carries out the compliance function is carried out by the Compliance Division. The Compliance Division is an independent work unit and is directly responsible to the Director in charge of compliance function. Furthermore, Compliance Division is also designated as the Integrated Compliance Work Unit. INTEGRATED COMPLIANCE WORK UNIT In the framework of implementing POJK No. 18/POJK.03/2014 on Implementation of Integrated Governance for Financial Conglomeration, BNI’s Compliance Division is assigned as the Integrated Compliance Work Unit and has carried out monitoring and evaluation of the implementation of compliance function in each Subsidiary (PA) in BNI’s Financial Conglomeration, which among others include: 1. Aligning the methodology for managing Compliance Risk including the implementation of APU and PPT provisions. 2. Integrating and harmonizing policies and procedures of compliance function, including APU and PPT policies and procedures. 3. Ensuring compliance of PA for the implementation of internal and external reporting obligations. 4. Developing the Compliance Unit HR in BNI’s Financial Conglomeration. 5. Ensuring the implementation of Anti-Fraud Strategy in PA within BNI’s Financial Conglomeration. Adapting Quickly to Face Change 601
  602. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk PROFILE OF COMPLIANCE UNIT HEAD The current Compliance Division Head is Mr. Risang Widoyoko. In determining and establishing the Compliance Division Head, the management always pays attention to the minimum requirements as follows. 1. Fulfilling the independence requirements. 2. Mastering banking regulations and applicable laws and regulations. 3. Not carrying out other tasks outside the compliance function. 4. Having a high commitment to implement and develop a compliance culture. Risang Widoyoko (24 April 2018 – Present) Indonesian citizen, 52 years old. He holds a Bachelor in Economic and Accountant from the Faculty of Economics, majoring in Accounting, Universitas Gadjah Mada in 1992, and obtained Masters of Management at the Post-Graduate Faculty of Magister Management of Universitas Lambung Mangkurat in 2004. Leading the Compliance Division since April 24, 2018 until now. Previously, he served as Head of Policy Governance Division from May 10, 2017, to April 23, 2018. DUTIES AND RESPONSIBILITIES OF THE COMPLIANCE WORK UNIT According to the Board of Directors’ Decision Letter No. KP/431/DIR/R dated September 28, 2015, the duties and responsibilities of the Compliance Division are broadly divided into functions as follows. 1. Executor of Compliance Function; 2. Executor of Function in charge of the Implementation of APU and PPT Program; 3. Executor of Function in charge of the Implementation of Anti-Fraud Strategy and Whistleblowing System (WBS); 4. Executor of the Integrated Compliance Function. COMPETENCE DEVELOPMENT OF COMPLIANCE WORK UNIT In order to make the Compliance Division as a strategic partner for every line of organization, the Compliance employees also continue to improve their competence by participating in certification/seminar/workshop/training programs, such as: 1. Risk Management Certification. 2. Compliance Certification and APU PPT. 3. Environmental, Social, and Governance Integration Training for Banks. 4. Training on Talk On Security and Managing Data Breach. 5. Workshop on e-PAK Application Development Classification of Middle Segment and Small Segment. 6. Workshop on Provisions for Procurement of Promotional Media Tools, Advertising Services, and Event Organizer. 7. Focus Group Discussion on the Role of Financial Service Providers in Realizing the Election of Regional Heads who Are Corruption-Free to Create a Clean and Accountable Government. 8. Training in Material Debriefing and Compliance Competency Test Level 1 & 2. 9. Seminar on SWIFT Business Forum Indonesia. 10. FKDKP Training on “Implementation of Prudential 602 Adapting Quickly to Face Change Principles & APU Policies in Banking Business”. 11. Implementation of Enhancement Skill For Compliance (ESCO), attended by all RCO with several materials, such as: Compliance Review Material, APU PPT Implementation, Update on Internal and External Provisions (AYDA, Simple Claims, Data Cleansing, and Operational Risk). 12. Dissemination of Presidential Regulation No. 13 of 2018 on “Implementation of the Principles of Recognizing Beneficial Owners from Corporations in the Framework of Prevention, Eradication of Money Laundering and Terrorism Funding Crimes”. 13. National Seminar on “Transparency and Disclosure of the Financial Services Sector in Indonesia”. 14. PPATK Focus Group Discussion with the theme “The Role of Financial Service Providers in Realizing the Election of Regional Heads who Are Corruption-Free to Create a Clean and Accountable Government”. 15. International Governance, Risk Management & Compliance & Financial Crimes Conference. 16. BNI EAP Mini Seminar on being Productive in Managing Job Pressure. 17. Seminar on Warehouse Receipt. 18. Seminar on the Development of Corporate Bonds in Indonesia. 19. Organizing Training of Environmental, Social & Governance Integration for Banks. 20. Talk on security and managing data breach. 21. Seminar on Indonesian Conference on Governance and Sustainability. 22. Handling Bad Debts in a Legal Perspective and Business Risk 23. Dissemination of Usability and Workshop of API Management. 24. BNI’s EAP Seminar (How To Raise Independent Children). 25. Training on Sustainable Finance. 26. Workshop on Legal Region (LGR) 2018. PT Bank Negara Indonesia (Persero) Tbk
  603. Good Corporate Governance 27 . DBS Seminar on “Helping Optimize Payments in the digital economy” 28. Workshop on Cyber Security and Banking Technology. 29. Training on Building Cashless Society.Training Building Cashless Society. IMPLEMENTATION OF WORK PROGRAMS OF COMPLIANCE UNIT IN 2018 In carrying out operational activities with the increasing business complexity, in line with the development of technology, information, globalization, and financial market integration, the challenges and risk exposures faced are increasing, therefore, BNI continues to strive to mitigate the bank’s business activity risks either preventive (exante) or curative (ex-post), in line with the regulations stipulated in the Financial Services Authority Regulation No. 46/POJK.03/2017, which is the need for an increase in compliance role and function. In order to encourage the realization of compliance culture in all organizational units, compliance programs have been prepared and implemented as follows: 1. Achieving the implementation of compliance culture at all organizational levels and business activities of the Bank; a. Submission of compliance material through quality month days, video conferencing, e-mail (BNI Greetings) which includes fraud prevention material, frequent omission cases, sanctions/fines from authorities, audit findings, APU PPT and WBS material. b. Submission of Compliance Reminder (CORE) for each period to improve the employees’ compliance culture and the implementation of Daily Exercise Employee Program (DEEP), among others, related to Legal Governance Risk & Compliance (LGRC) material in online exam media carried out every working day for all BNI employees. c. Intensive supervision and coordination with other units related to policies, systems, and procedures, as well as new operational and technical guidelines, and issues that need to be considered among others including the prevention of fraud, negligence, external sanctions, and formulating recommendations and corrective actions that can be followed up according to the authority of each unit. d. Gratification Control in BNI’s work environment is in cooperation with the Corruption Eradication Commission (KPK) in order to improve Good Corporate Governance (GCG) and Compliance Culture. e. The implementation of system application development in the form of Compliance Information Management System (CIMS) which is an online information system, database, and monitoring of PT Bank Negara Indonesia (Persero) Tbk  the compliance review results and implementation of APU PPT. f. Measurement of Compliance Index (CIX) as a reference for measuring and ensuring that the implementation of compliance function goes well. 2. Managing the compliance risk faced by the Bank; Compliance risk is a risk arising from a bank not complying with and/or not implementing the applicable laws and regulations. Based on such matter, the Compliance Division is active in minimizing the compliance risk level. Composite risk profile assessment includes a composite assessment of inherent risk and an assessment of the quality of Risk Management implementation, therefore, it reflects the risk control system compliance. In a composite manner, BNI’s Compliance Risk Profile in 2018 was at level 2 (low to moderate), with details as follows: a. BNI’s Inherent Risk in 2018 was at level 2 (low to moderate). b. The Quality of Risk Management Implementation (KPMR) was at level 2 (satisfactory). Improvement efforts are always carried out by the Compliance Division in order to minimize Compliance Risk including: a. Identifying, monitoring, and periodically disseminating the fulfillment of obligations and matters prohibited by regulation as preventive measures. b. Reminding organizational units that become unit in charge of fulfilling obligations periodically/routinely. c. Making corrective actions based on the compliance risk database. d. Incorporating sanctions from regulators/supervisors which are one of the sources of compliance risk in the compliance index, and making compliance index as the Compliance Division’s Key Performance Indicators (KPI). 3. Ensuring that policies, regulations, systems, and procedures as well as business activities conducted by the Bank are in accordance with provisions of the Financial Services Authority/Bank Indonesia and the applicable laws and regulations; As one of the preventive steps to prevent compliance risks and support healthy and sustainable growth, the Compliance Division makes preventive (ex-ante) efforts by conducting compliance tests to ensure that all internal provisions and certain banking activities comply with the applicable banking regulations. The compliance test activities include: a. Compliance test on new and up-dating policies, systems, and procedures. b. Compliance test/review on existing policies, Adapting Quickly to Face Change 603
  604. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk systems, and procedures. c. Compliance test on Board of Directors Meeting decisions. d. Compliance test on the design of publishing or developing new products/activities. e. Compliance checklist for fit and proper test for prospective controlling shareholders, members of Board of Directors, and/or Board of Commissioners. f. Compliance checklist on the plan for implementing new activities in the form of bancassurance and mutual funds sales agents. g. Compliance test/Credit Compliance Review (C2R) for the proposed Credit Application Tool (PAK). h. Compliance test/Procurement Compliance Review (PCR) for the proposed Procurement Document for Goods and/or Services. i. Compliance test/review on plans for opening and relocating bank offices (regional offices, branch offices, sub-branch offices, and functional offices). 4. Ensuring the Bank’s compliance against the commitments made by the Bank to the Financial Services Authority/Bank Indonesia or other authorized supervisory authority. Monitoring of commitment to supervisory authority is carried out together with the Internal Audit Unit (SPI). IMPLEMENTATION OF WORK PROGRAMS OF INTEGRATED COMPLIANCE WORK UNIT IN 2018 As a form of implementation of the integrated compliance function, the Compliance Division has carried out the following matters: 1. Reviewing the adequacy of policies/procedures in PA, which are PP draft on Whistle Blowing System - BNI Life Insurance, PP draft on Conflict of Interest from BNI Sekuritas and BNI Asset Management, Guidelines Book for Whistle Blowing System of BNI Multifinance, and Anti-Fraud Strategy (SAF Policy) - BNI Life Insurance. 2. Analyzing the latest external provisions that have an impact on PA, and submitting to PA for follow-up, among others, POJK No. 18/POJK.07/2018 on Customer Complaint Services in Financial Services Sector, POJK No. 19/POJK.03/2018 on Amendment to POJK No. 16/ POJK.03/2014 on Asset Quality Assessment of Sharia Commercial Banks and Sharia Business Units, POJK No. 20/POJK.04/2018 on Licensing of Underwriters and Broker-Dealer, POJK No. 59/POJK.03/2017 on Implementation of Governance in the Provision of Remuneration for Sharia Commercial Banks and Sharia Business Units, and PBI No. 20/6/PBI/2018 on Electronic Money. 3. Monitoring monthly business conduct of Subsidiaries based on regulations, which is carried out by using the self-assessment method and periodic reporting as means of monitoring the compliance of Subsidiaries, with the fulfillment of business conduct parameters. 604 Adapting Quickly to Face Change 4. Implementing the Compliance Index (CIX) in PA as a means of monitoring the implementation of compliance function in PA by using Fraud parameters, Negligence Cases, Sanctions and Regulatory Fines, and Pending Findings of External and Internal Audit, from BNI’s each PA. 5. Analyzing the Compliance Function Implementation Report submitted by PA to BNI’s Compliance Division on a quarterly basis on the Implementation of the Company’s Compliance Function with External Regulations, Implementation of Anti-Fraud Strategies, and APU-PPT Implementation. 6. Meeting each Subsidiary in BNI’s Financial Conglomeration every Quarter with the discussion agenda to follow-up PA on BNI’s recommendations, to formulate action plans for follow-up actions on BNI’s recommendations, and to share issues in the Implementation of Compliance Functions, including Anti-Fraud Strategies and APU - PPT. EVALUATION OF EFFECTIVENESS OF COMPLIANCE FUNCTION In general, the implementation of compliance function has been carried out properly, with the following explanation: Governance Structure 1. Implementation of Compliance Function has been carried out independently and separately from the operational work unit. Work relationship with other organizational units are as independent partners in order to review compliance with operational activities to ensure that the Bank’s policies, procedures, systems, and business activities are in accordance with the applicable external provisions. 2. The Management has fulfilled the needs of human resources qualified as a Compliance Unit, among others, by: a. Establishing certain qualifications and competencies for members of the Compliance Unit. b. Involving the Compliance Work Unit in various trainings, competency certification programs, and seminars. Governance Process The Compliance Division as a Compliance Unit has implemented the compliance function in accordance with the Financial Services Authority Regulation No.. 46/ POJK.03/2017 on Implementation of Compliance Function for Commercial Banks, which includes: 1. Building a compliance culture in all BNI organizational lines, including through Compliance Awareness Program, employee’s Comprehension Test through the Daily Exercise Employee Program (DEEP), and implementing Compliance Index (CIX); 2. The management of Compliance Risk in BNI refers to the PT Bank Negara Indonesia (Persero) Tbk
  605. Good Corporate Governance Financial Services Authority Regulation No . 18/POJK.03/2016 and SEOJK No. 34/SEOJK.03/2016 on Implementation of Risk Management for Commercial Bank. 3. Taking active role in monitoring and maintaining the Bank’s policies, procedures, systems, and business activities not to deviate from the provisions. 4. Ensuring that the regulator’s inspection results have been followed up in accordance with the commitments made and have reported the follow-up results to the regulators. Governance Outcome As a monitoring of the implementation of compliance function, the Compliance Unit submits Compliance Reports to the Director of Compliance and Company Risk, President Director, Board of Commissioners, Financial Services Authority, and other related parties including: 1. Compliance Work Plan Report contained in the Bank’s Business Plan to the Financial Services Authority through the Strategic Planning Division. 2. Quarterly Compliance Function Implementation Report to the Compliance Director, President Director, and Board of Commissioners, as well as semester report to the Financial Services Authority. ANTI MONEY LAUNDERING AND COUNTER-TERRORIST FINANCING (APU-PPT) To prevent the use of the banking system as a means of committing money laundering and terrorism financing, the Bank in carrying out its activities must apply the prudential principle, in which one of the efforts to implement this principle is that the Bank must implement the Anti Money Laundering and Prevention of Terrorism Funding Program (APU-PPT) adequately. ORGANIZATION IN THE IMPLEMENTATION OF APU AND PPT PROGRAMS In order to support the implementation of APU and PPT programs, the Compliance Division is designated as a Special Work Unit (UKK), as the unit responsible for the implementation of APU and PPT Programs. The Compliance Division reports and is directly responsible to the Director in charge of compliance function in BNI (Compliance Director). Direktur Kepatuhan Pemimpin Divisi (Divisi Kepatuhan) Wakil Pemimpin Divisi Anti Money Laundering (AML) Pengembangan & Kebijakan Analisa & Laporan Banking Compliance (CBG) Regional *Compliance *Regional Compliance memiliki fungsi memastikan penerapan APU dan PPT di Kantor Wilayah, Cabang dan Sentra PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 605
  606. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk PROGRAM IN IMPLEMENTING APU AND PPT PROGRAMS As an effort to prevent and minimize the use of the Bank as a means of money laundering and terrorism financing, BNI implements the APU and PPT programs through: 1. Active Monitoring of the Board of Directors and Board of Commissioners. The active role of the Board of Directors and Board of Commissioners is indispensable in creating effective implementation of the APU and PPT Program, given the role of the Board of Directors and Board of Commissioners will influence the achievement level of the organizational goals in implementing APU and PPT Program. Forms of active monitoring by the Board of Directors and Board of Commissioners, among others, are as follows: a. The Board of Directors approves the determination of the Compliance Division as a Special Work Unit (UKK) responsible for implementing APU and PPT Program; b. Approval of the Board of Directors and Board of Commissioners on APU and PPT Policy; c. Periodic reports (monthly, quarterly, and semester) related to the obligation to report and implement APU and PPT Program to the Board of Directors and Board of Commissioners; d. Board of Directors’ approval of reports on plan and realization of updating customers’ data; e. Meetings of the Board of Directors and Board of Commissioners to discuss the implementation of APU and PPT Program. 2. Adequacy and effectiveness of policies and procedures.. The Compliance Division has prepared APU and PPT Policies and Procedures which are regularly reviewed/ updated/refined according to the applicable provisions. To strengthen the implementation of APU and PPT, each procedure for banking product and activity also regulates the procedures for implementing APU and PPT, such as due diligence procedure for each product or activity. To ensure that the implementation of APU and PPT Program is running properly, monitoring is carried out by the Compliance Division. Implementation of internal control. Effective internal control system in implementing APU and PPT is carried out by: a. Having APU and PPT policies and procedures as well as adequate internal monitoring; b. Having clear limits of authority and responsibilities on the work unit related to the implementation of APU and PPT program, through either the first line (risk taking units), the second line, or the third line of 606 Adapting Quickly to Face Change defense; and c. Conducting examination to ensure the effectiveness of the implementation of APU and PPT Program by the internal audit work unit. 3. Information management system. To optimize monitoring of transactions in the implementation of APU and PPT Program, BNI has an Enterprise Fraud Management (EFM) Information System technology consisting of modules: Anti Money Laundering Detection, Sanction List, Filtering & Screening of Terrorist, PEP Screening Detection and Customer Due Diligence (CDD), Risk Scoring and Suspect Account to Verify (SAV) System, and in addition, BNI has also developed Walk In Customer Application System (WIC). The EFM system is used to support more optimum implementation of Know Your Customer Principles, especially in detecting/monitoring customer transactions that have a pattern of behavior and patterns of money laundering transactions. SAV System is to detect customer transactions with fraud pattern, while WIC Application system is used to maintain WIC profiles. 4. Human Resources and Training. . BNI conducts ongoing trainings on the implementation of APU and PPT Program for all employees. The training methods are as follows: a. Training can be done electronically/online base, or through face to face; b. Face-to-face training, with approaches as follows: -- Conducted interactively (such as: workshop), given to employees who receive priority on a regular basis, with topics tailored to the participants’ needs. -- Conducted in one direction (such as: seminar) given to employees who do not receive priority, and carried out in the event of significant changes in provisions, with topics in the form of an overview of the implementation of APU and PPT Program. IMPLEMENTATION OF APU AND PPT PROGRAMS IN SUBSIDIARIES AND OVERSEAS BRANCH OFFICES As a form of responsibility for banks that have an international office network, to ensure that the implementation of APU and PPT has been running effectively in all office networks, the Compliance Division also monitors, analyzes, and supervises the implementation of APU and PPT program in: 1. Overseas Subsidiaries 2. Overseas Branch Office PT Bank Negara Indonesia (Persero) Tbk
  607. Good Corporate Governance SIGNIFICANT CASES PERKARA PENTING YANG DIHADAPI OLEH PERUSAHAAN The legal cases faced by BNI for the period of 2018 included civil cases accompanied by claims for compensation against the Bank and criminal cases covering cases of special crimes and general crimes . The details are as follows: TYPE OF CASES CIVIL CASE Lawsuit Total Cases In Settlement Process 241 Cases Settled (already have permanent legal force) 75 Total 316 1. A total of 241 (two hundred forty-one) civil cases that are still in settlement process consisting of: a. 225 (two hundred twenty-five) civil cases which are civil claims filed against BNI accompanied by compensation claims, among others concerning objections/debtors’ resistance to the execution/ auction of collateral, third party claims on credit guarantees, control of guarantees by third parties, and lawsuits for charging interest and principal loans, as well as claims related to deposits in BNI. b. 14 (fourteen) cases of Industrial Relations Disputes (PHI). c. 2 (two) State Administration cases (TUN). 2. The total number of civil cases that have been settled (already have permanent legal force) in 2018 amounted to 75 (seventy-five) cases, with details of 70 (seventy) cases settled with a verdict that BNI won, while there were 5 (five) other cases that BNI lost but not material in nature. CRIMINAL CASE Lawsuit Total Cases Settled (already have permanent legal 7 force) 4 Total 11 (four) criminal cases specifically in credit sector and 3 (three) cases of criminal offenses specifically in non-credit sector. b. 0 (one) case of general crime in credit and noncredit sector. 2. A total of 4 (four) criminal cases that have been settled (already have permanent legal force) in 2018 consisting of: a. 2 (two) cases of special crimes consisting of 2 (two) criminal cases specifically in credit sector and 0 (zero) cases of criminal offenses specifically in noncredit sector. b. 2 (two) cases of general crimes consisting of 1 (one) general criminal case in credit sector and 1 (one) general criminal case in non-credit sector. TAX CASE In addition to these civil and criminal cases, in 2018 there were 2 (two) tax case that were still in settlement process, which were: 1. A case regarding correction of the 2013 Tax Year of Corporate Income Tax related to the enactment of Government Regulation No. 77 of 2013 on the Decrease of Income Tax for Domestic Taxpayers in the Form of Public Companies. In this case, BNI had filed application for Judicial Review (PK) dated March 16, 2018, on Tax Court Ruling No. PUT-90170/PP/M.IIA/15/2017 dated December 12, 2017, which rejected the Appeal request submitted by BNI. Based on the information on Supreme Court official website, currently there is PK Decision No. 2507 B/PK/PJK/2018 dated October 25, 2018, which rejected the PK request submitted by BNI. Meanwhile, BNI has carried out its obligations as referred to in the Decision. 2. The case regarding the correction of the 2015 Tax Year of Corporate Income Tax includes, among other things, the imposition of receivables that obviously cannot be billed as costs. In this case, BNI submitted an Objection Letter to the Director General of Taxes on May 4, 2018. At present, the case is still under investigation at the Director General of Taxes and no decision has yet been made. 1. A total of 7 (seven) criminal cases that are still in settlement process consist of: a. 7 (seven) cases of special crimes consisting of 4 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 607
  608. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk TINGKAT MATERIALITAS PERKARA Perkara yang memiliki dampak materiil bagi Bank, antara lain: NO PARTIES CASE PRINCIPAL CASE STATUS IMPACT/RISK TO THE COMPANY Rp 3.794.418.000.000,- At present, the case is still in the trial process at the Central Jakarta District Court The Bank has risk in paying compensation amounting to Rp3,794,418,000,000 None Rp 1.631.713.390.541,6,- There has been a Decision from Kuala Kapuas District Court stating that the Plaintiff’s Claim cannot be accepted. Currently in the process of appeal at the Palangkaraya Appellate Court. The Bank has risk in paying compensation amounting to Rp 1.631.713.390.541,6,- None Currently still in the trial process at the North Jakarta District Court. The source of credit recovery of debtor, PT RA, is currently from the settlement result of bankruptcy assets made by the Curator, while Mr. HS has been reported for criminal offense by BNI to the police and at present the said person has been on trial at the North Jakarta District Court. In this case, there is potential credit risk and reputation risk for BNI. None CASE VALUE ADMINISTRATIVES ANCTION Plaintiff: Mr. AS 1 Defendant: 1. PT Bank Negara Indonesia (Persero), Tbk. 2. Minister of Finance of RI 3. Minister of SOE of RI Plaintiff: Mr. RA 2 3 Defendant: PT Bank Negara Indonesia (Persero), Tbk. Reporting Party: PT Bank Negara Indonesia (Persero), Tbk. Reported Party: HS (Director of PT RA) Lawsuit related to requests for payment of BNI Bearer Bonds in 1962-1963 to Plaintiff (Case No. 351/ Pdt.G/2018/PN.Jkt.Pst). Claims for compensation payments related to the transfer of credit collateral by the Bank that is controlled by the Plaintiff (Case No. 16/ Pdt.G/2018/PN.Klk). PT RA is a BNI debtor, in its progress, without prior approval from BNI, PT RA and Mr. HS (Director of PT RA) submitted a request for the Delay of Payment of Debt Obligations (PKPU) in the Commercial Court at the Central Jakarta District Court. In the PKPU process, most Creditors including BNI did not approve the peace proposal offered by PT RA. In early 2017, BNI reported Mr. HS to the Police (Bareskrim Polri) on allegations of fraud and/or counterfeiting and money laundering in the form of applying for and disbursing credit from BNI using fake documents. Rp 175.097.985.491,- IMPACT OF LEGAL ISSUES ON THE COMPANY BNI’s policies and SOPs are adequate and prudent in protecting BNI’s business interests. Therefore, all the legal cases mentioned above, both civil and criminal, impose no significant financial impact on BNI. This is reflected in the Legal Risk Profile during 2018 that remained in Low To Moderate ranking. 608 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  609. Good Corporate Governance LEGAL ISSUES FACED BY THE BOARD OF COMMISSIONERS AND BOARD OF DIRECTORS Throughout 2018 , none of the members of Board of Directors and Board of Commissioners who were in office had important civil or criminal law cases related to BNI’s business. PERMASALAHAN HUKUM YANG SEDANG DIHADAPI ANAK PERUSAHAAN Anak Perusahaan PT BANK BNI SYARIAH PT BNI LIFE INSURANCE PT BANK BNI SEKURITAS PT BANK BNI MULTIFINANCE Perkara Hukum Perkara Carry Over Tahun Sebelumnya Jumlah Perdata Pidana Klaim 9 - - Perkara Inkracht di Tahun 2018 12 - - Dalam Proses Persidangan 14 3 - Perkara Carry Over Tahun Sebelumnya - - - Perkara Inkracht di Tahun 2018 - - - Dalam Proses Persidangan 1 2 - Perkara Carry Over Tahun Sebelumnya - - - Perkara Inkracht di Tahun 2018 - - - Dalam Proses Persidangan - - - Perkara Carry Over Tahun Sebelumnya 1 - - Perkara Inkracht di Tahun 2018 1 - - Dalam Proses Persidangan 1 - - MATERIAL CASES FACED BY SUBSIDIARIES NO 1 PARTIES Plaintiff: Tanti Widyana (heir of M Thoib) Subsidiaries BNI Life Insurance Defendant: PT BNI Life Insurance 2 Reporting Party: PT BNI Life Insurance BNI Life Insurance Reported Party: BAS BNI Life Sukabumi Jurisdiction : Police Station of Sukabumi City Report No.: LP/B/69/ II/2017/JBR/RES SMi KOTA dated February 10, 2018 PT Bank Negara Indonesia (Persero) Tbk  CASE PRINCIPAL CASE VALUE Plaintiff is the heir of M. Thoib who is a BNI Life Insurance customer with BLPM policy number 9172009817 and has been a customer since June 27, 2017, who filed a death claim by the heir, but was rejected due to the health data mismatched and dishonesty in filling SPAJ form. Material : Rp. 275.000.000,- Euis Sri Kartina is a Bancassurance Specialist marketer based on the Agency Agreement 001355. PK.BL.BAS/BAS/1214 and has an agent license certificate issued by the Indonesian Life Insurance Association (AAJI) with license number 14329959 and code number BAS 5576 certified agent since December 20, 2014, to December 20, 2018. Rp 50.000.000,- Immaterial: Rp. 500.000.000,- CASE STATUS IMPACT/RISK TO THE COMPANY Mojokerto District Court, East Java Compensation payment at claim value Investigation by Sukabumi Police Potential of BNI Life’s Reputation Risk in Sukabumi BAS has embezzled customer premium funds Adapting Quickly to Face Change 609
  610. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk NO 3 PARTIES Reporting Party: PT BNI Life Insurance Subsidiaries BNI Life Insurance CASE PRINCIPAL CASE VALUE ASM BNI Life Kupang has committed fraud, ASM did not hand over premiums deposited by customers to BNI Life. Rp 100.000.000,- Plaintiff is a worker of PT SSL. Defendant: Unable to complete obligations against labor wages for +/- 1 year, therefore, the plaintiff files bankruptcy against the defendant. Claim value: Rp3,000,000,000 Reported Party: ASM BNI Life Kupang CASE STATUS IMPACT/RISK TO THE COMPANY The process of detaining suspect at Kupang Police Station, East Nusa Tenggara Compensation payment to customers Legal Process at Commercial Court in Surabaya Difficulty in extracting BNIMF’s machinery which is currently still inside the factory area because the labor demands cannot be met yet. Potential of BNI Life’s Reputation Risk in Kupang Jurisdiction: Police Station of Kupang City Report No.: LP/B/763/ VIII/2018/SPKT Resor Kupang Kota dated August 30, 2018 4 Plaintiff: Worker of PT Surya Sukmana Leather BNI Multifinance Defendant: PT Surya Sukmana Leather EFFORTS TO MINIMIZE LEGAL RISKS BNI always works on an ongoing basis to keep minimizing the legal risk to the Bank in conducting its business activities as reflected in its activities which are broadly divided into 3 (three) stages as follows: 1. Pra-Transaction a. Provide legal studies and legal assistance through an assessment of plans for developing new products and activities, to protect BNI’s interests, especially from the legal risk aspect. This is also a fulfillment of regulatory provisions that require legal analysis of each new product development and activity plan. b. Implement Legal Risk Awareness program consistently as one of the efforts to prevent legal risk that is conveyed through either direct visit to the operations unit or through BNI’s digital learning facilities in order to prevent fraud and support the predetermined business target achievements. c. Organize Legal Blast in the form of submitting legal material that can be accessed anywhere by all BNI employees on the BNI Corporate University website (www.bnicorpu.co.id) and completed with notification via a short message service (SMS) blast (simultaneously and in bulk) This is intended to minimize the potential risk of business units in conducting their business. d. Organize Training or Sharing Session related to the latest legal issues including managing data breaches, the emergence of blockchain in the financial system, etc. Speakers at the Training or Sharing Session held by the Legal Division include legal experts, lawyers (practitioners), law enforcement institutions such as the Indonesian Police Criminal Investigation Agency, the Supreme Court, and the Prosecutor’s Office of the Republic of Indonesia. e. Involve the Legal Division employees in various certifications or training programs in collaboration with BNI Corporate University and other external training institutions. The forms of training or certification provided include Risk Management Certification, Special Education for Advocate Professionals (PKPA), Education for Curators and Administrators, Professional Education for Capital Market Legal Consultants, Education for Legal Auditors, Financial Analysis for Lawyers, Microsoft Powerpoint for Business, Special Education for Procurement Lawyers (PKPP), and other legal trainings in order to create professional and competent corporate lawyers. f. Conduct training to each employee of the Legal Division tailored to the competence assessment result, competence profile, employee’s needs, and business development, aiming at increasing employee’s core competence, personal competence, and leadership competence in order to support BNI’s business. 610 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  611. Good Corporate Governance 2 . Transaction a. Provide advice or legal studies on a transaction and operational activity, in accordance with the needs of the Division/Unit of the Regional/Branch/Center Offices. b. Improve the quality of legal advice or legal studies at the Legal Work Unit in BNI, in order to support the smooth running of business/transaction and operational activities of all Divisions/Units of Regional/Branch/Center Offices in BNI, which is carried out through supervision of legal advice to all Legal Work Units. 3. Post Transaction a. Implement the Legal Review Agreement Program which is conducted routinely every 3 (three) months aiming at optimizing the legal risk management through the process of risk identification, risk analysis, risk evaluation, and risk monitoring to measure legal risk that may arise from an agreement. b. Coordinate case handling routinely with all Legal Work Units at all BNI Regional Offices as a form of monitoring or case supervision throughout the Legal Work Unit. DISCLOSURE OF IMPORTANT MATTERS In line with the implementation of GCG principles, the Bank considers it necessary to disclose the following matters: TRANSPARENCY OF BANK’S FINANCIAL AND NONFINANCIAL CONDITION The Bank’s has applied transparency in its financial and non-financial conditions to stakeholders in the Quarterly Publication of Financial Statements and has reported them to Bank Indonesia or stakeholders in accordance with the applicable provisions. The preparation and presentation of financial statements refer to the procedures, types, and scopes as stipulated in Bank Indonesia regulations on Transparency of Bank’s Financial Condition. The statements are prepared in a timely, complete, whole, up-to-date, and accurate manner based on Bank Indonesia Regulations and Bank Indonesia Circular Letters on Product Information Transparency 1. In connection with Bank’s product information transparency: a. The Bank has applied transparency in the Bank’s product information according to Bank Indonesia Regulations on transparency of Bank’s Product Information and Use of Customer’s Personal Data. b. The Bank’s product information transparency is applied by stating information in writing through PT Bank Negara Indonesia (Persero) Tbk  the Services Guide Book/starter kit, brochures/ leaflets, Provisions for Opening Account that shall be read and signed by the customer at the time of opening an account, or through other means such as BNI website, as well as announcements posted/ distributed in BNI’s Branch offices. In addition to written information, Bank Officers will explain the product information to customers at the time of offering the Bank’s products/services. c. Furthermore, the consumer banking information products will be delivered transparently through print media, electronic media, and billboards including internet media. d. Through various means which are easily accessible by customers, the Bank has delivered information in the event of any changes in the terms and conditions of the Bank’s products for customer use. The Bank also has a 24-hour product information service via BNI Call 1500046. 2. Related to the use of customers’ personal data by the Bank, it is already set forth in the Terms and Conditions in Account Opening forms given by the Bank to customers at the time of account opening. TRANSPARENCY IN CUSTOMER COMPLAINT PROCEDURES AND CUSTOMER DISPUTE SETTLEMENT One Stop Solution via BNI Call 1500046 In line with one of BNI’s missions to provide excellent services and value-added solutions to all customers, and as the preferred partner, BNI Call 1500046 continues to strive to provide the best service to BNI’s customers. The commitment of BNI Call 1500046 to continuously improve service quality for BNI customers is realized through standardization of processes and services quality by obtaining ISO 9001:2015 Certification at the end of 2016. Through BNI Call 1500046 service, customers easily obtain information, conduct transactions, and obtain solutions to any problems, either for banking or credit card services. BNI Call 1500046 service can be used by BNI customers 24 hours a day and 7 days a week, either by using either Interactive Voice Response (IVR) feature or directly with BNI Call Officers. Adapting Quickly to Face Change 611
  612. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BNI customers are given easy access to BNI Call 1500046 services, through: BNI Call 1500046 TELEPON Akses dari Dalam Negeri (seluruh wilayah Indonesia) Telpon PSTN (Fixed Phone) Telpon seluler (Mobile Phone) 1500046 (tanpa kode area) 1500046 (tanpa kode area) Pulsa lokal Sesuai tarif penyedia layanan seluler (provider) +62-21-30500046 Sesuai tarif penyedia layanan dari masingmasing negara Akses dari Luar Negeri Fixed Phone/Mobile Phone EMAIL FAKSIMILI bnicall@bni.co.id 021-25541203 SERVICE PROCEDURE AND SETTLEMENT OF BNI CUSTOMERS COMPLAINTS BNI Contact Center, as one of BNI’s front lines in providing services to BNI customers, continues to strive to provide the best service, including the settlement of every customer complaint for both banking and credit card services. BNI customers are given the convenience of accessing complaints services with a variety of media choices both through oral and written. MEDIA PENYAMPAIAN PENGADUAN NASABAH BNI LISAN TERTULIS 612 Adapting Quickly to Face Change Nasabah menghubungi BNI Call 1500046 Nasabah mengunjungi www.bni.co.id pada menu Hubungi Kami Nasabah mendatangi BNI Cabang terdekat Nasabah mengirimkan email ke bnicall@bni. co.id atau faksimiili (021)25541203 Nasabah mendatangi BNI Cabang terdekat PT Bank Negara Indonesia (Persero) Tbk
  613. Good Corporate Governance Solution to resolve customer complaints delivered verbally is given within a maximum of 5 (five) business days*) and written complaints is given within a maximum of 20 (twenty) business days. In the event that supporting documents are needed for customer complaints submitted verbally, BNI will ask the customer to submit the complaint in writing. Under certain conditions, the fulfillment of documents and settlement of complaints can be extended within the next 20 (twenty) business days according to POJK No. 1/POJK.07/2013 and updated through POJK No. 18/POJK.07/2018*) on Consumer Complaint Services in Financial Services Sector. An extension of time to settle a complaint is notified in writing to the customer. *) Effective as of March 2019 • • • • 1 Menyampaikan pengaduan 2 Melakukan registrasi pengaduan 3 Memberikan tanda terima atau nomor registrasi 5 Menyampaikan pemberitahuan perpanjangan waktu** 4 Menyampaikan hasil penyelesaian pengaduan* 6 Menyampaikan hasil penyelesaian pengaduan BNI mengupayakan penyelesaian pengaduan Lisan dalam waktu maksimal 5 hari kerja dan pengaduan tertulis dalam waktu maksimal 20 hari kerja. Apabila diperlukan dokumen pendukung atas pengaduan nasabah yang disampaikan secara lisan, maka BNI akan meminta nasabah meyampaikan pengaduan secara tertulis. Apabila terdapat kekurangan dokumen, maka nasabah dapat menyampaikan kekurangan dokumen dalam waktu maksimal 20 hari kerja. Dalam kondisi tertentu pemenuhan kelengkapan dokumen dan penyelesaian pengaduan dapat diperpanjang dalam waktu 20 hari kerja berikutnya. According to FSA Circular Letter (SE OJK) No. 2/SEOJK.07/2014 and updated through FSA Circular Letter (SE OJK) No. 17/ SEOJK.07/2018, BNI will provide information on settlement of customer complaints through telephone, e-mail, mail, or short messages (SMS). In the event that the customers feel that the solution provided by BNI does not meet their expectations, then the customers can continue the process of resolving complaints through the Alternative Dispute Resolution Institution included in the List of Alternative Dispute Settlement Institutions established by the Financial Services Authority. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 613
  614. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk REMUNERAtion The employee remuneration strategy is determined based on the principles of supply and demand, BNI’s remuneration position compared to the market, and by considering employee talent classification. The component of employee remuneration consists of permanent remuneration which is differentiated based on position weight and person value. While variable remuneration is given based on performance that is associated with the achievement of bank performance, unit performance, and the employee concerned. The unit performance is reflected in the classification of business units, regions, subsidiaries, and branch offices located abroad. The remuneration policy consultant uses Willis Towers Watson consultant services to organize salary surveys every year. The survey results are used as a reference for employee remuneration. HIGHEST AND LOWEST EMPLOYEE SALARY RATIO Salary is an employee matter who is accepted and expressed in the form of money as a reward from the company or employer to employees who are determined and paid according to a work agreement, arrangement, or laws and regulations. 1. Employee’s highest and lowest salary ratio: 45:1 2. Board of Director’s highest and lowest salary ratio: 1.1:1 3. Board of Commissioners’ highest and lowest salary ratio: 1.1:1 4. Board of Director’s highest salary and employee’s highest salary ratio: 1.8:1 PROVISION OF FUNDS TO RELATED PARTY AND PROVISION OF LARGE EXPOSURE BNI has policies and procedures on Legal Lending Limit (LLL), provision of credit to Related Parties with the Bank, and has a policy that regulates credit limits per industrial sector, including the monitoring and settlement. Periodically, BNI conducts meetings of the Credit Procedure Committee and Credit Policy Committee as well as Board of Directors’ Meetings to discuss matters relating to policies, procedures, and operational implementation in credit sector. To ensure that the provision of funds to related parties and in large exposure are already in accordance with the principle of prudence, BNI has already had adequate internal control systems as follows: a. Already have policies and procedures in the process of granting credit. b. Already have ex-ante review on the process of granting new and additional credit with a nominal of > Rp5 billion in the form of Credit Compliance Review (C2R) for the proposed Credit Application Tool (PAK) carried out by the Compliance Unit and in the process of procurement of goods and services with a nominal value of ≥ Rp1 billion in the form of Procurement Compliance Review (PCR). 614 Adapting Quickly to Face Change c. Already have an ex-post review conducted by the Compliance Unit and Internal Audit Unit. d. Provision of funds to related parties shall obtain approval from the Board of Commissioners. e. Approval for provision of large exposure is requested to the management and for a certain amount shall be consulted with the Board of Commissioners. f. SPI checks the credit center based on a risk assessment to ensure the adequacy of risk management and that internal control is included in the credit granting process. In applying the provision of funds by the Bank to related parties or the provision of large exposure: 1. The management pays attention to the provision of large amounts of credit, among others, which involves providing funds to debtors through an Internal Rating System (corporate, commercial, and small business), Loan Portfolio Management, Loan Exposure Limit (per segment, per economic sector, and per region), LLL (for BNI’s internal through Internal House Limit), and Country Exposure Limit. 2. The capital amount and CAR ratio are always reported to the Management and all units are guided in carrying out the Bank’s business activities especially those concerning the provision of funds. Submission of reports to BI has been carried out in accordance with the applicable regulations. The amount of funds provided to related parties can be seen in the table below: Total Provision of Fund To Related Parties To Debtors Individual Group Nominal Rp million Debtor 150 5,379,164 3 17 161,385,418 20,642,926 140,742,492 EMPLOYEE AND/OR MANAGEMENT STOCK ALLOCATION PROGRAM Referring to the Financial Services Authority (FSA) Regulation No. 02/POJK.04/2013 dated August 23, 2013, on Repurchase of Shares Issued by Issuers or Public Companies in Significantly Fluctuating Market Conditions and Circular Letter of SEOJK No. 5/SEOJK.04/2017 on Revocation of SEOJK No. 22/SEOJK.04/2015 on Other Conditions as a Market Condition Significantly Fluctuating in the Implementation of Repurchasing. Shares Issued by Issuers or Public Companies, BNI conducts repurchasing of the Company’s shares that have been issued and listed on the Indonesian Stock Exchange (Buy Back). BNI has appointed PT BNI Securities as a securities institution conducting repurchases of the Company’s shares with a period of share purchases in the market in less than 3 months from November 2, 2015, to December 28, 2015. PT Bank Negara Indonesia (Persero) Tbk
  615. Good Corporate Governance The number of shares that have been repurchased was 0 .807% of the issued and fully paid capital or a total of 150,537,500 shares. The value of the repurchase of the Company’s shares was Rp749,979,275,500.00 (maximum 750 billion Rupiah), thus, the average price of Shares Buyback was Rp4,982.00 per share. For the implementation of the repurchase of the Company’s shares, the Company conducted an Information Disclosure on October 30, 2015. Considering item 4 letter a number 3 Regulation No. XI.B.2 in conjunction with Article 9 of the Financial Services Authority Regulation No. 2/POJK.04/2013, the repurchased shares can be transferred/used for the implementation of Employee Stock Option Plan or Employee Stock Purchase Plan. In connection with this matter, the Company conducted Information Disclosure on May 12, 2016, which in essence states that the Company will carry out the transfer of C Series shares resulting from share repurchases through the Share Ownership Program for Management and Employees of the Company in the form of Stock Bonuses (hereinafter referred to as the “Stock Bonus Program”). The Stock Bonus Program is prepared as part of remuneration in accordance with Minister of State-Owned Enterprises Regulation No. Per-04/MBU/2014 on Guidelines for Determining Income of Board of Directors, Board of Commissioners, and Supervisory Board of State-Owned Enterprises, in the form of long-term awards in which the repurchased shares are allocated to: 1. Employees as a bonus for achieving the company’s performance, and 2. Members of the Board of Directors and Board of Commissioners as part of tantiem for the relevant fiscal year. Supervision of the Stock Bonus Program will be carried out by the Company’s Board of Directors and will be reported at the Company’s soonest General Meeting of Shareholders on such program implementation. Allocation of stock bonus to members of the Board of Directors and Board of Commissioners in accordance with Minister of State-Owned Enterprises Regulation No. Per-04/ MBU/2014 on Guidelines for Determining Income of Board of Directors, Board of Commissioners, and Supervisory Board of State-Owned Enterprises is carried out after the Company has obtained approval from the General Meeting of Shareholders/Minister of SOE. Based on the Minutes of the Company’s Annual GMS No. 8 dated March 10, 2016, the allocation of stock bonus to members of the Company’s Board of Directors and Board of PT Bank Negara Indonesia (Persero) Tbk  Commissioners is carried out after obtaining approval from Minister of SOE. Based on the Ministry of SOE Letter No. S-574/MBU/ D5-06/2018 dated June 5, 2018, it basically conveys the determination of 10% Long-Term Incentive (LTI) from the Tantiem of Board of Directors and Board of Commissioners for the 2017 Fiscal Year. LTI is given in the form of shares whose values are deferred for three years or until the end of the term of office. This provision is exempted for Independent Commissioner, where LTI is given in cash in which the payment is deferred for three years or until the end of the term of office. EMPLOYEE STOCK BONUS PROGRAM Employee stock bonus program is a bonus program in the form of Bank shares given to employees who meet certain criteria and requirements as stipulated in the Program Implementation Guidelines. The purpose of this employee stock bonus program is as follows: 1. A form of employee retention in the long-term. 2. Efforts to motivate employees to provide the best performance. 3. Efforts to increase employees’ sense of belonging towards the Bank. Phase I allocation was carried out in 2016 and phase II allocation was carried out in 2017. Employees who are entitled to become participants in the Stock Bonus Program are permanent employees as of October 30, 2015 (in the matter, Information Disclosure date). The end of vesting period phase I is distinguished based on the level of position, with details as follows: 1. ASST to the bottom, the vesting period ended on January 31, 2017. 2. AMGR’s vesting period ended on April 30, 2017. 3. MGR to the top, vesting period was on July 31, 2017. Whereas the end of vesting period phase II is distinguished based on the level of position, with details as follows: 1. ASST to the bottom, the vesting period ended on January 31, 2018. 2. AMGR’s vesting period ended on April 30, 2018. 3. MGR to the top, vesting period was on July 31, 2018. The level of position that becomes the basis for calculating vesting periods phase I and phase II are employee’s level of position as per December 31, 2015. Adapting Quickly to Face Change 615
  616. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Employees who are declared eligible for vesting will receive notification via email or other communication media which includes confirmation of the stock bonus that becomes their rights on the vesting date. The requirements for vesting are set as follows: 1. Not in the process of a case and/or the impact of sanctions referring to the applicable Bank Employment Regulations; 2. Not terminating the work relationship voluntarily; or 3. Not terminating the work relationship because of performance (low performance). TRANSACTIONS CONTAINING CONFLICT OF INTERESTS AND/OR AFFILIATION TRANSACTIONS In 2018, BNI did not make any Transactions Containing Conflict of Interest and/or Affiliation Transactions. PROCUREMENT OF GOODS AND/OR BASIC PRINCIPLES SERVICES AND ETHICS OF PROCUREMENT OF GOODS AND/OR SERVICES 1. Efficient: the procurement of goods and/or services shall be endeavored to obtain optimal and best results fast by using minimum funds and capabilities in a reasonable manner and not only based on the lowest price. 2. Effective: the procurement of goods and/or services shall be in accordance with pre-determined needs and provide maximum benefit in accordance with the targets set. 3. Competitive: procurement of goods and/or services shall be open to Providers of Goods and/or Services that meet the requirements and carried out through fair competition among Providers of Goods and/or Services that are equal and meet certain conditions/criteria based on clear and transparent provisions and procedures. 4. Transparent: all provisions and information on Procurement of Goods and/or Services, including technical requirements for procurement administration, evaluation procedures, evaluation results, determination of prospective Providers of Goods and/or Services, are open to participants of Providers of Goods and/or Services that meet the requirements. 5. Fair and Reasonable: providing equal treatment for all prospective Providers of Goods and/or Services that meet the requirements. 6. Accountable: shall achieve goals and be accountable so as to keep away from potential abuse and irregularities. METHODS FOR PROCUREMENT OF GOODS AND/OR SERVICES 1. Open Auction/General Selection, which is procurement that is announced widely through mass media with prospective participants at least 3 (three) participants. 2. Direct Election/Direct Selection, which is procurement of goods and/or services offered to a limited number of parties with prospective participants at least 2 (two) participants. 3. Direct Appointment, which is procurement of goods and/or services carried out directly by appointing one provider of goods and/or services by observing the terms of Direct Appointment. 4. Direct Purchase, which is purchase of goods available in the market. 616 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  617. Good Corporate Governance PROCEDURE FOR PROCUREMENT OF GOODS IN THE PROCUREMENT PROCESS BNI implements the following stages of the procurement of goods and or services : Persiapan Pengadaan Pelaksanaan Inisiasi Kebutuhan dan Anggaran Metode Pengadaan Prestasi Izin Prinsip Metode Pembukaan Penawaran Monitoring Penetapan Panitia Pengadaan Metode Penilaian Pemeriksaan dan Serah Terima Dokumen Pengadaan Penetapan Pemenang Pembayaran Uji Kepatuhan PROCESS OF PROCUREMENT OF GOODS AND/OR SERVICES The process of procurement of goods and/or services consists of: Auctions, for procurement of goods and/or services with value above Rp1 billion. Alur Proses Pelelangan Pengumuman Penyampaian Penawaran Teknis Pendaftaran Evaluasi DRTU )peserta atau lebih 3( Penyampaian Penawaran Harga Penetapan Pemenang Rapat Penjelasan PT Bank Negara Indonesia (Persero) Tbk  Evaluasi Harga Uji Kepatuhan Surat Perintah Kerja/Kontrak Adapting Quickly to Face Change 617
  618. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Direct Election, for procurement of goods and/or services with value of more than Rp100 million to Rp1 billion. Alur Proses Pemilihan Langsung DRTU )peserta minimal 2( Evaluasi Penetapan Pemenang Rapat Penjelasan Penyampaian Penawaran Harga Uji Kepatuhan Penyampaian Penawaran Teknis Evaluasi Harga Surat Perintah Kerja/Kontrak Direct Appointment, for procurement of goods and/or services with value of up to Rp100 million, or under certain criteria. Alur Proses Penunjukkan Langsung Evaluasi Penetapan Pemenang Penyampaian Penawaran Harga Uji Kepatuhan Evaluasi Harga Surat Perintah Kerja/Kontrak Direct Purchases are conducted for procurement value of up to Rp25 million by direct purchase at the store or seller. Procurement through the Electronic Procurement (e-Proc) Application as one of the means to support BNI’s strategy is transformed into digital banking in the framework of facing business competition, increasing stakeholders’ satisfaction, and GCG principles. Since 2017, BNI has used the Electronic Procurement (e-Proc) Application to carry out the procurement of goods and services, in the form of Procurement Management and Vendor Management modules. The use of e-Proc Application can reduce administrative and operational costs that shall be incurred either by BNI or vendors. Moreover, through the new module of Contract Management, prospective vendors who have not registered as BNI partners can directly register online through the website https://e-proc.bni.co.id. By having such module, vendors are more qualified and the procurement process is monitored better and more transparent. 618 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  619. Good Corporate Governance Alur Proses Pengadaan Melalui Aplikasi Electronic Procurement (e-Proc) Vendor Management Procurement Management Contract Management Registrasi Rekanan Keputusan Pengadaan dan Proses Uji Kepatuhan, Surat Perintah Kerja Proses Drafting Kontrak Klasifikasi dan Kualifikasi Rekanan Aanwijzing dan Proses Evaluasi Penawaran melalui eAuction Pelaksanaan Pekerjaan dan Pembayaran Tanda Daftar Rekanan dan Evaluasi Rekanan Pengumuman dan Pendaftaran Peserta Pengadaan: Pelelangan, Pemilihan Langsung, Penunjukan Langsung Pencatatan Aset Plans for Implementing ISO 9001: 2015 in Vendor Management sector To improve the quality of vendor management according to international standards and to support efficiency, in this case, suppressing poor quality, increasing productivity and operational effectiveness, since 2018 BNI has initiated the certification of ISO 9001: 2015 of Quality Management System in Vendor Management sector. By having the certification, it can improve the quality of products and service performance of the company which eventually will lead to increased stakeholder satisfaction. BNI Tower Pejompongan BNI Tower is the new Icon owned by BNI with the concept of Green Building (Gold), located on Jl. Pejompongan Raya Jakarta, consisting of 2 towers, which are the Office Tower with 31 floors and the Podium Tower with 6 floors. To support the work-life balance needs of BNI employees, BNI Tower is equipped with facilities such as BNI Digicafe food court, outdoor field, rooftop garden, social room, daycare, nursery room, gym center, helipad, ballroom, and representative mosque. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 619
  620. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BNI Tower Pejompongan BNI Tower is the new Icon owned by BNI with the concept of Green Building (Gold), located on Jl. Pejompongan Raya Jakarta, consisting of 2 towers, which are the Office Tower with 31 floors and the Podium Tower with 6 floors. The concept of Green Building (Gold) is expected to use energy more efficiently. The efficiency of electrical energy is 25.33%, water use is 30.99%, and size of green area is 40.74%. To support the work-life balance needs of BNI employees, BNI Tower is equipped with facilities such as BNI Digicafe food court, outdoor field, rooftop garden, social room, daycare, nursery room, gym center, helipad, ballroom, and representative mosque. Icon baru MENARA BNI Pejompongan Ballroom Masjid Roofgarden 620 Adapting Quickly to Face Change Lapangan Olahraga Foodcourt BNI Digicafe PT Bank Negara Indonesia (Persero) Tbk
  621. Good Corporate Governance Online Transportation Portal System To improve control costs , drive efficiency, support the Go Green program, and in line with the #bnitudigital management program, BNI has improved the transportation services to meet the needs of its employees’ official travel from the old pattern of Transportation Management System (TMS) to the era of transportation digitalization by using the Online Transportation Portal System. Evaluation of the Online Transportation Portal System is considered to be more comfortable, easier for employees, cashless transactions, and proven to be able to reduce costs significantly. BNI Record Center (BRC) CIKUPA BNI filing has BNI Record Center (BRC) Cikupa, which is one of the largest archival units in Indonesia, with an area of 3.4 Ha and a building of 1.3 Ha and has a storage capacity of 337,200 boxes. BRC Cikupa is the first banking archive in Indonesia that has received an A (Excellent) Filing Accreditation from the National Archives of the Republic of Indonesia (ANRI), 2 times won the second place in the Best National Archival Unit Competition organized by ANRI for SOE category. BRC Cikupa has been visited by Archivists from KITLV Leiden, the Netherlands. These have made BRC Cikupa, for several times, to be the objective of the study to emulate institutions/bodies from both the government and the private sector. BNI Record Center To improve the quality of BNI’s archival management in accordance with international standards and to support operational efficiency and effectiveness at BRC Cikupa, currently BRC Cikupa is preparing to obtain ISO 30301: 2011 Standardization System Management for Records (SMR) certification. By implementing ISO 30301: 2011 in 2019, it is expected that BNI becomes the first company in Indonesia to receive ISO 30301: 2011 certification in the archiving sector. PROVISION OF FUNDS FOR POLITICAL ACTIVITIES BNI has a policy that prohibits BNI Persons from becoming members and/or donors of Political Parties. During 2018, there was no funding for political activities. PROVISION OF FUNDS FOR SOCIAL ACTIVITIES Costs incurred in Community Development activities during 2018 are as follows: Description Nominal (Rp) Natural Disaster Victim Aid Rp3.5 Billion Education and/or Training Assistance Rp31.0 Billion Health Improvement Assistance Rp7.5 Billion Public Facilities and Infrastructures Construction Aid Rp11.1 Billion Worship Facilities Assistance Rp17.1 Billion Natural Preservation Assistance Rp2.0 Billion Natural Preservation Assistance Rp13.8 Billion Total Rp86 Billion PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 621
  622. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk ACCESS TO COMPANY’S INFORMATION AND DATA Access to Company Information and data related to corporate actions can be accessed through the Company’s official website on http://bni.co.id/. Parties who need further information related to corporate action or Company data can contact via telephone at 021-5728387, Fax at 6221-5728053 or email to: investor.relations@bni.co.id. PRESS CONFERENCE The press conference carried out by BNI during 2018 were as follows: No. 622 Date Event Place Title of Press Conference 1 08 January 2018 President Jokowi Visit to BNI City Station Jakarta Completing Airport Train Facilities - BNI Opened 1 Outlet & 4 ATMs, Received Naming Right 2 08 January 2018 President Jokowi Visit to BNI City Station Jakarta BNI City Station Comes with Various Modern Facilities 3 09 January 2018 Dissemination of Food Security Programs Madiun Acceleration of KUR Distribution BNI Synergizes with the Ministry of Agriculture and the Indonesian National Army, Succeeding the Food Security Programs 4 11 January 2018 Signing of Cooperation Agreement with Air Nav Related to BNI Property Use Sentani BNI Fulfills AirNav Property Needs in Papua 5 12 January 2018 BNI Taplus Men's and Women's Team Launching Jakarta 2018 Proleague, Jakarta BNI Taplus Prepares the Best Team to Become Champions 6 18 January 2018 Java Jazz Press Conference 1 Jakarta BNI Invites Jazz Lovers to Perform Updated Transactions 7 19 January 2018 Board of Directors’ Visit to BNI Tual Tual Visiting Inland Indonesia, BNI Helps Build Business Training Centers and Mosques 8 21 January 2018 Passport Making and Extension Services at the National Monument Jakarta Passport Payment Services, BNI Becomes the Bank to Serve Most Online PNBP Deposits 9 26 January 2018 2016 BNI Performance Exposure in 2016 Jakarta BNI’s Net Profit Grows 25.1% 10 26 January 2018 Launching yap! Jakarta BNI Launches YAP! 11 29 January 2018 Anticipation of Demonstration to Write-off Trikomsel Books Jakarta Restoring Performance, BNI Writes-off Trikomsel Books 12 31 January 2018 The signing of BNI's Memorandum of Understanding as Single Partner of UM PTKIN 2018 13 02 February 2018 Simponi Trial in London London The Ministry of Finance Successfully Tests Simponi at BNI London 14 5 February 2018 The signing of the Cooperation Agreement (PKS) with BPJS TK Gianyar Supporting PERISAI Agents, BNI Becomes a Bank for Managing BPJS Employment Contributions 15 06 February 2018 Signing of 2018 CLA Jakarta BNI Management & Trade Union Agree to New CLA 16 08 February 2018 Journalist Training at National Press Day Padang Commemorating National Press Day, BNI Invites 100 Journalists to Practice Entrepreneurship 17 09 February 2018 BNI's Visit to Way Jepara Way Jepara Visiting Way Jepara, BNI Increases the Quality of CTKI and TKI 18 12 February 2018 Symbolic Transfer of BNI VA Debit Cards to the Indonesian Asian Games Organizing Committee (INASGOC) Jakarta BNI Distributes 3000 VA Debit Cards at the 2018 Asian Games Test Event 19 13 February 2018 11th Annual Best Deal & Solution Awards Kuala Lumpur Serving 125 of the Best BNI Remittance Currencies in Southeast Asia 20 15 February 2018 Java Jazz On The Move Jakarta Presenting Java Jazz on The Move, BNI Introduces yap! New Payment Tool at BNI Java Jazz Festival 2018 21 16 February 2018 BNI Travel Experience Jakarta BNI Cooperates with 4 Airlines to Hold Travel Experience 22 21 February 2018 BNI's Free Home town Trip Teaser Jakarta BNI Ready to Hold FREE Home town Trip with SOE 2018 23 21 February 2018 Signing of Master CLA of the Use of Government Credit Cards between BNI and HIMBARA with the Indonesian Ministry of Finance Jakarta Cooperation of BNI - Ministry of Finance of the Republic of Indonesia, BNI Corporate Card Becomes Government Official Paying Tool, Has Reached 700 Users Adapting Quickly to Face Change BNI Becomes Single Partner of UM PTKIN 2018 PT Bank Negara Indonesia (Persero) Tbk
  623. Good Corporate Governance No . Date Event 24 21 February 2018 BNI’s Chinese New Year Celebration Jakarta BNI Invites Loyal Customers & Debtors to Celebrate Chinese New Year 2569 25 21 February 2018 Distribution of PIP and KIK Funds Agats BNI Distributes PIP Funds to the Inland Area of Papua 26 22 February 2018 Dissemination of New KUR Interest Jakarta Kemenko and BNI Promote KUR New Interest Rates 27 25 February 2018 Lake Sunter Festival Jakarta yap! Becoming a Payment Tool at the Lake Sunter Festival 28 28 February 2018 CLA between BNI and BPJS TK Jakarta BPJS Employment Collaborates with BNI to Increase Participation 29 28 February 2018 Java Jazz Press Conference 2 Jakarta BNI Java Jazz International Festival 2018 Jakarta “Unity in Diversity” 30 28 February 2018 Auction of Goods of the Vice President of Republic of Indonesia Jakarta Supporting the Event of Personal Collection Auction of the Vice President of the Republic of Indonesia, BNI Becomes Auction Guarantee Bank 31 02 March 2018 Launching TapCash Elek Yo Band Jakarta BNI Issues TapCash Elek Yo Band Edition 32 02 March 2018 Java Jazz 2018 Jakarta Easy Transactions at BNI Java Jazz Festival 2018 International Jakarta with yap! 33 03 March 2018 Submission of Mock Up BNI Garuda Credit Card Jakarta BNI and GARUDA Appreciation of Glenn Fredly, Tompi, and Sandhy Sondoro, BNI GARUDA Credit Card Loyal Customers 34 03 March 2018 Java Jazz 2018 Jakarta Enlivening BNI Java Jazz Festival 2018, BNI Subsidiaries Presented the Latest Product 35 03 March 2018 Java Jazz 2018 Jakarta BNI Cooperates with 15,000 Traders to Use Yap! 36 03 March 2018 Java Jazz 2018 Jakarta Starting Late March, BNI Debit Cards Can Be Used for E-commerce Transactions 37 04 March 2018 Launching of BNI Cinta, Chat Banking, at Java Jazz 2018 Jakarta BNI Launched Cinta, BNI Chat Banking 38 05 March 2018 Java Jazz 2018 Jakarta Jakarta International BNI Java Jazz Festival 2018, Convenient to Transact with BNI 39 09 March 2018 Harvest of Corn Jakarta Social Forestry, KUR BNI Reaches 1,700 Farmers in East Java 40 11 March 2018 Launching of BNI Mobile Remittance Jakarta BNI Launches Mobile Remittance Application, Remittance Services with the Cheapest Rates in Singapore 41 13 March 2018 Cooperation Agreement (PKS) between BNI and Go-Jek Jakarta Optimizing KUR Distribution to MSME, BNI Cooperates with GO-PAY 42 13 March 2018 BNI Becomes IMF Partner Jakarta Being a Partner, BNI Fulfills Financial Service Needs on Voyage to Indonesia Art Exhibition and IMF - World Bank Group Annual Meeting 2018 43 13 March 2018 Tax Award Jakarta Complying with Paying Taxes, BNI is Appreciated by the Minister of Finance 44 20 March 2018 GMS 2018 Jakarta Annual GMS, BNI Distributes Rp4.77 Trillion Dividend to Shareholders 45 21 March 2018 Launching of SOE Health Cards Jakarta BNI Supports Pertamedika-IHC in Optimizing Health Services through SOE Health Cards 46 21 March 2018 Kebumen Cash Labor Intensive Kebumen BNI’s Cash Labor Intensive was Tested in 3 Provinces 47 23 March 2018 Signing of MoU and PKS between BNI and KemKum HAM Jakarta KemKum HAM Cooperates with BNI, Using BNI Corporate Card for Official Payments 48 27 March 2018 BNI UI Half Marathon Press Conference Jakarta BNI UI HALF MARATHON 2018 ‘THE BEST HALF MARATHON INSIDE CAMPUS IN INDONESIA’ 49 28 March 2018 MoU between BNI and BPJS Kesehatan Jakarta BPJS Kesehatan Collaborates with BNI in the Fee Installment Arrears Program 50 29 March 2018 Inauguration of Ngawi - Kertosono Toll Roads Madiun BNI Finances Ngawi - Kertosono Toll Roads for Rp580 Billion 51 29 March 2018 PR Indonesia Awards 2018 Surabaya BNI Wins As 2018 PR Indonesia Awards General Champion 52 29 March 2018 Launching BNI Fleksi Education Surabaya BNI Cooperates with ITS, Publishes Education Credit 53 29 March 2018 Absorption of Mojokerto Grain Mojokerto Stabilizing Prices, BNI Supports Sergab Program PT Bank Negara Indonesia (Persero) Tbk  Place Title of Press Conference Adapting Quickly to Face Change 623
  624. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 624 Date Event Place Title of Press Conference 54 03 April 2018 Media Reception Covering the 2018 Asian Games Jakarta Counting Down to 2018 Asian Games, BNI Invited Media to Learn More about Indonesian Banking 55 03 April 2018 Cataract Surgery Jakarta BNI Helps Hundreds of Less-Fortunate People to HAVE Cataract Surgery in Morotai 56 06 April 2018 Signing of MoU and PKS between BNI and UGM Yogyakarta BNI & UGM Strengthen Cooperation, Expanding Banking Services 57 06 April 2018 Absorption of Banyuwangi Grain Banyuwangi BNI Sergab46 Absorbs 700 Tons of Grain of East Java Farmers 58 15 April 2018 Indonesia Creative Product Festival (ICPF) 2018 Kuala Lumpur BNI Brings Fostered Partners to Kuala Lumpur 59 18 April 2018 MoU between BNI and Directorate General of Taxes Jakarta Supporting Digital Services of the Directorate General of Taxes, BNI Develops NPWP Smart Cards 60 19 April 2018 Mou Between BNI and Go-Pay Jakarta Expanding Cooperation, BNI Embed yap! on GOJEK Application 61 23 April 2018 Analyst Meeting Q1 Jakarta BNI Recorded Net Profit of Rp3.66 Trillion in Q1 2018 62 24 April 2018 Energy Ranges School Campaign 2018 Jakarta Supporting the Energy Rangers School Campaign 2018 Program, BNI Provides BNI Taplus Anak 63 25 April 2018 INACRAFT Jakarta BNI To Digital Enlivens INACRAFT 2018 64 26 April 2018 Signing of PKS between BNI, PI, and PTPN 3 Jakarta BNI, PI, and PTPN 3 Synergize in Fulfilling Fertilizer Needs 65 27 April 2018 Launching of GPN Debit Card at INACRAFT Jakarta BNI-GPN Debit Card Present at Inacraft 2018 66 02 May 2018 2018 National Education Day Jakarta Celebrating 2018 National Education Day, BNI Invites 25,250 Students for Field Trip, Getting to Know the Bank Closer 67 05 May 2018 Media Workshop and Gathering Bogor Increasing Transaction Security, BNI Applies 3D Secure 68 07 May 2018 Mou Between BNI and PELNI Jakarta BNI Supports Online Transactions, Ship Ticket Payments and Top Up PELNI Agents 69 08 May 2018 Mou Between BNI and the Ministry of Communication and Information Jakarta The Ministry of Communication and Information Cooperates with BNI to Hold 100 Smart City Movement 2018 70 08 May 2018 BNI Customer Award Jakarta BNI Awarded the Best Customers 71 09 May 2018 BNI Heli Service Jakarta BNI Emerald Customer Privileges Now BNI Customers Can Enjoy BNI Heli Service 72 09 May 2018 Distribution of KUR Rokan Hilir BNI Expands KUR Distribution of Replanting Palm Oil to Riau 73 11 May 2018 Memorandum of Understanding (MoU) between BNI and PT Adamobile Solutions Networks Jakarta Taking Advantage of Blockchain Technology, BNI Increases Trade Finance and Remittance Business 74 13 May 2018 Asian Games Parade Jakarta BNI Enlivens the 2018 Asian Games Parade 75 14 May 2018 Realization of KUR Mojokerto BNI Expands KUR Distribution of Sugar Cane Farmers to Mojokerto 76 14 May 2018 PKS between BNI and PGN Jakarta Supporting PGN's Business, BNI Provides BNI Garuda Credit Cards and Banking Services 77 16 May 2018 SOE Minister Work Visit to Garut Garut BNI Supports Grain Absorption Program in Garut 78 17 May 2018 Distribution of Staple Food Packages Pamekasan BNI Presents 6,000 Staple Food Packages for PMI Families 79 17 May 2018 Awarding BNI Jakarta BNI Named As The Best #1 SOE Bank 80 21 May 2018 Absorption of Garut Grain Garut Acceleration of KUR, BNI Synergizes Grain Absorption and Agricultural Entrepreneurship Program in Garut 81 21 May 2018 BNI's Free Home town Trip and Breakfasting Gathering with Journalists Jakarta Organizing BNI Digimudik 2018, BNI Opens Participant Registration Online 82 25 May 2018 CLA between BNI and AP Kargo Jakarta BNI & Angkasa Pura Kargo Expand Collaboration, Various Implementation of Cashless Transactions is Multiplied 83 25 May 2018 Cheap Market Cilacap Cilacap Appreciation of Money Senders, BNI Spreads 6,000 Staple Food Packages Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  625. Good Corporate Governance No . Date Event Place Title of Press Conference 84 27 May 2018 Eid 2018 Promo Jakarta Amazing Eid, BNI Offers Complete Promo 85 28 May 2018 Media Update and Break-fasting Gathering with Media Editors Jakarta Approaching Lebaran, Necessities Increases by 5%, BNI is Ready to Meet Cash Requests 86 28 May 2018 PKS between BNI and PT PAM Digital Teknologi Balikpapan Collaboration of BNI and PAM Digital Technology, Applying yap! on Transactions at the Mall 87 05 June 2018 PK between BNI and Bappenas Staff Jakarta Tested at Bappenas, BNI Offers Housing Financing for State Civil Apparatus 88 06 June 2018 BNI Cheap Market Karawang BNI Holds Cheap Markets, Proceeds from Sales are for Building Irrigation Sanitation and Toilet Facilities 89 07 June 2018 MoU of BNI and Railink Jakarta Enhancing the Use of Electronic Money, BNI & Railink Work on Airport Train Users 90 08 June 2018 Home town Trip Together with Ministry of Law and Human Rights Jakarta Cooperating with BNI, Employees of Ministry of Law and Human Rights of the Republic of Indonesia Goes to their Home town 91 08 June 2018 Home town Trip Together with BNI 92 08 June 2018 Home town Trip Together with BNI Jakarta Enlivens the Free Home town Trip Together with SOE 2018, BNI Synergizes with Garuda and KAI in Transporting 1,250 People to Go to their Home town 93 22 June 2018 Inauguration of Gempol - Pasuruan Section 2 Toll Roads Jakarta BNI Credit Makes Results, Gempol - Pasuruan Section 2 Toll Road Operates 94 22 June 2018 Dissemination of MSME Final Income Tax (PPh) Surabaya Post-Tariff Decrease, BNI is Ready to Receive MSME Tax Payments 95 27 June 2018 BNI’s Limited Operations During 2018 Regional Elections Jakarta BNI’s Operations are Limited During 2018 Regional Elections 96 28 June 2018 Provision of Payment Media for 2018 Asian Games Jakarta BNI Provides Payment Media for 2018 Asian Games 97 29 June 2018 Deville BNI Jakarta Prior to Asian Games, BNI's 72nd Anniversary Colored by the People's Sports Competition 98 29 June 2018 PKS between BNI and the Indonesian Navy Jakarta Cooperating with BNI, the Indonesian Navy Distributes Soldiers’ Salaries in a Cashless manner 99 29 June 2018 PKS between BNI and ITS Jakarta BNI & ITS Alumni Association Issue Member Cards with Insurance 100 01 July 2018 Absorption of Banyuwangi Coffee Banyuwangi BNI & PTPN XII Strengthens Support for Coffee Farmers 1,500 East Java Farmers Receive BNI Credit 101 04 July 2018 Karawang Labor Intensive Karawang Celebrating 72nd Anniversary, BNI Invites the Communities to Join Cash Labor Intensive 102 05 July 2018 Celebrating BNI's 72nd Anniversary Jakarta Digital Transforming at the Age of 72, BNI Grows Beyond Banking Functions 103 05 July 2018 Celebrating BNI's 72nd Anniversary Jakarta Celebrating 72nd Anniversary, Enjoy Various 72 Themed Promos from BNI 104 06 July 2018 Launching of e-Logbook Card Jakarta Dissemination of GNNT, BNI Invites AKAP Drivers to Make Cashless Transactions 105 08 July 2018 Family Gathering of BNI Anniversary Jakarta Being 72 years old, BNI Enters a New Round of Banking 106 08 July 2018 Family Gathering of BNI Anniversary Jakarta The Highlight of BNI's 72nd anniversary Celebration, BNI Offers a Variety of Promos 107 08 July 2018 Family Gathering of BNI Anniversary Jakarta BNI Optimizes the Use of yap! to Donate on the Highlight of BNI's 72nd Anniversary Series 108 11 July 2018 BNI UI Half Marathon Depok Getting Ready to Join BNI UI Half Marathon 2018 through Various Activities during Race Pack Collection 109 15 July 2018 BNI UI Half Marathon Jakarta BNI Provides Promo During BNI UI Half Marathon 2018 110 17 July 2018 Additional Credit Agreement for Working Capital Credit (KMK) facility for Land Acquisition Funds Jakarta BNI Also Finances the First Toll Road in North Sulawesi 111 18 July 2018 Analyst Meeting H1 Jakarta Second Quarter 2018, BNI Credit Grows 11.1% PT Bank Negara Indonesia (Persero) Tbk  BNI Holds Digimudik 2018, Inviting Santri and Reciters of Al-Quran to Go to their Home town Adapting Quickly to Face Change 625
  626. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 626 No. Date Event 112 18 July 2018 Launching Virtual Account Debit Combo Card Yogyakarta Supporting the 2018 Asian Games, BNI Launches Virtual Account Debit Combo Card 113 19 July 2018 Torch Relay Yogyakarta Yogyakarta BNI Total Support for the 2018 Asian Games, Starting the Torch Carnival from the Zero Point of Yogyakarta 114 20 July 2018 Syndication Credit Agreement Jakarta BNI Supports Kunciran-Serpong Toll Road Project 115 20 July 2018 PK between BNI and PT Banshu Electric Indonesia Jakarta Encouraging Indonesian Exports, BNI Distributes YenDenominated Loans 116 23 July 2018 Press conference Kiostix Jakarta Buy Tickets for Asian Games, Kiostix & BNI Give Promo to Millennials, Earn Up to 72% Discount with yap! 117 24 July 2018 PK Signing Jakarta BNI Disburses Loans for Pulp & Paper Companies in America 118 25 July 2018 Signing of PKS between BNI, Jasindo, and PTPN XII Jakarta In Semester I 2018, BNI 2018 KUR Distribution Has Reached 70% of the Target 119 26 July 2018 Torch Relay Papua Raja Ampat 2018 Asian Games, BNI Realizes Torch Carnival in Raja Ampat, Familiarizing yap! In Papua 120 28 July 2018 Festival Indonesia Tokyo Dayak Woven Fabrics Have Stopped By in Japan 121 31 July 2018 PK between BNI and Jasamarga for Cikampek Overpass Jakarta BNI Also Pays for Cikampek II Overpass Toll Road Project 122 01 August 2018 Launching of the Smart Office of the Ministry of Village Jakarta Ministry of Village PDTT Cooperates with BNI to Create Smart Office 123 02 August 2018 PKS between BNI and GME Seoul BNI Cooperates with Global Money Express Korea, Now Remittances from Korea are 70% Cheaper 124 07 August 2018 Launching IPC Smart Card Jakarta Supporting IPC, BNI Distributes Port Service Financing and IPC Smart Card 125 09 August 2018 CSR for Earthquake Victims Mataram Assisting Lombok Earthquake Victims, BNI & BNI Life Build Public Health & Kitchen Posts 126 09 August 2018 Launch of SIMPAKI Application Yogyakarta Collaboration between DJKI and BNI, Payment of Intellectual Property Now Can Be Online 127 11 August 2018 7 BNI Missions Jakarta BNI Holds 2018 7 Missions Competition 128 12 August 2018 The Highlight of Energy Ranges School Campaign 2018 Jakarta BNI Provides Taplus Anak for Outstanding Child Athletes 129 13 August 2018 MoU and PKS between BNI and ASDP Jakarta Buying Ferry Tickets Is Easier to Use BNI 130 14 August 2018 Addendum of PKO BNI and 39 Other Banks Jakarta BNI FLPP Distribution Continues 131 14 August 2018 KUR Distribution of Salt Kupang Starting in NTT, BNI Pioneers the KUR Distribution for Salt Farmers 132 15 August 2018 Signing of MoU between BNI and Kimia Farma Jakarta Kimia Farma Pharmacy Now Becomes BNI’s Agen46 133 15 August 2018 Signing of MoU between BNI and Angkasa Pura Logistik Jakarta Total Baggage Solution of Angkasa Pura Logistics is Now Cashless with BNI 134 15 August 2018 Signing of MoU between BNI and SPAM Jakarta Building Drinking Water Facilities in Lampung, BNI and IIF Disburse Rp550 Billion 135 16 August 2018 PKS Signing between BNI and AP Jakarta Angkasa Pura Logistics is Now Cashless with BNI 136 20 August 2018 Delivery of appreciation to environmental activists who participated in the Let's Save Movement Jakarta Status of Waste Bank, Agen46 BNI Has 22,000 Small Customers 137 21 August 2018 Closing of Asian Games Jakarta Recalling the 2018 Asian Games with Bank Products 138 30 August 2018 Preparation of 35th UN-ICW Press Conference and Indonesian Women's National Meeting Jakarta About 1,200 Female Leaders Will Visit Yogyakarta, BNI Becomes the Main Supporter 139 30 August 2018 Financing Distribution in Hong Kong Hong Kong BNI Distributes Credit in Hong Kong, Supporting Export-Oriented Companies Adapting Quickly to Face Change Place Title of Press Conference PT Bank Negara Indonesia (Persero) Tbk
  627. Good Corporate Governance No . Date Event Place Title of Press Conference 140 30 August 2018 The Asian Banker Excellence in Retail Financial Service Awards Jakarta BNI Digitalization Is Recognized by The Asian Banker, Received Product and Service Remittance of the Year 2018 141 04 September 2018 2018 National Customer Day Jakarta Customer Day, BNI’s Board of Directors Greets the Millennials on Campus 142 6 September 2018 Symbolic delivery of TASA aid Jakarta National Children's Day, BNI Becomes Distributor for Aid for Neglected Children 2018 that will Reach 70,000 Children 143 07 September 2018 Cool Japan Travel Fair (CJTF) 2018 Jakarta Cooperating with BNI, HIS Offers Special Prices to Japan 144 09 September 2018 The 2018 IMF-World Bank Annual Meeting Jakarta This is the Strength of BNI in Supporting the IMF - World Bank Annual Meeting, BNI Serves Main Campus in Full 145 10 September 2018 BNI’s Press Conference and Trip Logic Jakarta Strengthening Services in Logistics Sector, BNI & Triplogic Build Digital Transaction System 146 15 September 2018 PK signing between BNI and Golden Mountain Textile & Trading Pte Ltd Jakarta Boosting Exports, BNI Funds Sritex Subsidiaries in Singapore 147 17 September 2018 BNI and ITB Press Conference Jakarta Succeeding Last Year, BNI & ITB Held Another Ultra Marathon Competition 148 26 September 2018 Signing of the mass credit contract for Housing Loan (KPR) of BNI FLPP Sejahtera Banjarmasin Boosting a Million Houses Program, BNI Holds 1,046 Mass Credit Agreements 149 30 September 2018 Signing of PKS between BNI and KAI Bandung Synergy of BNI and KAI, Integration of BNI Payment Services in KAI Access Applications 150 01 October 2018 BNI’s aid for Palu Jakarta Emergency Response Palu, Part of BNI Branch Offices Begin to Operate 151 03 October 2018 IBD Expo Surabaya Enliven the IBDExpo 2018, BNI Promotes Digital Ecoservices 152 04 October 2018 BNI IMF Press Conference Jakarta IMF - World Bank Group Annual Meeting 2018, BNI Launches Virtual Account Debit and BNIVast Application 153 12 October 2018 BNI’s aid for Palu Jakarta Helping Disaster Victims, BNI Invites Psychologists to Give First Psychological Aid Post-Disaster 154 12 October 2018 BNI ITB Half Marathon Jakarta BNI ITB Ultra Marathon, Minister of Youth and Sports Released Runners from the BNI Office Lobby, Campaigning for Financial Literacy while Doing Sports 155 14 October 2018 UI Grand Reunion Depok Homecoming Day of University of Indonesia, BNI & UI Develop UI Connect Application 156 18 October 2018 Expose of BNI's Performance Q3 2018 Jakarta Third Quarter of 2018, BNI Recorded Net Profit of Rp11.4 Trillion, Driven by Credit Growth of 15.6% 157 18 October 2018 Banking Education Tourism Jakarta BNI Solves MURI Records, Invites 3,500 Students to Learn Banking Simultaneously 158 18 October 2018 National Children's Day 2018 North Lombok 2018 National Children's Day, BNI Becomes a Distributor 67,754 Child Social Savings 159 23 October 2018 BNI’s aid for Sembalun Sembalun NTB Disaster Emergency Response, SOE Realized 1,500 Shelter 160 30 October 2018 ‘Let’s Save with Trash’ Movement Jakarta FSA Cooperates with BNI to Bring Out the Waste Savings Movement 161 31 October 2018 Cooperation Agreement on Fostering MSME through SOE Creative Home (RKB) program Jakarta BNI - DGT Holds Training in 3 Sedot Cities of 450 MSME Entrepreneurs 162 31 October 2018 I’m Different I’m Indonesia - Music Diversity Jakarta Commemorating Youth Pledge, Youth is Introduced to BNI Griya Gue 163 01 November 2018 Pangandaran MSME Training Pangandaran Trained in Out of the Box Business, Priangan MSME Are Encouraged to Upgrade their Classes 164 02 November 2018 Building Strategic Partnership To Boost Indonesia’s Export Los Angeles Strengthening Indonesia's Exports, BNI Embraces Business Partners in the United States 165 07 November 2018 Press Conference of Indonesian Master Jakarta PT Bank Negara Indonesia (Persero) Tbk  BNI Becomes the Main Sponsor of Indonesian Prestigious Golf Tournament Adapting Quickly to Face Change 627
  628. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 628 Date Event Place Title of Press Conference 166 07 November 2018 Signing of the Promo Program between BNI and Pertamina Jakarta BNI Supports the Cashless Program at Pertamina Gas Stations, Various Promos are Ready to Pamper the Customers 167 13 November 2018 ‘I am a Young Merchant’ Program Tegal BNI Pioneered "I am a Young Merchant" Encouraging Vocational School Students to have Business Spirit 168 13 November 2018 Inauguration of Village-Owned Enterprise Center Malang Supporting the Financial Services Authority Program, Village-Owned Enterprise Fostered by BNI Becomes Village-Owned Enterprise Center 169 16 November 2018 Cooperation between BNI New York and the Consulate General of the Republic of Indonesia (KJRI) of New York New York Supporting US Trade and Investment in Indonesia, BNI’s New York Branch Trade Finance Grows 25% 170 15 November 2018 Signing of Memorandum of Understanding (MoU) of the National Online Samsat Phase II Jakarta E-Samsat Phase II is Opened, BNI Expands Services to 16 Provinces 171 28 November 2018 Movement to Guard the Planting Season October 2018 - March 2019 Aceh Besar BNI Initiates the OKMAR 2018/2019 Planting Season Guarding Movement 172 28 November 2018 Inauguration of Sragen - Ngawi Segment of Solo-Ngawi Toll Roads Sragen Sragen - Ngawi Segment of Solo-Ngawi Toll Roads Officially Operates 173 30 November 2018 Launching of Proleague Team Jakarta BNI 46 Volleyball Team Is Formed, Ready to Hunt Champion Title 174 03 December 2018 The Crazy Toys Sale Jakarta Before Christmas & New Year, BNI & Toys Kingdom Holds The Crazy Toys Sale 175 05 December 2018 Movement to Guard the Planting Season October 2018 - March 2019 Jember Movement of 25,000 Farmers, BNI & Ministry Guard the Planting Season 2018/2019 176 11 December 2018 Pro-Am BNI Indonesian Masters Jakarta BNI Achieves the Indonesian Pro-Am Tournament Masters 2018 177 12 December 2018 Movement to Guard the Planting Season October 2018 - March 2019 Barito Kuala Guarding the Planting Season 2018/2019 BNI & Ministry Now Work on Borneo Land 178 12 December 2018 Santa Claus is Coming to RKB Jakarta Before Christmas, BNI Distributes 10,000 Gifts 179 13 December 2018 Movement to Guard the Planting Season October 2018 - March 2019 Malang Starting in Malang, KUR BNI Achieves Farmer Drying Center Joining the Movement to Guard the Planting Season, Darmin Goes Down to the Rice Field 180 17 December 2018 Movement to Guard the Planting Season October 2018 - March 2019 Purwokerto Milenial SOE, farmers are concerned the movement of the growing season banyumas touch 180 18 December 2018 Kemenkumham Mother's Day Celebration Jakarta BNI Produces PKH and PMI Purna Graduation 181 19 December 2018 Movement to Guard the Planting Season October 2018 - March 2019 Deli Serdang Continuing the Planting Season Guarding Movement of OKMAR 2018/2019, BNI Works on Deli Serdang 182 20 December 2018 Media Workshop "End of Year Service” Jakarta 71 BNI Outlets Operate On Christmas Holidays 2018 183 20 December 2018 SOE Shares Love Ambon SOE Shares Love, 500 Orphans Are Invited to Rejoice in Welcoming Christmas 184 21 December 2018 FLPP Signing Jakarta Surpassing the 2018 FLPP Target, BNI Will Distribute Subsidized Mortgages for 10 Thousand Houses in 2019 185 26 December 2018 Signing BNI with Angkasa Pura I Jakarta Collaboration of BNI & Angkasa Pura I, Pay Bills Is Now More Orderly with H2H System 186 26 December 2018 Grand Launching of Galunggung Train Bandung Bandung - Tasikmalaya Railroad Is Back Active, BNI Gives Promo Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  629. Good Corporate Governance BULETIN BNI has an internal magazine called Sinergi , which throughout 2018 issued 6 (six) editions with the following themes: Theme Edition Optimizing BNI’s Digital Business Model in Millennial Era 104 Digital Transformation from Entertainment Stage 105 BNI’s Sergab Program Prospers the Farmers 106 Getting More Innovative in the Digital Era 107 BNI Escorts 2018 Asian Games 108 BNI Pioneer of Non-Cash Movement 109 Internal communication tools in the forms of BNI Greetings email and sms, consisting of: 1. bankwide and high-level corporate information submitted by the Board of Directors to all employees (Newsletter). 2. bankwide and more technical corporate information delivered by KMP Division to all employees (Corporate Info). 3. technical information related to HR which shall be delivered immediately by the HR Division to all employees (HR messages). 4. other bankwide information but not related to marketing, products, or services (BNI Column). Throughout 2018, the number of BNI Greeting SMS was 239 (two hundred thirty-nine) times. The list of topics of BNI Greetings email/SMS is as follows.. 1. 22 Years BNI Life contributes to the nation! youtu.be/ PhFzjJFE-Mc & youtu.be/i0nDfG8E9_0 2. Activate your UnikQu in Yap! for more fun transaction experience. Download on Google Play or click http://bit. ly/yapaja. Complete info click www.yap.id 3. Come on, fill out the Employee Social Media Mapping Survey and get online shopping vouchers. 4. Based on BNI’s Annual GMS resolutions on March 20, 2018, there was a change in the composition of the Company’s Board of Directors & Board of Commissioners. Complete info https://goo.gl/GUKwN8 5. Legal Aspects of Domestic Funds & Activities: 6. Opening & Disbursing Savings Accounts. Info: http:// bnicorpu.co.id/>Digital Learning> E-Book> Law> Legal Blast 7. Legal Aspects of Domestic Funds & Activities: 8. Opening & Disbursing Savings Accounts. Info: http:// bnicorpu.co.id/>Digital Learning>E-Book>Hukum>Legal Blast 9. Let’s submit your logo proposal for BNI’s 72nd Anniversary! Win cash prizes & attractive gadgets worth millions of rupiah. Complete information in BNI Forum PT Bank Negara Indonesia (Persero) Tbk  10. Let’s celebrate! BNI 72nd Anniversary DeFile at 15.00 WIB on BNI’s KP yard. Show your creativity and support your contingent. Info bit.ly/DeFileHUTke72BNI 11. For Muslim, Subuh Prayer during Family Gathering can be held at Al-I’tishom Mosque and Baitussalam Mosque (Arthaloka) 12. Based on BNI’s Annual GMS resolutions on March 20, 2018, there was a change in the composition of the Company’s Board of Directors & Board of Commissioners. Complete info https://goo.gl/GUKwN8 13. BNI, together with Universitas Indonesia and Universitas Indonesia Alumni Association, will soon hold Half Marathon BNI-UI 2018. Complete info https://goo.gl/ xjW6nU 14. BNI recorded profit at Rp11.44T in Q3 2018. Complete information on e-Sinergi46 (Android http://bit.ly/ AndroidSinergi & iOS http://bit.ly/BNIsinergi46 ) 15. Register yourself to join BNI’s #7missions! Follow the excitement and win a total prize of 50 million rupiah. Complete info click bit.ly/BNI7MissionsRules 16. Get a special BNI employee program at the BNI Multifinance exhibition in collaboration with Nissan & Datsun on 21-23 Feb 2018 starting at 09.00 at the South Parking Lot of BNI 17. BNI’s Board of Commissioners & Board of Directors wish you a Happy Eid Mubarak 1439H Please accept our sincere apology. Full victory begins with full change #BNItuDigital 18. Download and activate SOE Buddy application! Read the manual guidelines. Click the following link to access SOE Buddy guidelines http://bit.ly/sobatbumnpanduan 19. Employee Journalism! You see it, you report it. Send news about BNI & earn money for every news posted. Info http://bit.ly/journalism4employee 20. Today, Tuesday, March 20, 2018, BNI holds the Annual General Meeting of Shareholders at Shangri-La Hotel Ballroom. Info https://goo.gl/LrZUGz 21. Follow e-synergy46 Year End Quiz! Win 2 Samsung Gear & 30 Savings of Rp500 thousand. Complete info click http://bit.ly/esinergi46yearendquiz 22. Follow the excitement of Watching World Cup Together of Uruguay vs France on Friday, July 6, 2018, in BNI’s KP Parking Area starting at 16:30. Get various interesting doorpizes! 23. Take part in the dissemination of Beyond Banking program & understand BNI CorPlan. Watch the livestreaming at http://bit.ly/bnitransformationlive or check the link in e-synergy46 24. Follow Stress Test Yap! Friday (23/2) at 9:00 to 10:00, transact your Yap! at https://bit.ly/2CAfHW8 .millions of rupiahs & Samsung A8 awaits. Info on BNIForum 25. Want to study but don’t have friends? Just study with LeVA. Download BNI Call app from Playstore/App store & follow LeVA guidelines at BNIForum. Adapting Quickly to Face Change 629
  630. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 26. Don’t forget to register your attendance at a ceremony of Pancasila Birth Day, June 1, 2018, at 07.00 WIB at the Head Office through check-in of e-Attendance! 27. Especially for BNI employees, CASHBACK for Paying Telkom & PLN bills up to 100%!! Register for Auto debit Immediately in the nearest Branch for November 2018 Period. T & C at BNI Forum 28. Special for BNI Employees. Come show your Heroes’ Day Spirit with many BNI SMS Banking transactions & get a prize of Rp200,000. Period of 9-16 Nov 18. T & C at BNI Forum 29. Especially for you! Change your BNI Credit Card shopping transactions to installments of 0% for 3 & 6 months (min Rp2.5 million) & 12 months (min Rp5 million). Transaction period of 15 Mar - 15 Apr 18. Call BNI Call 1500046. T&C apply. 30. Submit Your logo proposal for BNI’s 72nd Anniversary! Win cash prizes & attractive gadgets worth millions of rupiah. Complete information in BNI Forum 31. The e-synergy46 Year End Quiz will end on Dec 31, 2018! Answer all questions (4 questions) & win the prize. Info: http://bit.ly/esinergi46yearendquiz 32. BNI’s Net Income in First Semester 2018 grew by 16% (yoy) or reached Rp13.62 trillion. Let’s continue to improve performance in 2018. Read the complete info at Sinergi 46. Download it on Android bit.ly/AndroidSinergi & iOS bit.ly/BNIsinergi46 33. BNI’s 2017 net income reached Rp13.62 trillion or up 20.1% (yoy). Let’s continue to improve performance in 2018. Complete info in BNI Forum 34. Sinergi46 Magazine is now transforming into Digital. Download on a smartphone & follow the Quiz. Android bit.ly/AndroidSinergi & iOS bit.ly/BNIsinergi46 #BNItuDigital 35. Management Greets “Wise in Using Social Media” has aired via Youtube Livestream https://youtu.be/IbDQjeiDto or check IG Bio @Quickpose if the link does not work 36. Benefits of your BNI Learning Wallet in 2018, immediately click and access bnicorpu.co.id/BLW. Let’s learn according to your choice right now! 37. Want to get Top Up Taplus, turbo civic car, Honda Scoopy, and other prizes from BNI Life? The trick is easy, click on bit.ly/2EFyt4r & bit.ly/2CYt86N. T&C apply 38. Welcoming BNI’s 72nd Anniversary. Get 72% provision discount & free adm. fee for BNI Griya applications specifically for employees of BNI and Subsidiaries. Contact the nearest BNI Branch. 39. Watch the Management Greets “Wise in Using Social Media” with competent speakers. Youtube Livestream https://youtu.be/tCqAVPFjISo this afternoon at 3:30 p.m. 40. Celebrate BNI Family Gathering during BNI’s 72nd Anniversary. Take your family to enjoy various attractions. Full info bit.ly/famgathBNI 630 Adapting Quickly to Face Change 41. Celebrate BNI KKB Bazaar of Nusantara Creation Wonders! Get various attractive offers on 16-18 April 2018 at 25th fl. of BNI Headquarters. Info bit.ly/ bnimenyapa-kkb 42. Your participation as BNI Expert to make Chatbot Q&A becomes an added value. Our Q&A submission extends to 31 Aug 2018. Email bnicorpu@bni.co.id 43. 44. Want an online shopping voucher? Complete the Employee’s Social Media Mapping Survey. Click https:// goo.gl/gijWQe survey period of 16-26 March 2018 45. All BNI personnel, take advantage of digital Leadership learning opportunities (for all levels and talent classes), by accessing BNI Smarter. 46. During the Eid holiday, BNI opened Limited Operational Outlet. Click the following link to see a list of Limited Operational Outlets bit.ly/outletterbatasbni 47. Check out the article “The Right Way to Avoid Fake News in Social Media” at e-Sinergi46! Download on Android http://bit.ly/AndroidSinergi & iOS http://bit.ly/ BNIsinergi46 48. Check out the article “The Right Way to Avoid Fake News in Social Media” at e-Sinergi46! Download on Android http://bit.ly/ AndroidSinergi & iOS http://bit.ly/ BNIsinergi46 49. Promote Earth Hour 2018 by turning off your lights & electronic equipment on Saturday 24/3/2018 at 20:30 to 21:30 local time. Love the earth for our children and grandchildren. 50. Find answers to legal issues that often appear in KC Mega Kuningan. Info http.//bnicorpu.co.id/> Digital Learning> E-Book > Hukum > Legal Blast 51. Find answers to legal issues that often appear in KC Margonda. Complete info http://bnicorpu.co.id/ 52. Law related to opening of non-individual checking accounts. Complete info bnicorpu.co.id > Digital Learning > E-book > Hukum > Legal Blast 53. The latest Motor and Car Test Drive only at BNI Multifinance - Suzuki Expo, 3-4 & 7-8 May at the parking lot of BNI’s Head Office 54. Let’s Visit the Largest SOE Exhibition in Indonesia | IBD EXPO 2018 (@ibdexpo) in Grand City, Surabaya 3-6 October 2018, starting at 10:00 - 20:00 WIB. 55. BNI’s Digital Transformation has brought BNI to be an institution that offers fast, flexible, & mobile services. Let’s continue to improve performance. BNI Anniversary! Serving the Country, the Nation’s Pride 56. Increase your person value by learning & sharing and recording the realization through bnicorpu.co.id from your gadget. Learn on, Share on! PT Bank Negara Indonesia (Persero) Tbk
  631. Good Corporate Governance TRANSPARENCY OF REPORT SUBMISSION One form to implement GCG principles , in this case the principles of Transparency and Accountability, is the Information Openness in the form of transparency in submitting reports carried out by BNI to all stakeholders, either shareholders, regulators, or the wide community. The following is a list of Information Disclosures conducted by BNI during 2018 either by website, or regulator and mail electronic reporting systems. No. Information Date To IDX IDX SPE BNI Financial Services Authority Regulation No. 55/POJK.03/2015 on Implementation of Governance for Commercial Bank Financial Services Authority Regulation No. 55/POJK.04/2015 on Establishment and Work Guidelines of Audit Committee. √ √ √ √ Financial Services Authority Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies √ √ v v √ Regulation No. I-E, Attachment to Board of Directors’ Decision of PT Bursa Efek Jakarta No. Kep-306/BEJ/07-2004 on Obligations for Submitting Information Financial Services Authority Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies √ √ - 08 January 2018 - √ Letter of the Chairperson of Bapepam No. S-30/PM.2/2013 dated 7 February 2013 and No. S-124/PM.23/2013 dated 27 February 2013 related to the request of data of Debt/ Liabilities in the form of Foreign Currency. - √ - 08 January 2018 - √ Financial Services Authority Regulation No. 27/ POJK.03/2016 on Fit and Proper Test for Main Entity of Financial Services Institutions. - - - 6 Realization Report on the Use of 15 January 2018 Proceeds from the Public Offering of PT Bank Negara Indonesia (Persero) Tbk. v √ Financial Services Authority Regulation No. 30/ POJK.04/2015 on Report of Actual Use of Proceeds from the Public Offering. 7 Report on Information or Material Fact: The Company organized a Performance Analyst Meeting in December 2017 (audited) 17 January 2018 v √ Financial Services Authority Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies √ √ v 8 Publication Financial Statements Position of December 2017 (audited) 18 January 2018 v √ Financial Services Authority Regulation No. 32/ POJK.03/2016 on Amendment to FSA Regulation No. 6/ POJK.03/2015 on Transparency and Publication of Bank Reports FSA Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies √ √ √ 1 Information on Termination and Appointment of Independent Member of BNI’s Audit Committee 2 January 2018 2 Report on Information or Material Fact: Information on Additional Capital Participation in the Bank’s Subsidiary: PT Bank BNI Syariah 2 January 2018 v 3 Monthly Report of Securities Holders Register of PT Bank Negara Indonesia (Persero) Tbk Position of December 2017 08 January 2018 4 Submission of Data on Foreign Currency Debt/Liabilities of PT Bank Negara Indonesia (Persero) Tbk Position of December 2017 5 List of the Top 10 Shareholders (Local and Foreign) Position of December 2017 PT Bank Negara Indonesia (Persero) Tbk  FSA Website Access Reference Adapting Quickly to Face Change 631
  632. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 632 Information Date To Reference IDX FSA 9 Consolidated Financial Statements Position of December 2017 (audited) 18 January 2018 v √ Financial Services Authority Regulation No. 32/ POJK.03/2016 on Amendment to FSA Regulation No. 6/ POJK.03/2015 on Transparency and Publication of Bank Reports 10 Plan of Annual GMS of PT Bank Negara Indonesia (Persero) Tbk. 30 January 2018 - √ 11 Amendment to the Implementation Date of the Annual GMS of PT Bank Negara Indonesia (Persero) Tbk 5 February 2018 - 12 Monthly Report of Securities Holders Register of PT Bank Negara Indonesia (Persero) Tbk Position of January 2018 7 February 2018 13 Submission of Data on Foreign Currency Debt/Liabilities of PT Bank Negara Indonesia (Persero) Tbk Position of January 2018 14 15 Website Access IDX SPE BNI Financial Services Authority Regulation No. 32/ POJK.04/2014 in conjunction with Financial Services Authority Regulation No. 10/ POJK.04/2017 on Planning and Organizing General Meeting of Shareholders of Public Companies - - - √ Financial Services Authority Regulation No. 32/ POJK.04/2014 in conjunction with Financial Services Authority Regulation No. 10/ POJK.04/2017 on Planning and Organizing General Meeting of Shareholders of Public Companies - - - v √ Regulation No. I-E, Attachment to Board of Directors’ Decision of PT Bursa Efek Jakarta No. Kep-306/BEJ/07-2004 on Obligations for Submitting Information Financial Services Authority Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies √ √ - 7 February 2018 - √ Letter of the Chairperson of Bapepam No. S-30/PM.2/2013 dated 7 February 2013 and No. S-124/PM.23/2013 dated 27 February 2013 related to the request of data of Debt/ Liabilities in the form of Foreign Currency. - √ - Announcement of Annual GMS of PT Bank Negara Indonesia (Persero) Tbk 9 February 2018 v √ Financial Services Authority Regulation No. 32/ POJK.04/2014 in conjunction with Financial Services Authority Regulation No. 10/ POJK.04/2017 on Planning and Organizing General Meeting of Shareholders of Public Companies - - - Publication of the Annual GMS Announcement of PT Bank Negara Indonesia (Persero) Tbk 9 February 2018 v √ Financial Services Authority Regulation No. 32/ POJK.04/2014 in conjunction with Financial Services Authority Regulation No. 10/ POJK.04/2017 on Planning and Organizing General Meeting of Shareholders of Public Companies √ √ v Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  633. Good Corporate Governance No . Information Date To Website Access Reference IDX FSA 16 Self-Assessment of Integrated Governance of Financial Conglomeration of PT Bank Negara Indonesia (Persero) Tbk Period of December 2017 13 February 2018 - √ Financial Services Authority Regulation No. 18/POJK.03/2014 on Implementation of Integrated Governance for Financial Conglomeration Circular Letter of Financial Services Authority No. 15/SEOJK.03/2015 on Implementation of Integrated Governance for Financial Conglomeration IDX SPE BNI 17 Notice of Annual GMS of 2017 Fiscal Year of PT Bank Negara Indonesia (Persero) Tbk 26 February 2018 √ √ Financial Services Authority Regulation No. 32/ POJK.04/2014 in conjunction with Financial Services Authority Regulation No. 10/ POJK.04/2017 on Planning and Organizing General Meeting of Shareholders of Public Companies - - - 18 Publication of the Annual GMS Notice of 2017 Fiscal Year of PT Bank Negara Indonesia (Persero) Tbk 26 February 2018 v √ Financial Services Authority Regulation No. 32/ POJK.04/2014 in conjunction with Financial Services Authority Regulation No. 10/ POJK.04/2017 on Planning and Organizing General Meeting of Shareholders of Public Companies √ √ v 19 Annual Report of 2017 Fiscal Year of PT Bank Negara Indonesia (Persero) Tbk 26 February 2018 v √ Financial Services Authority Regulation No. 29/ POJK.04/2016 on Annual Report of Issuers or Public Companies √ √ v 20 Clarification and Explanation (News from Bisnis.com with the title "State-Owned Banks Ready to Publish Convertible Bonds of Rp6.5 Trillion") 26 February 2018 v √ Regulation No. I-E on Obligations to Disclose Information 21 Monthly Report of Securities Holders Register of PT Bank Negara Indonesia (Persero) Tbk Position of February 2018 06 March 2018 v √ Regulation No. I-E, Attachment to Board of Directors’ Decision of PT Bursa Efek Jakarta No. Kep-306/BEJ/07-2004 on Obligations for Submitting Information Financial Services Authority Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies √ √ - 22 Submission of Data on Foreign Currency Debt/Liabilities of PT Bank Negara Indonesia (Persero) Tbk Position of February 2018 06 March 2018 - √ Letter of the Chairperson of Bapepam No. S-30/PM.2/2013 dated 7 February 2013 and No. S-124/PM.23/2013 dated 27 February 2013 related to the request of data of Debt/ Liabilities in the form of Foreign Currency. - √ - PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 633
  634. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 634 Information Date 23 Revised Information on the Annual GMS Notice of 2017 Fiscal Year of PT Bank Negara Indonesia (Persero) Tbk 9 March 2018 24 Publication of Revised Information on the Annual GMS Notice of 2017 Fiscal Year of PT Bank Negara Indonesia (Persero) Tbk 9 March 2018 25 Report of Effective Date on Appointment of President Commissioner/Independent Commissioner of PT Bank Negara Indonesia (Persero) Tbk 20 March 2018 26 Submission of Annual GMS Material from PT Bank Negara Indonesia (Persero) Tbk for the Recovery Plan Agenda 20 March 2018 27 Submission of Explanation of Follow-Up on BNI Pensioner Complaints 21 March 2018 28 Schedule of BNI’s Final Cash Dividend Distribution 22 March 2018 Adapting Quickly to Face Change To IDX FSA Reference Website Access IDX SPE BNI √ √ v v √ v √ √ √ Decision of Board of Directors of the Indonesian Central Securities Depository (PT Kustodian Sentral Efek Indonesia) No. KEP-0013/DIR/ KSEI/0612 Financial Services Authority Regulation No. 32/ POJK.04/2014 in conjunction with Financial Services Authority Regulation No. 10/ POJK.04/2017 on Planning and Organizing General Meeting of Shareholders of Public Companies v √ Financial Services Authority Regulation No. 32/ POJK.04/2014 in conjunction with Financial Services Authority Regulation No. 10/ POJK.04/2017 on Planning and Organizing General Meeting of Shareholders of Public Companies Financial Services Authority Regulation No. 27/ POJK.03/2016 on Fit and Proper Test for Main Entity of Financial Services Institutions. v √ Financial Services Authority Regulation No. 32/ POJK.04/2014 in conjunction with Financial Services Authority Regulation No. 10/ POJK.04/2017 on Planning and Organizing General Meeting of Shareholders of Public Companies Regulation No. I-E on Obligations to Disclose Information √ v Financial Services Authority Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies Regulation No. II A on Securities Trading, Attachment to the Decision Letter of the Board of Directors of PT Bursa Efek Indonesia No. Kep-00023/ BEI/03-2015 Financial Services Authority Regulation No. 32/ POJK.04/2014 in conjunction with Financial Services Authority Regulation No. 10/ POJK.04/2017 on Planning and Organizing General Meeting of Shareholders of Public Companies PT Bank Negara Indonesia (Persero) Tbk
  635. Good Corporate Governance No . Information Date To Website Access Reference IDX FSA IDX SPE BNI 29 Summary of the Annual GMS Minutes of 2017 Fiscal Year of PT Bank Negara Indonesia (Persero) Tbk 22 March 2018 v √ Financial Services Authority Regulation No. 32/ POJK.04/2014 in conjunction with Financial Services Authority Regulation No. 10/ POJK.04/2017 on Planning and Organizing General Meeting of Shareholders of Public Companies v v - 30 Publication of Summary of the Annual GMS Minutes of 2017 Fiscal Year of PT Bank Negara Indonesia (Persero) Tbk 22 March 2018 v √ Financial Services Authority Regulation No. 32/ POJK.04/2014 in conjunction with Financial Services Authority Regulation No. 10/ POJK.04/2017 on Planning and Organizing General Meeting of Shareholders of Public Companies √ √ √ 31 Submission of Deed of Minutes of Annual GMS for 2017 Fiscal Year of PT Bank Negara Indonesia (Persero) Tbk 29 March 2018 √ Financial Services Authority Regulation No. 32/ POJK.04/2014 in conjunction with Financial Services Authority Regulation No. 10/ POJK.04/2017 on Planning and Organizing General Meeting of Shareholders of Public Companies √ 32 Submission of Data on Foreign Currency Debt/Liabilities of PT Bank Negara Indonesia (Persero) Tbk Position of March 2018 5 April 2018 - √ Letter of the Chairperson of Bapepam No. S-30/PM.2/2013 dated 7 February 2013 and No. S-124/PM.23/2013 dated 27 February 2013 related to the request of data of Debt/ Liabilities in the form of Foreign Currency. - √ - 33 Monthly Report of Securities Holders Register of PT Bank Negara Indonesia (Persero) Tbk Position of March 2018 5 April 2018 v √ Regulation No. I-E, Attachment to Board of Directors’ Decision of PT Bursa Efek Jakarta No. Kep-306/BEJ/07-2004 on Obligations for Submitting Information FSA Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies √ √ - 34 List of the Top 10 Shareholders (Local and Foreign) Position of March 2018 5 April 2018 - √ Financial Services Authority Regulation No. 27/ POJK.03/2016 on Fit and Proper Test for Main Entity of Financial Services Institutions. - - - 35 Submission of Information of BNI’s Temporary Substitute Compliance Director 6 April 2018 - √ Financial Services Authority Regulation No. 46/POJK.03/2017 on Implementation of Compliance Function of Commercial Banks - - - 36 Annual Report of 2017 Fiscal Year of PT Bank Negara Indonesia (Persero) Tbk to institutions and FSA (Bank Indonesia) 9 April 2018 - √ Financial Services Authority Regulation No. 32/ POJK.03/2016 on Amendment to FSA Regulation No. 6/ POJK.03/2015 on Transparency and Publication of Bank Reports - - - 37 Submission of Monitoring Results of Rating for BNI Phase I Sustainable Bonds I Year 2017 19 April 2018 v v Regulation No. IX.C.11, Decision of Chairman of Bapepam-LK No. Kep-712/BL/2012 dated December 26, 2012, on Rating of Debt Securities PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 635
  636. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 636 Information Date To Reference Website Access IDX FSA IDX SPE BNI 38 Report on Information or Material Fact: The Company organized a Performance Analyst Meeting in March 2018 (unaudited) 23 April 2018 v √ Financial Services Authority Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies √ √ v 37 Consolidated Financial Statements Position of March 2018 (unaudited) of PT Bank Negara Indonesia (Persero) Tbk 24 April 2018 √ v Financial Services Authority Regulation No. 32/ POJK.03/2016 on Amendment to FSA Regulation No. 6/ POJK.03/2015 on Transparency and Publication of Bank Reports Regulation No. I-E, Attachment to Decision of Board of Directors of PT Bursa Efek Jakarta No. Kep-306/BEJ/072004 dated July 19, 2004, on the Obligations to Disclose Information √ √ - 38 Published Financial Statements Position of March 2018 (unaudited) of PT Bank Negara Indonesia (Persero) Tbk 24 April 2018 √ v Financial Services Authority Regulation No. 32/ POJK.03/2016 on Amendment to FSA Regulation No. 6/ POJK.03/2015 on Transparency and Publication of Bank Reports Regulation No. I-E, Attachment to Decision of Board of Directors of PT Bursa Efek Jakarta No. Kep-306/BEJ/072004 dated July 19, 2004, on the Obligations to Disclose Information √ √ √ 39 Monthly Report of Securities Holders Register of PT Bank Negara Indonesia (Persero) Tbk Position of April 2018 8 May 2018 v √ Regulation No. I-E, Attachment to Board of Directors’ Decision of PT Bursa Efek Jakarta No. Kep-306/BEJ/07-2004 on Obligations for Submitting Information Financial Services Authority Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies √ √ - 40 Submission of Data on Foreign Currency Debt/Liabilities of PT Bank Negara Indonesia (Persero) Tbk Position of April 2018 8 May 2018 - √ Letter of the Chairperson of Bapepam No. S-30/PM.2/2013 dated 7 February 2013 and No. S-124/PM.23/2013 dated 27 February 2013 related to the request of data of Debt/ Liabilities in the form of Foreign Currency. - √ - 41 Information on Membership of 30 May 2018 Foreign Audit Committee of PT Bank Negara Indonesia (Persero) Tbk - √ Financial Services Authority Regulation No. 55/POJK.03/2015 on Implementation of Governance for Commercial Bank FSA Regulation No. 55/POJK.04/2015 on Establishment and Work Guidelines of Audit Committee. - - v Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  637. Good Corporate Governance No . Information Date To IDX FSA 42 Monthly Report of Securities Holders Register of PT Bank Negara Indonesia (Persero) Tbk Position of May 2018 7 June 2018 v 43 Submission of Data on Foreign Currency Debt/Liabilities of PT Bank Negara Indonesia (Persero) Tbk Position of May 2018 7 June 2018 44 Submission of Data on Foreign Currency Debt/Liabilities of PT Bank Negara Indonesia (Persero) Tbk Position of June 2018 45 Website Access Reference IDX SPE BNI √ Regulation No. I-E, Attachment to Board of Directors’ Decision of PT Bursa Efek Jakarta No. Kep-306/BEJ/07-2004 on Obligations for Submitting Information Financial Services Authority Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies √ √ - - √ Letter of the Chairperson of Bapepam No. S-30/PM.2/2013 dated 7 February 2013 and No. S-124/PM.23/2013 dated 27 February 2013 related to the request of data of Debt/ Liabilities in the form of Foreign Currency. - √ - 5 July 2018 - √ Letter of the Chairperson of Bapepam No. S-30/PM.2/2013 dated 7 February 2013 and No. S-124/PM.23/2013 dated 27 February 2013 related to the request of data of Debt/ Liabilities in the form of Foreign Currency. - √ - Monthly Report of Securities Holders Register of PT Bank Negara Indonesia (Persero) Tbk Position of June 2018 5 July 2018 v √ Regulation No. I-E, Attachment to Board of Directors’ Decision of PT Bursa Efek Jakarta No. Kep-306/BEJ/07-2004 on Obligations for Submitting Information Financial Services Authority Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies √ √ - 46 List of the Top 10 Shareholders (Local and Foreign) Position of June 2018 5 July 2018 - √ Financial Services Authority Regulation No. 27/ POJK.03/2016 on Fit and Proper Test for Main Entity of Financial Services Institutions. - - - 47 Report on Information or Material Fact: The Company organized a Performance Analyst Meeting in June 2018 (unaudited) 18 July 2018 v √ Financial Services Authority Regulation No. 32/ POJK.03/2016 on Amendment to FSA Regulation No. 6/ POJK.03/2015 on Transparency and Publication of Bank Reports FSA Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies √ √ √ PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 637
  638. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 638 Information Date To IDX FSA 48 Consolidated Financial Statements Position of June 2018 (unaudited) of PT Bank Negara Indonesia (Persero) Tbk 19 July 2018 v 49 Publication Financial Statements Position of June 2018 (unaudited) of PT Bank Negara Indonesia (Persero) Tbk 19 July 2018 50 Submission of Information on Changes in the Composition of Share Ownership of the Board of Directors of PT Bank Negara Indonesia (Persero) Tbk 3 August 2018 Adapting Quickly to Face Change Reference Website Access IDX SPE BNI √ Regulation No. X.K.2, Attachment to Decision of Chairman of Bapepam-LK No. Kep-346/BL/2011 dated July 5, 2011, on the Submission of Periodic Financial Statements of Issuers of Public Companies Financial Services Authority Regulation No. 32/ POJK.03/2016 on Amendment to FSA Regulation No. 6/ POJK.03/2015 on Transparency and Publication of Bank Reports Regulation No. I-E, Attachment to Board of Directors’ Decision of PT Bursa Efek Jakarta No. Kep-306/BEJ/07-2004 on Obligations for Submitting Information √ √ - v √ Regulation No. X.K.2, Attachment to Decision of Chairman of Bapepam-LK No. Kep-346/BL/2011 dated July 5, 2011, on the Submission of Periodic Financial Statements of Issuers of Public Companies Financial Services Authority Regulation No. 32/ POJK.03/2016 on Amendment to FSA Regulation No. 6/ POJK.03/2015 on Transparency and Publication of Bank Reports Regulation No. I-E, Attachment to Board of Directors’ Decision of PT Bursa Efek Jakarta No. Kep-306/BEJ/07-2004 on Obligations for Submitting Information √ √ v v √ Financial Services Authority Regulation No. 11/ POJK.04/2017 on the Report of Ownership or Any Changes in Share Ownership of the Public Company √ √ - PT Bank Negara Indonesia (Persero) Tbk
  639. Good Corporate Governance No . Information Date To IDX FSA 51 Monthly Report of Securities Holders Register of PT Bank Negara Indonesia (Persero) Tbk Position of July 2018 6 August 2018 v 52 Submission of Data on Foreign Currency Debt/Liabilities of PT Bank Negara Indonesia (Persero) Tbk Position of July 2018 6 August 2018 53 Information on BNI's Public Expose Plan 54 Website Access Reference IDX SPE BNI √ Regulation No. I-E, Attachment to Board of Directors’ Decision of PT Bursa Efek Jakarta No. Kep-306/BEJ/07-2004 on Obligations for Submitting Information Financial Services Authority Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies √ √ - - √ Letter of the Chairperson of Bapepam No. S-30/PM.2/2013 dated 7 February 2013 and No. S-124/PM.23/2013 dated 27 February 2013 related to the request of data of Debt/ Liabilities in the form of Foreign Currency. - √ - 9 August 2018 √ - Stock Exchange Regulation No. I-E on Obligations to Disclose Information - - - Issuance of BNI 2018 Subordinated I Medium Term Notes (MTN) worth Rp100,000,000,000 (one hundred billion rupiah) 10 August 2018 √ √ √ √ √ 55 Submission of Public Expose Material 21 August 2018 √ - Stock Exchange Regulation No. I-E on Obligations to Disclose Information v - - 56 Submission of BNI’s Public Expose Report 31 August 2018 √ - Regulation No. I-E, Attachment to Board of Directors’ Decision of PT Bursa Efek Jakarta No. Kep-306/BEJ/07-2004 on Obligations for Submitting Information √ - - 57 Monthly Report of Securities Holders Register Position of August 2018 6 September 2018 v √ Regulation No. I-E, Attachment to Board of Directors’ Decision of PT Bursa Efek Jakarta No. Kep-306/BEJ/07-2004 on Obligations √ √ - 58 Submission of Data on Foreign Currency Debt/Liabilities Position of August 2018 6 September 2018 - √ Letter of the Chairperson of Bapepam No. S-30/PM.2/2013 dated 7 February 2013 and No. S-124/PM.23/2013 dated 27 February 2013 related to the request of data of Debt/ Liabilities in the form of Foreign Currency. - √ - 59 Monthly Report of Securities Holders Register Position of September 2018 4 October 2018 v √ Regulation No. I-E, Attachment to Board of Directors’ Decision of PT Bursa Efek Jakarta No. Kep-306/BEJ/07-2004 on Obligations for Submitting Information Financial Services Authority Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies √ √ - 60 List of the Top 10 Shareholders (Local and Foreign) Position of September 2018 4 October 2018 - √ Financial Services Authority Regulation No. 27/ POJK.03/2016 on Fit and Proper Test for Main Entity of Financial Services Institutions. - - - PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 639
  640. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 640 Information Date To Reference Website Access IDX FSA IDX SPE BNI 61 Submission of Data on Foreign Currency Debt/Liabilities Position of September 2018 4 October 2018 - √ Letter of the Chairperson of Bapepam No. S-30/PM.2/2013 dated 7 February 2013 and No. S-124/PM.23/2013 dated 27 February 2013 related to the request of data of Debt/ Liabilities in the form of Foreign Currency. Financial Services Authority Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies - √ - 62 The Company organized a Performance Analyst Meeting in September 2018 (unaudited) 18 October 2018 √ √ Financial Services Authority Regulation No. 32/ POJK.03/2016 on Amendment to Financial Services Authority Regulation No. 6/POJK.03/2015 on Transparency and Publication of Bank Reports Financial Services Authority Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies √ √ √ 63 Consolidated Financial Statements Position of September 2018 (unaudited) of PT Bank Negara Indonesia (Persero) Tbk 19 October 2018 √ √ Regulation No. X.K.2, Attachment to Decision of Chairman of Bapepam-LK No. Kep-346/BL/2011 dated July 5, 2011, on the Submission of Periodic Financial Statements of Issuers of Public Companies Financial Services Authority Regulation No. 32/ POJK.03/2016 on Amendment to Financial Services Authority Regulation No. 6/POJK.03/2015 on Transparency and Publication of Bank Reports Regulation No. I-E, Attachment to Board of Directors’ Decision of PT Bursa Efek Jakarta No. Kep-306/BEJ/07-2004 on Obligations for Submitting Information √ Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  641. Good Corporate Governance No . Information Date To IDX FSA 64 Publication Financial Statements Position of September 2018 (unaudited) of PT Bank Negara Indonesia (Persero) Tbk 19 October 2018 √ 65 Monthly Report of Securities Holders Register Position of October 2018 5 November 2018 66 Submission of Data on Foreign Currency Debt/Liabilities Position of October 2018 67 Monthly Report of Securities Holders Register Position of November 2018 PT Bank Negara Indonesia (Persero) Tbk  Website Access Reference IDX SPE BNI √ Regulation No. X.K.2, Attachment to Decision of Chairman of Bapepam-LK No. Kep-346/BL/2011 dated July 5, 2011, on the Submission of Periodic Financial Statements of Issuers of Public Companies Financial Services Authority Regulation No. 32/ POJK.03/2016 on Amendment to Financial Services Authority Regulation No. 6/POJK.03/2015 on Transparency and Publication of Bank Reports Regulation No. I-E, Attachment to Board of Directors’ Decision of PT Bursa Efek Jakarta No. Kep-306/BEJ/07-2004 on Obligations for Submitting Information √ √ √ V √ Regulation No. I-E, Attachment to Board of Directors’ Decision of PT Bursa Efek Jakarta No. Kep-306/BEJ/07-2004 on Obligations for Submitting Information Financial Services Authority Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies √ √ - 6 November 2018 - √ Letter of the Chairperson of Bapepam No. S-30/PM.2/2013 dated 7 February 2013 and No. S-124/PM.23/2013 dated 27 February 2013 related to request of data of Debt/ Liabilities in the form of Foreign Currency Financial Services Authority Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies - √ - 5 December 2018 V √ Regulation No. I-E, Attachment to Board of Directors’ Decision of PT Bursa Efek Jakarta No. Kep-306/BEJ/07-2004 on Obligations for Submitting Information Financial Services Authority Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies √ √ - Adapting Quickly to Face Change 641
  642. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 68 Information Submission of Data on Foreign Currency Debt/Liabilities Position of November 2018 Date 5 December 2018 To IDX FSA - √ Reference Letter of the Chairperson of Bapepam No. S-30/PM.2/2013 dated 7 February 2013 and No. S-124/PM.23/2013 dated 27 February 2013 related to request of data of Debt/ Liabilities in the form of Foreign Currency Financial Services Authority Regulation No. 31/ POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies Website Access IDX SPE BNI - √ - ANTI-CORRUPTION POLICIES BNI already has anti-corruption guidelines contained in its various policies including the Code of Conduct, Gratification Guidelines, and Whistleblowing System. These guidelines have been well implemented and their effectiveness is evaluated every year. An explanation of the anti-corruption mechanism is presented as follows. CODE OF CONDUCT BNI always strives to conduct business in accordance with the GCG principles. To achieve this, BNI already has a Code of Conduct called BNI’s Code of Conduct. BNI’s Code of Conduct is an ethical guideline that becomes the principle and basis that guides relationships between BNI Persons and stakeholders in doing business. The Code of Conduct contains a system of values, business ethics, work ethics, commitment, and enforcement of company regulations in conducting business and other activities, as well as interactions with the stakeholders. BNI’s Code of Conduct has been implemented since December 1, 2010, which was a revitalization result of the previous Code of Conduct (2001). BNI’s Code of Conduct must be obeyed and carried out by all BNI Personnel (Board of Commissioners, Board of Directors, BNI Employees) which is marked by affixing signatures by all BNI Personnel in the BNI’s Statement of Attitude as a manifestation of commitment in implementing BNI’s Code of Conduct. PRINCIPLES OF CODE OF CONDUCT BNI’s Code of Conduct consists of 14 items which in principle require all BNI Personnel to: 1. Act Professionally, by prioritizing the work culture values of Principle 46. 2. Become a role model and remind each other, among subordinates, superiors, colleagues, and business partners to implement BNI’s Code of Conduct. 3. Maintain good relationship between fellow employees of BNI. 4. Maintain bank’s confidentiality and confidentiality of position. 5. Maintain job security. 6. Protect health, natural resources, and the environment. 7. Carrying out recording, reporting, and work administration properly, honestly, and accurately. 8. Prevent conflicts of interest that can harm BNI’s interests. 9. Not to give or receive gifts in any forms, either directly or indirectly from any parties, related to our duties and responsibilities. 10. Act as a Resource Person, as long as it is in the interests of BNI. 11. Not to become a member and donor of Political Parties. 12. Not to disclose incorrect information about BNI. 13. Not to use BNI’s assets for personal gain. 14. Not to abuse BNI’s Corporate Identity, for personal gain. Until now, Code of Conduct material is still quite relevant to BNI’s situation and conditions as well as the development of banking regulations in Indonesia. 642 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  643. Good Corporate Governance COMPLIANCE WITH CODE OF CONDUCT The Code of Conduct is one form of BNI ’s commitments to comply with the legal provisions and the highest ethical standards wherever BNI conducts its business/operational activities. The management of the Company in addition to complying with the applicable laws and regulations shall also uphold norms and ethical values. The Code of Conduct applies to all employees of the Company from the Board of Commissioners, Board of Directors, and all employees. All of the BNI’s employees have an awareness to carry out good ethics which will enhance and strengthen the Bank’s reputation. DISSEMINATION OF CODE OF CONDUCT In order to disseminate and internalize the values of BNI’s Code of Conduct, a pocket book of BNI’ Code of Conduct has been published and distributed to all BNI Personnel. Furthermore, periodic dissemination of the Code of Conduct is carried out through internal seminars/BNI dissemination, BNI’s internal media (Sinergi Magazine and BNI Forum website) which can be accessed by all of BNI’s employees, sharing sessions at the quality month held every month in each of BNI’s organizational units, training of GCG and Code of Conduct for BNI’s employees either new or old employees, and coaching by supervisors. Violations of BNI’s Code of Conduct will be subject to strict sanctions in accordance with company regulations and policies that apply in BNI. EFFORT TO IMPLEMENT AND ENFORCE THE CODE OF CONDUCT The implementation and enforcement of the Code of Conduct as part of GCG implementation is always carried out through awareness and internalization programs. BNI is committed to develop and implement GCG principles in every activity of the Company at all levels or organizational structures from the bottom level to the top management. Therefore, the existence of the Code of Conduct is a behavioral reference for the Board of Commissioners, Board of Directors and workers as part of efforts to achieve the Company’s Vision and Mission. Enforcement of the Code of Conduct is carried out by regular monitoring of compliance with the Code of Conduct and providing facilities for complaints of violations of the Code of Conduct which are regulated separately in the mechanism of Whistleblowing System. Every BNI personnel can report irregularities of such Code of Conduct and the identity of the reporter will be protected. All reports must be accompanied by accurate data and/or evidence so that violations can be further processed. Every violation of the Code of Conduct will be subject to sanctions in accordance with the applicable regulations and the imposition of such sanctions is not discriminatory. MONITORING ON THE IMPLEMENTATION OF BNI’S CODE OF CONDUCT Monitoring of the implementation of BNI’s Code of Conduct is carried out by the Corporate Communication and Secretariat Division in the GCG Monitoring Group, whose function is to monitor the implementation of the Code of Conduct. However, monitoring of the implementation of Code of Conduct is also carried out by the Compliance Division to ensure the fulfillment of compliance with and obligations of BNI’s Code of Conduct, as well as the enforcement process of compliance on violation cases against BNI’s Code of Conduct. TYPE OF SANCTIONS FOR VIOLATION OF CODE OF CONDUCT BNI personnel at any level if clearly proven to have violated BNI’s Code of Conduct will be subject to sanctions in accordance with the regulations contained in the applicable policies and provisions. The sanctions are as follows: Principle Sanctions Types of Violations Warning Letter (SP) Violations of conduct and order in the work environment Reprimand Letter (STE) Violations of conduct and order in the work environment Violations of procedure/obligation system Final Warning Letter (STK) Violations of procedure/obligation system Severe violations that do not fulfill the elements of fraud/cheating/fictitious/engineering and/or gratifications Demotion Violation of Procedure/Obligation System containing elements of heavy violation intent that does not fulfill the elements of fraud/cheating/fictitious/engineering and/or gratifications Termination of Employment Violations of Procedure/Obligation System that contains an element of intention and causes harm Severe violations that do not fulfill the elements of fraud/cheating/fictitious/engineering and/or gratifications PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 643
  644. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk TOTAL VIOLATIONS OF CODE OF CONDUCT The number of code of conduct violations can be seen in the number of complaints and follow-up in the Whistleblowing System. CORPORATE CULTURE NI’s Corporate Culture is identified by “PRINSIP 46”, which is a behavior guidance for BNI’s personnel, consisting of: 4 Work Culture Values: • Professionalism • Integrity • • Customer Oriented Continuous Improvement 6 BNI Personnel Principal Behavioral Values: • Improve Competency and Give the Best Result • Honest, Sincere, and Willing • Discipline, Consistent, and Responsible • Give the Best Service through Synergic Partnership • Always Perform Improvement • Creative and Innovative Each of BNI’s Work Cultural Values has a Principal Behavior, which acts as a reference for all BNI Personnel, with the 6 BNI Personnel Principal Behavioral Values as follows: 4 Nilai Budaya Kerja BNI 6 Nilai Perilaku Utama Insan BNI Professionalism Meningkatkan Kompetensi dan Memberikan Hasil Terbaik Integritas Honest, Sincere, and Willing Discipline, Consistent, and Responsible Customer Oriented Give the Best Service through Synergic Partnership Continuous Improvement Always Perform Improvement Creative and Innovative GRATIFICATION POLICY One way to implement Good Corporate Governance and Code of Conduct in BNI is by applying Gratification Control. As the initial step in implementing Gratification Control program, the “Gratification Control Commitment” was signed by the President Director, witnessed by the Chairman of the Corruption Eradication Commission (KPK Chairman) on October 17, 2016, and attended by the Board of Commissioners, the Board of Directors, Top Management, as well as Customers, Debtors, and the Notary. In order to follow up the “Gratification Control Commitment”, a Gratification Control Unit (UPG) was established under the Compliance Division. The Company Guidelines of Gratification Control have been prepared and can be accessed by the entire BNI personnel through BNI e-PP. The Company Guidelines (PP) on Gratification Control add the BNI Guidelines related to the gratification provisions, which were previously only stipulated in BNI’s Code of Conduct. MANAGEMENT OF GRATIFICATION CONTROL Since the signing of Gratification Commitment, BNI has implemented Gratification Control in its operational activities. The Gratification Receipt Report reported to UPG will subsequently be forwarded to KPK through Online Gratification (GOL) application. The Compliance Division has also provided verbal and written consultations on questions from the Division/Unit related to Gratification. At the beginning of each year, all BNI employees sign the Employee Integrity Pact, in which one of the points is as follows: “Not giving, promising, and/or receiving any forms of compensation to or from fund customers or debtor 644 Adapting Quickly to Face Change customers, vendors, partners, business partners, and/or other parties both external and internal.” In an effort to digitize paperless gratification reporting, since December 2018, BNI employees can report gratification through the Compliance Information Management System (CIMS) portal at www.cims.bni.co.id. Instructions for implementation and technical instructions related to the reporting can be accessed through BNI ePP or BNI Forum. DISSEMINATION OF GRATIFICATION POLICY The dissemination related to Gratification has been carried out, through the screening of articles or other information related to Gratification on bni.co.id website, print media, and BNI internal media, including BNI Forum. The activities carried out by UPG during 2018 are as follows: 1. Adding the article on integrity (gratification clause) in BNI cooperation agreement with third parties (Cooperation Agreement & Credit Agreement). There is a Whistleblowing System clause in all of the agreements mentioned above, as a means of reporting for external parties if there are any BNI personnel who violate the gratification control commitment through channels such as website, e-mail, SMS, letters, and telephone (Hotline). 2. Disseminating the Procedure for Accepting Gratification that Must Be Received during Eid Al-Fitr to all Divisions/ Units through KPN Memo No. KPN/6/0923 dated June 7, 2018, and BNI Forum. 3. Providing compliance opinions related to the status of facilities/goods received by BNI from third parties. 4. Disseminating the gratification control in the form of infographics through Whatsapp Group facilities to the PT Bank Negara Indonesia (Persero) Tbk
  645. Good Corporate Governance Division and Regional leaders on June 8 , 2018. 5. Disseminating the gratification control through Compliance Reminder (CORE) sent via e-mail facility of BNI Greetings on June 28, 2018. K E PATU HAN Legal Governance Risk Compliance Edisi 04/VI/2018 Pengendalian Gratifikasi Gratifikasi adalah pemberian dalam arti luas, yakni meliputi pemberian uang, barang, rabat (discount), komisi, pinjaman tanpa bunga, tiket perjalanan, fasilitas penginapan, perjalanan wisata, pengobatan cuma - cuma dan fasilitas lainnya. Gratifikasi yang WAJIB Dilaporkan Penerimaan gratifikasi yang berasal dari pihak yang memiliki benturan kepentingan dan berkaitan dengan jabatan seperti nasabah, debitur, rekanan / vendor / mitra kerja dan pihak ketiga lainnya. Gratifikasi yang Tidak WAJIB Dilaporkan Gratifikasi yang Terpaksa Diterima Gratifikasi tidak diterima secara langsung. Berlaku umum. Tidak bertentangan dengan peraturan perundang – undangan. Identitas pemberi tidak diketahui. Penerima ragu dengan kriteria gratifikasi yang diterima. Wujud ekspresi keramahtamahan dalam hubungan sosial antar sesama. Kondisi tertentu yang tidak mungkin ditolak, seperti rusaknya hubungan baik antar institusi dan lain-lain. WAJIB dilaporkan kepada KPK melalui Unit Pengendalian Gratifikasi (UPG) di DIVISI KEPATUHAN (KPN) Ranah adat istiadat dan norma hidup dalam masyarakat. Alur Pelaporan Gratifikasi PELAPOR Barang mudah rusak (a.l. makanan) diserahkan ke panti asuhan / pihak yang membutuhkan. Barang tidak mudah rusak diserahkan kepada Pimpinan Unit untuk disimpan sementara. KPN menyerahkan SK kepada Pelapor. Gratifikasi milik negara diserahkan ke KPK. Mengisi formulir penerimaan / penolakan gratifikasi maks. 10 hari kerja sejak gratifikasi diterima / ditolak. Pela KPK melakukan analisa atas laporan dan mengeluarkan SK Kepemilikan Gratifikasi. Mengirimkan laporan melalui email gratifikasi@bni.co.id KPN melakukan verifikasi dokumen sebelum meneruskan ke KPK. Sumber referensi: Pedoman Perusahaan Pengendalian Gratifikasi www.bni.co.id Sektor Kepatuhan Core-SektorKN@bni.co.id 6. Disseminating the Gratification Control through material and questions on Daily Exercise Employee Program (DEEP46). All BNI employees must answer questions related to Gratification Control. 7. The gratification video material has already completed and has been aired through electronic media at BNI head office. All employees can access the video through BNI Corpu from each BNI employee’s smartphone. 8. Submitting posters to all Divisions/Units and All Regional Offices/Branch Offices/Sub-Branch Offices/Cash Offices. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 645
  646. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk GRATIFICATION REPORT IN 2018 Report on gratification receipt submitted by the reporter ( BNI Employee) to the Compliance Division, which is then forwarded to KPK through Online Gratification (GOL) application. The report on gratification receipt submitted by the Reporting Party has been forwarded to the Corruption Eradication Commission (KPK) with an average reporting period no later than 3 (three) business days from the 30 (thirty) business days deadline. 646 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  647. Good Corporate Governance WHISTLEBLOWING SYSTEM In order to increase effectiveness of GCG implementation , the Bank’s management is committed to running the Bank professionally based on the corporate conduct in accordance with the Code of Ethics and the work culture, in order to achieve good corporate governance. Therefore, the Bank has built a Whistleblowing System (WBS). EXISTENCE AND OBJECTIVES OF WHISTLEBLOWING SYSTEM The implementation of Whistleblowing System (WBS) with the name of “WBS to CEO” is one of the mechanisms for early detection of the occurrence of a violation in BNI that can lead to financial losses including matters that can damage BNI’s image. WBS management is carried out in collaboration with an external party, Deloitte. Thus, WBS is a commitment to create a clean work environment, with integrity, in the form of active participation by BNI personnel to report violations occurring within BNI’s environment. MANAGEMENT OF WHISTLEBLOWING SYSTEM The party in charge of WBS in BNI is the President Director, assisted by the Director of Compliance and Corporate Risk. In performing duties as WBS party in charge, the President Director assigns the Head of Compliance and Corporate Risk Division to manage WBS. WBS manager is the person in charge of WBS implementation in BNI, and is responsible to the President Director, through the Director of Compliance and Corporate Risk. In carrying out the functions, WBS manager is assisted by BNI’s WBS officers who have the competence and integrity to perform daily WBS activities. The appointment/designation of BNI’s WBS officers is conducted by President Director and/or Director of Compliance and Corporate Risk based on proposals from the WBS manager. Duties and Authority of WBS management are as follows: 1. WBS Manager duties a. Managing WBS implementation. b. Coordinating the follow-up handling on reports submitted through WBS. c. Coordinating the provision of protection against the Whistleblower with relevant units, either inside and outside the Head Office. d. Monitoring the settlement of report that comes through WBS. e. Evaluating and improving the effectiveness of BNI’s WBS 2. WBS Manager authority: a. Providing suggestions to WBS Party in Charge related to the follow-up of report handling. b. Establishing follow-up on reports, particularly reports that need WBS Manager’s authority for follow-up decisions c. Providing suggestions to WBS Party in Charge related to protection requests from the Whistleblower. d. Performing other actions necessary in order to implement WBS. SUBMISSION OF VIOLATION REPORT Violations can be reported through WBS using the following channels: Telephone : 021-57853377 Email : bni-transparan@tipoffs.com.sg Letter : BNI Transparan PO BOX 2646/JKP 10026 Website : http://bni-transparan.tipoffs.com.sg SMS : Nomor (081-1970-1946) COMPLAINT MANAGEMENT The handling of complaint reporting through WBS includes: 1. The WBS consulting team prepares a disclosure report along with the follow-up recommendations based on the violations reports received, then uploads it into the e-room, which is specifically prepared for BNI, no later than 1 (one) working day after the report is received. The WBS consulting team will send an e-mail to BNI’s WBS Manager and/or appointed BNI’s WBS officer as well as other e-room members regarding the new disclosure report that has been entered into e-room. BNI’s WBS officers are expected to provide feedback on the follow-up within an allotted time. 2. The time period to provide feedback on the follow-up disclosure report is as follows a. The first response: no later than 15 (fifteen) business days after the disclosure report entered into the e-room. b. Follow-up response: every end of the month following the first response 3. To maintain independency, in the event that there is a violation report mentioning a name or involving one of the e-room members, then such e-room member cannot access the e-room. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 647
  648. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk PROTECTION FOR WHISTLEBLOWER The main protection to the whistleblower is protection to confidentiality of the identity and report submitted by the whistleblower. Protection to the Whistleblower can be adjusted to the threats/actions received. Such protection is carried out with due regard to the principle of confidentiality and related provisions applicable in BNI. This Protection also applies to parties conducting the investigation, among others, the Internal Controls/SPI and parties providing information related to the violation reports. TYPES OF VIOLATIONS THAT CAN BE REPORTED Violation reports submitted through the WBS are as follows : 1. Fraud Fraud, which is a dishonest act or guile including, fraud, extortion, forgery, concealment, or destruction of documents/ reports or using falsified documents, conducted by a person/group of people that pose a potential loss or real loss to the ban. 2. Violation of regulations/laws Conducting violation actions/deeds that carry a sanction under the laws applicable internally and externally.. 3. Conflict of Interest A situation where members of the Board of Directors, members of the Board of Commissioners, committee members, permanent/temporary/outsourcing employees (BNI Personnel), through their position, office or authority in BNI, have a personal interest that may affect the duties mandated by BNI objectively, therefore, causing a conflict between personal and/or group and/or family interests with BNI’s economic interests. 4. Bribery/gratification Receiving anything in any form, regardless of the number value from other parties related to the position/authority/ responsibility in BNI. 5. Unethical behavior Deeds or actions committed by BNI personnel that cannot be justified, or be ethically accepted, or are in violation of BNI’s Code of Conduct. 648 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  649. Good Corporate Governance FLOWCHART OF VIOLATION REPORTING SUBMISSION No LANGKAH KERJA 1 . The reporter makes a report of alleged violations through WBS channel. 2. Report from the reporter is received by WBS consultant team. 3. The WBS Consultant Team analyzes whether the report is included in WBS object or not (if it is not included in WBS object, the report will be forwarded to BNI’s WBS Officer, who will then forward it to the concerned unit). 4 If it is a WBS object, the WBS consultant team will input it to e-room. 5 The WBS Consultant Team sends a notification email to the WBS Manager and BNI’s WBS Officer regarding the new report in e-room. 6 BNI’s WBS officer carries out preliminary study/analysis of the incoming report and can contact the related unit, the WBS Consultant Team, or the Reporter (full disclosure) to collect additional supporting information and data (if any and if possible). 7 BNI’s WBS officers requests a decision from the authority to follow up the WBS report. 8 Decision from the authority through the WBS officer to follow up/not follow up on the report. 9 WBS officers updates the e-room upon the decision authorized on such report. 10 If the authorized decision is to follow up, the WBS Officer will forward it to SPI to conduct research. 11 SPI reports the progress of research carried out to WBS Officer. 12 WBS officer updates the research development from SPI to e-room. DISSEMINATION OF WHISTLEBLOWING SYSTEM WBS dissemination is carried out on an ongoing basis among others by conducting training for new employees, dissemination by video, posters, sms blast to all employees, and through the role of the Central Workers Union (SP) to help disseminate to all employees in Branches/Centers. BNI will continue to strive to improve the understanding and concern of the employees to report violations through the WBS so that they can create a work environment that is clean and has integrity. Related to this matter, the following steps have been optimized: 1. Delivering WBS completion progress through BNI forum; 2. Delivering WBS material through in-class training to prospective employees of Officer Development Program (ODP) and Assistant Development Program (ADP); 3. Installing WBS posters in each unit; 4. Disseminating WBS through BBM blast to all employees, internal media/magazines, WBS videos; PT Bank Negara Indonesia (Persero) Tbk  Whistleblower WBS Consultant Team Compliance SPI No Yes 5. Expanding reporters by involving external parties; 6. Adding reporting media channels; 7. Disseminating to external parties through dissemination tools in units, BNI website, inclusion of WBS information on agreements with third parties; NUMBER OF COMPLAINTS Throughout 2018, the violation reports received through the WBS were 93 (ninety three) reports. Such violation reports are followed up by an investigation process carried out by the Auditor in charge of the unit where the alleged violations occurred. . Sarana pelaporan yang digunakan dalam melaporkan WBS adalah sebagai berikut: 1. Email as many as 44 (forty four) reports or equal to 47.31% of the total WBS reports. 2. Website, a total of 19 (nineteen) reports or 20.43% of the total WBS reports. 3. Hotlines, as many as 12 (twelve) reports or 12.90% of the Adapting Quickly to Face Change 649
  650. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk total WBS reports. 4. Short Message Service (SMS) of 9 (nine) reports or 9.68% of the total WBS reports. 5. Through Mail for as many as 9 (nine) reports or 9.68% of the total WBS reports. SANCTIONS/FOLLOW UP OF COMPLAINTS IN 2018 Based on the investigation results, the follow-up development of WBS report is as follows: Total Complaints and Follow Up No Types of Violations Total In Settlement Process Proven Not Proven 1 Violation of law/regulation 20 2 7 11 2 Unethical behavior 13 1 4 8 3 Fraud 14 3 8 3 4 Bribe/gratification 2 1 1 - 5 Conflict of Interest 2 - 1 1 6 Laporan Out Of Scope* 42 - - 42 93 7 21 65 Total Information: *out of WBS scope Based on SPI investigation result against WBS report, there were 21 reports proven. The follow-up on the Reported that was proven was the each 4 reports for Counseling and Transfer, Termination sanction of 3 reports, and Warning Letter and Written Warning each 1 report. Furthermore, there were 3 reports under further investigation by SPI and 5 reports under the process of imposing administrative sanctions INTERNAL FRAUD Internal Fraud means fraud/irregularities conducted by the administrator, permanent and non-permanent employees (honorer and outsourcing) related to the Bank’s work process and operational activities that affect the Bank’s financial condition. The number of internal fraud can be seen in the following table: Number of Cases Conducted By Internal Fraud in 1 Year Management Permanent Employee Previous Year (2017) Previous Year (2017) Current Year (2018) Previous Year (2017) Current Year (2018) Total fraud -- -- 15 Fraud 7 Fraud 2 Fraud 1 Fraud Settled -- -- 15 Fraud 4 Fraud 2 Fraud 1 Fraud Under the Bank's internal settlement process -- -- -- 3 Fraud -- -- Settlement has not been sought -- -- -- -- -- -- Has been followed-up through legal process -- -- 2 Fraud -- -- -- Information: Irregularities/fraud cases with loss above Rp100 million INTEGRATED GOVERNANCE IMPLEMENTATION As an implementation transparency form of Integrated Governance in BNI’s Financial Conglomeration, and as a follow-up to the provisions contained in the Financial Services Authority Regulation No. 18/POJK.03/18 dated 650 Outsourcing Employees Current Year (2018) Adapting Quickly to Face Change November 18, 2014, on Implementation of Integrated Governance for Financial Conglomeration in conjunction with Financial Services Authority Circular Letter No. 15/ SEOJK.03/2015 dated May 25, 2015, on Implementation of Integrated Governance for Financial Conglomeration, the implementation of Integrated Governance for BNI Financial Conglomeration in 2017 consisting of: 1. Self Assessment Report of Implementation of Integrated PT Bank Negara Indonesia (Persero) Tbk
  651. Good Corporate Governance 2 . 3. 4. 5. 6. 7. Governance throughout 2017. BNI’s Financial Conglomeration Structure. Share ownership structure in BNI’s Financial Conglomeration, position until December 2017. BNI’s Financial Conglomeration Management Structure Basic Principles of Integrated Governance of BNI’s Financial Conglomeration. Intra-Group Transaction Policy in BNI’s Financial Conglomeration. Report of Good Corporate Governance Implementation at BNI as the Main Entity in BNI’s Financial Conglomeration The following is the implementation of Good Corporate Governance at BNI as the Main Entity in BNI’s Financial Conglomeration. SELF-ASSESSMENT REPORT OF THE IMPLEMENTATION OF INTEGRATED GOVERNANCE THROUGHOUT 2018 Financial Services Authority Regulation No. 18/POJK.03/2014 dated November 18, 2014 on Implementation of Integrated for Financial Conglomeration in conjunction with Circular Letter of Financial Services Authority No. 15/SEOJK.03/2015 dated May 25, 2015 on Implementation of Integrated Governance for Financial Conglomeration, among others, requires the Financial Conglomeration to prepare Self-Assessment report of Integrated Governance periodically (June and December) to the Financial Services Authority, which shall be submitted no later than the 15th of the second month after the end of the related reporting month (August 15 and February 15). Self-Assessment on the implementation of Integrated Governance principles in BNI’s Financial Conglomeration shall at least be embodied and focused in 7 (seven) assessment factors of Integrated Governance implementation consisting of: Assessment Factor No. Assessment Factor 1 Board of Directors of Main Entity 2 Board of Commissioners of Main Entity 3 Integrated Governance Committee 4 Integrated Compliance Work Unit 5 Integrated Internal Audit Work Unit 6 Integrated Risk Management Implementation 7 Integrated Governance Guidelines The Self-Assessment is categorized into 5 (five) ranks with the explanation of each ranks is as follows: Rating Definition 1 The Financial Conglomeration is considered to have implemented the Integrated Governance, which is generally very good. This is reflected on the very adequate fulfillment of the implementation of the Integrated Governance principles. In the event that there are any weaknesses on the implementation of the Integrated Governance, generally such weaknesses are insignificant and can be rectified immediately by the Main Entity and/or FSI. 2 The Financial Conglomeration is considered to have implemented the Integrated Governance, which is generally good. This is reflected on the adequate fulfillment of the implementation of the Integrated Governance principles. In the event that there are any weaknesses on the implementation of the Integrated Governance, generally such weaknesses are less insignificant and can be rectified by normal actions of the Main Entity and/or FSI. 3 The Financial Conglomeration is considered to have implemented the Integrated Governance, which is generally fair. This is reflected on the moderately adequate fulfillment of the implementation of the Integrated Governance principles. In the event that there are any weaknesses on the implementation of the Integrated Governance principles, generally such weaknesses are relatively significant and need sufficient attention from the Main Entity and/or FSI. 4 The Financial Conglomeration is considered to have implemented the Integrated Governance, which is generally less than good. This is reflected on the rather inadequate fulfillment of the implementation of the Integrated Governance principles. There is weakness in the implementation of Integrated Governance, generally such weakness is significant and needs overall improvement by the Main Entity and/or FSI. 5 The Financial Conglomeration is considered to have implemented the Integrated Governance, which is generally not good. This is reflected from the inadequate fulfillment of the implementation of Integrated Governance principles. There is weakness in the implementation of Integrated Governance, generally such weakness is very significant and difficult to be rectified by the Main Entity and/or FSI. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 651
  652. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk For the year 2018, BNI’s financial conglomeration prepared a self-assessment related to the implementation of Governance in BNI’s Financial Conglomeration as follows: Self-Assessment on Implementation of Integrated Governance Self-Assessment result on Integrated Governance Implementation Ratings June 2018 December 2018 2 2 Definition of Ratings The Financial Conglomeration is considered to have implemented the Integrated Governance, which is generally good. This is reflected on the adequate fulfillment of the implementation of the Integrated Governance principles. In the event that there are any weaknesses on the implementation of the Integrated Governance, generally such weaknesses are rather insignificant and can be rectified by normal actions of the Main Entity and/or FSI. Based on the Self Assessment results on the 7 (seven) assessment factors of the Implementation of Integrated Governance for the period of December 2018, we can conclude as follows: 1. Board of Directors of Main Entity a. In the Integrated Governance structure, all members of BNI’s Board of Directors have met the qualifications set by the applicable laws and regulations. b. In the Integrated Governance process, the duties and responsibilities of BNI’s Board of Directors related to the Integrated Governance process have been carried out and followed up in accordance with the direction of BNI’s Board of Commissioners. c. BNI’s Board of Directors has followed up on the input from BNI’s Board of Commissioners on the evaluation of the Integrated Governance Guidelines, as well as has ensured that both internal and external audit findings have been properly followed up. 2. Board of Commissioners of Main Entity a. In the Integrated Governance structure, all members of BNI’s Board of Commissioners have met the qualifications set by the applicable laws and regulations. b. In the Integrated Governance process, the duties and responsibilities of BNI’s Board of Commissioners related to the Integrated Governance process have provided input to BNI’s Board of Directors in the framework of improving the Integrated Governance Guidelines. c. BNI’s Board of Commissioners has provided input and direction as well as evaluation on audit findings from both internal and external party for proper follow up by BNI’s Board of Directors. 3. Integrated Governance Committee a. The Integrated Governance Committee has been established according to the applicable provisions. b. In the period of July - December 2018, the Integrated Governance Committee held 2 (two) meetings in order to provide input related to implementation of Governance in BNI’s Financial Conglomeration 4. Integrated Compliance Work Unit a. The Compliance Division as an Integrated 652 Adapting Quickly to Face Change Compliance Work Unit is independent in nature in accordance with the applicable provisions. b. In order to improve the integrated compliance function, the Compliance Division coordinates with all work units in each FSI. c. The Compliance Division has monitored, evaluated, and constantly updated the Company’s Guidelines in accordance with the applicable provisions to ensure the implementation of compliance function in each FSI runs well. 5. Integrated Internal Audit Work Unit a. The Internal Audit Unit as an Integrated Internal Audit Work Unit is independent in nature in accordance with the applicable provisions. b. Periodically, the Internal Audit Unit has submitted the audit results and follow-up to the President Director and BNI’s Board of Commissioners with a copy to the Compliance Director. c. The Internal Audit Unit has evaluated the implementation of the integrated internal audit function in each FSI 6. Integrated Risk Management Implementation a. The Bank’s Risk Management Division as an Integrated Risk Management Work Unit is independent in nature in accordance with the applicable provisions. b. The Bank’s Risk Management Division has established and updated the Policy and stipulated risk limits that apply to all FSI. c. The Integrated Risk Management implementation has accommodated 4 (four) pillars of Risk Management implementation in accordance with Financial Services Authority regulations 7. Integrated Governance Guidelines a. The Integrated Governance Guidelines of BNI’s Financial Conglomeration have been prepared and implemented in accordance with Financial Services Authority Regulation No. 18/POJK/POJK.03/2014 The Integrated Governance Guidelines of BNI’s Financial Conglomeration have been communicated to all FSI in BNI’s Financial Conglomeration and will be evaluated according to the applicable provisions. BNI’S FINANCIAL CONGLOMERATION STRUCTURE PT Bank Negara Indonesia (Persero) Tbk
  653. Good Corporate Governance Through Board of Directors ’ Letter No. DIR/102 dated March 13, 2015, BNI’s Financial Conglomeration has reported the structure of BNI’s Financial Conglomeration as follows: ENTITAS UTAMA 99,98% 75,00% 60,00% 99,94% Pembiayaan Sekuritas Asuransi Jiwa Perbankan Syariah 99,9% Asset Management BNI’s Financial Conglomeration has met the administrative requirements and has been recorded in the administrative supervision of Financial Services Authority cfm. FSA Letter No. S-48/PB.313/2015 dated April 15, 2015. Furthermore, BNI’s Financial Conglomeration has also an Integrated Governance Committee (TKT) as follows: Chairman Members : Bapak Revrisond Baswir (BNI) : • Bapak Joni Swastanto (BNI) • Bapak Rizqullah (BNI Syariah) • Bapak Hasanudin (DPS BNI Syariah ) • Bapak Utang Ranuwijaya (BNI Life) • Bapak Parikesit Suprapto (BNI Life) • Bapak Eddy Siswanto (BNI Asset Management) • Bapak Suhendry Hafni (BNI Sekuritas) • Ibu Rosa Lima Dwi Mutiari (BNI Multifinance) • Ibu Setyowati (Pihak Independen Komite TKT) As guidelines, BNI has also had Integrated Governance Guidelines, which are prepared and reviewed in accordance with the provisions of applicable laws and regulations. These guidelines can be accessed via www.bni.co.id The Integrated Governance Guidelines have been updated recently through Board of Directors’ Decision Letter No. DIR/796 dated December 12, 2018, and Decision Letter of Board of Commissioners No. DK/140 dated December 13, 2018. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 653
  654. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk SHARE OWNERSHIP STRUCTURE IN BNI’S FINANCIAL CONGLOMERATION PT Bank Negara Indonesia (Persero) Tbk, is as the Main Entity of BNI’s Financial Conglomeration. 3. PT BNI Sekuritas Pemerintah RI 60% Masyarakat 40% PT Bank Negara Indonesia (Persero) Tbk SBI Financial Services, Co. Ltd 25,0% 75,00% Share Ownership Structure of Financial Services Institution in BNI’s Financial Conglomeration is as follows: 4. PT BNI Multifinance 1. PT BNI Syariah PT Bank Negara Indonesia (Persero) Tbk 99,94% PT Bank Negara Indonesia (Persero) Tbk PT BNI Life Insurance 0,0599% Kopkar BNI Multifinance 0,01% 99,99% 5. PT BNI Aset Management 2. PT BNI Life Insurance PT BNI Sekuritas PT Bank Negara Indonesia (Persero) Tbk 60,0% YDDS 0,0% Sumitomo Life Insurance 40,0% 99,90% Kopkar BNI Sekuritas 0,10% YKPI 0,0% Keterangan: * Yayasan Danar Dhana Swadharma ** BNI’s Employees Welfare Foundation 654 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  655. Good Corporate Governance MANAGEMENT STRUCTURE OF BNI ’S FINANCIAL CONGLOMERATION PT Bank Negara Indonesia (Persero) Tbk Board of Commissioners’ Structure Name Ari Kuncoro Board of Directors’ Structure Position Independent/President Commissioner Wahyu Kuncoro Vice President Commissioner Pataniari Siahaan Independent Commissioner Revrisond Baswir Independent Commissioner Bistok Simbolon Commissioner Joni Swastanto Commissioner Ahmad Fikri Asegaf Independent Commissioner Marwanto Harjowiryono Commissioner Sigit Widyawan Independent Commissioner Board of Directors’ Structure Name Position Achmad Baiquni President Director Herry Sidharta Vice President Director Putrama Wahju Setyawan Director of Medium Business Rico Rizal Budidarmo Director of Treasury and International Banking Anggoro Eko Cahyo Director of Finance Adi Sulistyowati Director of Institutional Relations Bob Tyasika Ananta Director of Planning and Operational Name Position Abdullah Firman Wibowo President Director Dhias Widhiyati Director of Business Wahyu Avianto Director of Finance & Operation Iwan Abdi *) Director of Retail Business & Network Tribuana Tunggadewi Director of Compliance & Risk *)Effective after obtaining Decision of Fit and Proper Test from the Financial Services Authority Structure of Sharia Supervisory Board Name Position K.H. Ma'ruf Amin Chairman Hasanudin Member PT BNI Life Insurance Board of Commissioners’ Structure Name Position Parkesit Suprapto President Commissioner/ Independent Commissioner Darwin Suzandi Commissioner Kazuhiko Arai Commissioner Husain Abdullah Independent Commissioner Henry Cratein Suryanaga Independent Commissioner Board of Directors’ Structure Catur Budiharto Director of Small Business and Network Endang Hidayatullah Director of Compliance Shadiq Akasya President Director Dadang Setiabudi Director of Information Technology & Operations Eben Eser Nainggolan Director of Finance Naruyoshi Kuwata Director of Bancassurance Tambok P. Setyawati Director of Retail Banking Hidenobu Ito Director of Risk Management Intan Sari Abdams Katoppo *) Director of Marketing Name Position *) Resigned on November 1, 2018 PT BNI Syariah Board of Commissioners’ Structure Name Struktur Dewan Pengawas Position Name Position Fero Poerbonegoro President Commissioner K.H Ma’ruf Amin Chairman Rizqullah Independent Commissioner Agus Haryadi Member Max Niode Independent Commissioner Utang Ranuwijaya Member Imam Budi Sarjito*) Commissioner *) Effective after obtaining Decision of Fit and Proper Test from the Financial Services Authority PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 655
  656. 2018 AN N NU U AALL REPOR R TT BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk PT BNI Sekuritas Board of Commissioners’ Structure Nama Position - President Commissioner Ryosuke Hayashi Commissioner Suhendry Hafni Independent Commissioner Struktur Direksi Nama Position Adiyasa Suhadibroto President Director Reza Benito Zahar Director of Business Geger N. Maulana Director of Operations PT BNI Multifinance Board of Commissioners’ Structure Nama Position Rosa Lima Dwi Mutiari President Commissioner/ Independent Commissioner Retno Murwani Commissioner Board of Directors’ Structure Nama Position Fajar Agustianto Director of Finance & Operation Linda Saragih Director of Business PT BNI Aset Manajemen Board of Commissioners’ Structure Nama Position Eddy Siswanto President Commissioner, concurrently as Independent Commissioner Neny Asriani Commissioner In line with such matter, the basic principles of Integrated Governance of BNI’s Financial Conglomeration are as follows: 1. Implementation of Integrated Governance of BNI’s Financial Conglomeration aims to create superior performance and to add economic value for shareholders and other stakeholders, as well as to ensure that the operations of BNI’s Financial Conglomeration are in accordance with the applicable laws and regulations, business ethics, as well as the principles of Good Corporate Governance. 2. Referring to the provisions of the applicable laws and regulations, a Subsidiary is a separate legal entity from BNI, therefore it has its own duties and responsibilities in the management of the company. 3. A subsidiary is an independent legal entity in accordance with the provisions of the applicable laws and regulations, which in its management, BNI is the Controlling Shareholder in BNI’s Financial Conglomeration. 4. The Subsidiary’s Governance Principles in these guidelines apply to the Subsidiary to the extent that they are not regulated differently according to the applicable laws and regulations. The Subsidiary’s Articles of Association that are not yet in accordance with this Guidelines must be adjusted INTRA-GROUP TRANSACTION POLICIES IN BNI’S FINANCIAL CONGLOMERATION Intra-group financial transactions in BNI’s Financial Conglomeration shall be made based on sufficient cost and benefit analysis, have clear underlying, meet the applicable accounting standards, and not contradict to the applicable laws and regulations. Board of Directors’ Structure Nama Position Reita Farianti President Director Putut Endro Andanawarih Director of Investment Research & Technology Donny Susatio Adjie Director of Business BASIC PRINCIPLES OF INTEGRATED GOVERNANCE OF BNI’S FINANCIAL CONGLOMERATION In order to support the business and operations of BNI’s Financial Conglomeration, it is necessary to have the basic principles of Integrated Governance as referred to the GCG Roadmap published by FSA and the ASEAN Corporate Governance Scorecard as the reference for GCG implementation. 656 Adapting Quickly to Face Change DEFINITION OF INTER-GROUP TRANSACTION RISK The ownership relationship and/or control in various financial services sectors will affect the business continuity of the Financial Services Institution (FSI) caused by risk exposures that arise directly or indirectly from the business activities of entities incorporated in a Financial Conglomeration. Therefore, the Financial Services Authority (FSA) has issued a number of regulations on Risk Management implementation in an integrated manner in conglomeration in the financial services industry, with one of them is the obligation of the Financial Conglomeration to manage the inter-group transaction risk. PT Bank Negara Indonesia (Persero) Tbk
  657. Good Corporate Governance The inter-group transaction risk is the risk due to the dependence of an entity , either directly or indirectly, on other entities in one Financial Conglomeration in order to fulfill written and unwritten agreement obligations, followed by transfer of funds and/or not followed by transfer of funds. 5. Purchase or sale of assets from one FSI to another FSI in the Financial Conglomeration. 6. Transfer of risk through reinsurance. 7. Transaction to transfer the risk exposure of third parties among FSI in the Financial Conglomeration. RISK MANAGEMENT OBJECTIVES OF INTER-GROUP TRANSACTION The implementation of inter-group transaction Risk Management in BNI’s Financial Conglomeration aims to: 1. Manage and supervise the inter-group transaction risk of the Financial Conglomeration based on prudential principles. 2. Ensuring that the integrated risk management process can minimize the possibility of negative impacts caused by the dependence of an FSI both directly and indirectly on other FSIs in a Financial Conglomeration, as well as the negative impacts on the business conditions of BNI’s Financial Conglomeration as a whole. ADEQUACY OF PROCESS OF RISK IDENTIFICATION, MEASUREMENT, MONITORING, AND MANAGEMENT, AS WELL AS MANAGEMENT INFORMATION SYSTEM OF INTER-GROUP TRANSACTION RISK In implementing the inter-group transaction risk management, BNI as the Main Entity processes the risk identification, measurement, monitoring, and control of all material Risk Factors in an integrated manner, and is supported by an adequate inter-group transaction risk management information system that. 1. Identifikasi Risiko Transaksi Intra-grup The risk identification of inter-group transaction is carried out by analyzing the types of products and/or transactions among FSI in BNI’s Financial Conglomeration, which can lead to inter-group transaction risk in BNI’s Financial Conglomeration. 2. Measurement of Inter-Group Transaction Risk The inter-group transaction risk measurement aims to obtain the rating level of the inter-group transaction risk of the Financial Conglomeration. Matters that need to be done by BNI as the main entity in measuring the risk of inter-group transactions are preparing the methodology for measuring inter-group transaction risk and evaluating the suitability of assumptions, data sources, and procedures used to measure the inter-group transaction risk. 3. Monitoring of Inter-Group Transaction Risk Monitoring the inter-group transaction risk is carried out by evaluating the material exposures of inter-group transaction risk or that have an impact on the capital condition of the Financial Conglomeration, as well as improving the process and scope of reporting, including in the event of changes in business activities, products, transactions and factors of material risks. To assess the material inter-group financial relationship among FSIs in BNI’s Financial Conglomeration, it is measured based on BNI’s financial transaction value with FSI members of BNI’s Financial Conglomeration, as well as among FSIs in BNI’s Financial Conglomeration. 4. Management of Inter-Group Transaction Risk In order to carry out risk control, BNI as the Main Entity ensures that BNI’s Financial Conglomeration has a method of controlling the inter-group transaction risk that could endanger the business continuity RISK MANAGEMENT PRINCIPLES OF INTER-GROUP TRANSACTIONS As the main entity in implementing the Risk Management of inter-group transactions in BNI’s Financial Conglomeration, BNI has to carry out several matters, which include: 1. Having sufficient risk management process for intergroup transactions for the Financial Conglomeration as a whole. 2. Monitoring inter-group transactions in the Financial Conglomeration and compiling reports periodically. 3. Encouraging public disclosures related to inter-group transactions. 4. Considering the impact of inter-group transactions on the performance of FSI members of the Financial Conglomeration directly or on BNI’s Financial Conglomeration as a whole. TYPES OF TRANSACTION THAT MAY CAUSE INTER-GROUP TRANSACTION RISK Types of transactions that can lead to the inter-group transaction risk in BNI’s Financial Conglomeration, including but not limited to the following matters: 1. Cross ownership of FSI in Financial Conglomeration. 2. Centralized management of short-term liquidity in the Financial Conglomeration. 3. Guarantees, loans, and commitments given or obtained by an FSI from other FSI in the Financial Conglomeration. 4. Exposure to controlling Shareholders, including loan exposures and off-balance sheets such as guarantees and commitments. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 657
  658. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk of the Financial Conglomeration. Control of inter-group transaction risk at BNI’s Financial Conglomeration is carried out with due observance of: a. The composition of inherent risk parameters in inter-group transactions in the integrated risk profile assessment; b. The fulfillment of the Arm’s Length transactions related to inter-group transactions; c. The availability and completeness of inter-group transaction documentation; and d. The fulfillment of legal/regulator provisions that apply to every inter-group transaction. 5. Management Information System of Inter-Group Transaction Risk The inter-group transaction risk management information system includes: a. Report on inter-group transaction risk profile which is part of an integrated risk profile report; b. Inter-group transaction report, which contains: -- Recapitulation of transactions with related parties -- Important agreements with related parties BNI as the Main Entity prepares and submits the inter-group transaction risk profile report as part of the integrated risk profile report and inter-group transaction report to the Financial Services Authority every semester for the reporting positions for June and December. GOOD CORPORATE GOVERNANCE IMPLEMENTATION REPORT AT BNI AS THE MAIN ENTITY IN BNI’S FINANCIAL CONGLOMERATION. In accordance with Financial Services Authority Regulation No. 55/POJK.03/2016 on Governance Implementation for Commercial Bank in conjunction with Financial Services Authority Regulation No. 4/POJK.03/2016 on Sound Level Assessment of Commercial Banks, it is required, among others, for each Bank to conduct self-assessment of the implementation of Good Corporate Governance (GCG) principles at least every semester for the position of end of June and December. 658 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  659. Good Corporate Governance INFORMATION ON MAIN AND CONTROLLING SHAREHOLDER BNI is a State-Owned Enterprise , in which the biggest share ownership is held by the State of the Republic of Indonesia. The State of the Republic of Indonesia has one sheet of Dwiwarna A Series Share. Share ownership held by the State of the Republic of Indonesia is 60%. Therefore, there is no individual main and controlling shareholder. State of Republic of Indonesia 2. The right to propose candidate members of the Board of Directors and candidate members of the Board of Commissioners. 3. The right to propose GMS agenda. 4. The right to request and access company data and documents in which the mechanism to use such rights is in accordance with the provisions in the Articles of Association and laws and regulations. Detailed information on Main and Controlling Shareholders can be seen in the Shareholders Composition section in this Annual Report. EQUAL TREATMENT TO ALL SHAREHOLDERS PT Bank Negara Indonesia, (Persero) Tbk Dwiwarna A Series Shares grant the shareholders privileges that are not owned by other shareholders, which are: 1. The right to approve in GMS on the following matters: a. Approval for amendment to the Articles of Association; b. Approval for changes to Equity; c. Approval for Appointment and Dismissal of members of Board of Directors and Board of Commissioners; d. Approval for merger, consolidation, acquisition, split, and dissolution; e. Approval for remuneration of members of Board of Directors and Board of Commissioners; f. Approval for asset transfer based on Articles of Association that requires GMS approval; g. Approval for participation and reduction of the percentage of equity participation in other companies based on the Articles of Association that requires GMS approval; h. Approval for the use of profits; i. Approval for investment and long-term financing that is not operations in nature based on the Articles of Association that requires GMS approval; PT Bank Negara Indonesia (Persero) Tbk  All Shareholders, including Minority Shareholders and Foreign Shareholders, shall be treated equally and given the same opportunity to obtain information about the Bank. The Bank actively discloses timely and accurate information on all material aspects of the Bank, including financial situation, performance, ownership, and Bank’s governance (List of Information Disclosure 2018 has been disclosed in the previous table). The shareholder rights are protected as stipulated in the Capital Market provisions. The stakeholders rights shall be recognized in accordance with the applicable laws and regulations, and active cooperation between the bank and the stakeholders shall be developed in a joint effort of creating wealth, jobs, and the Bank’s sustainability. IMPLEMENTATION OF ASPECTS AND CORPORATE GOVERNANCE PRINCIPLES IN ACCORDANCE WITH PROVISIONS OF THE FINANCIAL SERVICES AUTHORITY Guidelines of Governance covers 5 (five) aspects, 8 (eight) principles, and 25 (twenty-five) recommendations of implementation of aspects and principles of good corporate governance. Recommendation of implementation of aspects and good corporate governance principles in the Governance Guidelines is the standard of implementation of aspects and good corporate governance principles that shall be applied by the Bank to implement the governance principles. Description of the implementation can be seen as follows. Adapting Quickly to Face Change 659
  660. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No I Principle Recommendation FSA Recommendation Explanation Aspect 1: Relationship between the Public Company and Shareholders in Guaranteeing the Shareholders' Rights; Principle 1 Increase the Value of Convening GMS Public Company has ways or technical procedures of voting, either open or close, prioritizing independence and interest of shareholders. Every issued share with voting rights has one vote (one share one vote). Shareholders can use their votes when making decision, especially in making decision by voting. However, decision making mechanism by voting, either open or close, has not been regulated in details. Public Companies are recommended to have procedure of voting in making decision on one GMS agenda. The voting procedure must maintain independence or freedom of the shareholders. As an example, in open voting, it is done by raising hands following the instruction of selection offered by GMS Chair. Whereas in closed voting, it is done for decision that needs confidentiality or upon request of the shareholders by using voting card or electronic voting. Procedure for Voting in decision making of an agenda item of BNI’s GMS is performed by close voting, which is by using voting card or electronic voting. Procedures and mechanisms to calculate quorum, question and answer, and decision making in meetings have been stipulated in GMS Conduct that refers to POJK No. 32/POJK.04/2014 as lastly amended by POJK No. 10/ POJK.04/2017. Information: Comply All members of Board of Directors and members of Board of Commissioners of the Public Company attend the Annual GMS. Attendance of all members of Directors and members of Board of Commissioners of Public Company is so that each member of Directors and members of Board of Commissioners can notice, explain, and answer directly on every problem occurred or questioned asked by the shareholders related to GMS agenda. BNI’s Annual GMS dated March 20, 2018, was attended by 10 (ten) members of Board of Directors and 8 (eight) members of Board of Commissioners. Summary of GMS Resolution is available on the Company's Website for at least 1 (one) year. Public Company must make the summary of GMS resolution in Indonesian and foreign language (at least in English) and announce it in 2 (two) business days after GMS is convened to public, in which one way is through the Company's Website. The summary of Annual GMS minutes has been announced in no later than 2 (two) business days after GMS is held, either on the Company Website or print media, as well as through electronic reporting system IDXnet and FSA e-reporting, which was on March 22, 2018. The availability of the summary of GMS minutes on Public Company's Website gives opportunity to shareholders who cannot attend to obtain important information in GMS easily and fast. Therefore, provision on the minimum period of availability of the summary of GMS resolution on the Website is intended to give adequate time for shareholders to obtain the information. 660 Explanation of the Implementation in BNI Adapting Quickly to Face Change Information: Comply Information: Comply PT Bank Negara Indonesia (Persero) Tbk
  661. Good Corporate Governance No Principle Principle 2 Increasing the Communication Quality of the Public Company and Shareholders or Investors . Recommendation Public Company has a communication policy with shareholders or investors. FSA Recommendation Explanation The existence of communication between Public Company and Shareholders or investors is intended to enable the Shareholders or investors to gain clearer understanding of publicly available information, such as periodic reports, information disclosure, business and performance conditions and prospects, and the implementation of corporate governance. In addition, Shareholders or investors may also submit feedback and opinions to public company’s management. Communication policy with the Shareholders or investors indicates the commitment of public company in communicating with the shareholders or investors. Such policies may include strategies, programs, and time lines of communication, as well as guidelines that support the Shareholders or investors to participate in such communications. Explanation of the Implementation in BNI The communication policy with shareholders or investors is contained in the Investor Relations company guidelines No. IN/41/ KMP/001 dated January 26, 2015, which includes investor relations activity policies such as analyst meetings, preparation of annual reports, investor meetings, public expose, and roadshows. Such policies may include strategies, programs, and time lines of communication, as well as guidelines that support the Shareholders or investors to participate in such communications. Communication policy with the Shareholders or investors indicates that BNI as a public company is committed in communicating with the shareholders or investors. Information: Comply Public Company discloses the communication policy of the Public Company with shareholders or investors on the website. II The disclosure of communication policy is a form of transparency of public company's commitment in giving equality to all Shareholders or investors for the implementation of communication. The disclosure of such information also aims to increase participation and role of Shareholders or investors in the implementation of public company’s communication program. Disclosure of communication policy and communication agenda with shareholders or investors has been uploaded to the Website under Investor Relations section. Information: Comply Aspect 2: Functions and Roles of the Board of Commissioners; Principle 3 Strengthen Membership and Composition of the Board of Commissioners The determination of the number of members of the Board of Commissioners must consider the condition of the Public Company. PT Bank Negara Indonesia (Persero) Tbk  The number of members of the Board of Commissioners may affect the effectiveness of the execution of duties of the Board of Commissioners. The determination of number of members of the Board of Commissioners of a public company must refer to the applicable laws and regulations, which is at least 2 (two) persons based on the provisions of FSA Regulation on the Board of Directors and Board of Commissioners of Issuers or Public Companies. In addition, it is also necessary to consider the conditions of the public company including, among others, the characteristics, capacities, measures, and the achievement of objectives and fulfillment of different business needs among the public companies. However, the large number of members of the Board of Commissioners will potentially disrupt the effectiveness of the implementation of the Board of Commissioners’ functions. The number of members of Board of Commissioners in BNI as of December 31, 2018, was 9 (nine) members, by observing the diversity of composition, this number is considered sufficient and in accordance with BNI’s condition as well as adjusted to provisions of POJK No. 33/ POJK.04/2014. Information: Comply Adapting Quickly to Face Change 661
  662. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No 4 Principle Principle 4 Increasing the Quality of Implementation of Duties and Responsibilities of the Board of Commissioners Explanation of the Implementation in BNI Recommendation FSA Recommendation Explanation The determination of composition of the Board of Commissioners considers the range of expertise, knowledge, and experience required. The composition of Board of Commissioners is a combination of characteristics either as organ of the Board of Commissioners or as members of the Board of Commissioners individually, according to the needs of the Public Company. These characteristics are reflected in determining expertise, knowledge, and experience required in implementing supervisory and advisory duties by the Board of Commissioners of a Public Company. The composition that has been attentive to the needs of a Public Company is a positive thing, particularly related to decision making in regard of implementing supervisory function conducted by considering various wider aspects. The current Board of Commissioners’ composition has satisfied the diversity element, which is a combination of independence, expertise/ education, work experience, age and gender, by considering BNI’s needs and complexity. The Board of Commissioners' selfassessment policy is a guideline used as a form of accountability for the Board of Commissioners performance assessment in a collegial manner. Self assessment is conducted by each member to assess the performance of the Board of Commissioners in a collegial manner, rather than assessing the individual performance of each member of the Board of Commissioners. With this self assessment, it is expected that each member of the Board of Commissioners can contribute to the performance improve of the Board of Commissioners on an ongoing basis. Self assessment policy to assess the performance of the Board of Commissioners is based on the achievement of the work program of the Board of Commissioners in accordance with the Board of Commissioners' Work Plan and Budget (RKA) and through GCG Self Assessment which includes indicators of duties and responsibilities of the Board of Commissioners. The Board of Commissioners has a self assessment policy to assess the performance of the Board of Commissioners. The policy may include the assessment activities undertaken along with their purposes and objectives, time of execution periodically, and benchmarks or assessment criteria used in accordance with the recommendations given by the nomination and remuneration function of public company, in which the functions are required in the FSA Regulation on the Nomination and Remuneration Committee of Issuers or Public Companies. This has been disclosed in the Sub Chapter of Diversity in the Composition of the Board of Commissioners in this Governance Report. Information: Comply Self assessment policy to assess the performance of the Board of Commissioners is based on the achievement of the work program of the Board of Commissioners in accordance with the Work Plan and Budget (RKA) of the Board of Commissioners which is described through advisory indicators of performance, strengthening executive functions, and monitoring compliance. While the assessment contained in GCG Self Assessment is divided into 3 (three) benchmarks, which are Governance Structure, Governance Process, and Governance Outcome. Governance Structure consists of 14 (fourteen) indicators, Governance Process consists of 17 (seventeen) indicators, and Governance Outcome consists of 6 (six) indicators. Information: Comply 662 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  663. Good Corporate Governance No Principle Recommendation The self assessment policy to assess the performance of the Board of Commissioners is disclosed through the Annual Report of Public Company . The Board of Commissioners has policy related to resignation of members of Board of Commissioners if involved in financial crime. FSA Recommendation Explanation The disclosure of self assessment policy on Board of Commissioners performance is conducted not only to fulfill the transparency aspect as a form of responsibility for the duty performance, but also to provide confidence, especially to the Shareholders or investors on efforts that are necessary to improve the Board of Commissioners performance. With such disclosure, the Shareholders or investors understand the mechanism of check and balance on Board of Commissioners performance. Disclosure of Self Assessment policy on Board of Commissioners performance is contained in the RKA submitted through the Annual Report of Public Company, while the GCG Self Assessment results on the duties and responsibilities of the Board of Commissioners are submitted to the regulator. The resignation policy of members of Board of Commissioners involved in financial crime is a policy that can improve stakeholders' trust on the public company to maintain the company’s integrity. This policy is required to assist in smooth legal process and to ensure that the legal process does not interfere with the business activities. In addition, in terms of morality, this policy establishes an ethical culture within the public company’s environment. Such policies may be covered by guidelines or code of conduct applicable to the Board of Commissioners. The Board of Commissioners' resignation policy is contained in the Articles of Association, Article 14 paragraph 16 c, which states that dismissal of members of Board of Commissioners, among others, if involved in actions that harm the Company and/or the State, Article 14 paragraph 18, which states that the decision to terminate is taken after the person concerned is given the opportunity to defend him/ herself in the GMS, and Article 14 paragraph 26 f, which states that the position of a member of Board of Commissioners by itself ends if he/she no longer meets the requirements as a member of Board of Commissioners based on the Articles of Association and laws and regulations. Furthermore, what is meant by engaging in financial crime is the status of the convicted against the member of the Board of Commissioners from the authorized party. The financial crimes referred are such as manipulation and various forms of embezzlement in financial services activities and the money laundering criminal act as referred to in Law No. 8 of 2010 on Prevention and Eradication of the Criminal Act of Money Laundering. The Board of Commissioners or Committees performing the Nomination and Remuneration functions prepares a succession policy in the nomination process of members of Directors. PT Bank Negara Indonesia (Persero) Tbk  Explanation of the Implementation in BNI Based on the provisions of FSA Regulations on the Nomination and Remuneration Committee of Issuers or Public Companies, the committee in charge of nomination function has the duty to formulate policies and criteria required in the nomination process of candidate members of Board of Directors. One of the policies that can support the nomination process as referred to is the succession policy of members of Board of Directors. The policy on succession is aimed to maintain the continuity of regeneration process or leadership cadre in the company in order to maintain business sustainability and long-term goals of the company. Information: Comply Information: Comply One of the organs of Board of Commissioners is the Nomination and Remuneration Committee (currently all members are Commissioners) that carries out the nomination functions, including assisting the Board of Commissioners in evaluating performance of members of Board of Directors and/or members of Board of Commissioners based on benchmark prepared as evaluation criteria, by referring to SOE Regulation No. Per-02/ MBU/02/2015. Information: Comply Adapting Quickly to Face Change 663
  664. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No III. Principle Recommendation Explanation of the Implementation in BNI Aspect 3: Functions and Roles of the Board of Directors Principle 5 Strengthening Membership and Composition of the Board of Directors The determination of the number of members of the Directors considers the condition of Public Company, and the effectiveness of decision making. The determination of composition of Board of Directors considers range of expertise, knowledge, and experience required. 664 FSA Recommendation Explanation Adapting Quickly to Face Change As the organ of the company authorized in company's management, the determination of the number of Directors greatly affects the performance of Public Company. Thus, the determination of number of members of Board of Directors must be made through careful consideration and must be subject to the provisions of applicable laws and regulations, which according to the FSA Regulation on Board of Directors and Board of Commissioners of Issuers or Public Companies, at least there must be 2 (two) persons. In addition, determining the number of Board of Directors shall be based on the need to achieve public company’s goals and objectives and adjusted to the public company’s conditions, including the characteristics, capacity, and size of the public company and how to make effective Board of Directors’ decision. The number and capacity of members of Board of Directors are based on POJK Regulation No. 33/POJK.04/2014. The number of Board of Directors as of December 31, 2018, was 11 (eleven) members. Similar to the Board of Commissioners, the diversity of composition of Board of Directors is a combination of characteristics required in terms of the Board of Directors as organ and as members of Board of Directors individually, according to the needs of the Public Company. Such combination was determined by considering the expertise, knowledge, and experience in accordance with the duties and functions of the Directors in achieving the Company’s objectives. Therefore, the consideration of the combination of such characteristics will have an impact in the accuracy of the nomination process and the individual appointment of members of the Directors or the Directors in a collegial manner. The current BNI’s Board of Commissioners composition has satisfied the diversity element, which is a combination of independence, expertise/ education, work experience, age and gender, by considering BNI’s needs and complexity. This has been disclosed in the Sub Chapter of Diversity in the Composition of the Board of Directors in this Governance Report. In order to make decision effectively, decision making in Board of Directors’ Meetings is taken by deliberation to reach consensus. Information: Comply Information: Comply PT Bank Negara Indonesia (Persero) Tbk
  665. Good Corporate Governance No Principle Recommendation FSA Recommendation Explanation Explanation of the Implementation in BNI Members of Board of Directors in charge of accounting or finance have the skills and /or knowledge in accounting. The Financial Statement is management accountability report on the management of resources owned by Public Company, which must be prepared and presented in accordance with the Generally Accepted Financial Accounting Standards in Indonesia as well as the related FSA Regulations, such as the laws and regulations in Capital Market sector governing the presentation and disclosure of Public Company's Financial Statements. Based on the laws and regulations in Capital Market sector governing the Board of Directors' responsibilities to the Financial Statements, the Board of Directors are jointly and severally liable for the Financial Statements, signed by the President Director and members of Board of Directors in charge of accounting or finance sector. BNI’s Financial Statements consist of a consolidated statement of financial position and a statement of profit and loss and other comprehensive income, a statement of changes in equity and a consolidated statement of cash flows and an overview of significant accounting policies and other explanatory information. Management is responsible for the preparation and fair presentation of the Consolidated Financial Statements in accordance with Indonesian GAAP as stated in the Board of Directors' Statement of Responsibility for Consolidated Financial Statements and Subsidiaries. Thus, the disclosure and preparation of financial information presented in the financial statement will largely depend on Directors’ expertise and/or knowledge, especially the members of the Directors who are in charge of accounting or finance sector. The qualification of expertise and/ or knowledge in accounting sector which at least shall be possessed by such member of Board of Directors can provide confidence in the preparation of Financial Statements, so that the Financial Statements can be relied upon by the stakeholders as the basis of economic decision making related to the said Public Company. Such expertise and/or knowledge may be proven by educational background, training certification, and/or related work experience. Whereas in the presentation of BNI’s Financial Statements there is a Board of Directors’ Statement on the Responsibility for Consolidated Financial Statements and Subsidiaries which contains that the Board of Directors is responsible for the preparation and presentation of BNI’s Consolidated Financial Statements and Subsidiaries, that has been prepared in accordance with SAK and all information in the Financial Statements has been published completely and correctly, by not removing material information or facts. In addition, the appointed Public Accountant Firm (KAP) is a Firm that has competence and professionals in the field. All of these shows the full commitment from the Board of Directors so that the Financial Statements can be relied on by stakeholders. The current BNI’s Director of Finance has expertise, knowledge, and capabilities in the field of accounting/finance, this can be proven through the formal and informal education taken either inside or outside the country. Previous experience as Director of Risk and Compliance at other banks also supports the Director's expertise, this is certainly an added value for the said Director and BNI. Information: Comply PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 665
  666. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No 6 Principle Principle 6 Increasing the Quality of Implementation of Duties and Responsibilities of the Board of Directors. Recommendation FSA Recommendation Explanation The Board of Directors has a self assessment policy to assess the performance of Board of Directors. Similar to the Board of Commissioners, the Board of Directors’ self-assessment policy is a guideline used as a form of accountability for Board of Directors’ performance collectively. Self assessment is performed by each member of the Board of Directors to assess the Board of Directors' performance collectively rather than assessing the individual performance of each member of the Board of Directors. With this self assessment, it is expected that each member of Board of Directors can contribute to improve the Board of Directors’ performance on an ongoing basis. Such policy may include the assessment activities taken along with their purposes and objectives, the periodic execution time, and benchmarks or assessment criteria used in accordance with the recommendations given by the nomination and remuneration function of the Public Company, in which the formation of such functions is required in the FSA Regulation on Nomination and Remuneration Committee of Issuers or Public Companies. Explanation of the Implementation in BNI The Board of Directors' performance assessment policy is contained in the Guiding Principle of Key Performance Indicator (KPI) of BOD. The Board of Directors’ performance assessment consists of several KPIs which are measured collegially on all Directors and are both quantitative and qualitative. The policy includes assessment activities carried out on several factors, which are market capitalization, profits, market share, and leadership. The Remuneration and Nomination Committee has evaluated and prepared and provided recommendations to the Board of Commissioners on the nomination and remuneration system/policy for Commissioners, Directors, executive officers, and employees as a whole. Information: Comply The self assessment policy to assess the performance of the Directors is disclosed through the annual report of Public Company. 666 Adapting Quickly to Face Change The disclosure of self assessment policy on Board of Directors’ performance is conducted not only to meet the transparency aspect as a form of accountability for the performance of their duties, but also to provide important information on the improvement efforts of Public Company’s management. Such information is very useful to give confidence to the Shareholders or investors that there is a certainty that the company is continuously managed to a better direction. With such disclosure, the Shareholders or investors may know the check and balance mechanism on the Board of Directors’ performance. Each year, the Board of Directors Performance Assessment has been disclosed in the Annual Report which can be accessed by shareholders/investors and other stakeholders through BNI website so that the information is very useful to provide confidence to shareholders or investors that there is certainty that the company is continuously managed to a better direction. Information: Comply PT Bank Negara Indonesia (Persero) Tbk
  667. Good Corporate Governance No Principle Recommendation The Board of Directors has policy related to resignation of members of Board of Directors if involved in financial crime . FSA Recommendation Explanation The resignation policy of members of Board of Directors involved in financial crime is a policy that can improve stakeholders' trust on Public Company to maintain the Company's integrity. This policy is required to assist in smooth legal process and to ensure that the legal process does not interfere with the business activities. In addition, in terms of morality, this policy will build an ethical culture within the Public Company’s environment. Such policy may be covered in the Guidelines or Code of Conduct applicable to the Board of Directors. Furthermore, what is meant by engaged in financial crime constitutes the convicted status of the member of the Directors from the competent authority. The financial crimes referred include manipulation and various forms of embezzlement in financial services’ activities and the money laundering criminal act as referred to in Law No. 8 of 2010 on the Prevention and Eradication of the Criminal Act of Money Laundering. Explanation of the Implementation in BNI The Bank will react actively in the event of a financial crime as stipulated in the Articles of Association, Article 11 paragraph 13 in conjunction with Article 11 paragraph 14 d, which states that member of Board of Directors can be dismissed at any time due to reasons, among others, if involved in actions that harm the Company and/or the State, Article 11 paragraph 15, which states that the decision to dismiss is taken after the said person is given the opportunity to defend him/herself in the GMS, and Article 11 paragraph 24 f, which states that the position of a member of Board of Directors by itself ends if he/she no longer meets the requirements as a member of Board of Directors based on the Articles of Association and laws and regulations. In addition, the Articles of Association also state that members of Board of Directors may be temporarily dismissed by the Board of Commissioners by stating the reason if the relevant person acts in violation of the Articles of Association or there are indications of damaging the Company or neglecting obligations or urgent reasons for the Company. The Bank already has BNI’s Anti-Money Laundering and Countering Financing of Terrorism (AML & CFT) Policy Statement in order to enforce Law No. 8 of 2010 on Prevention and Eradication of the Criminal Act of Money Laundering. IV. Aspect 4: Stakeholders Participation Principle 7 Increasing the Corporate Governance Aspect through Stakeholders Participation The Public Company has a policy to prevent the occurrence of insider trading. PT Bank Negara Indonesia (Persero) Tbk  A person having inside information is prohibited from engaging in a Securities transaction by using insider information as referred to in Capital Market Law. Public Company can minimize this insider trading through prevention policies, for example by strictly separating the confidential data and/or information from public ones, and dividing the duties and responsibilities for the management of such information in a proportionate and efficient manner. BNI already has a Policy related to insider information to prevent insider trading. This policy is contained in Online Company Guidelines (e-PP). Information: Comply Adapting Quickly to Face Change 667
  668. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No Principle Recommendation FSA Recommendation Explanation Public Company has anticorruption and anti-fraud policies. Anti-corruption policy is useful for ensuring that the Public Company’s business activities are conducted legally, prudently, and in accordance with the principles of good governance. This policy may be part of the code of ethics, or on a separated form. This policy may include programs and procedures taken in handling corrupt practices, kickbacks, fraud, bribery, and/ or gratification in Public Company. The policy scope must illustrate the prevention of Public Company against all corrupt practices, either giving to or receiving from other parties. Explanation of the Implementation in BNI In order to comply with SE BI No. 13/28/DPNP dated December 9, 2011, on the Implementation of Anti-Fraud Strategies to grow the Anti-Fraud Committee to foster Anti-Fraud culture and concern at all organizational levels. The policies and principles of “no Fraud for our bank” are implemented through Anti-Fraud Strategy Implementation. To measure the achievement of a compliance culture, the Compliance Division has developed a tool called Compliance index (CIX). While the anti-corruption policy has been regulated in the code of ethics, Guidelines for Gratification, and Whistleblowing System of BNI that can be accessed by all employees and stakeholders through BNI website. Information: Comply Public Company has a policy on selection and improvement of supplier or vendor capabilities. Policies on selection of suppliers or vendors are useful to ensure that the Public Company acquire the necessary goods or services at competitive prices with good quality. While the policy on increasing the ability of suppliers or vendors is useful to ensure that the supply chain runs efficiently and effectively. The ability of suppliers or vendors to supply/meet the goods or services required by the Bank will affect the quality of Bank’s output. The implementation of these policies can ensure continuity of supplies, both in terms of quantity and quality required by Public Company. The scope of this policy includes criteria in the selection of suppliers or vendors, transparent procurement mechanisms, efforts to improve the ability of suppliers or vendors, and the fulfillment of rights related to suppliers or vendors. The Company has a supplier or vendor selection and capacity building policy as outlined in the form of Procurement Online Company Guidelines (e-PP). The policy also regulates Procurement Procedures including the method and process flow. The policy is always applied in the procurement process of goods and/or services and becomes a guideline by all employees. Providers of goods and/or services needed by BNI must be registered in the manual system or in the e-Procurement application system. Notification of winners of procurement of goods and/or services is carried out transparently. Information: Comply 668 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  669. Good Corporate Governance No Principle Recommendation Public Company has a policy on the fulfillment of creditors ' rights. FSA Recommendation Explanation Policies on fulfillment of creditor rights are used as a guideline to provide lending to creditors. The purpose of the policy is to maintain the fulfillment of rights and maintain the creditor trust in the Public Company. The policy includes consideration in making agreements, as well as followups in fulfilling the Public Company's obligations to creditors. Explanation of the Implementation in BNI Policies related to creditors' rights have been stated in the agreement in the event that BNI enters into an Agreement with Creditors. In the agreement, the rights and obligations of the parties have been stated, related to the creditor's rights, for example in providing information in a transparent, accurate, and timely manner both at the time of request and use of loans, keeping the financial ratio (Current Ratio, DeR, Debt to Service Ratio) with a ratio agreed with the creditor, submitting an annual audited financial statements for the period agreed upon with the Creditors, and so on. Information: Comply Public Company has whistleblowing system policies. The Public Company has a long term incentive policy to the Directors and employees. PT Bank Negara Indonesia (Persero) Tbk  A well-structured whistleblowing system policy will provide assurance of protection to the witnesses or reporters for an indication of breach by an employee or public company's management. The implementation of such system policy will impact the establishment of good corporate governance culture. The whistleblowing system policy includes among others types of violations that can be reported through whistleblowing system, methods to file a complaint, safeguards and confidentiality of the complainant, complaint handling, party managing complaints, and the results of the handling and complaints follow-up. Whistleblowing System (WBS) Management in BNI under the name of “WBS to CEO. WBS is a commitment to create a clean work environment, with integrity, in the form of active participation by BNI personnel to report violations occurring within BNI’s environment. Violation report through WBS can be submitted by telephone, e-mail, letter, or website. Long-term incentives are incentives based on the achievement of long-term performance. Long-term incentive plans have a rationale that the long-term performance of the company is reflected by the growth in the share value or other long-term targets of the bank. Long-term incentives are useful in order to maintain loyalty and motivate the Board of Directors and employees to boost performance or productivity that will impact on improving the company's performance over the long term. This long-term incentive policy is a commitment of the Public Company to encourage the implementation of longterm incentives to the Board of Directors and Employees on terms, procedures, and forms tailored to the long-term objectives of Public Company. Such policies may include, among others: the intent and objectives of providing long-term incentives, terms and procedures in giving incentives, and the conditions and risks that the Public Company shall pay attention to in providing incentives. Such policies may also be included in the existing remuneration policy of the Public Company. The policy of providing longterm incentives to the Board of Directors and employees has been stated in a separate Long Term Incentive Guidelines, for 2016, 2017, and 2018, and for Employees it is contained in the Stock Bonus Guidelines. Information: Comply The total provision of Long Term Incentive (LTI) for the Board of Directors and Board of Commissioners amounting to Rp192,912,000,000, - has been approved at the Board of Commissioners' Meeting on September 26, 2018. This incentive policy is BNI's commitment that is tailored to the Bank's Long-term goals and provisions of laws and regulations. Information: Comply Adapting Quickly to Face Change 669
  670. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No V Principle Recommendation FSA Recommendation Explanation Aspect 5: Information Disclosure Principle 8 Increasing Implementation of Information Disclosure The Public Company has utilized the use of information technology more broadly than the website as a media for information disclosure. The use of information technology can be useful as a medium to disclose information. The information disclosure is conducted not only to the information disclosure as regulated in the laws and regulations, but also to other information related to the Public Company that is deemed necessary for the Shareholder or investors. By utilizing information technology widely, it is expected that in addition to the Website, the Bank can improve the effectiveness of disseminating corporate information. Nevertheless, the utilization of information technology taken still pay attention to company’s benefits and costs. The Annual Report of the Public Company discloses the ultimate beneficial owner of Company's ownership of at least 5% (five percent) of shares, in addition to the disclosure of ultimate beneficial owner in the ownership of Public Company shares through Major Shareholders and Controllers. 670 Explanation of the Implementation in BNI Adapting Quickly to Face Change The laws and regulations in Capital Market sector governing the submission of Public Company's Annual Report has specified the obligation of information disclosure on Shareholders having 5% (five percent) of shares or more of the Public Company, as well as the obligation to disclose information about the main and controlling Shareholders of the Public Company, whether directly or indirectly, to the ultimate beneficial owner in the ownership of such shares. The Corporate Guidelines disclose the ultimate beneficial owner of the Public Company's ownership of at least 5% (five percent) of shares, in addition to the disclosure of ultimate beneficial owner in the ownership of shares through Major Shareholders and Controllers. In addition to the Website, BNI also utilizes other information technology platforms, such as email, twitter, and instagram as means of communication and information disclosure. The information disclosure is conducted not only to the information disclosure as regulated in the laws and regulations, but also to other information related to the Public Company that is deemed necessary for the Shareholder or investors. Information: Comply The ultimate beneficial owner in the Public Company's share ownership of at least 5% (five percent) has been disclosed in the Annual Report, Sub Chapter of List of Shareholders and Sub Chapter of Share Ownership of Board of Directors and Board of Commissioners. Information: Comply PT Bank Negara Indonesia (Persero) Tbk
  671. Good Corporate Governance INFORMATION ON MAIN AND CONTROLLING SHAREHOLDER IMPLEMENTATION OF ASEAN CORPORATE GOVERNANCE SCORECARD “Yes” or “No” or “N/A” PRINCIPLE A: Rights of Shareholders No. Questions A.1 Shareholders' Basic Rights A.1.1 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 shareholders at annual general meeting (AGM) for final dividends? In case the company has offered Scrip dividend, did the company paid the dividend within 60 days? Yes Company Information Score ACGS Information 1 Yes, Based on the GMS notes published on the stock exchange, the information is obtained that for the fiscal year ending on December 31, 2017, the company announced the dividend payment date on April 20, 2018, in the Summary of Minutes of the AGMS dated March 22, 2018, according to the Recommendation of the Indonesian Corporate Governance Roadmap and POJK No . 32/POJK.04/2014 as lastly amended by POJK No. 10/POJK.04/2017. Therefore, the time period of maximum 30 days is complied. Evidence: http://www.bni.co.id/portals/1/bni/perusahaan/docs/BBNIRINGKASAN%20RISALAH%20RUPST%202018.pdf A.2 Participation Rights in Resolutions related to the Company’s Underlying Changes Do shareholders have the right to participate in: A.2.1 Amendments to the company's constitution? Yes 1 Yes, as included in Article 28 of the Bank’s Articles of Association Yes, as included in http://bni.co.id/Portals/1/BNI/Perusahaan/TataKelola/Docs/GCG/ BBNI%20-%20ARTICLES%20OF%20ASSOCIATION%202018.pdf A.2.2 The authorization of additional shares? Yes 1 Yes, as included in Article 4 paragraph 6 of the Bank’s Articles of Association Yes, as included in http://bni.co.id/Portals/1/BNI/Perusahaan/TataKelola/Docs/GCG/ BBNI%20-%20ARTICLES%20OF%20ASSOCIATION%202018.pdf A.2.3 The transfer of all or substantially all assets, which in effect results in the sale of the company? Yes 1 Yes, as included in Yes, as included in Article 12 paragraph 7 of the Bank’s Articles of Association http://bni.co.id/Portals/1/BNI/Perusahaan/TataKelola/Docs/GCG/ BBNI%20-%20ARTICLES%20OF%20ASSOCIATION%202018.pdf A.3 Rights to Effectively Participate and Use Votes in the GMS and Rights to Obtain Information on the Applicable Regulations in the GMS (Including the Voting Procedures) A.3.1 Do shareholders have the opportunity, evidenced by an agenda items, to approve remuneration (fees, allowances, benefit-in-kind and other emoluments) or any increases in remuneration for the non-executive directors/ commissioners? Yes 1 Yes, as included in Yes, as included in the Summary of Minutes of Annual GMS for the 2017 Fiscal Year http://bni.co.id/portals/1/BNI/Perusahaan/Docs/BBNI_SUMMARRY%20 OF%20MINUTES%20OF%20AGM%202018.pdf A.3.2 Does the company provide non-controlling shareholders a right to nominate candidates for board of directors/ commissioners? Yes 1 Yes, as included in Yes, as included in the Bank’s Articles of Association http://bni.co.id/Portals/1/BNI/Perusahaan/TataKelola/Docs/GCG/ BBNI%20-%20ARTICLES%20OF%20ASSOCIATION%202018.pdf A.3.3 Does the company allow shareholders to elect directors/ commissioners individually? Yes 1 Yes, as included in Yes, as included in Article 5 paragraph 4 letter (c) of the Bank’s Articles of Association http://bni.co.id/Portals/1/BNI/Perusahaan/TataKelola/Docs/GCG/ BBNI%20-%20ARTICLES%20OF%20ASSOCIATION%202018.pdf A.3.4 Does the company disclose the voting procedures used before the start of the meeting? Yes 1 Yes, as included in the Annual GMS Conduct Book for the 2017 Fiscal Year http://bni.co.id/portals/1/BNI/Perusahaan/Docs/ENG%20-%20Buku%20 Tata%20Tertib.pdf PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 671
  672. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. 672 Questions “Yes” or “No” or “N/A” Score Company Information ACGS Information 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 answer given recorded? Yes 1 Yes, as included in the Minutes of Annual GMS for the 2017 Fiscal Year http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/ Docs/2018/Akta%20Berita%20Acara%20RUPS%20BNI%20No%20 37%2020%20Maret%202018.pdf A.3.6 Does the company disclose the voting results including approving, dissenting, and abstaining votes for all resolutions/each agenda item for most recent AGM? Yes 1 Yes, as included in the Summary of Minutes of Annual GMS for the 2017 Fiscal Year http://bni.co.id/portals/1/BNI/Perusahaan/Docs/BBNI_SUMMARRY%20 OF%20MINUTES%20OF%20AGM%202018.pdf A.3.7 Does the company disclose the list of board members who attended the most recent AGM? Yes 1 Yes, as included in the Summary of Minutes of Annual GMS for the 2017 Fiscal Year http://bni.co.id/portals/1/BNI/Perusahaan/Docs/BBNI_SUMMARRY%20 OF%20MINUTES%20OF%20AGM%202018.pdf A.3.8 Does the company disclose that all board members and the CEO (if he is not a board member) attend the most recent AGM? Yes 1 Yes, as included in the Summary of Minutes of Annual GMS for the 2017 Fiscal Year http://bni.co.id/portals/1/BNI/Perusahaan/Docs/BBNI_SUMMARRY%20 OF%20MINUTES%20OF%20AGM%202018.pdf A.3.9 Does the company allow for voting in absentia? Yes 1 Yes, as included in the Annual GMS Conduct Book for the 2017 Fiscal Year http://bni.co.id/portals/1/BNI/Perusahaan/Docs/ENG%20-%20Buku%20 Tata%20Tertib.pdf A.3.10 Did the company vote by poll (as opposed to by show of hands) for all resolutions at the most recent AGM? Yes 1 Yes, as included in the Summary of Minutes of Annual GMS for the 2017 Fiscal Year http://bni.co.id/portals/1/BNI/Perusahaan/Docs/BBNI_SUMMARRY%20 OF%20MINUTES%20OF%20AGM%202018.pdf A.3.11 Does the company disclose that it has appointed an independent party (scrutinizers/inspectors) to count and/or validate the votes at the AGM? No 0 The Bank appoints an independent party, which is BNI Securities Administration Bureau, PT Datindo Entrycom, to carry out the calculation process and/or validation of voting at the Annual GMS of the 2017 Fiscal Year and has been published in the Minutes of the Annual GMS for the 2017 Fiscal Year. 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? No 0 The Bank has fulfilled the compliance of submission of Summary of Minutes of GMS in accordance with FSA Regulation No. 32/ POJK.04/2014 as lastly amended by FSA Regulation No. 10/ POJK.04/2017 A.3.13 Do companies provide at least 21 days notice for all AGMs and EGMs? Yes 1 Yes, published at the time of GMS Notice http://bni.co.id/portals/1/BNI/Perusahaan/Docs/Rev6a_ Pemanggilan%20RUPS_26%20Februari%202018_Investor%20Jakpost. pdf A.3.14 Does the company provide the rationale and explanation for each agenda which require shareholders’ approval in the notice of AGMS/circulars and/ or the accompanying statement? Yes 1 Yes, the Explanation is stated in the Minutes of GMS http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/ Docs/2018/Akta%20Berita%20Acara%20RUPS%20BNI%20No%20 37%2020%20Maret%202018.pdf A.3.15 Does the company give the opportunity for shareholder to place item/s on the agenda of AGM? Yes 1 Yes, the opportunity is stated in the GMS Announcement http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/BBNI%20-%20 ANNOUNCEMENT%20-%20TJP.pdf A.4 Markets for Corporate Control shall be functional in an efficient and transparent way A.4.1 In cases of mergers, acquisitions and/or takeovers, does the board of directors/commissioners of the offeree company appoint an independent party to evaluate the fairness of the transaction price? A.5 Implementation of Shareholders Ownership Rights, Including Institutional Investors Facilitated by the Company A.5.1 Does the company publicly disclose policy/practice to encourage shareholders including institutional shareholders to attend the general meetings or engagement with the company? Adapting Quickly to Face Change Yes Yes 1 1 Throughout 2018, there were no material transactions specifically related to mergers, acquisitions, and/or takeovers. The Bank has revealed practices in encouraging shareholders to attend the GMS or to be involved in the Company. This is stated in the Annual GMS Conduct Book March 20, 2018 http://bni.co.id/portals/1/BNI/Perusahaan/Docs/ENG%20-%20Buku%20 Tata%20Tertib.pdf PT Bank Negara Indonesia (Persero) Tbk
  673. Good Corporate Governance No . Questions “Yes” or “No” or “N/A” Score Company Information ACGS Information PRINCIPLE B: EQUITABLE TREATMENT OF SHAREHOLDERS B.1 Share Ownership and Voting Rights B.1.1 Do the company's ordinary or common shares have one vote for one share? Yes 1 Yes, each share has 1 (one) vote in decision making. This is regulated in the Annual GMS Conduct Book March 20, 2018 http://bni.co.id/portals/1/BNI/Perusahaan/Docs/ENG%20-%20Buku%20 Tata%20Tertib.pdf B.1.2 Where the company has more than one class of shares, does the company publicize the voting rights attached to each class of shares (e.g. through the company website / reports/ the stock exchange/ the regulator's website)? Yes 1 Yes, the Bank discloses voting rights for each classification in BNI’s Annual Report for the 2017 Fiscal Year page 769 which has been published on the Bank's website. http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-eng.pdf B.2 AGMS Notice 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? No 0 - B.2.2 Are the company's notice of the most recent AGMS/circulars fully translated into English and published on the same date as the local-language version? Yes 1 Yes, the Bank has translated the Notice of Annual GMS March 20, 2018, into English at the Jakarta Post newspaper and published simultaneously with the Notice of Annual GMS March 20, 2018, in Indonesian Language at Bisnis Indonesia newspaper. http://bni.co.id/portals/1/BNI/Perusahaan/Docs/Rev6a_ Pemanggilan%20RUPS_26%20Februari%202018_Investor%20Jakpost. pdf B.2.3 Are the profiles of directors/ commissioners (at least age, qualification, date of first appointment, experience, and directorships in other listed companies) in seeking election/ re-election included? No 0 SOE Minister Regulation No. PER-02/MBU/02/2015 and No. PER-03/ MBU/02/2015 on the Requirements, Procedures for Appointment and Dismissal of Members of the Board of Commissioners/Board of Directors of State-Owned Enterprises regulating that Public SOE, the curriculum vitae of candidate members of the Board of Commissioners/Board of Directors who will be proposed for appointment at the GMS must be available and announced at the time of the GMS before making decision on the appointment of the relevant person as member of the Board of Commissioners/Board of Directors. Considering that the Bank is a Public SOE, therefore, the Bank is subject to this provision. B.2.4 Are the auditors seeking appointment/re-appointment clearly identified? No 0 - B.2.5 Were the proxy documents made easily available? Yes 1 Summary of Minutes of Annual GMS March 20, 2018 http://bni.co.id/portals/1/BNI/Perusahaan/Docs/BBNI_SUMMARRY%20 OF%20MINUTES%20OF%20AGM%202018.pdf Does the notice of AGMS/circulars have the following details: B.3 Insider trading and abusive self-dealing (misuse of power) must 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? Yes 1 Yes, as included in the Bank's Sustainability Report page 431, the explanation section on the principle of Improving Corporate Governance Aspects through Stakeholder Participation http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/Laporan-KeberlanjutanTahun-2017.pdf B.3.2 Are the directors and commissioners required to report their dealings in company shares within 3 business days? No 0 The Bank always complies with the requirements for ownership reporting or any changes in share ownership by the Board of Directors and members of the Board of Commissioners as referred to in FSA Regulation No. 11/POJK.04/2017 B.4 Related Party Transactions Carried Out by the Board of Commissioners & Board of Directors B.4.1 Does the company have a policy requiring directors/ commissioners to disclose their interest in transactions and any other conflicts of interest? PT Bank Negara Indonesia (Persero) Tbk  Yes 1 Guideline and Work Conduct of the Board of Directors 2018 http://bni.co.id/Portals/1/BNI/Perusahaan/TataKelola/Docs/GCG/ Pedoman%20dan%20Tata%20Tertib%20Kerja%20Direksi%202018.pdf Guideline and Work Conduct of the Board of Commissioners http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/the%20board%20 manual%20for%20the%20board%20of%20commissioners.pdf Adapting Quickly to Face Change 673
  674. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. Questions “Yes” or “No” or “N/A” Score ACGS Information Company Information B.4.2 Does the company have a policy requiring a committee of independent directors/ commissioners to review material/significant RPTs to determine whether they are in the best interests of the company? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 716 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf 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? Yes 1 Yes, as included in Article 13 paragraph 22 of the Bank’s Articles of Association http://bni.co.id/Portals/1/BNI/Perusahaan/TataKelola/Docs/GCG/ BBNI%20-%20ARTICLES%20OF%20ASSOCIATION%202018.pdf 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? No 0 - B.5 Protection for 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? No 0 - B.5.2 In case of related party transactions requiring shareholders approval, is the decision made by disinterested shareholders? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 719 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf PRINCIPLE C: ROLE OF STAKEHOLDERS 674 C.1 Stakeholders Rights stipulated by Law or by mutual agreement shall be respected C.1.1 The existence and scope of the company's efforts to address customers' welfare? Yes 1 Has been published in the Annual Report of the 2017 Fiscal Year page 368 on BNI Contact Center http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf C.1.2 Supplier/contractor selection procedures? Yes 1 Yes, as included in the Procurement Auction section on the Company's website http://bni.co.id/id-id/beranda/berita/lelangpengadaan C.1.3 The company's efforts to ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development? Yes 1 Yes, as included in the Bank's Sustainability Report page 62 http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/Laporan-KeberlanjutanTahun-2017.pdf C.1.4 The company's efforts to interact with the communities in which they operate? Yes 1 Yes, as included in the Bank's Sustainability Report page 83 http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/Laporan-KeberlanjutanTahun-2017.pdf C.1.5 Describes the company's anti-corruption programs and procedures? Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 432 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf C.1.6 Describes how creditors' rights are safeguarded? Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 432 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf C.1.7 Does the company have a separate report/section that discusses its efforts on environment/economy and social issues? Yes 1 Yes, the Bank reports in the Sustainability Report, which is separated from the Bank’s Annual Report http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/Laporan-KeberlanjutanTahun-2017.pdf C.2 Stakeholders shall have the opportunity to receive effective compensation for violations 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? Adapting Quickly to Face Change Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 419 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf PT Bank Negara Indonesia (Persero) Tbk
  675. Good Corporate Governance No . Questions “Yes” or “No” or “N/A” Score Company Information ACGS Information C.3 Performance improvement mechanisms for employee participation shall be possible to develop C.3.1 Does the company explicitly disclose the health, safety, and welfare policy for its employees? Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 392 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf C.3.2 Does the company explicitly disclose the policies and practices on training and development programs for its employees? Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 129 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf C.3.3 Does the company have a reward/compensation policy that accounts for the performance of the company beyond short-term financial measures? Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 389 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf C.4 Stakeholders, including individual employees and their representative bodies, shall be able to freely communicate their concerns to the board for practices that are unlawful and unethical and their rights to do this shall be protected C.4.1 Does the company have a whistleblowing policy which includes procedures for complaints by employees concerning alleged illegal (including corruption) and unethical behavior and provide contact details via the company’s website or annual report? Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 747 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf C.4.2 Does the company have a policy or procedures to protect an employee/person who reveals alleged illegal/unethical behavior from retaliation? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 707 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf D.1 Transparency of Ownership Structure D.1.1 Does the information on shareholdings reveal the identity of beneficial owners, holding 5% shareholding or more? Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 138 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf D.1.2 Does the company disclose the direct and indirect (deemed) shareholdings of major and/or substantial shareholders? Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 137 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf D.1.3 Does the company disclose the direct and indirect (deemed) shareholdings of directors (commissioners)? Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 528 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf D.1.4 Does the company disclose the direct and indirect (deemed) shareholdings of senior management? Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 528 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf D.1.5 Does the company disclose details of the subsidiaries, associates, joint ventures and special purpose enterprises/ vehicles (SPEs)/ (SPVs)? Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 340 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf D.2 Annual Report Quality D.2.1 Corporate objectives Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 102 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf D.2.2 Financial performance indicators Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 47 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf D.2.3 Non-financial performance indicators Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 69 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf D.2.4 Dividend policy No 0 - PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 675
  676. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. Questions “Yes” or “No” or “N/A” Score Company Information ACGS Information D.2.5 Biographical details (at least age, qualifications, date of first appointment, relevant experience, and any other directorships of listed companies) of directors/ commissioners Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year pages 106 and 114 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf D.2.6 Attendance details of each director/commissioner in respect of meetings held Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year pages 507 and 550 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf D.2.7 Total remuneration of each member of the board of directors/commissioners No 0 D.2.7 is related to disclosure of remuneration of each member of the Board of Commissioners. No information was found on the remuneration of members of the Board of Commissioners D.2.8 Does the Annual Report contain a statement confirming the company's full compliance with the code of corporate governance? Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 412 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf D.3 Disclosure on Special Relationship Transaction D.3.1 Does the company disclose its policy covering the review and approval of material/significant RPTs? Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 304 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf D.3.2 Does the company disclose the name of the related party and relationship for each material/ significant RPT? Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 304 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf D.4 Disclosure of Transactions of Company Shares Conducted by Members of the Board of Directors or Board of Commissioners D.4.1 Does the company disclose trading in the company's shares by insiders? D.5 External Auditor and Auditor Report D.5.1 Are audit fees and non-audit fees disclosed? D.5.2 Does the non-audit fees exceed the audit fees? D.6 Yes 1 Yes, has been included in the Bank's Financial Statements in Notes to Financial Statements number 34. Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 661 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf No 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 662 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf Corporate Communication Media Does the company use the following modes of communication? 676 D.6.1 Quarterly reporting Yes 1 Yes, has been published on the Bank’s website http://bni.co.id/id-id/perusahaan/hubunganinvestor/laporanpresentasi D.6.2 Company website Yes 1 Yes, the Bank has a website with the following address: http://bni.co.id/id-id/ D.6.3 Analyst's briefing Yes 1 Yes, has been published on the Bank’s website http://bni.co.id/id-id/perusahaan/hubunganinvestor/laporanpresentasi D.6.4 Media briefings /press conferences Yes 1 Yes, has been published on the Bank’s website http://bni.co.id/id-id/beranda/berita/siaranpers D.7 Submission of Information on Financial Statements or Annual Reports On Time D.7.1 Are the audited annual financial report/statement released within 120 days from the financial year end? Yes 1 Yes, the Consolidated Financial Statements of the Bank and Subsidiaries dated December 31, 2017, were published on January 18, 2018 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ LaporanKeuanganAuditan-2017.pdf D.7.2 Is the annual report released within 120 days from the financial year end? Yes 1 Yes, the Bank’s Annual Report for the 2017 Fiscal Year was published on February 26, 2018 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf D.7.3 Is the true and fairness/fair representation of the annual financial statement/reports affirmed by the board of directors/commissioners and/ or the relevant officers of the company? Yes 1 Yes, was published in the Consolidated Financial Statements of the Bank and Subsidiaries dated December 31, 2018, page 2 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ LaporanKeuanganAuditan-2017.pdf Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  677. Good Corporate Governance No . Questions “Yes” or “No” or “N/A” Score Company Information ACGS Information D.8 The Existence of a Company Website in Disclosing Information about the Company to the Public D.8.1 Financial statements/reports (current and prior years) Yes 1 Yes http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ LaporanKeuanganAuditan-2017.pdf http://bni.co.id/id-id/perusahaan/hubunganinvestor/laporanpresentasi D.8.2 Materials provided in briefings to analysts and media Yes 1 Yes http://bni.co.id/id-id/perusahaan/hubunganinvestor/laporanpresentasi D.8.3 Downloadable annual report Yes 1 Yes http://bni.co.id/id-id/perusahaan/hubunganinvestor/laporanpresentasi D.8.4 Notice of AGM and/or EGM Yes 1 Yes http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/BBNI%20-%20 PENGUMUMAN%20-%20INV.DAILY.pdf D.8.5 Minutes of AGM and/or EGM No 0 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/ Docs/2018/Akta%20Berita%20Acara%20RUPS%20BNI%20No%20 37%2020%20Maret%202018.pdf D.8.6 Company's constitution (company's by-laws, memorandum and articles of association) Yes 1 http://bni.co.id/Portals/1/BNI/Perusahaan/TataKelola/Docs/ GCG/072018_resize_AD%20BNI%202018%20(dan%20AHU).pdf D.9 Investor Relations D.9.1 Does the company disclose the contact details (e.g. telephone, fax, and email) of the officer responsible for investor relations? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 87 and the Bank’s website http://bni.co.id/id-id/perusahaan/hubunganinvestor/kontakinvestor/ kontakinformasi Does the company have a website disclosing up-to-date information on the following : PRINCIPLE E: RESPONSIBILITIES OF THE BOARD OF COMMISSIONERS AND BOARD OF DIRECTORS E.1 Duties and Responsibilities of the Board of Directors and Board of Commissioners E.1.1 Does the company disclose its corporate governance policy / board charter? Yes 1 Yes, the Guidelines and Work Conduct of the Board of Directors and Board of Commissioners have been published on the Bank's website http://bni.co.id/id-id/perusahaan/tatakelola/pedomandantatatertib E.1.2 Are the types of decisions requiring board of directors/ commissioners' approval disclosed? Yes 1 Yes, has been published in the Bank's Articles of Association. http://bni.co.id/Portals/1/BNI/Perusahaan/TataKelola/Docs/ GCG/072018_resize_AD%20BNI%202018%20(dan%20AHU).pdf E.1.3 Are the roles and responsibilities of the board of directors/ commissioners clearly stated? Yes 1 Yes, has been published in the Guidelines and Work Conduct of the Board of Directors and Board of Commissioners and the Bank's Articles of Association. http://bni.co.id/id-id/perusahaan/tatakelola/pedomandantatatertib http://bni.co.id/Portals/1/BNI/Perusahaan/TataKelola/Docs/ GCG/072018_resize_AD%20BNI%202018%20(dan%20AHU).pdf The Board of Commissioners' Responsibilities and CG Policy shall be clearly stated by the company: Company Vision and Mission: E.1.4 Does the company have an updated vision and mission statement? Yes 1 Yes, has been published on the Bank’s website and in the Bank's Annual Report for the 2017 Fiscal Year page 102 http://bni.co.id/id-id/perusahaan/tentangbni/visimisi http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf 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? Yes 1 Yes, has been published in the Bank's Annual Report for the 2017 Fiscal Year page 48 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.1.6 Does the board of directors have a process to review, monitor and oversee the implementation of the corporate strategy? Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 48 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.2 Board of Commissioners’ Structure E.2.1 Are the details of the code of ethics or conduct disclosed? Yes 1 Yes, regulated in the Guidelines and Work Conduct of the Board of Directors and Board of Commissioners published on the Bank's website http://bni.co.id/id-id/perusahaan/tatakelola/pedomandantatatertib E.2.2 Are all directors/commissioners, senior management and employees are required to comply with the code? Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 743 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf Code of Ethics or Code of Conduct: PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 677
  678. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. E.2.3 Questions Does the company have a process to implements and monitors compliance with the code of ethics or conduct? “Yes” or “No” or “N/A” Score Company Information ACGS Information Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 743 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf Structure and Composition of Board of Commissioners: E.2.4 Do independent directors/ commissioners make up at least 50% of the board of directors/ commissioners? Yes 1 In 2017, the number of Independent Commissioners was 4 out of a total of 8 members of the Board of Commissioners of the Company, and has been published in the Bank's Annual Report for the 2017 Fiscal Year page 106 E.2.5 Does the company have a term limit of nine years or less or 2 terms of five years each for its independent directors/ commissioners? Yes 1 Yes, has been regulated in the Guidelines and Work Conduct of the Board of Directors/Board of Commissioners in the Term of Office of Board of Directors/Board of Commissioners http://bni.co.id/id-id/perusahaan/tatakelola/pedomandantatatertib E.2.6 Has the company set a limit of five board seats that an individual independent/nonexecutive director/commissioner may hold simultaneously? Yes 1 Yes, has been regulated in the Guidelines and Work Conduct of the Board of Directors/Board of Commissioners in the Term of Office of Board of Directors/Board of Commissioners http://bni.co.id/id-id/perusahaan/tatakelola/pedomandantatatertib E.2.7 Does the company have any executive directors who serve on more than two boards of listed companies outside the group? No 1 - E.2.8 Does the company have a Nominating Committee (NC)? Yes 1 Yes, the Bank has a Nomination and Remuneration Committee http://bni.co.id/id-id/perusahaan/tatakelola/komitedewankomisaris E.2.9 Does the Nominating Committee comprise of a majority of independent directors/commissioners? No 0 E.2.9 requires the Bank's Nomination Committee to consist of a majority of independent commissioners. The assessment result indicates that the Bank's Independent Commissioner is no more than 50%, but exactly 50%. This is included in the Bank's Annual Report for the 2017 Fiscal Year. E.2.10 Is the chairman of the Nominating Committee an independent director/ commissioner? Yes 1 Yes, the Chair of the Bank's Nomination and Remuneration Committee is Mr. Ahmad Fikri Assegaf, who is an Independent Commissioner of the Bank http://bni.co.id/id-id/perusahaan/tatakelola/komitedewankomisaris E.2.11 Does the company disclose the terms of reference/ governance structure/charter of the Nominating Committee? Yes 1 Yes, the Bank’s Nomination and Remuneration Committee Charter can be accessed on the Bank's website http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/piagam_komite_ nominasi_dan_remunerasi_2017.pdf 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? Yes 1 Yes, the Agenda and Attendance of the Bank's Nomination and Remuneration Committee Meeting is published in the Bank's Annual Report for the 2017 Fiscal Year page 593. Throughout 2017, KNR conducted 12 (twelve) meetings. http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.2.13 Does the company have a Remuneration Committee? Yes 1 Yes, the Bank has a Nomination and Remuneration Committee http://bni.co.id/id-id/perusahaan/tatakelola/komitedewankomisaris E.2.14 Does the Remuneration Committee comprise of a majority of independent directors/commissioners? No 0 E.2.14 has a connection with point E.2.9 which requires the Bank's Remuneration Committee to consist of a majority of Independent Commissioners. The assessment result indicates that the Bank's Independent Commissioner is no more than 50%, but exactly 50%. This is included in the Bank's Annual Report for the 2017 Fiscal Year. E.2.15 Is the chairman of the Remuneration Committee an independent director/ commissioner? Yes 1 Yes, the Chair of the Bank's Nomination and Remuneration Committee is Mr. Ahmad Fikri Assegaf, who is an Independent Commissioner of the Bank http://bni.co.id/id-id/perusahaan/tatakelola/komitedewankomisaris E.2.16 Does the company disclose the terms of reference/ governance structure/charter of the Remuneration Committee? Yes 1 Yes, the Bank’s Nomination and Remuneration Committee Charter can be accessed on the Bank's website http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/piagam_komite_ nominasi_dan_remunerasi_2017.pdf E.2.17 Is the meeting attendance of the Remuneration Committee disclosed and if so, did the Nominating Committee meet at least twice during the year? Yes 1 Yes, the Agenda and Attendance of the Bank's Nomination and Remuneration Committee Meeting are published in the Bank's Annual Report for the 2017 Fiscal Year page 593. Throughout 2017, KNR conducted 12 (twelve) meetings. http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf Nomination Committee: Remuneration Committee/Compensation Committee: 678 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  679. Good Corporate Governance No . Questions “Yes” or “No” or “N/A” Score Company Information ACGS Information Audit Committee: E.2.18 Does the company have an Audit Committee? Yes 1 Yes, the Bank has an Audit Committee http://bni.co.id/id-id/perusahaan/tatakelola/komitedewankomisaris E.2.19 Does the Audit Committee comprise entirely of non-executive directors/ commissioners with a majority of independent directors/ commissioners? Yes 1 Chairman and member of the Bank’s Audit Committee are Independent Commissioners and Independent Party. Membership of the Bank’s Audit Committee is published on the Bank’s website. http://bni.co.id/id-id/perusahaan/tatakelola/komitedewankomisaris E.2.20 Is the chairman of the Audit Committee an independent director/commissioner? Yes 1 Yes, the Chair of the Bank's Audit Committee is Mr. Pataniari Siahaan, who is an Independent Commissioner of the Bank http://bni.co.id/id-id/perusahaan/tatakelola/komitedewankomisaris E.2.21 Does the company disclose the terms of reference/governance structure/charter of the Audit Committee? Yes 1 Yes, the Audit Committee Charter and Code of Ethics have been published on the Company's website http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/piagam%20komite%20 audit.pdf http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/kode%20etik%20 komite%20audit.pdf E.2.22 Does at least one of the independent directors/ commissioners of the committee have accounting expertise (accounting qualification or experience)? No 0 - 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? Yes 1 Yes, the Agenda and Attendance of the Audit Committee Meeting is published in the Bank's Annual Report for the 2017 Fiscal Year page 580. Throughout 2017, the Audit Committee held 8 (eight) meetings. http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.2.24 Does the Audit Committee have primary responsibility for recommendation on the appointment, and removal of the external auditor? No 0 E.2.24 requires the Bank's Audit Committee to have a primary responsibility for recommending the appointment and dismissal of the External Auditor. If only one of these responsibilities is held by the Bank's Audit Committee, the Bank is still considered not meeting the corporate governance practices of this point. The assessment results indicate that the Bank's Audit Committee only has one of the two responsibilities. E.3 The Board of Commissioners’ Process Board of Commissioners’ Meetings and Attendances E.3.1 Are the board of directors meetings scheduled before the start of financial year? No 0 - E.3.2 Does the board of directors/ commissioners meet at least six times per year? Yes 1 Yes. Throughout 2017, there were 29 (twenty nine) Board of Commissioners meetings, 11 (eleven) joint meetings of the Board of Commissioners and Board of Directors, and 56 (fifty six) Board of Directors' meetings. This is published in the Bank's Annual Report pages 494, 503, 529 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.3.3 Has each of the directors/ commissioners attended at least 75% of all the board meetings held during the year? No 0 - E.3.4 Does the company require a minimum quorum of at least 2/3 for board decisions? No 0 - E.3.5 Did the non-executive directors/ commissioners of the company meet separately at least once during the year without any executives present? Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year page 529 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.3.6 Are board papers for board of directors/commissioners meetings provided to the board at least five business days in advance of the board meeting? No 0 - E.3.7 Does the company secretary play a significant role in supporting the board in discharging its responsibilities? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 622 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf Information Access: PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 679
  680. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. Questions “Yes” or “No” or “N/A” Yes Score 1 Company Information ACGS Information E.3.8 Is the company secretary trained in legal, accountancy or company secretarial practices? Yes, the competence development of Corporate Secretary in the field has been published in the Bank's Annual Report for the 2017 Fiscal Year page 621 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.3.9 Does the company disclose the criteria used in selecting new directors/commissioners? Yes 1 Yes. The criteria for members of the Board of Commissioners have been published in the Bank’s Annual Report for the 2017 Fiscal Year page 474, and the Criteria for the Board of Directors have been published in the Bank's Annual Report page 517 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.3.10 Does the company disclose the process followed in appointing new directors/commissioners? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 454 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.3.11 Are all the directors/ commissioners subject to reelection at least once every three years? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 454 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.3.12 Does the company disclose its remuneration (fees, allowances, benefit-in-kind and other emoluments) policy (i.e. the use of short term and long term incentives and performance measures) for its executive directors and CEO? No 0 - E.3.13 Is there disclosure of the fee structure for non-executive directors/commissioners? No 0 - E.3.14 Do the shareholders or the Board of Directors approve the remuneration of the executive directors and/or the senior executives? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 452 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.3.15 Does the company have measurable standards to align the performance-based remuneration of the executive with long term interests of the company, such as claw back provision and deferred bonuses? No 0 - E.3.16 Does the company have a separate internal audit function? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 628 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.3.17 Is the head of internal audit identified or, if outsourced, is the name of the external firm disclosed? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 630 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.3.18 Does the appointment and removal of the internal auditor require the approval of the Audit Committee? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 630 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.3.19 Does the company establish a sound internal control procedures/risk management framework and periodically review the effectiveness of that framework? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 663 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.3.20 Does the Annual 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? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 687 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf Appointment and Re-appointment of members of the Board of Commissioners: Regarding Remuneration: Internal Audit: Risk Oversight: 680 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  681. Good Corporate Governance No . Questions “Yes” or “No” or “N/A” Score Company Information ACGS Information 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)? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 58 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf 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? Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal Year pages 48-49, 58-59, and 75-76 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.4 Individual in the Composition of the Board of Commissioners Company's President Commissioner: E.4.1 Do different persons assume the roles of chairman and CEO? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 114 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.4.2 Is the chairman an independent director/commissioner? Yes 1 Yes, as included in the Bank's Annual Report page 114 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.4.3 Is any of the directors a former CEO of the company in the past 2 years? No 1 - E.4.4 Are the role and responsibilities of the chairman disclosed? No 0 Point E.4.4 requires the disclosure of specific duties and responsibilities of the President Commissioner. BBNI does not provide special exposure for this information. E.4.5 If the Chairman is not independent, has the Board appointed a Lead/Senior Independent Director and has his/her role been defined? N/A 0 *there is Not Applicable (N/A) at this point. The N/A answer is not calculated into the final assessment point. E.4.6 Does at least one non-executive director/commissioner have prior working experience in the major sector that the company is operating in? Yes 1 Yes, as included in the Profile of Board of Directors and Board of Commissioners section of the Bank's Annual Report of the 2017 Fiscal Year page 114 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.5 Board of Commissioners Performance E.5.1 Does the company have orientation programs for new directors/commissioners? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year pages 507 and 561 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.5.2 Does the company have a policy that encourages directors/ commissioners to attend ongoing or continuous professional education programs? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 166 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.5.3 Does the company disclose how the board of directors/ commissioners plans for the succession of the CEO/Managing Director/President and key management? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 596 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.5.4 Does the board of directors/ commissioners conduct an annual performance assessment of the CEO/Managing Director/ President? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 442 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf E.5.5 Did the company conduct an annual performance assessment of the board of directors/ commissioners and disclose the criteria and process followed for the assessment? Expertise and Competence of the Board of Commissioners: Training/Development of the Board of Commissioners: Appointment and Performance Assessment of the President Director: Board of Commissioners Performance Assessment: PT Bank Negara Indonesia (Persero) Tbk  Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 442 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf Adapting Quickly to Face Change 681
  682. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk No. Questions “Yes” or “No” or “N/A” Score Company Information ACGS Information E.5.6 Did the company conduct an annual performance assessment of the individual directors/ commissioners and disclose the criteria and process followed for the assessment? No 0 - E.5.7 Did the company conduct an annual performance assessment of the board committees and disclose the criteria and process followed for the assessment? Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page 50 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/ bni-ar-2017-ind.pdf 3.6. BONUS AND PENALTY Assessment Bonus for the Bank’s GCG Practices BBNI receives bonus for the following assessment items: (B) C.1.1: +2 points. This point requires BBNI to adopt an international framework related to reporting of the Bank's sustainability. Based on the Sustainability Report, BBNI has adopted a framework for sustainability. (B) D.1.1: +3 points. This point requires the Company to issue audited Financial Statements within 60 days after the end of the financial year. The assessment results indicate that the Bank issued the audited Financial Statements on January 18, 2018, which is still within 60 days after the end of the Bank's fiscal year. (B) E.5.1: +2 points. This item requires the Board of Commissioners to describe the governance process on Information Technology (IT) including disruption, cyber security, disaster recovery, in order to ensure that key risks have been identified, managed, and reported to the Board of Commissioners. The assessment results indicate that there is a disclosure of this matter in the Bank's Annual Report. (B) E.6.1: +2 points. This item requires the Bank to have a separate Risk Committee. The assessment results indicate that the Bank has a separate Risk Committee as shown in the Bank's Annual Report. The total bonus points obtained by the Bank are 9 (nine) points. Penalty for Corporate GCG Practices BBNI is penalized for one of the following assessment items: (P) E.4.2: -2 points. This point contains the disclosure of whether the Independent Commissioner accepts options, shares, or bonuses. The assessment results indicate that the Independent Commissioner accepts one of the three said matters as shown in the Bank's Annual Report. The total penalty points received by the Bank are minus 2 (two) points. Therefore, the total score for Bonus and Penalty Components (Rating Level 2) received by the Bank is 7 points. 682 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  683. Good Corporate Governance PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 683
  684. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk CORPORATE SOCIAL RESPONSIBILITY 686 SOCIAL RESPONSIBILITY GOVERNANCE 691 CORPORATE SOCIAL RESPONSIBILITY RELATED TO HUMAN RIGHTS 693 CORPORATE SOCIAL RESPONSIBILITY RELATED TO FAIR OPERATIONS 694 SOCIAL RESPONSIBILITY IMPLEMENTATION 694 BASED ON SUSTAINABLE FINANCE CONCEPT 696 CORPORATE SOCIAL RESPONSIBILITY APPLICATION BASIC 697 CORPORATE SOCIAL RESPONSIBILITY MANAGEMENT STRUCTURE 698 CORPORATE SOCIAL RESPONSIBILITY RELATED TO THE ENVIRONMENT 703 CORPORATE SOCIAL RESPONSIBILITY RELATED TO EMPLOYMENT, OCCUPATIONAL HEALTH AND SAFETY 706 CORPORATE SOCIAL RESPONSIBILITY RELATED TO SOCIAL COMMUNITY DEVELOPMENT 713 CORPORATE SOCIAL RESPONSIBILITY RELATED TO CONSUMERS 684 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  685. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 685
  686. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk SOCIAL RESPONSIBILITY GOVERNANCE BNI’s commitment to implementing social responsibility is reflected in BNI’s mission number 4 (four), which is “To Increase Awareness and Responsibility to the Local Community and Environment” and number 5 (five), namely “To Become a Role Model for Compliance to Good Corporate Governance”. To achieve this mission, several BNI corporate social responsibility policies have been established, including: 1. 2. 3. 4. Company Guidelines for Credit Business Banking for Corporate Segment Buku I for analysis of customer credit risk that regulates the requirements of EIA or PROFER. Guidelines for Community Development (BL) and Corporate Social Responsibility (CSR) No. IN/134/KMP/001 dated March 23, 2018. Company Guidelines for Community Development Management No. IN/341/KMP/001 dated July 17, 2017. Company Guidelines for an Environmentally Friendly Lifestyle No. IN/418/KMP/001 dated September 12, 2017. These guidelines are used as the basis for implementing BNI’s social responsibility. The process starts with planning as is outlined in the Annual Work Plan and its implementation is regularly evaluated and reported to the relevant stakeholders. In addition, starting in 2018, BNI is preparing a Sustainable Financial Action Plan (SFAP) as BNI’s commitment to implementing sustainable finance as outlined in the Board of Directors’ Decree No. KP/412/DIR/R dated December 4, 2018. The SFAP will become a reference for BNI in implementing sustainable finance from 2019 to 2023 and will be reported to OJK every year. The responsibility for implementing social responsibility governance is currently in the Corporate Communication and Secretariat Division (KMP). This division is directly responsible to the President Director. BNI realizes social responsibility covers all impacts from its business activities on all stakeholders. Therefore, BNI has a due diligence method for recognizing the social, economic and environmental impact on the company’s activities. The due diligence mechanism includes: 1. 2. 3. 4. 5. 6. Surveys of employee and customer satisfaction. Analysis of the social responsibility activities effectiveness on the community. Assistance from consultants who are experts in their fields. Increased competence related to sustainable finance from WWF Indonesia, USAID ICED II, and other parties. Corporate Business Banking Credit Buku I Segment Guidelines for customer credit risk analysis. The KMP Division evaluates the effectiveness of environmentally friendly lifestyles. Important stakeholders affected by the company’s activities have been identified by BNI. Important stakeholders and work programs for handling socio-economic and environmental issues to increase stakeholder engagement are as follows: 686 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  687. Corporate Social Responsibility Stakeholders Customer (Economic Relations) Discussion Topics 1. 2. 3. 4. Security of banking transactions Small and Medium Business Loans Banking facilities and easy access Information on banking products and services that are clear and transparent BNI Approach and Response • • • • Call Center services Customer Satisfaction Surveys Website & Frontline Information Agen46 Gatherings Frequency of Approach • Any time • Once every two years • Any time • At least once a year Investor / Shareholder (Economic Relations, Ownership and Legal Relations) • Employees (Legal & Legal stakeholders who help achieve company goals) • • • • Labor Union (Legal) Employee Rights Remuneration & benefits Discussion on Collective Labor Agreement Every two years Government & OJK (LJK Legal and Interest) • Compliance with regulations and legislation Environmental & social risk analysis in granting credit Anti Bribery and Corruption (ABC), Anti-Money Laundering (AML) and Anti Terrorism Green banking Inclusive banking Sustainable finance Report on compliance & notification to Bank Indonesia Basel II Accord-Basel Committee for compliance reporting on sharia aspects in the Sharia Board National Establishment of Agen46, provision of disability ATMs RKAB Preparation and Sustainability Report At least once a year Supplier (economic & legal relations) Mutually fair & transparent and beneficial relationships with suppliers of goods and services in the procurement processes Seminars & policy socialization When needed Business Organization (Legal & Industrial Interest) Financial performance Investment in environmentally friendly companies Non-financial performance Operational activities Business development direction National and regional meetings & activities International Conferences Once every four years Community Organizations / NGOs (Social relations, social licenses & social responsibility as well as proximity to companies) Environmental impact & performance Implemented & planned CSR programs Opportunities to collaborate in CSR programs Information on company activities Strategic cooperation in social care BNI community development partnership programs reporting At least once a year • • • • • • PT Bank Negara Indonesia (Persero) Tbk  Financial and non financial performance Investment for an Environmentally friendly company Performance Reporting Organizing a GMS Every Quarter Employee rights Equal opportunities Career development A valuable and enjoyable work experience • • Any time • Once a year • Internal media (portal), telephone hotline and email Employee Satisfaction Survey Adapting Quickly to Face Change 687
  688. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Pemangku Kepentingan Media (Social relations, Social license)­ Topik Pembahasan Financial & non financial performance Environmental impact & performance CSR Program implemented & planned Opportunities to collaborate in the CSR Program Pendekatan dan Response BNI Press conferences Media Gatherings Frekuensi Pendekatan When needed Every three months BNI has also identified important social, economic and environmental issues related to the impact of company activities in order to manage these important issues in order to have a positive impact on shareholders and other stakeholders. Important social, economic and environmental issues are as follows: Sustainability Issues Relevance to material topics based on GRI Standard Economic aspects Financing to environmentally and socially sound industries Product Portfolio (FSSD) Sustainable financial portfolio Economic performance (201), product portfolio (FSSSD) Social Aspects Financial inclusion Local community (413) Financial literacy Customer service Customer data security Customer privacy (418) Digitization Capacity building Education and training (404) Employee career path Employee welfare Employment (401) GCG Anti-corruption and fraud Anticorruption (205) Selection of socially minded partners Supplier social assessment (414) Environmental aspects Energy efficiency Energy (302) Paper saving Waste (306) Selection of partners in the environment Supplier environmental assessment (308) Colors shows issues with high scores 688 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  689. Influence on stakeholder assessments and decisions Corporate Social Responsibility Significant economic , environmental and social impacts Financing to industries that have environmental and social insight Anti-Corruption and Fraud GCG Capacity building Energy Efficiency Financial Inclusion Paper Saving Financial Literacy Employee Career Level Portfolio Keuangan Keberlanjutan Employee welfare Customer service Selection of partners who are environmentally sound Keamanan Data Pelanggan Selection of partners who are socially Financial Portfolio Sustainability minded Digitization Sustainability issues with high value PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 689
  690. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BNI is committed to carrying out corporate social responsibility both in terms of obligations and exceeding obligations. Details of these activities are as follows: Social responsibility activities that are an obligation included: Activities Regulation Basis Partnerships and Community Development Programs SOE Ministry Regulation No. PER-09/MBU/07/2015 concerning the State-Owned Enterprises’ Partnership Program and Community Development Program. Employment • • Law No. 4 of 1997 and PP No. 43 of 1998 concerning the obligation to employ people with disabilities. Director General of Industrial Relations Development and Workers’ Social Security Decree No. KEP.023/PHIJSK-PK/PKB/II/2018 dated February 7, 2018 concerning Collective Labor Agreement between PT Bank Negara Indonesia (Persero) Tbk. with PT Bank Negara Indonesia (Persero) Tbk Workers’ Union. Work Safety Law No. 1/1970 and No. 23/1992 concerning Occupational Health and Safety. Customer Protection • • Anti-Corruption Program Law No. 20 of 2001, an Amendment to Law Number 31 of 1999 concerning Eradication of Corruption POJK No. 1/POJK.03/2013 concerning Financial Services Sector Consumer Protection POJK No. 1/POJK.07/2013 concerning Transparency of Bank Product Information and Use of Customer’s Personal Data. Responsibility activities that exceeded obligations included: 1. 2. Environmentally Friendly Lifestyle. Business Banking loans to Buku I Corporate Segment for analysis of customer credit risk with respect to EIA or PROPER requirements. 3. Other employment activities including the provision of Day Care, Gym Center, Open Working Space Concept, and Breastfeeding Rooms. 4. Other work safety programs including the use of environmentally friendly and earthquake resistant buildings. 5. Career opportunities in the regions through the Regional Officer Development Program (ODP). 6. BNI employee learning through digital learning (BNI smarter) that can be accessed via a smartphone 7. Use of solar cells in BNI BSD Plaza with a capacity of 2200 watts 8. Becoming a member of international organization (UNEP-FI), and national organizations (IBCSD, AKKI, ASPI, HIMBARA, PERBANAS, FKKP) 9. Having a Corporate Mission related to aspects of ESG, namely Mission No. 4 “To Increase Awareness and Responsibility to the Local Community and Environment” and No. 5 ““To Become a Role Model for Compliance to Good Corporate Governance”. 10. Having BNI Sustainability Pillars (BNI for Indonesia, BNI for Customers, BNI for Employees, BNI for communities, and BNI for the Environment) 11. Having 19 Disability ATM units 12. Employing 23 people with disabilities During 2018, BNI costs for the Partnership Program amounted to Rp104.49 billion and for the Community Development Program amounted to Rp115.44 billion. 690 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  691. Corporate Social Responsibility CORPORATE SOCIAL RESPONSIBILITY RELATED TO HUMAN RIGHTS POLICY BNI is committed to complying with all Human Rights legal provisions and principles . This is stated in the Collective Labor Agreement (PKB) between BNI and its Employees. The scope of social responsibility related to human rights includes guarantees of freedom of association, freedom of worship, and others. In addition, BNI also has a complaint mechanism for complaints about employees through the Human Capital (HCT) division. TARGET ACTIVITIES i. • • • The mutually agreed human rights principles have become targets that BNI has to apply properly. Thus, providing a safe and comfortable working environment for all BNI employees. • ACTIVITIES • Corporate social responsibility related to human rights activities include: • TRADE UNION GUARANTEES BNI recognizes that Trade Unions are legitimate representatives for its members, both individually and collectively in the field of employment. BNI always deliberates with the Trade Unions when establishing employment policies related to work conditions and workers / employee welfare. WORKING TIME BNI when conducting activities outside work hours and outside overtime hours pays attention to the Work Life Balance which is further regulated in the Staffing Guidelines. • After working for more than 10 (ten) years, 18 (eighteen) working days leave. ii. After working between 5 (five) years up to 10 (ten) years, 15 (fifteen) working days leave. iii. Up to 5 (five) years working, 12 (twelve) working days leave. Newly appointed employees as permanent employees, annual leave is first given after a working period of at least 6 (six) months continuously from the date of appointment and is given proportionally. mployees who stop working are given leave days and annual travel expenses proportionally. Employees on Annual Leave are given an Annual Travel Bonus of 1 (one) time Total Cash. Paying attention to the interests of the Company or the Employee, annual leave can be taken in several parts, one of which must at least 5 (five) working days. If a holiday determined by the Government and a holiday recognized by the Company falls during employee leave, then that day will not be counted as part of employee leave. The right to annual leave must be carried out in the year concerned, and if deemed necessary, deferral can be made for a maximum of 6 (six) months after the end of the leave period. For Officers stationed outside their home base or place of birth, receive additional time / days over their due rights for leave, if they return to their home base or place of birth, under the following provisions: a. Additional time / days is calculated based on the length of trip taken at most 6 (six) calendar days to go to and return to their assignment. b. Given 1 (one) time each year. c. For AVP position and below. d. Travel time is more than 24 (twenty four) hours by land or sea travel. e. Provisions for implementing annual leave are further regulated in the Staffing Guidelines. ANNUAL LEAVE MENSTRUATION, CHILDBIRTH AND MISCARRIAGE LEAVE Annual leave activities carry the following provisions: • Employees are granted annual leave with the following conditions: a. Managers and above have the right to 18 working days leave. b. Assistant Managers and below: PT Bank Negara Indonesia (Persero) Tbk  BNI highly respects the human rights of its female employees,. and has implemented a policy for menstruation, childbirth and miscarriage leave with the following conditions: • Female employees who suffer pain during menstruation Adapting Quickly to Face Change 691
  692. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk • • • are not required to work on the first and second days of menstruation, and the employee can take menstruation leave that must be proven with a doctor’s certificate. Women who give birth have the right to receive 3 (three) calendar months maternity leave while receiving wages / salaries, and this is taken 1½ (one half ) months before and 1½ (one half ) months after giving birth in accordance with the obstetrician / midwife certificate submitted by the employees. Maternity leave does not reduce the right to annual leave and major leave. Female employees who are pregnant and experience miscarriages and / or abortions on medical grounds, receive leave in accordance with a certificate from the obstetrician / midwife who treats them, for 1½ (one half ) calendar months after the miscarriage / abortion or in accordance with the letter from the obstetrician / midwife who cared for them, while still receiving Wages / Salaries. FULFILLING RELIGIOUS RIGHTS Fulfilling religious activities is a very basic human right. Therefore, BNI has policies to cover these rights as follows: • BNI provides sufficient time to employees to perform worship required by their religion or beliefs. • At the request of an employee, BNI grants permission to perform religious journeys based on their religious teachings once during their time in BNI for the time required without reducing the employee’s rights. • Provisions to perform religious journeys are further regulated in the Manpower Guidelines. ABSENCE FROM WORK PERMISSION Employees have the right to be absent and still receive wages / salaries without reducing their leave allowance, by submitting a written application letter to their direct 692 Adapting Quickly to Face Change supervisor and as far as possible attaching valid proof documents. BNI juga memberikan hak untuk Ijin keperluan lain: • • • • • • • • • Employee marriages are granted 3 (three) working days; Marriages involving a child registered with the Company, then the employee is given 2 (two) working days; Birth of a child from a wife registered with the Company or a wife who has a miscarriage is given 2 (two) working days; Baptism of children registered with the Company is given 2 (two) working days; The circumcision of a child registered with the Company is given 2 (two) working days; Welcoming children registered with the Company for Hindus is given 1 (one) working day; Death of a Direct Family member is given 2 (two) working days; Death of an employees relative is given 1 (one) working day; Death of an employee’s sibling is given 1 (one) working day. For disasters or incidents, such as fire, flood, natural disasters that cause serious damage to the dwelling place, and the employee cannot reach their place of work, then they may be granted a permit for a maximum of 3 (three) working days, except for force majeure regional or national disasters that are regulated separately. IMPACT By providing a safe and comfortable work environment, the level of employee engagement reached 87.75%, an increase of 4.92% from the previous year. In addition, the employee turnover rate was 4.76%, lower than the national banking industry average. PT Bank Negara Indonesia (Persero) Tbk
  693. Corporate Social Responsibility CORPORATE SOCIAL RESPONSIBILITY RELATED TO FAIR OPERATIONS POLICY GRATIFICATION Corporate social responsibility policies related to fair operations is outlined in several policies , especially the anti-corruption policies that include preventing conflicts of interest, gratification, and the application of a whistleblowing system and code of conduct. BNI targets that all social responsibility policies related to fair operations are implemented properly. To achieve good corporate governance, BNI has established Gratification control policies in its operational activities. BNI has formed a Gratuity Control Unit in the Compliance Division. At the beginning of each year all BNI employees sign an Employee Integrity Pact, which one points stating: “Not giving, promising and / or receiving any form of compensation to or from funding or borrowing customers, vendors, partners, work partners and / or other parties both external and internal. “ ACTIVITIES WHISTLEBLOWING SYSTEM PREVENTING CONFLICT OF INTEREST BNI has a Whistleblowing System (WBS) as part of its good corporate governance. BNI is committed to running the company professionally based on company behavior in accordance with the code of ethics and work culture so as to increase the corporate governance effectiveness. The mechanism for early detection of violations that could lead to financial losses, including matters that could damage the BNI’s image, is through a Whistleblowing System (WBS) called “WBS to CEO”. WBS management is carried out in collaboration with an external party, Deloitte. The WBS is a commitment to create a clean work environment with integrity, and is in the form of active participation by BNI employees who report violations that occur within the BNI environment. TARGET ACTIVITIES A conflict of interest is a condition whereby the economic interests of companies clash with personal economic interests. BNI personnel are prohibited from carrying out actions that can cause conflicts of interest that can harm BNI’s interests. PROHIBITION OF GIVING, RECEIVING GIFTS OR SOUVENIRS BNI employees are prohibited from: a. Receiving rewards directly or indirectly in any form from any party related to their duties and responsibilities. b. Collecting illegal payments in any form when carrying out their duties for personal, group or other party interests. c. Giving, promising or offering gifts directly or indirectly in any form to civil servants or state administrators in private that are relevant to transactions with BNI. d. Giving gifts, receptions or other facilities to work partners, colleagues, and customers according to the prohibitions stipulated in the applicable legal provisions. PT Bank Negara Indonesia (Persero) Tbk  IMPACT The impact of the social responsibility activities related to fair operations is the creation of healthy business activities, was to significantly improve the operational and financial performance in 2018. Adapting Quickly to Face Change 693
  694. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk SOCIAL RESPONSIBILITY IMPLEMENTATION BASED ON SUSTAINABLE FINANCE CONCEPT The implementation of Corporate Social Responsibility (CSR) is not just a fulfillment of regulations, but is also the company’s responsibility to stakeholders. For this reason, CSR policies refer to, and are in line with BNI’s Mission and the Environment, Social and Governance (ESG) aspects. 694 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  695. Corporate Social Responsibility In order to realize sustainable development and drive the national economy that prioritizes the alignment of economic , social and environmental aspects, OJK issues provisions to encourage economic, social and ecological values in every policy making and business decision, through POJK No.51/POJK.03/2017 dated July 18, 2017 concerning the Implementation of Sustainable Finance for Financial Services Institutions, Issuers and Public Companies. POJK Regulation No. 51/POJK03/2017 July 27, 2017 concerning the Implementation of Sustainable Finance for Financial Services Institutions, Issuers and Public Companies (“POJK Sustainable Finance”) stipulates that the implementation of sustainable finance for groups of Commercial Banks is based on Business Activities (BUKU) 3, BUKU 4 and Banks Foreigners came into effect on January 1, 2019. POJK Sustainable Finance was issued to support the Sustainable Finance Roadmap prepared by the OJK and to support the implementation of the Sustainable Development Goals (SDGs) through the financial industry and financial institutions. BNI’s first action in implementing POJK 51 Sustainable Finance is the establishment of a Task Force Team to compile the 2019 BNI Sustainable Financial Action Plan (RAKB). The Task Force Team’s output is the RAKB document submitted to the OJK together with the submission of the Bank Business Plan (RBB). BNI creates value for its five key stakeholders by applying sustainability pillars, both internally and externally. The values are manifested in the following forms: 1. BNI For Indonesia: BNI’s activity to support sustainable development in Indonesia, through environmental conservation, social welfare improvements, and community economic empowerment, especially for BNI partners. 2. BNI for Customers: BNI applies the concept of responsible investment. We are fully aware that our investments must be managed with full responsibility. For this reason, BNI has established mutually beneficial partnerships, while still paying attention to economic, social, and environmental aspects through the application of good governance. 3. BNI for Employees: BNI’s commitment to providing a proud workplace, capable of encouraging all employees to improve their performance and potential. 4. BNI for the Community: As a State-Owned Enterprise (SOE), and in accordance with the Company’s Mission, BNI plays a role in social responsibility (CSR) that empowers people and improves their lives. 5. BNI for the Environment: We implemented the ‘BNI Go Green’ program to participate in environmental conservation, and to create a love the environment movement. fo nd rI sia one BN I fo rC u e om st BN I BNI Sustainability Pillars rs loyees Em p If or BN t en nm BNI for the Enviro BNI Sustainability Pillars BN I PT Bank Negara Indonesia (Persero) Tbk  for the C ommunity Adapting Quickly to Face Change 695
  696. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk CORPORATE SOCIAL RESPONSIBILITY APPLICATION BASIC The implementation of Corporate Social Responsibility (CSR) is not just a fulfillment of regulations, but is also the company’s responsibility to stakeholders. For this reason, CSR policies refer to, and are in line with BNI’s Mission and the Environment, Social and Governance (ESG) aspects. As well as referencing the Company’s Mission, BNI’s CSR program is guided by the following regulations: 1. 2007 Law No. 40 concerning Limited Liability Companies. 2. Republic of Indonesia SOE Ministery Regulation No. PER-09/MBU/07/2015, dated July 3, 2015 concerning the SOE Partnership Program and Community Development Program, revoking the Republic of Indonesia SOE Ministery Regulation No. PER-07/MBU/05/2015 dated May 22, 2015, which was amended by Republic of Indonesia SOE Ministery Regulation No. PER-03/MBU/12/2016, dated December 16, 2016 concerning Amendment to Republic of Indonesia SOE Ministery Regulation No. PER-09/MBU/07/2015 dated July 3, 2015 concerning the SOE Partnership Program and Community Development Program that was subsequently amended by the Republic of Indonesia SOE Ministery Regulation No. PER-02/MBU/7/2017 dated July 5, 2017 concerning the Second Amendment to the Republic of Indonesia SOE Ministery Regulation No. PER-09/MBU/07/2015 dated July 3, 2015 concerning the SOE Partnership Program and Community Development Program. This SOE Ministerial Regulation was applied in 2017. 3. The Extraordinary General Meeting of Shareholders of PT Bank Negara Indonesia (Persero) Tbk (BNI EGMS) dated November 9, 2015 determining that SOE Ministery Regulation No. PER-09/MBU/07/2015 July 3, 2015 will take effect in 2016. 4. Financial Services Authority Regulation Number 51/POJK.03/2017 dated July 18, 2017 concerning the Implementation of Sustainable Finance for Financial Service Institutions, Issuers and Public Companies. 696 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  697. Corporate Social Responsibility CORPORATE SOCIAL RESPONSIBILITY MANAGEMENT STRUCTURE Corporate social responsibility management related to social activities , especially for the Community Development Program, is the task of the Corporate Communications and Secretariat Division, who is directly responsible to the President Director, while the implementation of the Partnership Program since 2018 is the task of the Small Business 2 Division. KMP Division’s Social Responsibility Management Structure President Director Corporate Secretary and Communication Division Corporate Communication and CSR Deputy Division Head Investor Relations External Communication Group Kelompok Komunikasi Internal Internal Communication Group Community Development Management GCG Deputy Division Head Division and Bureau of Directors Development Group Research Development and Compliance Reporting Management Community and CSR Development Programs Development Management Small Business 2 Division Social Responsibility Management Structure Small Business Division Head Small Business Division Deputy Head Organic Support Group Head Partnership Credit Manager PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 697
  698. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk CORPORATE SOCIAL RESPONSIBILITY RELATED TO THE ENVIRONMENT POLICY The Financial Services Authority Regulation Number 51/ POJK.03/2017 encouraged national banks, issuers and public companies to participate in Sustainable Finance that prioritizes the alignment of Profit, People and Planet. Especially for banks, their expected role is project financing policies that pay attention to the Social and Environmental aspects. Based on the Community Development (BL) and Corporate Social Responsibility (CSR) guidelines in BNI’s Instruction No: IN/576/KMP/001 that became effective on October 17, 2018, and replaced the Temporary Company Guidelines No. IN/134/KMP/001 dated March 23, 2018, good environmental management and protection has become the Company’s commitment in carrying out its business. This has been realized by making the Environment one of the main pillars in the Company’s CSR activities. For the Company, conducting environmental CSR activities is an obligation that is nonnegotiable. This is based on the Company’s awareness that the Environment is the main source of life. In an effort to create proper environmental management and protection, BNI has compiled Eco-Friendly Lifestyle Guidelines for all BNI people, based on the 2009 Law No. 32 concerning Environmental Protection and Management, a Law that regulates the obligation for industries to protect nature and the environment. In addition, these guidelines are based on Republic of Indonesia’s Presidential Regulation No. 61 of 2011 concerning the National Action Plan for Reducing Greenhouse Gas Emissions (Nap GHG). BNI’s eco-friendly lifestyle is generally divided into 4 (four) main categories, namely: 1. Natural resource efficiency, being the behavior related to the use of resources efficiently and responsibly. 2. Environmental pollution prevention, being the mindset and behavior that prioritizes environmental sustainability. 3. Non-carbon behavior, being the habit of preventing the release of carbon emissions into the atmosphere, aimed at reducing global warming and climate change. This behavior includes prioritizing the use of digital technology, especially with regard to support for paper waste reductions and energy saving. 4. Environment-friendly collegial relationships, being the orientation of friendship activities in the work environment to support environmental sustainability efforts. In addition, in terms of lending, BNI strictly adheres to the prevailing internal regulations of avoiding granting loans to projects or businesses that could significantly endanger the environment. To fulfill this commitment, BNI currently has Corporate Lending Guidelines for the Corporate Banking Book I segment for customer credit risk analysis, as a reference for applying sustainable finance. The guideline regulates loan requirements, one being that BNI requires an Environmental Management Effort (UKL / UPL) document and / or Environmental Impact Analysis (AMDAL). The Company Guidelines are directions for changing lifestyles to become eco-friendly, including daily work attitudes, thoughts, and actions, by prioritizing behavior-oriented patterns to maintain environmental and social sustainability in BNI, both internally and externally. 698 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  699. Corporate Social Responsibility TARGET ACTIVITIES The CSR target activities , related to the environment, were the effective implementation of the Company’s Eco-Friendly Lifestyle Guidelines, and the Corporate Lending Guidelines for the Corporate Banking Book I segment. The company also targeted the preparation of the 2019 BNI Sustainable Financial Action Plan (RAKB). ACTIVITIES SOCIAL AND ENVIRONMENTAL LENDING ACTIVITIES In its lending activities, so far BNI has implemented its Green Banking program. The Green Banking concept covers financial institution activities that always prioritizes environmental sustainability when running its business practices.BNI encourages its corporate borrowers in the palm oil industry to implement environmentally friendly palm oil plantation management practices. This is BNI’s support for Indonesia’s commitment to developing a sustainable palm oil industry, as well as to prevent financial risks arising that may have an impact on social and environmental aspects. To mitigate any risks related to financing oil palm plantations, in 2018 BNI conducted a study related to the environmental requirements, the social aspects of oil palm financing, and included mapping the plantation areas to avoid overlapping with surrounding communities and conservation areas. BNI also pays attention to borrowers’ historical legal violations, and if any violations are found, BNI will verify with the relevant parties to minimize any lending to borrowers who have violated regulations. Green Loan Financing Portfolio Maximum Credit Portfolio (Trillion Rupiah) Corporate Green Financing 2018 2017 2016 83.382 57.646 21.570 Corporate Loans 219.532 188.026 174.073 Total BNI Loans (excluding comsumer loans) 359.552 314.764 286.087 Percentage Ratio 2018 2017 2016 Corporate / Corporate Loans Green Financing 37,98% 30,66% 12,39% Corporate / Total Loans Green Financing 23,19% 18,31% 7,54% BNI’s palm oil borrowers are required to be registered or certified with the Roundtable of Sustainable Palm Oil (RSPO), or Indonesia Sustainable Palm Oil (ISPO). This requirement applies to all corporate borrowers. Since 2017, BNI has been calculating the number of private corporate oil palm borrowers. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 699
  700. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk ENERGY AND WATER MANAGEMENT ACTIVITIES For energy and water management, the Company is committed to conservation. BNI’s efforts to saving water and energy in all work units in Indonesia includes the following: 1. Earth Hour 2018 was observed in all overseas and domestic Work Units. The Earth Hour program is a global campaign initiated by World Wide Fun for Nature (WWF), and invites individuals, communities, business practitioners and governments throughout the world to take care of the climate changes caused by human activities. One form of action is to turn off lights and electronic equipment for 1 hour, and this is done every 3rd Saturday throughout year. EH took place, for the first time in 2007 in Sydney, Australia and in Indonesia in 2009. As BNI’s 4th mission statement is “to increase awareness and responsibility for the environment and the community”, BNI has actively participated in EH since 2010 to help reduce the impact of climate change through energy-saving campaigns. BNI’s EH activities include turning off lights and electrical equipment that are not needed in all branch offices in Indonesia and overseas, except those related to ATMs and banking operational systems. 2. Energy savings by replacing conventional lamps with LED type lamps with lower wattage, longer lifetime and higher light intensity; 3. Limiting business travel and replacing it with teleconferences; 4. Periodic vehicle maintenance and repairs to optimize engine performance, making them more efficient in energy use, and with emissions that meet quality standards. 5. Constructing new BNI buildings with a green concept by turning off lights outside working hours, and disseminating green behavior or Green Attitude. circulate through the mail application. Also, electronic applications have replaced printed documents for employee leave requests, permits, lateness, attendance reports, etc., and these also reduce the use of paper in all BNI operations. LET’S SAVE WASTE MOVEMENT ACTIVITIES BNI implemented a financial inclusion program with a business model that synergizes financial literacy in its partnership business governance. One being the synergy of community-based waste management with BNI Pandai, BNI Simpanan Pelajar, and Agen46 technology services. This synergy increases environmental awareness in the BNI supply chain. Through the “Let’s Save With Waste” Program, BNI provides waste bank administration systems that are connected to the Agent 46 banking system. Transaction recording, previously done manually, is now recorded in the BNI banking system in real time. This system replaced the manual records that were more susceptible to human error, and also promotes accountability of waste banks in front of each of their customers. Residents who collect waste can bring it to the Agen46 Waste Bank where it is weighed and converted into a rupiah value, which is then deposited directly into the customer’s BNI Pandai and BNI Simpanan Pelajar account. In addition to waste saving transactions, Agen46 also handles other transaction services, such as electricity vouchers, telephone, and BPJS payments for their customers. By the end of 2018, the “Let’s Save With Waste” program had been implemented throughout the Jakarta region, with over 250 schools, 150 waste banks, and 159,622 customers in the West and East Jakarta areas. QUANTITATIVE IMPACT PAPERLESS BANKING ACTIVITIES THROUGH E-OFFICE BNI”s environmentally friendly paper reduction strategy adopts a paperless office concept. This concept minimizes the use of paper by replacing printed and correspondence documents into a digital format. The paperless office concept has been adopted through the BNI Forum as the bank’s operational communication media, with ePP as a digital company regulation repository, and an e-office platform innovation for BNI’s internal correspondence and employee attendance. As the digital era increases, BNI’s mailing applications for internal notes, memos, attachments, and disposition messages are distributed digitally to recipients The mailing applications has been applied in all BNI Divisions / Units and Regions, from the Directors to all employees. Currently, over 100,000 documents and 600,000 dispositions 700 Adapting Quickly to Face Change QUANTITATIVE IMPACT OF SOCIAL AND ENVIRONMENTAL LENDING ACTIVITIES The Company’s contribution includes environmentally friendly business practices, through socially and environmentally sound lending programs. This was evidenced by the certified RSPO and/or ISPO 41 borrowers increasing from 13 in 2017 to 32 in 2018. PT Bank Negara Indonesia (Persero) Tbk
  701. Corporate Social Responsibility QUANTITATIVE IMPACT OF ENERGY AND WATER SAVING ACTIVITIES As a result of the Earth Hour program , BNI’s savings in electricity consumption in 2018 in all its offices, including BNI’s Head Office, branch outlets and credit centers throughout Indonesia, as well as five overseas branches, amounted to 8.001.259 KWh. This energy savings was carried out without disrupting service to customers as all ATM machines still functioned. QUANTITATIVE IMPACT OF PAPERLESS BANKING ACTIVITIES THROUGH E-OFFICE To reduce the cost of document printing and delivery, as well as to speed up the company’s processes, BNI has developed BNI e-PP. This technology prepares systematic policies, and guidelines for SOP preparation and updating that are presented online for conducting business activities and banking operations. Since its implementation in 2018, BNI managed to record savings of Rp24.84 billion covering all employees. In addition, paper savings for customer transactions has also been enhanced through e-billing. Up to 2018, e-billing has reduced paper costs by Rp71,703.12 million through the use of 322,821 2 in 1 billing envelopes. QUANTITATIVE IMPACT OF LET’S SAVE WASTE MOVEMENT ACTIVITIES The let’s save with waste movement program is aimed at increasing public awareness for the surrounding environment so as to reduce waste. This activity also increases the community’s knowledge and skills regarding financial inclusion, and helps improve financial well-being. The savings table go with rubbish Year Region NOA (Number of Account) Tonnage Omzet BSI 2017 West Jakarta 4,622 395 Ton 1,5 billion 2018 West Jakarta 33,578 1,457 Ton 3,5 billion - 608 Ton 1,3 billion 111,378 - - East Jakarta North Jakarta Description Not yet activated Socialization started at the end of 2018 As well as the number of acquisitions above, the Let’s Save With Trash Program was included in the BNI RAKB with the title “FIRST MOVER” and during 2018 received two awards from OJK in the category: 1. The best innovation 2. Amount of accounts opens Looking at the big picture, it is hoped that in the future this program will help regional offices and branches acquire larger numbers of accounts and Agen 46. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 701
  702. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk ENVIRONMENTAL CERTIFICATION GREEN BUILDING CERTIFICATION BNI’s concern for environmental sustainability can be seen in its green buildings, which are designed to be environmentally friendly and energy efficient, and include Plaza BNI BSD which has received platinum certification from the Green Building Council Indonesia (GBCI), and Tower BNI Pejompongan, which is currently in the process of obtaining gold certification. In an attempt by BNI to realize certified green buildings, it has involved several employees in the green building expert certification programs organized by the Green Building Council Indonesia (GBCI), both for Greenship Associate (GA) and Greenship Professional (GP). Currently there are 14 (fourteen) BNI employees from Procurement and Fixed Asset (PFA) and Network Management (NM) who have received Greenship certification. ENVIRONMENT COMPLAINTS MECHANISM To realize its concern for the environment in the operational areas, BNI’s Corporate Communication and Secretariat Division has a complaint mechanism to manage Corporate complaints, especially those related to the environment that involve BNI borrowers. In 2018, there was one (1) complaint that was followed up. 702 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  703. Corporate Social Responsibility CORPORATE SOCIAL RESPONSIBILITY RELATED TO EMPLOYMENT , OCCUPATIONAL HEALTH AND SAFETY Human resources are BNI assets for carrying out its activities and services for all customers and partners. As a State-Owned Enterprise (SOE), and a public company, it strives to comply with all applicable laws and regulations, especially those in the fields of employment, Health and Safety. In addition, BNI also pays high attention and commitment in terms of gender equality and employment opportunities, job training to improve employee professionalism, commensurate reward systems, and healthy and safe working conditions for all BNI employees. POLICY BNI provides opportunities, facilities and infrastructure for employees to meet their potential, while the employees also play an active role in improving their performance and competencies. BNI conducts its Human capital management through increasing engagement on a number of aspects based on Human Capital Architecture (HC Architecture). TARGET ACTIVITIES As a Company asset, the focus has always been on Employment, Occupational Health and Safety for all employees, and BNI has continuously created safe and comfortable working environments to support performance improvement achievements. To that end, BNI is committed to creating a healthy work environment, free from injury, where operational activities are conducted in accordance with applicable rules. Employees are also facilitated with several activities that are expected to generate awareness and motivation in maintaining their health, so that each employee can increase their productivity. PT Bank Negara Indonesia (Persero) Tbk  EMPLOYMENT EMPLOYMENT ACTIVITIES FRIENDLY WORKING ENVIRONMENT FOR WOMEN BNI guarantees that all employees will always be treated equally irrespective of gender, and this is prioritized in its human resource management policy. The majority of employees are women making up 52% of the total workforce, and BNI has launched a program specifically aimed at female employees. The program includes Women ‘s Day that aims to increase women’s health quality awareness through seminars, health checks and HPV vaccinations. For mothers daycare is also provided where they can entrust their children during work time, and breast-feeding rooms for nursing mothers, and also a Nursery Room to provide space for babies or toddlers at BNI’s head office. WORK OPPORTUNITIES FOR PEOPLE WITH DISABILITIES To proved equality of rights and employment opportunities for people with disabilities, and to improve their welfare, the Government has issued a number of regulations related to disabilities, including the 1997 Law No. 4 concerning the obligation to employ people with disabilities, and PP No. 43 in 1998. To comply with these regulations, BNI has opened up employment opportunities for people with disabilities. Until 2018, there were 23 employees with disabilities. In the coming years, the Company plans to increase the employment opportunities for people with disabilities in line with its preparation of supporting facilities for employees with special needs. Adapting Quickly to Face Change 703
  704. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Equality work Human resource management policy in BNI ensure that all employees be treated without considering gender equal. Human resources management in BNI has based, competence BNI so as to ensure that all employees get equivalent opportunities for career development. BNI corporate university in central grant each care of its employees opportunities to learn and gain knowledge of applied who , as well as give occasion to grow through performance was good and that give contribution for the attainment of the performance of the business of a bank. The competence of the entire program conducted by BNI corporate university determined by the Banks and employees with regard to gender equality and equal opportunity for all organization level. FREEDOM OF ASSOCIATION Creating harmonious industrial relations with the Trade Unions, as the employees’ representatives, has always been Bank top priority. The employee unions are actively involved in the process of preparing human resource management policies through co-creation activities. In addition, there are also partnership forum activities as a means for employees to express their aspirations to the company. During 2018, 33 partnership forum meetings were held. REMUNERATION The Company’s remuneration system policy is guided by the concept For More Benefit We Go, and in line with this concept, BNI has launched a flexible benefit program as one of its benefit-giving programs. In addition, BNI always ensures that its remuneration system is in accordance with applicable regulations, and also strives to provide competitive remuneration in accordance with the industry rates. The ratio of the highest and lowest salaries during 2018 were as follows: PENSION PROGRAM BNI provided employees with a Pension Fund Health Fund Program (DKMP). This DKMP program forms of moral obligation to ensure that employees continue to receive health facilities after retirement by preparing them now, while they are still active employees. In addition, BNI also conducts training specifically aimed at employees entering the pre-retirement period, aimed at preparing them with health, finance, and psychology material. IMPACT OF EMPLOYMENT ACTIVITIES The 2018 Employment activities impact is reflected in the employee turnover rate and the employee engagement as follows. EMPLOYEE TURNOVER RATE The turnover rate in 2018 was 4.76%, which is considered a healthy turnover, and is still below the national banking industry turnover average. EMPLOYEE ENGAGEMENT For BNI, employees are an important priority for improving its business performance, and so to gain feedback, and to understand the work environment conditions, employee satisfaction surveys are conducted. Based on the 2018 employee engagement survey, the level of employee engagement was 88%, up 5.17% compared 82.83% to 2017. Based on an engagement survey conducted by AON Hewitt, the engagement results for BNI employees were above the Global average of 83% and Indonesia’s average of 76%. Highest and Lowest Salary Ratio Description 704 Rasio Highest and lowest employee salaries 40.9:1 Highest and lowest Director salary 1.2:1 Highest and lowest Commissioner Salary 1,1:1 Highest Director salary and highest employee salary 2.4:1 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  705. Corporate Social Responsibility EMPLOYEE HEALTH EMPLOYEE HEALTH FACILITIES ACTIVITIES BNI very concerned about its employees ’ welfare and health, so provides its employees and their family members with comprehensive health facilities, including BPJS, BPJS Employment and other private insurance. The health policy is intended to ensure that employees’ health remains prime, so as to bring a positive impact on employees and their families as individuals, which ultimately is expected to have an impact on improved productivity. QUANTITATIVE IMPACT OF EMPLOYEE HEALTH FACILITIES ACTIVITIES All health facilities provided by the Company to its employees impacts employee productivity levels, or Earnings per Employee (EPE). The productivity level achieved in 2018 was Rp529 million/employee, an increase of 13% compared to 2017. In line with the target achievement, the human capital allocation realized is considered capable of maintaining BNI’s productivity level to remain competitive in achieving its optimal targets. EMPLOYEE SAFETY EMPLOYEE WORK SAFETY ACTIVITIES BNI always pays attention to providing a safe working environment for all employees. This has been realized through earthquake resistant building construction, alarm systems and standardized fire extinguishers. These facilities have undertaken a building safety audit. To ensure the effectiveness of the work safety, the Company has equipped all of its operational offices with work safety devices such as Fire Extinguishers, Smoke Detectors, Diesel Pumps, and Emergency Ladders. To create a decent workplace, the Company has gradually changed and adjusted the working environment to become more ergonomic and comfortable for employees. These changes included, providing daycare facilities in the workplace to entrust their children during working hours, and for mothers who are breastfeeding, special rooms and storage are provided. For maintaining fitness, a Gym Center is provided with complete equipment and varied sports classes. To encourage comfort in the workspace, BNI is moving towards a structuring concept of an open working space. This concept emphasizes open workspaces that facilitate collaboration between employees, and are currently being used in Plaza BNI, Graha BNI and Menara BNI. MPACT OF EMPLOYEE WORK SAFETY ACTIVITIES In 2018, the Company did not record any zero accidents in its operational activities at its Head Office or Branch / Regional Offices, showing that the work safety efforts made have been effective. EMPLOYMENT COMPLAINTS MECHANISM To realize its concern for its employees, the Company has a complaints mechanism, handled by the Human Capital (HCT) Division. The employee complaint handling mechanism is as follows: 1. Employees deliver complaints to their immediate Superiors for settlement by consensus. 2. If a solution cannot be reached, complaints can be passed to a higher level. 3. If it still cannot be resolved, employees can submit complaints to the Trade Union Management for joint discussions at the different levels. 4. All employees, their superiors and the Trade Union will look for solutions to avoid industrial disputes. In addition, the Company has a fire situation/evacuation plan, fire safety operational procedures in the employee rooms, and on every floor of the building, so that all employees are well educated. In terms of worker safety learning, the Company has sent employees for training “AK3U Coaching and Certification of Public Occupational Health and Safety” held by BPJS Health in collaboration with PT Surveyor Indonesia (Persero) and the Republic of Indonesia Ministry of Manpower and Transmigration. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 705
  706. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk CORPORATE SOCIAL RESPONSIBILITY RELATED TO SOCIAL COMMUNITY DEVELOPMENT POLICY CSR related to social and community responsibility for SOE companies is conducted through the Partnership and Community Development Programs (PKBL). The PKBL is regulated by Ministry of SOEs Regulations, including: No. PER-08/MBU/2013 dated September 10, 2013 concerning the State-Owned Enterprise Partnership Program with Small Business and Community Development Program; No. PER-09/MBU/07/2015 dated July 3, 2015 concerning BUMN Partnership Program with Small Business and Community Development Program; No. PER-03/MBU/12/2016 dated December 16, 2016 concerning Amendments to No. PER-09/ MBU/07/2015; and No. PER-02/MBU/7/2017 dated July 5, 2017 concerning the Second Amendment to No. PER-09/ MBU/07/2015. TARGET ACTIVITIES As an SOE with the obligation to conduct programs in the form of partnerships with the community, as well as community development to improve the welfare of the Indonesian people, Bank endeavors to empower the community and to encourage populist economic growth through the distribution of grants and soft loans. The PKBL program is conducted in a planned, precise, transparent and sustainable manner so that BNI plays a role in improving the quality of life for the Indonesian people, as well as their equitable development, through the expansion of employment opportunities and business opportunities. In 2018 BNI activities were divided into 2 (two) main programs, including: 1. BNI Initiation, being activities based on BNI’s thematic initiations associated with SDGs and Nawacita. BNI initiation activities are also based on proposals from stakeholders. 2. National Support, being activities based on government initiatives, as the main stakeholder. These two main programs are called BNI Berbagi and BNI GoGreen and had a 2018 distribution target of Rp125 billion. 706 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  707. Corporate Social Responsibility ACTIVITIES POST DISASTER ASSISTANCE ACTIVITIES HUNTARA HUNTARA are temporary shelters used to transit refugees from tents to permanent housing and relocation to completed settlements . BNI acted as a development coordinator for 700 HUNTARA units for victims of the Lombok earthquake and 400 units for earthquake victims in Sigi, Central Sulawesi. BNI’s KUR distribution for Social Forestry to 3,170 recipients amounted to Rp18.8 billion. The KUR distribution in East Java has demonstrated its success, especially in LMDH Wono Lestari in Lumajang, East Java, where the recipients have successfully in developed businesses related to cow’s milk, banana, honey, gum resin, and processing milk into high-value products. Tabel bantuan Perhutanan Sosial Tahun 2018 RUKANTARA RUKANTARA are temporary learning classrooms for elementary and middle school students affected by the earthquake in Palu. BNI built 18 (eighteen) RUKANTARA units, including 4 (four) units in Sigi Regency, 10 units in Palu City and 4 (four) units in Donggala Regency. COMMUNITY EMPOWERMENT ACTIVITIES SOCIAL FORESTRY Social Forestry aims to prosper communities in areas around forests whilst still preserving the function of the forests. This program will provide benefits to the surrounding communities so that they can receive a better and more definite additional income. It includes certainty regarding the location of arable land and the period of rights to work, farmers’ access to KUR funding sources from banks, market certainty or uptake of production, intensive guidance from the relevant Departments and banks, the opportunity to get saprotan subsidies, and ownership of more economical land management areas (2 hectares per person). After receiving the decree, the status of the farmers became clearer, and highlighted those farmers that deserved access to cheap capital from banks. For this reason, BNI pays special attention to channeling KUR. In addition to providing a total of Rp1.6 billion as forestry community capital through its KUR and Kartu Tani programs, BNI also provides tractors, corn shellers, cultivators, water pumps, drilled wells, drainage repairs and road strengthening. BNI is also strengthening community institutions by establishing BUMDES and business units to support the social forestry programs successful cultivation. Between April 2017 until the end of 2018, BNI carried out this program in Probolinggo, Madiun, Tuban, Tulungagung, Malang, Bojonegoro, Jember, Bandung and Palembang. In addition to the Social Forestry in Sumatra and West Java, BNI is also active in East Java, where as of December 31, 2018, PT Bank Negara Indonesia (Persero) Tbk  Location Malang Bojonegoro Cost (Million Rupiah) Form of Assistance 46,000,000 perajang porang Mechine 88,450,000 Tractor, Machine Corn Sheller Tuban 334,895,000 Water Pump Machine, Tractor, Library Bandung 132,000,000 Sheller Coffee Machine Indramayu 125,749,550 Water Pump Machine, a Net and Arat Knit 30,900,000 Chainsaw, a Lawn Mower, a Hoe Cianjur Palembang 125,000,000 Hand Tractor Lumajang 496,000,000 Comhouse Communal, PKT Roadwork Total 1,378,994,550 VILLAGE BUSINESS ENTERPRISES (BUMDES) As a demonstration of BNI’s ongoing service to remote areas, BNI provides assistance to Village-Owned Enterprises (BUMDes) in rural areas. The assistance provides cooperative pilot business stimulus, with BUMDes as a referral agent and for KUR collection, with the BUMDes conducting banking product service activities through the Agen46 for the village communities. In addition, BNI has also conducted Tax Payer training for 125 BUMDes in Bali on January 22-23, 2018, with other training including: 1. Training for agricultural business development insight and derivatives processing in Mesuji and Garut. 2. Training BUMDes in processed product for export in 250 BUMDes in Surabaya. 3. Training on the use of waste in 350 BUMDes in Madiun, Malang and the surrounding areas. 4. Creating a BUMDes Institute together with 300 BUMDes from West Sumatra at BNI Corporate University. To date, BNI has assisted 8,998 BUMDes with 4,278 BUMDes being piloted by BNI. In 2019, the BUMDes mentoring and training target has been set to reach 15,000 BUMDes. Adapting Quickly to Face Change 707
  708. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk INFRASTRUCTURE DEVELOPMENT SDuring 2018, BNI assisted in community infrastructure development, in an in-kind or pro-bono manner. With this infrastructure, it is expected that community access to economic activities will be more open, and will improve public health levels, resulting in improved community welfare. On the other hand, infrastructure development can also have a negative impact if the community cannot use it productively and cannot maintain its existence. Likewise, if there are groups of people who have not received assistance, social jealousy is very possible. To overcome these negative impacts, BNI conducts social mapping first, before providing assistance to the community. Infrastructure Development Assistance in 2018 Uraian Wilayah Nominal (ribuan rupiah) Bridge Assistance - Desa Sidorejo in Klaten pro-bono Central Java 163,844 Bridge Assistance - Mandrajaya in Sukabumi pro-bono West Java 834,141 Bridge Assistance - SDN Inauga in Timika pro-bono Papua Bridge construction - Desa Tanjung Agung di Lubuklinggau pro-bono South Sumatra 319,068 Bridge construction - Desa Lam Kling di Aceh Besar pro-bono Nanggroe Aceh D. 793,427 Bridge construction - SD Al Hidayah di Jember pro-bono East Java 100,000 Bridge construction - Desa Srikandang di Jepara pro-bono Central Java 286,366 Bridge construction - Dusun Kunir, Banyuwangi pro-bono East Java 100,000 Bridge construction - Desa Kebon Kopi, lebak pro-bono Banten 162,624 Bridge construction - Desa Genaharjo di Tuban pro-bono East Java 417,664 Bridge construction - Uepai Kabupaten Konawe pro-bono Southeast Sulawesi 398,400 Bridge construction - Gombengsari pro-bono East Java TOTAL 708 Sifat Bantuan Adapting Quickly to Face Change 10,094 84,125 3.669.752 PT Bank Negara Indonesia (Persero) Tbk
  709. Corporate Social Responsibility PARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAM ACTIVITIES (PKBL) PARTNERSHIP PROGRAM Since 2018, the Small Business Division has carried out the BNI Partnership Program. This program is channeled in the form of soft loans to assisted partners and only charges administrative services at 3% per year from the loan limit. It is channeled in the form of: 1. Working capital loans to enable the purchase of fixed assets to increase production and sales; 2. Special loans to finance the funding requirements for assisted partners business activities, in the form of additional and short-term loans to fulfill orders from business partners of the assisted partners; 3. Guidance Expenses: a. To finance education, training, apprenticeships, marketing, promotions, and other matters relating to increasing the assisted partners productivity as well as for studies / research related to the Partnership Program; b. Guidance expenses are grants, up to a maximum of 20% of the Partnership Program funds disbursed in the current year; c. Guidance expenses can only be disbursed to or for the benefit of the assisted partners. BNI assisted partners are micro entrepreneurs who are not familiar with banking technicalities due of limited access to banking loans. Micro businesses are engaged in various formal and non-formal economic sectors, but have a strategic role to play in the real sector economy, and it has been proven that the micro segment is relatively more resilient in times of economic crisis. BNI assisted partners are expected to increase their business activities, business capital, entrepreneurial spirit, access to banking, business administration, product quality and marketing reach. The BNI Partnership Program distribution in 2018 is shown below: Based on Economic Sector Economic Sector Industri Pengolahan Distribution Realization Total Partners 1,520,000,000.00 49 Jasa-jasa Dunia Usaha 492,000,000.00 13 Jasa-jasa Sosial Masyarakat 936,000,000.00 22 30,000,000.00 1 Perdagangan, Restoran, & Hotel 8,110,000,000.00 256 Pertambangan 1,950,000,000.00 27 Listrik, Gas, & Air Pertanian, Perburuan, & Sarana Pertanian Grand Total PT Bank Negara Indonesia (Persero) Tbk  91,452,059,347.00 1,271 104,490,059,347.00 1,639 Adapting Quickly to Face Change 709
  710. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Based on BNI Regional Office No Region Distribution (million rupiah) Proportion of Target % 1 Region 1. Medan 7,500 2,142 28.56% 2 Region 2. Padang 7,500 50 0.67% 3 Region 3. Palembang 10,500 6,158 58.65% 4 Region 4. Bandung 7,500 2,610 34.80% 5 Region 5. Semarang 7,500 1,985 26.47% 6 Region 6. Surabaya 12,000 10,848 90.40% 7 Region 7. Makassar 7,500 46 0.61% 8 Region 8. Denpasar 7,500 665 8.87% 9 Region 9. Banjarmasin 7,500 205 2.73% 10 Region 10. Jakarta Senayan 1,000 675 67.50% 11 Region 11. Manado 2,500 25 1.00% 12 Region 12. Jakarta Kota 1,000 1,280 128.00% 14 Region 14. Jakarta Bsd 1,000 1,075 107.50% 15 Region 15. Jakarta Kemayoran 1,000 1,185 118.50% 16 Region 16. Papua 1,000 - 0.00% 17 Region 17. Yogyakarta 18 Region.18. Malang  Grand Total 710 Target (million rupiah) Adapting Quickly to Face Change 5,000 305 6.10% 12,500 75,236 601.88% 100,000 104,490 104.49% PT Bank Negara Indonesia (Persero) Tbk
  711. Corporate Social Responsibility Another Partnership Program is as a development agent that helps the Government through its social assistance agents (Bansos). The program includes: Family Hope Program (PKH), Non-Cash Food Aid (BPNT). Bansos Agent Performance Description PKH BPNT Number of Beneficiary Groups (people) 4.226.542 6.385.666 Number of Cities / Regencies 469 107 Number of Distributor Branches 200 108 The Bansos Agency’s performance has an impact on increasing financial literacy. Realization of the Partnership Program Fund as of December 2018 Rp104.49 billion Rp71 billion Rp58 billion EDUCATION AND / OR TRAINING The Education and Training activities included assistance school computers through Yayasan Ardhya Garini in Jakarta, the construction of Pesantren Modern Internasional Dea Malela in Sumbawa, the Capacity Building Program for Indonesian Migrant Workers in Hong Kong, Singapore and Malaysia, the UMKM Training Programs at SOE Creative Houses throughout Indonesia, the construction or repair of educational facilities including school buildings, libraries or reading parks. HEALTH IMPROVEMENT The Health Improvement activities included ambulance assistance for hospitals in Banten, DKI Jakarta, East Java, West Java, Central Java, Lampung, North Sulawesi, North Sumatra, West Sumatra, South Sumatra, and Bali, cataract eye surgery in Morotai, Cikarang and Bali, and free treatment programs in Lombok, Palu and DKI Jakarta. PUBLIC INFRASTRUCTURE AND DEVELOPMENT The Public Infrastructure and Development activities included assistance with agricultural facilities in Lampung, Lumajang, Indramayu, and Bali, help with clean water and toilet facilities in Tangerang, Surabaya, Muaro Jambi, Serang, Cibinong, Pacitan and Buol. Bridge construction in Banten, East Java, Central Java, West Java, Aceh, South Sumatra, West Sumatra and Southeast Sulawesi, and market development in Central and East Java, concrete roads in Ogan Baru, Musi Rawas, Banyuwangi, Palembang, Jepara, Merauke and others. WORSHIPPING FACILITIES The Worship Facilities activities included the construction/ repair of worship facilities for all religious communities in a number of regions in Indonesia, and providing Korans for Islamic Boarding Schools in Jakarta, Tasikmalaya and Garut. 2016 2017 2018 COMMUNITY DEVELOPMENT PROGRAM The Corporate Communication and Secretariat Division, under the direct supervision of the President Director, carries out the Community Development Activities in BNI. The Community Development activities implemented in 2018 included. ENVIRONMENTAL CONSERVATION The environmental conservation activities included providing garbage bins and garbage collection vehicles in Bandung, Kuningan, Cilacap, Jepara, and Banyuwangi. Rehabilitation of Organic Forests in West Java, and Nature Conservation Programs in Citarum, and BNI Smart Parks maintenance in Jakarta and Mojokerto, and also the Greening Program in Semarang, Bandung, Purwakarta, Magelang and Jakarta. NATURAL DISASTER PROGRAM ASSISTANCE The Natural Disaster activities included emergency response assistance in the form of basic food packages, refugee tents, public kitchens, health checks, public toilets and trauma healing activities in a number of regions in Indonesia. Construction of Temporary Shelter (HUNTARA) and Temporary Classrooms (RUKANTARA) for victims of natural disasters in Central Sulawesi and Banten. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 711
  712. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk POVERTY ERADICATION The Poverty Eradication activities included Home Surgery Programs for Veterans, Former Athletes and Retirees, donations to orphans, cheap markets, and assistance with basic food packages in a number of regions in Indonesia. Also they included agricultural and fishery facilities assistance in Indramayu, Banyuwangi, Bojonegoro, Tuban, Central Aceh and others, and Community Empowerment Programs in Aceh, Bengkulu and Indramayu. IMPACT OF ACTIVITIES IMPACT OF POST DISASTER ASSISTANCE ACTIVITIES The construction of Huntara (Temporary Shelters) and Rukantara (Temporary Classrooms) by BNI in disaster areas had a positive impact on residents who were victims of the Lombok and Palu earthquakes. The Huntara shelters were used as transit points for refugees from tents to permanent housing and relocation to completed settlements. Rukantara were used by students in the earthquake areas so that they could still get teaching and learning activities even in an emergency. IMPACT OF COMMUNITY EMPOWERMENT ACTIVITIES Community empowerment activities conducted by BNI during 2017 had an impact by increasing community capacity and independence. Infrastructure development had an impact by opening up access to economic activities, as well as improved health levels, which in turn improved the community welfare. Social Forestry activities had an impact on the welfare of communities in areas surrounding the forests, whilst still maintaining the forests sustainability. IMPACT OF PARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAM ACTIVITIES (PKBL) The Partnership and Community Development Program conducted by the Company impacted several aspects of the assisted partners lives, including improving the surrounding community’s economic empowerment, alleviating poverty, and improving the environment in the target areas. COSTS INCURRED By the end of 2018, Partnership Program lending reached Rp104.49 billion, classified with a ‘good’ category, and with nonperforming loans (NPLs) amounting to 0.8 %. In 2018, the distribution target amounted to Rp100 billion, including those carried out in collaboration with other parties. The costs of environmental development activities carried out by the Company in 2018 amounted to Rp115,438,383,424. Details of the community development distribution costs are as follows. Tabel Rincian Program dan Kegiatan Bina Lingkungan Tahun 2018 Bidang Bantuan Bantuan Korban Bencana Alam (dalam miliar Rupiah) Biaya Pelaksanaan 4,61 Bantuan Pendidikan dan Pelatihan 41,38 Bantuan Peningkatan Kesehatan 10,37 Bantuan Pengembangan Prasarana dan Sarana Umum 18,78 Bantuan Sarana Ibadah 24,55 Bantuan Pelestarian Alam Bantuan Pengentasan Kemiskinan 2,34 13,41 SOCIAL COMMUNITY COMPLAINTS MECHANISMS To fulfill the obligation to conduct a partnership program with the community, as well as community development for improving community welfare, BNI provides a complaints mechanism through the Corporate Secretary and Communications Division for managing complaints. 712 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  713. Corporate Social Responsibility CORPORATE SOCIAL RESPONSIBILITY RELATED TO CONSUMERS PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 713
  714. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk POLICY Pursuant to OJK Circular Letter (SE OJK) No. 2/SEOJK.07/214 and updated through OJK (SE OJK) No. 17/POJK.07/2018, BNI must provide information on resolving customer complaints through telephone, e-mail, letter or short message (SMS). If the customer feels that the resolution solution provided by BNI does not meet expectations, then the customer can continue the complaint resolution process through an Alternative Dispute Settlement Institution whose name is contained in the Financial Services Authority List of Alternative Dispute Settlement Institutions. TARGET ACTIVITIES The Bank target is to meet consumer expectations, one being through grievances or complaints handling that can be resolved in accordance with a standard level agreement. In accordance with OJK Regulations No. 2/ SEOJK.07/214 and POJK No. 18/ POJK.07/2018, written complaints must be settled within 20 (twenty) working days, and under certain conditions can be extended for a further 20 (twenty) working days. For customer satisfaction, the Company always strives to ensure the security of every product and feature offered / launched to consumers. *) Effective as of March 2019 ACTIVITIES CONSUMER RELATED SOCIAL RESPONSIBILITY ACTIVITIES ATMs FOR PEOPLE WITH DISABILITIES BNI has one ATM machine for people with disabilities located in Fatmawati, especially for wheelchair users. This ATM has wheelchair access to the ATM gallery, an automatic ATM entrance, non-slip iron flooring under the ATM machine when accessed by wheelchairs, with a lower ATM machine than other ATMs. These specifications facilitate wheelchair users. In addition, BNI also has 19 ATM Disabilitas Netra machines located in the Jabodetabek area that are placed in hospitals, Branch Offices and Office Buildings. Their features include ‘inquiry’ and ‘withdrawal’ with a ‘fast cash’ menu. These Special ATMs form part of BNI’s efforts to support people with disabilities. PRODUCT SECURITY 100% of the products and features launched by BNI have been evaluated for security after passing a post implementation review (PIR) conducted by the Compliance Division, Bank Risk Management Division and Technology Division. If the PIR results comply with the operational, technological and risk aspects, the product description is submitted to Bank Indonesia and the Financial Services Authority to obtain approval before being released to the general public. 714 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  715. Corporate Social Responsibility IMPACT OF CONSUMER RELATED SOCIAL RESPONSIBILITY ACTIVITIES Activities related to consumer responsibility , especially customer complaints handling and resolution have been carried out effectively, as shown through the customer satisfaction surveys carried out routinely. Between 2011 and 2017, BNI conducted five customer satisfaction surveys (CSS), annually in 2011, 2012, 2013 and starting in 2015 every 2 years. Compared to 4.05 in 2017, meaning the result was very good. CUSTOMER COMPLAINT REPORTING AND SETTLEMENT PROCEDURE The BNI Contact Center acts as a BNI frontline in providing services for BNI customers, always providing the best service, including customer complaint settlement for both for banking and credit cards services. BNI customers have easy access to the complaints services through various media choices, both oral and written. Complaints Submission Media BNI Customer Complaint Submission Media ORAL WRITTEN Customer contact BNI Call 1500046 Customers visiting www.bni.co.id and sub menu Contact Us Customer visiting Nearest BNI's Branch Customers sending email to bnicall@ bni.co.id or fax (021)25541203 Customer visiting Nearest BNI's Branch The BNI Contact Center is supported by an integrated Online Request Management complaint handling application so that the customer complaints receipt and settlement process can be handled by the application simplifying settlement status monitoring. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 715
  716. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Customer verbal complaint settlement solutions are made within a maximum of 5 (five) working days *), and written complaints within a maximum of 20 (twenty) working days. If supporting documents are needed for the verbal customer complaints, BNI will ask the customer to submit the complaint in writing. Under certain conditions, the document requirement and complaint settlement can be extended for a further 20 (twenty) working days based on POJK Number 1/POJK.07/2013, as updated by POJK Number 18/POJK.07/2018 *) concerning Consumer Complaint Services in the Financial Services Sector. An extension of the complaint settlement period is notified in writing to the customer. *) Effective as of March 2019 SUBMISSION AND SETTLEMENT COMPLETION CUSTOMER • • • • 1 Conveys the complaint 2 Registers the complaint 3 Provides a receipt or registration numbert 5 Submit an extension tof time notice ** 4 Delivers complaint settlement result * 6 Delivers complaint settlement result BNI endeavors to resolve Oral complaints within a maximum of 5 working days and written complaints within a maximum of 20 working days. If supporting documents are needed for customer complaints submitted verbally, then BNI will ask the customer to submit the complaint in writing. If there is a lack of documents, the customer can send more documentation within a maximum of 20 working days. Under certain conditions the document fulfillment and complaint settlement can be extended for an additional 20 working days. Based on OJK Circular Letter (SE OJK) No. 2/SEOJK.07/2014, as updated by OJK Circular Letter (SE OJK) No. 17/SEOJK.07/2018, BNI will provide information on customer complaint settlement via the telephone, e-mail, mail or short messages service (SMS). If the customer feels that the settlement solution provided by BNI does not meet their expectations, then they can continue the complaint settlement process through any Institution on the Financial Services Authority’s List of Alternative Dispute Settlement Institutions. 716 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  717. Corporate Social Responsibility In 2018 the BNI Contact Center is backed up by BNI Smart Kios through a Video Contact Center service for opening accounts through Digital Branches , as well as BNI Social Media for information requests and complaints, enabling the BNI Contact Center to serve all customers through non-branch channels. With the spirit of “BNItuDigital”, and to always provide the best customer service, the BNI Contact Center launched a BNI Call Application service, the first Contact Center banking application in Indonesia based on Artificial Intelligence (AI), equipped with Voice Command features and Natural Language Processing (NLP). The BNI Call application makes it easier for customers and non-customers, using Android and iOS devices, to find information on BNI products and services, as well as the latest general information. In addition, through the BNI Call Application, customers and non-customers can find out information and services from BNI Call officers via chat. The BNI Call application provides a new experience and adds channel alternatives so customers are given a variety of choices with ease and convenience of access, increasing customer satisfaction with BNI Call 1500046 services. The BNI Contact Center is a point of contact for BNI customers through “voice of customers” where they can provide insights for the business units for enhancing products, features and services to customers. It includes feedback for business / product owners regarding customer complaints; monitors Service Level Agreements (SLA) complaints settlement; changes to internal regulations if there are changes in legislation, and improvements to the customer complaint handling application for Online Request Management. If the customer feels the solution provided by BNI is still unsuitable, the customer can continue the complaint settlement process through Bank Indonesia, Financial Services Authority mediation services, or through Alternative Dispute Settlement Institution. Customer Complaints Data Based on Media Media Complaint 2018 Banking 2017 Credit Card Banking 2016 Credit Card Banking Credit Card Mass Media (Newspapers) 1 7 6 2 - 5 Electronic Media (Online) 70 43 16 24 4 16 4,048 43 334 104 82 50 Social Media Letter/Fax Email Telephone/Branch 17 15 13 34 - 32 3,145 1,235 3,780 1,315 - 1.709 563,937 68,113 376,297 74,070 190,023 66,423 Others 264 83 146 52 - 358 TOTAL 571,482 69,539 380,592 75,601 190,109 68,593 Settlement of Customer complaints Type of Complaint 2018 Total Banking Credit Card TOTAL 571,482 In Progress 10,526 % 1.84% 2017 Settled 560,956 % 98.16% Total 380,592 In Progress 11,274 % 2.96% Settled 369,318 % 97.04% 69,539 549 0.79% 68,990 99.21% 75,601 1,936 2.56% 73,665 97.44% 641,021 11,075 1.32% 629,946 98.68% 456,193 13,210 2.90% 442,983 97.10% PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 717
  718. ANNUAL REPORT 2018 PT Bank Negara Indonesia (Persero) Tbk Permodalan & Praktik Manajemen Risiko 721PERMODALAN 725PRAKTIK MANAJEMEN RISIKO 718 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  719. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 719
  720. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Sebagai bank umum dengan nama “Bank Negara Indonesia 1946”, BNI mendapatkan tugas memperbaiki ekonomi rakyat indonesia serta berpartisipasi dalam pembangunan ekonomi nasional dengan memberdayakan berbagai sektor industri di Indonesia. 720 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  721. Permodalan & Praktik Manajemen Risiko PERMODALAN Modal merupakan sumber dukungan keuangan dalam pelaksanaan aktivitas secara keseluruhan, bantalan (cushion) untuk menyerap kerugian yang tidak terduga (unexpected losses), dan jaring pengaman (safety nett) dalam kondisi krisis. Kecukupan modal yang memadai dapat meningkatkan kepercayaan pemangku kepentingan (stakeholder). Bank menyusun Rencana Permodalan berdasarkan telaah dan penilaian atas kebutuhan kecukupan permodalan yang dipersyaratkan dan mengkombinasikannya dengan tinjauan perkembangan ekonomi terkini. Rencana Permodalan tersebut disusun oleh Direksi sebagai bagian dari Rencana Bisnis Bank dan disetujui oleh Dewan Komisaris. Bank senantiasa menghubungkan antara sasaran keuangan dan kecukupan modal dengan risiko melalui proses perencanaan modal. Demikian pula, dengan ekspansi bisnis yang didasarkan pada kecukupan permodalan dan persyaratan likuiditas Bank. Kebutuhan permodalan tersebut direncanakan dan di diskusikan secara rutin dengan di dukung data-data analisis. Kebijakan manajemen terkait permodalan ditujukan untuk memastikan bahwa Bank memiliki modal yang kuat dan struktur permodalan yang baik untuk mendukung strategi pengembangan ekspansi usaha saat ini dan mempertahankan kelangsungan usaha di masa mendatang. Kebijakan manajemen permodalan juga digunakan sebagai panduan untuk mengidentifikasi sumber-sumber permodalan baik internal maupun eksternal. Selain itu, kebijakan permodalan ditetapkan untuk memenuhi ketentuan kecukupan permodalan yang ditetapkan oleh regulator serta memastikan agar struktur permodalan Bank telah efisien. Sesuai dengan Peraturan Otoritas Jasa Keuangan (POJK) No. 11/POJK.03/2016 sebagaimana telah diubah dengan Peraturan Otoritas Jasa Keuangan No. 34/POJK.03/2016, modal Bank terdiri dari: PT Bank Negara Indonesia (Persero) Tbk  MODAL INTI (TIER 1) Modal inti merupakan modal bank yang terdiri dari: Modal Inti Utama (Common EquityTier 1 – CET 1) dan Modal Inti Tambahan (Additional Tier 1). Modal inti utama mencakup modal disetor dan cadangan tambahan modal (disclosed reserve). Cadangan tambahan modal terdiri atas faktor penambah (agio, modal sumbangan, cadangan umum, laba tahun-tahun lalu, laba tahun berjalan, selisih lebih penjabaran laporan keuangan, dana setoran modal, waran yang diterbitkan sebagai insentif kepada pemegang saham Bank, opsi saham, pendapatan komprehensif lainnya dan saldo surplus revaluasi aset tetap) dan faktor pengurang (disagio, rugi tahun-tahun lalu, rugi tahun berjalan, selisih kurang penjabaran laporan keuangan, pendapatan komprehensif lainnya, selisih kurang antara Penyisihan Penghapusan Aset (PPA) atas aset produktif dan Cadangan Kerugian Penurunan Nilai (CKPN) atas aset produktif, selisih kurang antara jumlah penyesuaian terhadap hasil valuasi dari instrumen keuangan dalam Trading Book dan jumlah penyesuaian berdasarkan standar akuntansi keuangan serta PPA non produktif ). MODAL PELENGKAP (TIER 2) Modal Pelengkap (maksimum 100% dari modal inti). Modal pelengkap meliputi instrumen modal dalam bentuk saham atau dalam bentuk lainnya yang memenuhi persyaratan, agio atau disagio yang berasal dari penerbitan instrumen modal yang tergolong sebagai modal pelengkap, cadangan umum PPA atas aset produktif yang wajib dihitung dengan jumlah maksimum 1,25% dari ATMR Risiko Kredit dan Cadangan Tujuan. Pada tahun 2018, BNI memiliki jumlah modal inti dan modal pelengkap sebesar Rp104,25 triliun, jumlah tersebut lebih tinggi dibandingkan modal inti dan modal pelengkap tahun 2017 sebesar Rp95,31 triliun. Adapting Quickly to Face Change 721
  722. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Tabel 1.a Struktur Modal BNI (dalam juta Rupiah) KOMPONEN MODAL I. Modal Inti (Tier 1) 1 Modal Inti Utama/Common Equity Tier 1 (CET 1) 1.1 Modal Disetor (setelah dikurangi Treasury Stock) 1.2 Cadangan Tambahan Modal *) 1.2.1 Faktor Penambah 1.2.1.1 Pendapatan komprehensif lainnya 1.2.1.1.1 Selisih lebih penjabaran laporan keuangan 1.2.1.1.2 Potensi keuntungan dari peningkatan nilai wajar aset keuangan dalam kelompok tersedia untuk dijual 1.2.1.1.3 Saldo surplus revaluasi aset tetap 1.2.1.2 Cadangan tambahan modal lainnya (other disclosed reserves) 1.2.1.2.1 Agio 1.2.1.2.2 Cadangan umum 31 Desember 2017 Konsolidasian 98.013.788 98.013.788 Individual 102.411.938 102.411.938 Konsolidasian 89.765.390 94.156.872 89.765.390 94.156.872 9.054.807 9.054.807 9.054.807 9.054.807 93.776.277 95.372.851 84.777.424 86.341.937 96.876.604 99.314.270 84.822.185 86.413.968 14.921.658 15.044.109 12.563.636 12.354.344 84.951 84.886 93.279 93.155 - - 280.627 - 14.836.707 14.959.223 12.189.730 12.261.189 81.954.946 84.270.161 72.258.549 74.059.624 14.568.468 14.568.468 14.568.468 14.568.468 2.778.412 2.778.412 2.778.412 2.778.412 1.2.1.2.3 Laba tahun-tahun lalu 50.145.903 51.946.977 41.865.822 43.322.969 1.2.1.2.4 Laba tahun berjalan 14.462.163 14.976.304 13.045.847 13.389.775 1.2.1.2.5 Dana setoran modal - - - - 1.2.1.2.6 Lainnya 1.2.2 Faktor Pengurang 1.2.2.1 Pendapatan komprehensif lainnya 1.2.2.1.1 Selisih kurang penjabaran laporan keuangan 1.2.2.1.2 Potensi kerugian dari penurunan nilai wajar aset keuangan dalam kelompok tersedia untuk dijual 1.2.2.2 Cadangan tambahan modal lainnya (other disclosed reserves) 1.2.2.2.1 Disagio - - - - (3.100.327) (3.941.419) (44.761) (72.031) (2.985.198) (3.826.108) - (20.766) - - - - (2.985.198) (3.826.108) - (20.766) (115.129) (115.311) (44.761) (51.265) - - - - 1.2.2.2.2 Rugi tahun-tahun lalu - - - - 1.2.2.2.3 Rugi tahun berjalan - - - - 1.2.2.2.4 Selisih kurang antara Penyisihan Penghapusan Aset (PPA) dan Cadangan Kerugian Penurunan Nilai (CKPN) atas aset produktif - - - - 1.2.2.2.5 Selisih kurang jumlah penyesuaian nilai wajar dari instrumen keuangan dalam Trading Book - - - - (115.129) (115.311) (44.761) (51.265) - - - - - 2.544 - 3.808 (4.817.296) (2.018.264) (4.066.841) (1.243.680) (1.514.755) (1.623.997) (764.300) (849.413) 1.2.2.2.6 PPA aset non produktif yang wajib dibentuk 1.2.2.2.7 Lainnya 1.3 Kepentingan Non Pengendali yang dapat diperhitungkan 1.4 Faktor Pengurang Modal Inti Utama *) 1.4.1 Perhitungan pajak tangguhan 1.4.2 Goodwill - - - - 1.4.3 Seluruh aset tidak berwujud lainnya - - - - (3.302.541) (394.267) (3.302.541) (394.267) - - - - 1.4.4 Penyertaan yang diperhitungkan sebagai faktor pengurang 1.4.5 Kekurangan modal pada Perusahaan Anak asuransi 722 31 Desember 2018 Individual 1.4.6 Eksposur sekuritisasi   - - - - 1.4.7 Faktor pengurang modal inti utama lainnya - - - - 1.4.7.1 Penempatan dana pada instrumen AT 1 dan/atau Tier 2 pada bank lain - - - - 1.4.7.1 Kepemilikan silang pada entitas lain yang diperoleh berdasarkan peralihan karena hukum, hibah, atau hibah wasiat - - - - Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  723. Permodalan & Praktik Manajemen Risiko 31 Desember 2018 KOMPONEN MODAL Individual 2 Modal Inti Tambahan/Additional Tier 1 (AT 1) *) 2.1 Instrumen yang memenuhi persyaratan AT 1 31 Desember 2017 Konsolidasian Individual Konsolidasian - - - - - - - - 2.2 Agio/Disagio - - - - 2.3 Faktor Pengurang Modal Inti Tambahan *) - - - - 2.3.1 Penempatan dana pada instrumen AT 1 dan/atau Tier 2 pada bank lain - - - - 2.3.2 Kepemilikan silang pada entitas lain yang diperoleh berdasarkan peralihan karena hukum, hibah, atau hibah wasiat - - - - 6.240.307 6.487.602 5.541.500 5.715.552 93.333 93.333 - - - - - - 6.146.973 6.394.269 5.541.500 5.715.552 - - - - II. Modal Pelengkap (Tier 2) 1. Instrumen modal dalam bentuk saham atau lainnya yang memenuhi persyaratan Tier 2 2. Agio/Disagio 3. Cadangan umum PPA atas aset produktif yang wajib dibentuk (paling tinggi 1,25% ATMR Risiko Kredit) 4. Faktor Pengurang Modal Pelengkap *) 4.1 Sinking Fund - - - - 4.2 Penempatan dana pada instrumen Tier 2 pada bank lain - - - - 4.3 Kepemilikan silang pada entitas lain yang diperoleh berdasarkan peralihan karena hukum, hibah, atau hibah wasiat - - - - 104.254.095 108.899.540 95.306.890 99.872.424 TOTAL MODAL 31 Desember 2018 Individual 31 Desember 2017 Konsolidasian Individual 31 Desember 2018 Konsolidasian ASET TERTIMBANG MENURUT RISIKO Individual 31 Desember 2017 Konsolidasian Individual Konsolidasian Rasio KPMM ATMR RISIKO KREDIT 491.757.871 511.541.518 450.705.555 469.415.700 Rasio CET 1 (%) 17,40% 17,46% 17,45% 17,56% ATMR RISIKO PASAR 3.198.449 3.273.949 2.378.070 2.554.267 Rasio Tier 1 (%) 17,40% 17,46% 17,45% 17,56% ATMR RISIKO OPERASIONAL 68.483.648 71.631.769 61.393.204 64.300.544 Rasio Tier 2 (%) 1,11% 1,11% 1,08% 1,07% TOTAL ATMR 563.439.969 586.447.236 514.476.829 536.270.511 Rasio KPMM (%) 18,50% 18,57% 18,53% 18,62% 9,9% 9,9% 9,9% 9,9% CET 1 UNTUK BUFFER (%) 8,60% 8,67% 8,63% 8,72% RASIO KPMM SESUAI PROFIL RISIKO (%) PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 723
  724. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Untuk menunjang ekspansi bisnis dan mempertahankan market share serta untuk memenuhi ketentuan Otoritas Jasa Keuangan perihal Kewajiban Penyediaan Modal Minimum/ KPMM (Capital Adequacy Ratio/CAR) sesuai Profil Risiko dan modal penyangga (buffer) maka diperlukan permodalan yang memadai. Oleh karena itu, BNI berusaha untuk terus memperkuat permodalan dengan cara menambah modal inti yang bersifat organik, dalam hal ini terutama bersumber dari peningkatan laba tahun berjalan (retained earnings). Kecukupan permodalan dinilai melalui perhitungan Kewajiban Penyediaan Modal Minimum (KPMM) untuk Risiko Kredit, Risiko Pasar dan Risiko Operasional berdasarkan Aset Tertimbang Menurut Risiko (ATMR) sesuai dengan Pilar 1 Basel II. Metode perhitungan ATMR Risiko Kredit menggunakan Pendekatan Standar (Standardized Approach), untuk perhitungan ATMR Risiko Pasar menggunakan Metode Standar (Standard Method) sedangkan untuk perhitungan ATMR Risiko Operasional menggunakan Pendekatan Indikator Dasar (Basic Indicator Approach). Untuk risiko-risiko yang belum diperhitungkan dalam ATMR tersebut, antara lain Risiko Konsentrasi Kredit, Risiko Suku Bunga pada Banking Book, Risiko Likuiditas, Risiko Hukum, Risiko Stratejik, Risiko Kepatuhan dan Risiko Reputasi diperhitungkan dalam Profil Risiko Bank. Mengacu pada Peraturan Otoritas Jasa Keuangan No. 11/POJK.03/2016 tanggal 02 Februari 2016 tentang Kewajiban Penyediaan Modal Minimum Bank Umum (KPMM), sebagaimana telah diubah dengan Peraturan Otoritas Jasa Keuangan No. 34/POJK.03/2016 bahwa bank wajib menyediakan modal minimum sesuai Profil Risiko. Penyediaan modal minimum dihitung dengan menggunakan peringkat Profil Risiko sebagai berikut: 724 Peringkat Profil Risiko KPMM 1 8% 2 9% sd <10% 3 10% sd <11% 4 dan 5 11% sd <14% Adapting Quickly to Face Change Selain kewajiban penyediaan modal minimum sesuai Profil Risiko, terhitung sejak Januari 2016 BNI juga wajib membentuk tambahan modal sebagai penyangga (buffer) sesuai kriteria yang ditentukan oleh Otoritas Jasa Keuangan. Tambahan modal penyangga (buffer) tersebut terdiri dari Capital Conservation Buffer, Countercyclical Buffer, dan Capital Surcharge untuk Bank Systemic. Rasio KPMM BNI posisi 31 Desember 2018 sebesar 18,5% telah memenuhi persyaratan KPMM berdasarkan Profil Risiko dan tambahan modal penyangga (buffer) sebesar 12,9%. MANAJEMEN PERMODALAN TERINTEGRASI PADA KONGLOMERASI KEUANGAN BNI Mengacu pada POJK No. 26/POJK.03/2015, Konglomerasi Keuangan wajib menyediakan modal minimum terintegrasi paling rendah sebesar 100% (seratus persen) dari Total Modal Minimum (TMM) Konglomerasi Keuangan yang dilakukan dengan menghitung Rasio Kewajiban Penyediaan Modal Minimum (KPMM) Terintegrasi. Berdasarkan hasil Komite Risiko dan Kapital Sub Komite Manajemen Risiko (KRK RMC)-01/2016 tanggal 15 Januari 2016, telah diputuskan bahwa pelaporan KPMM Terintegrasi pada Konglomerasi Keuangan BNI menggunakan modal BNI secara konsolidasi ditambah dengan modal BNI Life. Perhitungan Total Modal Aktual (TMA) dan Total Modal Minimum masing-masing LJK dalam Konglomerasi Keuangan BNI juga dilakukan dalam rangka memantau kecukupan permodalan masing-masing LJK. Hasil perhitungan Rasio Kecukupan Permodalan Terintegrasi Konglomerasi Keuangan BNI posisi 31 Desember 2018 adalah sebesar 192,3%, diatas persyaratan minimum sebesar 100%. PT Bank Negara Indonesia (Persero) Tbk
  725. Permodalan & Praktik Manajemen Risiko PRAKTIK MANAJEMEN RISIKO DASAR PENERAPAN MANAJEMEN RISIKO Penerapan Manajemen Risiko BNI berlandaskan pada regulasi nasional maupun internasional, meliputi Peraturan Otoritas Jasa Keuangan (POJK), Surat Edaran Otoritas Jasa Keuangan (SEOJK), Peraturan Bank Indonesia (PBI), Surat Edaran Bank Indonesia (SEBI), dan dokumen Basel Committee on Banking Supervision (BCBS). Beberapa regulasi yang terkait dengan Manajemen Risiko Bank adalah sebagai berikut: 1. Penerapan Manajemen Risiko. a. Peraturan Otoritas Jasa Keuangan No. 18/ POJK.03/2016 tanggal 16 Maret 2016 tentang Penerapan Manajemen Risiko bagi Bank Umum. b. Surat Edaran Otoritas Jasa Keuangan No. 34/ SEOJK.03/2016 tanggal 1 September 2016 tentang Penerapan Manajemen Risiko bagi Bank Umum. 2. Penerapan Manajemen Risiko secara Konsolidasi dengan Perusahaan Anak. a. Peraturan Otoritas Jasa Keuangan No. 38/ POJK.03/2017 tanggal 12 Juli 2017 tentang Penerapan Manajemen Risiko secara Konsolidasi bagi Bank yang Melakukan Pengendalian terhadap Perusahaan Anak. b. Surat Edaran Otoritas Jasa Keuangan No. 43/ SEOJK.03/2017 tanggal 19 Juli 2017 tentang Prinsip Kehati-hatian dan Laporan dalam rangka Penerapan Manajemen Risiko secara Konsolidasi bagi Bank yang Melakukan Pengendalian terhadap Perusahaan Anak. PT Bank Negara Indonesia (Persero) Tbk  3. Penerapan Manajemen Risiko Terintegrasi. a. Peraturan Otoritas Jasa Keuangan No. 17/ POJK.03/2014 tanggal 18 November 2014 tentang Penerapan Manajemen Risiko Terintegrasi bagi Konglomerasi Keuangan. b. Surat Edaran Otoritas Jasa Keuangan No. 14/ SEOJK.03/2015 tanggal 25 Mei 2015 tentang Penerapan Manajemen Risiko Terintegrasi bagi Konglomerasi Keuangan. 4. Manajemen Risiko bagi Produk dan Aktivitas Bank Umum, antara lain: a. Peraturan Otoritas Jasa Keuangan No. 36/ POJK.03/2017 tanggal 12 Juli 2017 tentang Prinsip Kehati-hatian dalam Kegiatan Penyertaan Modal. b. Peraturan Otoritas Jasa Keuangan No. 38/ POJK.03/2016 tanggal 01 Desember 2016 tentang Penerapan Manajemen Risiko dalam Penggunaan Teknologi Informasi oleh Bank Umum. c. Peraturan Otoritas Jasa Keuangan No. 12/ POJK.03/2018, tanggal 6 Agustus 2018 tentang Penyelenggaraan Layanan Perbankan Digital oleh Bank Umum. 5. Sistem Pengendalian Intern. Surat Edaran Otoritas Jasa Keuangan No. 35/ SEOJK.03/2017 tanggal 07 Juli 2017 tentang Pedoman Standar Sistem Pengendalian Intern bagi Bank Umum. Adapting Quickly to Face Change 725
  726. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk PENERAPAN MANAJEMEN RISIKO SECARA UMUM Dalam rangka penerapan Manajemen Risiko yang efektif, baik untuk BNI secara individu maupun secara Konsolidasi dan Terintegrasi dengan Perusahaan Anak, penerapan manajemen risiko BNI mencakup: 1. Pengawasan aktif Direksi dan Dewan Komisaris; 2. Kecukupan kebijakan dan prosedur manajemen risiko serta penetapan limit risiko; 3. Kecukupan proses identifikasi, pengukuran, pemantauan, dan pengendalian risiko serta sistem informasi manajemen risiko; dan 4. Sistem pengendalian intern yang menyeluruh. PENGAWASAN AKTIF DIREKSI DAN DEWAN KOMISARIS Pengawasan aktif Direksi dilaksanakan antara lain dengan melakukan penyusunan, persetujuan, penerapan serta evaluasi atas kebijakan dan prosedur manajemen risiko BNI maupun manajemen risiko terintegrasi. Dalam menjalankan fungsinya menerapkan manajemen risiko yang efektif, Direksi dibantu oleh Satuan Kerja Manajemen Risiko (SKMR) yang merangkap sebagai Satuan Kerja Manajemen Risiko Terintegrasi (SKMRT). Pengawasan dilakukan melalui forum Rapat Direksi (Radisi), Rapat Komite Risiko & Kapital (KRK) Sub Komite Manajemen Risiko (RMC), Sub Komite Assets & Liabilities (ALCO), Sub Komite Anti Fraud (KAF), forum Rapat Komite Kebijakan Perkreditan (KKP) dan Komite Prosedur Perkreditan (KPP), serta Komite Manajemen Risiko Terintegrasi (KMRT). Dalam menjalankan fungsinya melakukan pengawasan penerapan Manajemen Risiko BNI dan Manajemen Risiko Terintegrasi, Dewan Komisaris BNI dalam pelaksanaannya dibantu oleh Komite Pemantau Risiko (KPR), Komite Audit, dan Komite Tata Kelola Terintegrasi. Pengawasan aktif Dewan Komisaris dilakukan antara lain melalui persetujuan dan evaluasi atas Kebijakan Umum Manajemen Risiko yang disusun oleh Direksi. Secara berkala Dewan Komisaris melakukan evaluasi pelaksanaan kebijakan manajemen risiko melalui forum Rapat Direksi dan Komisaris (Radikom), maupun dalam rapat Komite Pemantau Risiko (KPR) 726 Adapting Quickly to Face Change KECUKUPAN KEBIJAKAN DAN PROSEDUR MANAJEMEN RISIKO SERTA PENETAPAN LIMIT RISIKO Kebijakan Manajemen Risiko merupakan arahan tertulis dalam menerapkan manajemen risiko dan harus sejalan dengan visi, misi dan rencana stratejik serta lebih berfokus pada risiko yang relevan dalam aktivitas usaha/bisnis BNI, serta disusun dengan memperhatikan tingkat risiko yang bersedia diambil (risk appetite), toleransi risiko serta penetapan limit. Kebijakan Manajemen Risiko di BNI antara lain: 1. Kebijakan Umum Manajemen Risiko. 2. Kebijakan Manajemen Risiko Kredit, Risiko Pasar, Risiko Likuiditas, Risiko Operasional, Risiko Kepatuhan, Risiko Hukum, Risiko Stratejik, dan Risiko Reputasi. 3. Kebijakan Umum Manajemen Risiko Terintregasi 4. Pedoman Sistem Pengendalian Intern Dalam implementasinya, Prosedur Manajemen Risiko merupakan penjabaran serta aturan pelaksanaan dari Kebijakan Manajemen Risiko dan digunakan sebagai acuan pelaksanaan pengelolaan risiko bagi setiap Unit Pengelola Risiko dan didokumentasikan secara memadai. Ketentuan secara detail dari masing-masing prosedur diatur dalam petunjuk teknis (Juknis). Evaluasi dan/atau pengkinian terhadap Kebijakan dan Prosedur Manajemen Risiko BNI dilakukan secara berkala, atau dalam hal terjadi perubahan secara signifikan yang mempengaruhi kegiatan usaha BNI. Sebagai salah satu metode pengendalian Risiko, BNI juga telah memiliki limit risiko. Limit risiko merupakan ambang batas untuk menentukan tingkat intensitas mitigasi risiko yang akan dilaksanakan oleh manajemen. Penetapan limit risiko BNI mencakup limit per Risiko (Risiko kredit, Risiko pasar, dan Risiko likuiditas), limit per aktivitas fungsional maupun limit secara keseluruhan. Kebijakan, prosedur dan limit Risiko tersebut secara berkala dilakukan review dengan persetujuan sampai dengan tingkat Direksi melalui rapat komite ataupun melalui sirkulasi kepada Direksi sesuai dengan tingkat kewenangan. PT Bank Negara Indonesia (Persero) Tbk
  727. Permodalan & Praktik Manajemen Risiko KECUKUPAN PROSES IDENTIFIKASI, PENGUKURAN, PEMANTAUAN, DAN PENGENDALIAN RISIKO, SERTA SISTEM INFORMASI MANAJEMEN RISIKO Proses Manajemen Risiko di BNI meliputi tahapan identifikasi, pengukuran, pemantauan dan pengendalian risiko terhadap 8 (delapan) jenis risiko secara berkesinambungan terhadap seluruh faktor risiko yang bersifat material dengan didukung oleh Sistem Informasi Manajemen Risiko, dapat digambarkan sebagai berikut: 1 Identifikasi Risiko Identifikasi risiko dilakukan secara proaktif terhadap seluruh aktivitas bisnis dalam rangka menganalisa sumber, tingkat kemungkinan timbulnya risiko serta dampak yang ditimbulkannya 2 Pengendalian Risiko Pengendalian risiko difokuskan pada risiko yang dapat mengganggu kelangsungan usaha Bank. Proses pengendalian risiko disesuaikan dengan eksposur risiko maupun tingkat dan toleransi risiko yang akan diambil. 4 Disclosure Menyampaikan laporan risiko, yang mencakup : 1. Laporan Manajemen Risiko kepada Regulator dan Manajemen 2. Laporan Informasi Manajemen Risiko kepada publik Pengukuran Risiko Proses pengukuran risiko dilakukan dalam rangka mengetahui besarnya eksposur risiko sebagai acuan untuk melakukan pengendalian serta untuk keperluan perhitungan kewajiban penyediaan modal minimum. Pemantauan Risiko Proses pemantauan risiko dilakukan untuk memastikan bahwa risiko telah dikelola dengan baik, al. dengan: •melakukan pemantauan kepatuhan pada regulasi •toleransi dan limit risiko yang telah ditetapkan •hasil stress testing •upaya mitigasi risiko yang telah dilakukan. 3 Kebijakan mengenai proses identifikasi, pengukuran, pemantauan, dan pengendalian risiko untuk 8 (delapan) jenis risiko (risiko kredit, pasar, likuiditas, operasional, hukum, stratejik, kepatuhan dan reputasi) ditetapkan dalam Kebijakan Manajemen Risiko per jenis risiko, sedangkan proses Manajemen Risiko Terintegrasi pada Konglomerasi Keuangan BNI ditetapkan dalam Kebijakan Umum Manajemen Risiko Terintegrasi (KUMRT). PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 727
  728. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk IDENTIFIKASI RISIKO Proses identifikasi risiko dilakukan secara proaktif terhadap seluruh aktivitas bisnis dalam rangka menganalisa sumber, tingkat kemungkinan timbulnya risiko dan dampaknya. Hal-hal yang diperhatikan dalam proses identifikasi risiko adalah: 1. Identifikasi seluruh risiko dilakukan secara berkala. 2. Memiliki metode atau sistem untuk melakukan identifikasi risiko pada seluruh produk dan aktivitas bisnis BNI. 3. Secara khusus melakukan identifikasi risiko terhadap produk dan aktivitas baru, sebelum produk/aktivitas baru diperkenalkan atau dijalankan. 7. Untuk keperluan pelaporan Kewajiban Penyediaan Modal Minimum (KPMM) kepada Regulator, pengukuran risiko BNI secara individu dilakukan terhadap 3 (tiga) risiko utama yakni risiko kredit, risiko pasar dan risiko operasional. Sedangkan perhitungan KPMM terintegrasi dilakukan dengan membandingkan antara total modal aktual Lembaga Jasa Keuangan (LJK) anggota Konglomerasi Keuangan dengan total modal minimum yang wajib dipenuhi oleh LJK anggota Konglomerasi Keuangan BNI. 8. Pengukuran risiko dilakukan secara berkala di mana hasil pengukuran dilaporkan kepada Regulator sebagai bagian dari pelaporan Profil Risiko dan KPMM BNI secara individu serta pelaporan Profil Risiko Terintegrasi dan KPMM Terintegrasi Konglomerasi Keuangan BNI. PENGUKURAN RISIKO PEMANTAUAN RISIKO Proses pengukuran risiko dilakukan dalam rangka mengetahui besarnya eksposur risiko sebagai acuan untuk melakukan pengendalian risiko serta untuk keperluan perhitungan Kewajiban Penyediaan Modal Minimum. Pengukuran risiko dilakukan baik secara kuantitatif dan/atau kualitatif sesuai metode pengukuran yang telah ditetapkan oleh Regulator atau dengan menggunakan metode internal yang dikembangkan sendiri oleh BNI berdasarkan best practise dalam pengukuran risiko. Untuk mengantisipasi kondisi yang bersifat ekstrim, pengukuran risiko di BNI juga dilengkapi dengan stress testing untuk risiko kredit, risiko pasar dan risiko likuiditas. Hal-hal yang diperhatikan dalam pelaksanaan pengukuran risiko adalah: 1. Ruang lingkup pengukuran risiko paling tidak mengukur sensitivitas, kecenderungan, faktor risiko secara individu, eksposur risiko secara keseluruhan maupun per risiko dengan mempertimbangkan korelasi, dan seluruh risiko yang melekat pada transaksi serta produk bank. 2. Metode pengukuran risiko dapat dilakukan secara kuantitatif dan/atau kualitatif dengan menggunakan metode yang ditetapkan oleh Regulator maupun yang dikembangkan sendiri secara internal. 3. Penerapan metode pengukuran disesuaikan ketentuan Regulator yang berlaku. 4. Penggunaan metode internal dalam hal pengukuran risiko kredit, risiko pasar dan risiko operasional, harus mempertimbangkan persyaratan Regulator, antara lain persyaratan penggunaan, backtesting, validasi, dan dokumentasi. 5. Pengukuran risiko dilakukan oleh Unit Pengelola Risiko berkoordinasi dengan Satuan Kerja Manajemen Risiko. 6. Pengukuran risiko untuk BNI secara individu dilakukan terhadap 8 (delapan) jenis risiko, sedangkan untuk Konglomerasi Keuangan BNI dilakukan terhadap 10 (sepuluh) jenis risiko. 728 Adapting Quickly to Face Change Proses pemantauan risiko dilakukan untuk memastikan bahwa risiko telah dikelola dengan baik antara lain dengan melakukan pemantauan terhadap mitigasi dan limit risiko yang telah ditetapkan. Hal-hal yang diperhatikan dalam pelaksanaan pemantauan risiko adalah: 1. Pemantauan risiko mencakup antara lain pemantauan terhadap besarnya eksposur risiko, toleransi risiko, kepatuhan limit, dan hasil stress testing serta konsistensi pelaksanaan terhadap kebijakan dan prosedur yang telah ditetapkan. 2. Pemantauan risiko dilakukan baik oleh Satuan Kerja Operasional maupun Satuan Kerja Manajemen Risiko. 3. Hasil pemantauan disajikan dalam laporan yang disampaikan secara berkala kepada pihak eksternal (Regulator) maupun internal (Manajemen). Pemantauan risiko dilakukan baik oleh Satuan Kerja Operasional (risk taking unit) sebagai pemilik risiko (risk owner) maupun oleh risk control unit, dan hasil pemantauan disajikan dalam laporan secara berkala antara lain Laporan Portofolio Pinjaman, Laporan Pemantauan Risiko Pasar dan Risiko Likuiditas, Laporan Beban Risiko Operasional, Laporan Feedback Operational Risk Self Assessment, Internal Risk Report, Laporan Profil Risiko, Laporan Tingkat Kesehatan Bank, dan Laporan Kewajiban Penyediaan Modal Minimum (KPMM). PT Bank Negara Indonesia (Persero) Tbk
  729. Permodalan & Praktik Manajemen Risiko PENGENDALIAN RISIKO Proses pengendalian risiko dilakukan terutama untuk mengelola risiko yang dapat mengganggu kelangsungan usaha BNI. Hal-hal yang diperhatikan dalam pengendalian risiko adalah: 1. Sistem pengendalian risiko mengacu pada kebijakan dan prosedur yang telah ditetapkan. 2. Proses pengendalian risiko disesuaikan dengan eksposur risiko maupun tingkat risiko yang akan diambil (risk appetite) dan toleransi risiko (risk tolerance). 3. Mekanisme lindung nilai dan mitigasi risiko dilakukan oleh Satuan Kerja Operasional bekerjasama dengan Satuan Kerja Manajemen Risiko. Strategi pengendalian risiko yang dapat dilakukan antara lain sebagai berikut: 1. Menerima Risiko (Risk Acceptance) Untuk jenis risiko yang secara proses tidak memungkinkan untuk dilakukan intervensi pencegahan atau perbaikan situasi, maka potensi risiko yang ada akan diterima sebagai konsekuensi bank dalam memanfaatkan kesempatan bisnis, dengan pertimbangan bahwa risiko yang ada masih dalam limit/ toleransi Bank. Namun demikian, kontrol yang ketat harus dijalankan apabila strategi pengendalian risiko ini diterapkan. 2. Menghindari Risiko (Risk Avoidance) Risk avoidance dilakukan untuk mencegah BNI mengalami suatu risiko yang tidak dapat diterima (unacceptable), atau mencegah bertambahnya eksposur risiko yang ada. Risk avoidance dipilih apabila potensi keuntungan dari suatu aktivitas bisnis lebih kecil dari pada eksposur risiko yang mungkin terjadi. 3. Memindahkan risiko (Risk Transfer) Pada strategi pemindahan risiko, risiko yang ada masih melekat pada aktivitas bisnis tersebut, namun risiko tersebut dialihkan kepada pihak lain. Salah satu metode PT Bank Negara Indonesia (Persero) Tbk  pemindahan risiko yang paling umum dilakukan adalah pemanfaatan jasa asuransi atau tenaga alih daya (outsourcing). 4. Mengurangi Risiko (Risk Mitigation). Pengendalian risiko akan optimal apabila dilakukan upaya-upaya untuk dapat mengurangi risiko yang ada. Mitigasi risiko dimaksudkan untuk memperkecil kerugian yang dipicu oleh faktor eksternal, maupun kejadian di internal bank. Salah satu alternatif untuk menekan dan mengurangi risiko adalah melalui peningkatan kontrol dan penyempurnaan sistem dan prosedur kerja. SISTEM INFORMASI MANAJEMEN RISIKO Sistem informasi Manajemen Risiko harus dapat mendukung pelaksanaan proses identifikasi, pengukuran, pemantauan, dan pengendalian risiko. Beberapa aplikasi manajemen risiko telah disiapkan untuk mendukung pelaksanaan proses manajemen risiko secara baik, akurat dan tepat waktu antara lain Credit Risk Management System (CRMS), Internal Rating System, Scoring System, Perangkat Risiko Operasional (PERISKOP), dan Aplikasi Manajemen Risiko Pasar. BNI telah menyiapkan solusi manajemen risiko yang sejalan dengan IT Strategic Plan, diantaranya: 1. Menyiapkan aplikasi front end untuk risiko kredit, risiko pasar dan risiko operasional 2. Menyiapkan data storage dan information system. 3. Menyiapkan Capital Calculation Engine. Sebelum menerapkan sistem informasi manajemen risiko yang baru, harus dilakukan pengujian untuk memastikan bahwa proses dan output yang dihasilkan telah melalui proses pengembangan, pengujian, dan penilaian kembali secara efektif dan akurat. Adapting Quickly to Face Change 729
  730. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk SISTEM PENGENDALIAN INTERN YANG MENYELURUH Sistem pengendalian intern di BNI dikembangkan dan diimplementasikan dengan menggunakan model Three Lines of Defense yang terdiri atas: 1 st Risk Taking Unit or 1st Line of Defense Risk Owner, bertanggung jawab terhadap risiko yang diambil, eksekusi dan hasilnya (Day to day risk management & control) • • Bertanggung jawab terhadap pengelolaan dan pengendalian risiko yang melekat pada aktivitas keseharian (day-to-day) bisnis atau fungsinya Identifikasi, mengukur, mitigasi, memantau dan melaporkan risiko yang melekat pada aktivitas bisnis/ fungsi sesuai dengan strategi/ kebijakan/parameter risiko yang telah ditetapkan oleh Risk Control Unit (2nd line of defense). 2 nd Risk Control Unit or 2nd Line of Defense 3 rd Risk Control Unit or 2nd Line of Defense Risk Control, bertanggungjawab dalam penyusunan framework, kebijakan, prinsip, dan metodologi pengelolaan risiko Bank Risk Assurance, bertanggungjawab dalam menilai secara independen efektifitas implementasi manajemen risiko dan pengendalian intern • Menyiapkan usulan strategi dan kebijakan manajemen risiko, termasuk risk appetite & limits • Menyusun kerangka, kebijakan, prinsip, perangkat, metodologi dan standar pengelolaan risiko • Berperan sebagai unit pengawas/risk oversight unit, melakukan agregasi dan pelaporan risiko secara keseluruhan. • Advice atau rekomendasi kepada Satuan Kerja Operasional selaku Risk Taking Unit (1st line defense) dalam mengimplementasikan kebijakan risiko sesuai kewenangan • Melakukan eskalasi permasalahan/ keputusan penting kepada Senior Management/Direksi dan/atau Komite Risiko dan Kapital Sub Komite Manajemen Risiko dan/ atau Komite Manajemen Risiko Terintegrasi (Risk Management Committee). • Melakukan audit intern secara independen dan periodik terhadap implementasi manajemen risiko dan pengendalian intern. • Menyusun rekomendasi corrective action dan memonitor pelaksanaannya. • Melaporkan hasil audit ke Komite Audit dan key stake holder sesuai kewenangan Pemilik Risiko (Risk Owner) sebagai first line of defense/Risk Taking Unit melakukan pengelolaan terhadap risiko yang melekat di bisnis dan fungsinya secara harian (day to day). Divisi Manajemen Risiko Bank, Divisi Tata Kelola Kebijakan dan Divisi Kepatuhan bertindak sebagai second line of defense/Risk Control Unit. Satuan Pengawasan Internal bertindak sebagai third line of defense/Risk Assurance Unit, yang bertanggung jawab kepada Direktur Utama dan bertugas menilai secara independen kesesuaian proses penerapan manajemen risiko dan sistem pengendalian internal dengan kebijakan dan prosedur yang ditetapkan serta dengan ketentuan dari Regulator. Penerapan Sistem Pengendalian Intern di BNI telah berjalan dengan efektif dan efisien dengan diterapkannya pemisahan fungsi antara Risk Taking Unit dan Risk Control Unit serta Risk Assurance Unit. 730 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  731. Permodalan & Praktik Manajemen Risiko PENERAPAN MANAJEMEN RISIKO SECARA KHUSUS RISIKO KREDIT PENGELOLAAN RISIKO KREDIT Ketidakpastian dan perlambatan perekonomian global memberikan pengaruh pada kondisi perekonomian di Indonesia. Hal ini juga berdampak pada kinerja dan kualitas kredit perbankan secara umum. Dalam kondisi tersebut Portofolio kredit BNI dapat tumbuh cukup agresif yaitu sebesar 16,2% pada tahun 2018 berada di atas rata-rata pertumbuhan Bank Umum maupun Bank Persero. Rasio kredit bermasalah (Non Performing Loan) BNI dapat terjaga pada rentang yang wajar dan membaik dari 2,3% pada tahun 2017 menjadi 1,9% pada tahun 2018. Untuk mengantisipasi dan mengendalikan risiko kredit yang diakibatkan oleh kegagalan debitur dalam memenuhi kewajibannya, BNI mengimplementasikan sistem peringatan dini (early warning system) yaitu suatu sistem monitoring untuk mengidentifikasi potensi risiko kredit sejak dini yang digunakan sebagai indikator bagi tindakan lebih lanjut sebelum kredit jatuh menjadi Non Performing Loan. Guna menekan laju peningkatan NPL, BNI secara proaktif terus melakukan upaya penyempurnaan pengelolaan kredit kualitas rendah, antara lain melalui penajaman fungsi Credit Risk Review, serta pembentukan Joint Effort Team beranggotakan lintas divisi untuk melakukan langkahlangkah penyelamatan dan penyelesaian kredit dengan lebih dini dan terintegrasi. Untuk mempertahankan kemampuan Bank menyerap risiko yang mungkin timbul dan mengantisipasi kondisi perekonomian yang tidak pasti BNI secara bertahap terus meningkatkan rasio kemampuan Bank untuk menyerap potensi kerugian akibat kualitas kredit yang buruk melalui peningkatan Coverage Ratio, dan saat ini Coverage Ratio BNI telah mencapai 153% meningkat dari 148% di tahun 2017. Sebagai bagian dari upaya peningkatan kualitas proses, BNI telah mengimplementasikan Credit Dicipline Program (CDP) sebagai panduan bagi seluruh perangkat pengelola kredit dalam menjalankan proses kredit sehingga dapat lebih efektif dan pruden, mulai dari proses penyusunan pipeline, verifikasi hingga pemantauan kredit. Selain itu, untuk fokus ekspansi yang berkualitas BNI juga memberikan pelatihan dan penyediaan tenaga perkreditan spesialisasi pada sektor industri prioritas, serta melakukan ekspansi pada mitra korporat menggunakan skim learning model (supply chain financing). BNI juga memperkuat unit administrasi kredit dengan mengubah paradigm dari fungsi administrasi dokumen menjadi credit risk management, yaitu melibatkan unit PT Bank Negara Indonesia (Persero) Tbk  administrasi kredit dalam meminimalisir risiko kredit melalui pengelolaan dokumen yang baik, memantau proses pengikatan jaminan di notaris dan penutupan asuransi. Selain itu diterapkan prinsip “not complete no disburse” di mana tidak akan dilakukan pencairan jika persyaratan administrasi kredit belum lengkap. TATA KELOLA DAN ORGANISASI Untuk mempercepat proses ekspansi bisnis di segenap unit bisnis segmen kecil, fungsi pemasaran dan proses analisa kredit dilakukan oleh Relationship Manager yang berada di bawah unit bisnis yaitu dengan melakukan analisa bisnis dan analisa risiko serta memberikan mitigasi risiko yang diperlukan terhadap calon debitur yang diusulkan. Adapun untuk segmen Menengah dan Korporasi terdapat perbedaan proses bisnis dibandingkan segmen kecil. Proses kredit di segmen ini dilakukan oleh Senior Relationship Manager dan Relationship Manager yang berada di unit bisnis dengan tugas memproses usulan dari calon debitur, sementara analisis dan review risiko calon debitur di segmen Korporasi dan Menengah dilakukan oleh fungsi Credit Risk Manager yang berada di bawah Unit Risiko. Penerapan four eyes principles dalam proses perkreditan di BNI diimplementasikan dalam proses persetujuan kredit yang dilakukan melalui Komite Kredit, yaitu forum bersama pejabat pemutus kredit yang mempunyai wewenang memutus kredit yang diusulkan sesuai dengan limit yang ditetapkan. Anggota Komite Kredit terdiri dari pejabat unit bisnis dan unit risiko bisnis. Unit bisnis dan unit risiko bisnis berperan sebagai first line of defense (risk owner) yang bertugas mengelola dan mengendalikan risiko kredit pada kegiatan operasional harian unit tersebut. Divisi Manajemen Risiko Bank (ERM) dan Divisi TataKelola Kebijakan (PGV) berperan sebagai second line of defense yang bertugas mempersiapkan infrastruktur perkreditan seperti penyusunan kebijakan dan prosedur perkreditan, penetapan limit kewenanganmemutus kredit, menyiapkan sistem rating danscoring, bersama unit bisnis memantau portofolio kredit, serta mempersiapkan tools lain yang diperlukan untuk menunjang aktivitas perkreditan. Satuan Pengawasan Internal (SPI) sebagai third line of defense turut aktif menjaga kualitas portfofolio kredit melalui immediately post review, yaitu melakukan pemeriksaan terhadap beberapa debitur segera setelah kredit dicairkan. SPI juga melakukan pemeriksaan terhadap debitur secara sampling untuk menjaga kualitas debitur yang telah mendapatkan fasilitaskredit. Guna menjamin terselenggaranya proses kredit yang berkualitas secara berkelanjutan, untuk selanjutnya fungsi immediately post review akan terus disempurnakan. Adapting Quickly to Face Change 731
  732. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk KEBIJAKAN DAN PROSEDUR Kebijakan dan Prosedur Perkreditan disusun sebagaidasar untuk melakukan aktivitas dalam proses perkreditan agar kualitas kredit dapat terjaga dengan tetap memperhatikan target bisnis yang ditetapkan. BNI memiliki Kebijakan Perkreditan Bank (KPB) yang diputus oleh Forum Komite Kebijakan Perkreditan (KKP) dan disetujui oleh Dewan Komisaris. Selanjutnya KPB diterjemahkan ke dalam Pedoman Perusahaan Perkreditan yang diputus oleh Forum Komite Prosedur Perkreditan (KPP). Selain itu BNI juga sudah memiliki Kebijakan Manajemen Risiko Kredit yang diturunkan dalam bentuk Prosedur Manajemen Risiko Kredit. Kebijakan dan prosedur Perkreditan dan Manajemen Risiko Kredit telah dilakukan pembakuan ke dalam Pedoman Perusahaan. Pedoman Perusahaan yang digunakan saat ini sudah tersedia dalam bentuk pedoman online yaitu BNI e-PP (electronic Pedoman Perusahaan). PROSES Proses manajemen risiko kredit diimplementasikan dalam seluruh proses perkreditan, dimulai dari pemasaran kredit sampai dengan kredit tersebut lunas. Proses tersebut berlangsung secara berkesinambungandalam suatu value chain activity yang diawali denganpenetapan strategi dan perencanaan, customer insight, perencanaan portofolio, pengembangan produk, pemrosesan kredit, administrasi kredit, pemantauan yang intensif dan optimisasi portofolio. Pada aktivitas operasional perkreditan dalam lingkup individual nasabah, proses manajemen risiko kredit dilaksanakan baik oleh Unit Bisnis maupun Unit Risiko Bisnis melalui tahapan identifikasi (antara lain verifikasi kebenaran data), pengukuran (penggunaan perangkat analisa kredit), pemantauan (melalui kunjungan kepada nasabah dan review rating nasabah secara berkala), serta pengendalian (antara lain melalui penetapan limit, covenant, dan faktor mitigant). Proses Manajemen Risiko Kredit Loan Origination/Acquisition Strategic, Planning, & Budgeting Monitoring & Control Portfolio Optimazition Customer Insight & Product Dev. Relationship Analysis Approval Crd.Adm Monitoring Remedial Collection Portfolio Analysis Optimazition Dalam lingkup keseluruhan portofolio, pemantauan dan pelaporan eksposur kredit dilakukan secara berkala kepada Manajemen antara lain melalui Laporan Portofolio Pinjaman. Di samping itu juga dilakukan pemantauan terhadap konsentrasi kredit, baik konsentrasi terhadap sektor ekonomi tertentu maupun konsentrasi terhadap segmen tertentu. Secara berkala dalam Forum Komite Risiko dan Kapital Sub Komite Manajemen Risiko (KRK-RMC) dilakukan evaluasi atas pencapaian target, penetapan langkah-langkah dan koordinasi tindak lanjut perbaikan, serta evaluasi atas efektivitas langkah-langkah perbaikan yang telah dilakukan. PERANGKAT DAN METODE Dalam rangka mendukung operasional proses bisnis dan pengelolaan risiko kredit, BNI telah memiliki beberapa perangkat manajemen risiko kredit baik pada tataran eksposur individu maupun portofolio. Untuk pemrosesan kredit pada eksposur individu segmen business banking, BNI telah memiliki model rating berupa internal rating system, sedangkan untuk segmen consumer digunakan sistem scoring debitur untuk membantu analisa kualitas debitur dalam proses perkreditan. Untuk menjaga agar portofolio bank tidak terkonsentrasi pada debitur dan sektor ekonomi tertentu, maka telah ditetapkan pembatasan kredit sesuai risk appetite, sedangkan untuk mengantisipasi pelampauan BMPK BNI telah menetapkan limit BMPK yang disebut house limit dengan batas yang lebih prudent dibandingkan limit BMPK sesuai ketentuan regulator. 732 Adapting Quickly to Face Change Untuk mengatur komposisi portofolio pinjaman, BNI telah memiliki Loan Exposure Limit (LEL) yang berfungsi membatasi risiko konsentrasi eksposur pinjaman di setiap sektor ekonomi pada masing-masing segmen bisnis, dan menjadi pedoman ekspansi pinjaman selama satu tahun. Untuk penilaian terhadap risiko industri, BNI mengimplementasikan Industry Risk Rating (IRR) serta standar rasio keuangan yang digunakan sebagai salah satu faktor dalam penilaian kualitas debitur dari sisi industri. Sebagai bagian dari pengukuran risiko kredit dan untuk mengantisipasi terjadinya perubahan faktor makro yang berpengaruh pada bank, BNI secara berkala melakukan stress testing risiko kredit untuk menilai perubahan portofolio kredit dan pengaruhnya bagi bank serta kemampuan bank menghadapi kondisi tersebut. PT Bank Negara Indonesia (Persero) Tbk
  733. Permodalan & Praktik Manajemen Risiko Untuk mengintegrasikan dokumentasi dalam proses perkreditan, BNI telah menggunakan aplikasi e-PAK untuk kredit korporasi yang membantu proses end-to end proses kredit berikut pendokumentasiannya yang dilakukan dengan mengintegrasikan beberapa tools yang telah ada. PEMBENTUKAN CADANGAN KERUGIAN PENURUNAN NILAI (CKPN) Berdasarkan PSAK 55, bank wajib membentuk Cadangan Kerugian Penurunan Nilai (CKPN) untuk mengantisipasi terjadinya penurunan nilai aset keuangan bank. Penurunan nilai adalah suatu kondisi di mana nilai tercatat dari suatu aset keuangan bank melebihi dari nilai yang dapat dipulihkan dari aset keuangan yang bersangkutan. Setiap akhir bulan BNI melakukan evaluasi penurunan nilai atas seluruh aset keuangan kecuali aset keuangan yang diklasifikasikan dalam kelompok yang nilai wajarnya diukur melalui Laporan Laba Rugi (Fair Value Through Profit and Loss). BNI mengevaluasi apakah terdapat bukti objektif bahwa Aset Keuangan atau kelompok Aset Keuangan tersebut mengalami penurunan nilai. Bukti objektif adalah bukti terjadinya peristiwa yang merugikan sebagai akibat dari satu atau lebih peristiwa yang terjadi setelah pengakuan awal aset tersebut, dan peristiwa yang merugikan tersebut berdampak pada estimasi arus kas masa datang atas aset keuangan atau kelompok aset keuangan yang dapat diestimasi secara andal. Bukti objektif tersebut antara lain: 1. Kesulitan keuangan signifikan yang dialami penerbit atau debitur. 2. Pelanggaran kontrak, yaitu terjadinya wanprestasi atau tunggakan pembayaran kewajiban debitur baik pokok, bunga dan denda. 3. BNI dengan alasan ekonomi atau hukum sehubungan dengan kesulitan keuangan yang dialami peminjam, memberikan keringanan (konsesi) pada pihak peminjam yang tidak mungkin diberikan jika pihak peminjam tidak mengalami kesulitan keuangan tersebut. 4. Terdapat kemungkinan bahwa pihak peminjam akan dinyatakan pailit atau melakukan reorganisasi keuangan lainnya. 5. Hilangnya pasar aktif dari aset keuangan akibat kesulitan keuangan, atau 6. Data yang dapat diobservasi mengindikasikan adanya penurunan yang dapat diukur atas estimasi arus kas masa datang dari kelompok aset keuangan sejak pengakuan awal aset keuangan tersebut, meskipun penurunan belum dapat diidentifikasi terhadap aset keuangan secara Individu dalam kelompok aset keuangan tersebut. PT Bank Negara Indonesia (Persero) Tbk  Metode perhitungan pembentukan CKPN di BNI menggunakan 2 (dua) metode yaitu assessment secara Individu dan assessment secara Kolektif. Perhitungan CKPN secara Individu dilakukan terhadap suatu aset keuangan yang signifikan mempunyai bukti objektif mengalami penurunan nilai, yaitu aset keuangan dari segmen Korporasi dan Menengah, serta kepemilikan surat berharga. CKPN secara Individu dihitung dengan menggunakan metode nilai kini dari estimasi arus kas suatu aset keuangan yang dilakukan langsung oleh pengelola masing-masing debitur. CKPN secara kolektif dihitung dengan menggunakan data kerugian historis (perhitungan Incurred Loss berdasarkan estimasi Probability of Default [PD] dan Loss Given Default [LGD]) dari masing-masing kelompok aset tertentu). Perhitungan CKPN secara Kolektif dilakukan bagi semua asset keuangan yang: 1. Tidak dievaluasi secara Individu, yaitu antara lain kredit dari segmen Kecil, Kredit Konsumtif, Kartu Kredit, Tagihan Akseptasi, Tagihan Dokumen dan Fasilitas. 2. Tidak terdapat bukti objektif penurunan nilai dari aset keuangan yang dievaluasi, yaitu pinjaman dalam segmen korporasi dan usaha menengah yang tidak terdapat bukti objektif penurunan nilai. 3. Terdapat bukti objektif penurunan nilai dari asset keuangan yang dievaluasi secara Individu namun tidak terdapat kerugian penurunan nilai. Dalam perhitungan CKPN secara kolektif ini, suatu aset dikategorikan sebagai aset yang telah jatuh tempo (default) apabila aset tersebut tercatat mempunyai jumlah hari tunggakan atas pembayaran pokok dan/atau pembayaran bunga lebih dari 180 (seratus delapan puluh) hari, atau telah dihapus buku. BNI menggunakan migration analysis dan roll rate analysis dengan periode observasi data selama 5 (lima) tahun untuk perhitungan PD dan LGD CKPN Kolektif. Dalam rangka implementasi IFRS-9 di seluruh unit BNI baik cabang dalam negeri maupun luar negeri, BNI telah mempersiapkan implementasinya dengan pengembangan metodologi perhitungan impairment (CKPN) sesuai IFRS-9. Model perhitungan CKPN sesuai IFRS-9 cabang luar negeri telah dapat diimplementasi di 3 (tiga) cabang luar negeri sejak Januari 2018, sedangkan untuk BNI cabang dalam negeri akan diimplementasikan mulai Januari 2020. Adapting Quickly to Face Change 733
  734. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Pengungkapan tagihan bersih dan rincian mutase cadangan penurunan nilai Bank secara Individu dan konsolidasi dibuat dalam tabel: Tabel 2.1.a, Tabel 2.1.b,Tabel 2.2.a, Tabel 2.2.b, Tabel 2.3.a, Tabel 2.3.b, Tabel2.4.a, Tabel 2.4.b, Tabel 2.5.a, Tabel 2.5.b, Tabel 2.6.a,dan Tabel 2.6.b Tabel 2.1a Tabel Pengungkapan Tagihan Bersih Berdasarkan Wilayah Bank Secara Individu No. Kategori Portofolio Grup A 1 Tagihan kepada Pemerintah 2 (dalam juta Rupiah) 31-Dec-18 31-Dec-17 Tagihan Bersih Berdasarkan Area Tagihan Bersih Berdasarkan Area Grup B Grup C Grup D Grup E Total Grup A Grup B Grup C Grup D Grup E Total 216 23 - 149.274.501 17.323.908 166.598.648 707 18 13 125.280.427 18.531.330 143.812.495 Tagihan kepada Entitas Sektor Publik 15.977.999 616.326 17.543.301 58.979.685 5.325.421 98.442.732 6.733.924 354.518 12.830.021 57.011.305 3.396.005 80.325.773 3 Tagihan kepada Bank Pembangunan Multilateral dan Lembaga Internasional - - - - - - - 2.524 501 - - 3.025 4 Tagihan kepada Bank 396.210 321.712 409.670 36.384.525 9.694.942 47.207.059 487.616 503.632 688.534 44.614.259 6.300.177 52.594.218 5 Kredit Beragun Rumah Tinggal 2.702.821 1.488.488 5.364.450 2.814.441 1.431 12.371.631 2.291.025 1.502.208 5.018.717 3.010.392 79 11.822.421 6 Kredit Beragun Properti Komersial 1.438.963 1.454.535 2.118.773 6.819.885 - 11.832.156 1.150.468 1.510.218 1.874.125 4.747.967 - 9.282.778 7 Kredit Pegawai/ Pensiunan 142.171 98.614 211.797 99.918 3.356 555.856 218.787 151.663 322.244 147.581 3.927 844.202 8 Tagihan kepada Usaha Mikro, Usaha Kecil dan Portofolio Ritel 17.179.462 14.211.957 24.197.097 22.814.580 3.653 78.406.749 13.753.488 10.956.612 18.333.815 19.857.819 1.653 62.903.387 9 Tagihan kepada Korporasi 60.273.981 26.535.000 66.861.926 156.216.495 20.674.663 330.562.065 55.504.764 23.997.043 62.572.201 131.378.913 17.866.593 291.319.514 10 Tagihan yang Telah Jatuh Tempo 840.965 313.485 1.238.703 1.333.608 260.204 3.986.966 66.141 9.447 8.960 119.958 75.398 279.904 11 Aset Lainnya 3.007.578 1.853.422 3.740.312 38.180.316 148.482 46.930.109 2.306.611 1.676.712 2.928.247 45.542.899 3.420.274 55.874.743 12 Eksposur di Unit Syariah (apabila ada) - - - - - - - - - - - - 101.960.366 46.893.562 121.686.029 472.917.954 53.436.060 796.893.971 82.513.531 Total 40.664.595 104.577.378 431.711.520 49.595.436 709.062.460 Grup A : Wilayah Medan, Wilayah Padang, Wilayah Palembang, Wilayah Banjarmasin. Grup B : Wilayah Makassar, Wilayah Denpasar, Wilayah Manado, Wilayah Papua. Grup C : Wilayah Bandung, Wilayah Semarang, Wilayah Surabaya, Wilayah Jogyakarta, Wilayah Malang Grup D : Wilayah Jakarta Senayan, Wilayah Jakarta Kota, Wilayah Jakarta BSD, Wilayah Jakarta Kemayoran. Grup E : Wilayah Kantor Cabang Luar Negeri 734 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  735. Permodalan & Praktik Manajemen Risiko 2.1.b Tabel Pengungkapan Tagihan Bersih Berdasarkan Wilayah Bank Secara Konsolidasi dengan Perusahaan Anak No. Kategori Portofolio Grup A 1 Tagihan kepada Pemerintah 2 Grup B (dalam juta Rupiah) 31-Dec-18 31-Dec-17 Tagihan Bersih Berdasarkan Area Tagihan Bersih Berdasarkan Area Grup C Grup D Grup E Total Grup A Grup B Grup C Grup D Grup E Total 216 23 - 149.262.106 17.323.908 166.586.253 707 18 13 125.280.427 18.531.330 143.812.495 Tagihan kepada Entitas Sektor Publik 15.986.417 616.326 18.215.004 58.245.130 5.325.421 98.388.298 6.733.924 354.518 12.830.021 57.011.305 3.396.005 80.325.773 3 Tagihan kepada Bank Pembangunan Multilateral dan Lembaga Internasional - - - - - - - 2.524 501 - - 3.025 4 Tagihan kepada Bank 396.210 321.712 409.670 30.467.756 9.695.934 41.291.282 487.616 503.632 688.534 44.877.123 6.300.273 52.857.178 5 Kredit Beragun Rumah Tinggal 2.702.821 1.488.488 5.364.450 2.814.441 1.431 12.371.631 2.291.025 1.502.208 5.018.717 3.010.392 79 11.822.421 6 Kredit Beragun Properti Komersial 1.438.963 1.454.535 2.118.773 6.819.885 - 11.832.156 1.150.468 1.510.218 1.874.125 4.747.967 - 9.282.778 7 Kredit Pegawai/ Pensiunan 146.893 98.748 227.092 79.766 3.356 555.855 218.787 151.663 322.244 147.581 3.927 844.202 8 Tagihan kepada Usaha Mikro, Usaha Kecil dan Portofolio Ritel 17.191.224 14.212.006 24.603.054 23.523.013 3.653 79.532.950 13.890.194 10.956.612 18.415.396 20.202.458 1.653 63.466.313 9 Tagihan kepada Korporasi 60.275.256 26.535.000 66.884.832 154.841.977 20.674.663 329.211.728 55.517.535 23.997.043 62.642.010 131.296.329 17.866.596 291.319.513 10 Tagihan yang Telah Jatuh Tempo 840.965 313.485 1.238.703 1.333.608 260.204 3.986.965 66.141 9.447 8.960 119.958 75.398 279.904 11 Aset Lainnya 3.007.578 1.853.422 3.740.312 39.479.282 148.482 48.229.076 2.306.611 1.676.712 2.928.247 47.360.235 3.420.274 57.692.079 12 Eksposur di Unit Syariah (apabila ada) 6.785.972 2.034.110 9.427.275 22.916.238 - 41.163.595 5.495.683 1.690.356 7.798.627 19.908.448 - 34.893.114 108.772.515 48.927.855 132.229.165 489.783.202 53.437.052 833.149.789 88.158.691 42.354.951 112.527.395 453.962.223 Total 49.595.535 746.598.795 Grup A : Wilayah Medan, Wilayah Padang, Wilayah Palembang, Wilayah Banjarmasin. Grup B : Wilayah Makassar, Wilayah Denpasar, Wilayah Manado, Wilayah Papua. Grup C : Wilayah Bandung, Wilayah Semarang, Wilayah Surabaya, Wilayah Jogyakarta, Wilayah Malang Grup D : Wilayah Jakarta Senayan, Wilayah Jakarta Kota, Wilayah Jakarta BSD, Wilayah Jakarta Kemayoran. Grup E : Wilayah Kantor Cabang Luar Negeri PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 735
  736. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 2.2.a Pengungkapan Tagihan Bersih Berdasarkan Sisa Jangka Waktu Kontrak Bank Secara Individu No Kategori Portofolio <1 Tahun (dalam juta Rupiah) 31-Des-18 31-Des-17 Tagihan Bersih Bedasarkan Sisa Jangka Waktu Kontrak Tagihan Bersih Bedasarkan Sisa Jangka Waktu Kontrak > 1 Tahun s.d 3 Tahun > 3 Tahun s.d 5 Tahun Non Kontraktual >5 Tahun Total <1 Tahun > 1 Tahun s.d 3 Tahun > 3 Tahun s.d 5 Tahun Non Kontraktual >5 Tahun Total 1 Tagihan Kepada Pemerintah 78.519.196 8.918.856 15.549.203 25.846.069 37.765.325 166.598.649 41.327.837 11.546.393 18.128.788 38.776.626 34.032.851 143.812.495 2 Tagihan Kepada Entitas Sektor Publik 41.566.808 17.750.097 4.639.658 25.821.814 8.664.353 98.442.730 39.716.055 5.470.712 5.017.573 26.038.812 4.082.621 80.325.773 3 Tagihan Kepada - Bank Pembangunan Multilateral dan Lembaga Internasional - - - - - - 2.524 - 501 - - 3.025 4 Tagihan Kepada Bank 28.909.127 7.190.210 1.299.090 662.155 9.146.476 47.207.058 27.230.954 6.203.530 1.988.638 979.263 16.191.833 52.594.218 5 Kredit Beragun Rumah Tinggal 62.952 698.522 1.661.168 9.948.990 - 12.371.632 104.548 553.619 1.551.002 9.613.252 - 11.822.421 6 Kredit Beragun Properti Komersial 1.257.262 1.161.032 2.062.178 7.351.684 - 11.832.156 932.105 1.179.369 1.323.221 5.848.083 - 9.282.778 7 Kredit Pegawai atau Pensiunan 3.407 17.655 66.773 468.022 - 555.857 3.419 16.498 70.436 753.849 - 844.202 8 Tagihan Kepada Usaha Mikro, Usaha Kecil, dan Portofolio Ritel 5.239.583 14.967.159 19.014.928 29.141.474 10.043.605 78.406.749 4.215.693 11.474.191 14.911.021 22.497.896 9.804.586 62.903.387 9 Tagihan Kepada Korporasi 140.233.969 34.991.387 44.258.556 105.924.126 5.154.026 330.562.064 133.077.227 26.471.395 37.084.172 88.730.238 5.956.481 291.319.514 10 Tagihan Yang Telah Jatuh Tempo 1.603.561 327.860 455.810 1.502.933 96.802 3.986.966 679.178 331.570 404.908 (981.192) (154.560) 279.904 11 Aset Lainnya 12 9 4 99 46.929.985 46.930.109 - - - - 55.874.743 55.874.743 12 Eksposur di Unit Syariah - - - - - - - - - - - - 297.395.877 86.022.787 89.007.368 206.667.366 117.800.572 796.893.970 247.289.540 63.247.277 80.480.260 192.256.827 125.788.556 709.062.460   736 Total Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  737. Permodalan & Praktik Manajemen Risiko 2.2.b Pengungkapan Tagihan Bersih Berdasarkan Sisa Jangka Waktu Kontrak Bank secara Konsolidasi dengan Perusahaan Anak No Kategori Portofolio <1 Tahun 1 2 3 (dalam juta Rupiah) 31-Des-18 31-Des-17 Tagihan Bersih Bedasarkan Sisa Jangka Waktu Kontrak Tagihan Bersih Bedasarkan Sisa Jangka Waktu Kontrak > 1 Tahun s.d 3 Tahun > 3 Tahun s.d 5 Tahun Non Kontraktual >5 Tahun Total > 1 Tahun s.d 3 Tahun <1 Tahun > 3 Tahun s.d 5 Tahun Non Kontraktual >5 Tahun Total Tagihan Kepada Pemerintah 78.519.196 8.918.856 15.549.203 25.846.069 37.752.928 166.586.252 41.327.837 11.546.393 18.128.788 38.776.626 34.032.851 143.812.495 Tagihan Kepada Entitas Sektor Publik 41.763.904 18.021.713 4.834.070 25.844.270 7.924.340 98.388.297 39.716.055 5.470.712 5.017.573 26.038.812 4.082.621 80.325.773 Tagihan Kepada - Bank Pembangunan Multilateral dan Lembaga Internasional - - - - - - 2.524 - 501 - - 3.025 29.157.852 7.190.210 1.299.090 662.155 2.981.975 41.291.2823 27.846.384 6.203.530 1.988.638 979.263 15.839.363 52.857.178 4 Tagihan Kepada Bank 5 Kredit Beragun Rumah Tinggal 62.952 698.522 1.661.168 9.948.989 - 12.371.631 104.548 553.619 1.551.002 9.613.252 - 11.822.421 6 Kredit Beragun Properti Komersial 1.257.262 1.161.032 2.062.178 7.351.684 - 11.832.156 932.105 1.179.369 1.323.221 5.848.083 - 9.282.778 7 Kredit Pegawai atau Pensiunan 6.632 26.789 74.316 448.120 - 555.857 3.419 16.498 70.436 753.849 - 844.202 8 Tagihan Kepada Usaha Mikro, Usaha Kecil, dan Portofolio Ritel 5.261.046 15.200.885 19.177.347 29.152.315 10.741.357 79.532.950 4.571.004 11.474.191 14.911.021 22.499.435 10.010.662 63.466.313 140.233.969 35.007.264 44.265.584 105.925.401 3.779.507 329.211.725 133.241.756 26.551.761 37.164.538 88.836.574 5.524.884 291.319.513 Tagihan Yang Telah Jatuh Tempo 1.603.561 327.860 455.810 1.502.933 96.802 3.986.966 679.178 331.570 404.908 (981.192) (154.560) 279.904 11 Aset Lainnya 12 9 4 99 48.228.951 48.229.075 - - - - 57.692.079 57.692.079 12 Eksposur di Unit Syariah 10.164.429 6.492.453 7.031.388 - 17.475.327 41.163.597 7.426.144 5.033.865 5.011.143 - 17.421.963 34.893.114 308.030.815 93.045.593 96.410.158 206.682.035 128.981.187 833.149.7889 9 10   Tagihan Kepada Korporasi Total PT Bank Negara Indonesia (Persero) Tbk  255.850.954 68.361.508 85.571.769 192.364.702 144.449.862 746.598.795 Adapting Quickly to Face Change 737
  738. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 2.3.a Pengungkapan Tagihan Bersih Berdasarkan Sektor Ekonomi Bank Secara Individu Tagihan Kepada Bank Kredit Beragun Rumah Tinggal No Sektor Ekonomi 1 Pertanian, Perburuan, Kehutanan - 6.413.117 - - - 2 Perikanan - 77.772 - - - 3 Pertambangan dan Penggalian - 9.494.673 - - - 4 Industri Pengolahan - 20.294.567 - - - 5 Listrik, Gas dan Air - 13.847.497 - - - 6 Konstruksi - 6.827.942 - - - 7 Perdagangan Besar dan Eceran 12.599.313 462.940 - - - 8 Penyediaan Akomodasi dan Penyediaan Makanan Minum - - - - - 9 Transportasi, Pergudangan dan Komunikasi - 4.495.609 - - - 10 Perantara Keuangan 23.604.164 9.779.909 - 47.206.568 - 11 Real Estate, Usaha Persewaan dan Jasa Perusahaan - 1.029.426 - - - 12 Administrasi Pemerintahan, Pertahanan dan Jaminan Sosial Wajib 63.753.603 103.091 - - - 13 Jasa Pendidikan - - - 492 - 14 Jasa Kesehatan dan Kegiatan Sosial - 12.626 - - - 15 Jasa Kemasyarakatan, Sosial Budaya, Hiburan dan Perorangan Lainnya - 554.790 - - - 16 Jasa Perorangan Yang Melayani Rumah Tangga - - - - - 17 Badan Internasional dan Badan Ekstra Internasional Lainnya - - - - - 18 Kegiatan Yang Belum Jelas Batasannya - - - - - 19 Bukan Lapangan Usaha - - - - 10.446.036 20 Lainnya 66.641.568 25.048.772 - - 1.925.595 166.598.648 98.442.731 - 47.207.060 12.371.631   Total 738 Tagihan Kepada Bank Pembangunan Multilateral dan Lembaga Internasional Tagihan Kepada Entitas Sektor Publik Tagihan Kepada Pemerintah Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  739. Permodalan & Praktik Manajemen Risiko (dalam Juta Rupiah) 31–Des-2018 Kredit Beragun Properti Komersial Kredit Pegawai atau Pensiunan Tagihan Kepada Usaha Mikro, Usaha Kecil, dan Portofolio Ritel Tagihan Kepada Korporasi Tagihan Yang Telah Jatuh Tempo Eksposur di Unit Syariah Aset Lainnya 1.578 - 4.329.138 35.886.346 20.125 - - 50 - 457.321 1.007.874 2.714 - - - - 47.688 4.547.346 511.140 - - 88 - 3.063.889 71.474.919 987.039 - - - - 40.085 10.451.611 - - - - - 352.225 25.325.024 230.439 - - 3.650 - 13.650.187 49.812.762 783.542 - - - - 1.387.927 12.887.842 80.697 - - - - 407.878 25.551.772 216.848 - - - - 28.626 15.382.455 3.940 - - 9.893.363 - 1.166.521 23.591.184 71.256 - - - - 2.814 12.699 - - - 351 - 56.749 1.033.281 - - - - - 219.678 1.734.631 5.618 - - - - 887.280 5.040.707 9.449 - - - - 35.574 5.488 158 - - - - - 2.988 - - - - - - - - - - 1.921.272 547.256 47.989.243 9.724.309 751.317 - - 11.805 8.600 4.283.926 37.088.827 312.683 46.930.109 - 11.832.157 555.856 78.406.749 330.562.065 3.986.965 46.930.109 - PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 739
  740. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 31–Des-2017 Tagihan Kepada Bank Kredit Beragun Rumah Tinggal No Sektor Ekonomi 1 Pertanian, Perburuan, Kehutanan - - - - - 2 Perikanan - 5.595.182 - - - 3 Pertambangan dan Penggalian 48.805 - - - - 4 Industri Pengolahan - 1.228.246 - - - 5 Listrik, Gas dan Air - 12.952.558 - - - 6 Konstruksi - 18.108.394 - - - 7 Perdagangan Besar dan Eceran - 8.922.321 - - - 8 Penyediaan Akomodasi dan Penyediaan Makanan Minum 362 - 502 - 133 9 Transportasi, Pergudangan dan Komunikasi - - - - - 10 Perantara Keuangan - 4.414.093 - - - 11 Real Estate, Usaha Persewaan dan Jasa Perusahaan 48.733.488 5.275.298 - 42.370.872 - 12 Administrasi Pemerintahan, Pertahanan dan Jaminan Sosial Wajib 3.815.351 325.598 - 38.218 - 13 Jasa Pendidikan 86.299.156 58.198 - - - 14 Jasa Kesehatan dan Kegiatan Sosial - - - - - 15 Jasa Kemasyarakatan, Sosial Budaya, Hiburan dan Perorangan Lainnya - - - 3.909 - 16 Jasa Perorangan Yang Melayani Rumah Tangga - 46.657 - 30.072 - 17 Badan Internasional dan Badan Ekstra Internasional Lainnya - - - - - 18 Kegiatan Yang Belum Jelas Batasannya - - - - - 19 Bukan Lapangan Usaha 2.827.075 - - 10.514 11.822.288 20 Lainnya 2.088.258 23.399.228 2.523 10.140.634 - 143.812.495 80.325.773 3.025 52.594.218 11.822.421   Total 740 Tagihan Kepada Bank Pembangunan Multilateral dan Lembaga Internasional Tagihan Kepada Entitas Sektor Publik Tagihan Kepada Pemerintah Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  741. Permodalan & Praktik Manajemen Risiko Kredit Beragun Properti Komersial Kredit Pegawai atau Pensiunan Tagihan Kepada Usaha Mikro, Usaha Kecil, dan Portofolio Ritel Tagihan Kepada Korporasi Tagihan Yang Telah Jatuh Tempo Eksposur di Unit Syariah Aset Lainnya - - - - - - - - - 2.277.019 35.609.969 1.206 - - - - 322.087 938.935 12.287 - - - - 24.725 7.730.760 - - - 348 - 1.313.178 67.239.574 8.850 - - - - 16.884 8.791.952 53 - - - - 181.851 16.594.785 15.261 - - 6.245 - 12.654.790 46.717.500 14.557 - - 1.566 - 753.057 11.774.476 8.123 - - - - 257.951 20.578.436 - - - - - 18.177 1.642.201 20.728 - - 7.187.433 - 774.516 15.019.997 23.648 - - - - 2.293 42 - - - 385 - 37.624 575.620 - - - - - 107.434 1.373.880 2.763 - - 172 - 410.783 3.219.559 - - - - - 30.850 4.699 82 - - - - - 5.961 - - - 2.086.629 844.201 43.373.839 11.658.627 163.411 - - - - 346.331 41.842.541 8.934 55.874.743 - 9.282.778 844.202 62.903.387 291.319.514 279.904 55.874.743 - PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 741
  742. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Tabel 2.3.b Pengungkapan Tagihan Bersih Berdasarkan Sektor Ekonomi Bank Secara Konsolidasi dengan Perusahaan Anak 31-Des-2018 No 742 Sektor Ekonomi Tagihan Kepada Bank Pembangunan Multilateral dan Lembaga Internasional Tagihan Kepada Entitas Sektor Publik Tagihan Kepada Pemerintah Tagihan Kepada Bank Kredit Beragun Rumah Tinggal 1 Pertanian, Perburuan, Kehutanan - 6.412.595 - - - 2 Perikanan - 77.772 - - - 3 Pertambangan dan Penggalian - 9.494.673 - - - 4 Industri Pengolahan - 20.293.614 - - - 5 Listrik, Gas dan Air - 13.847.497 - - - 6 Konstruksi - 6.824.117 - - - 7 Perdagangan Besar dan Eceran 12.599.313 441.622 - - - 8 Penyediaan Akomodasi dan Penyediaan Makanan Minum - - - - - 9 Transportasi, Pergudangan dan Komunikasi - 4.486.642 - - - 10 Perantara Keuangan 23.591.767 9.773.956 - 41.290.791 - 11 Real Estate, Usaha Persewaan dan Jasa Perusahaan - 1.025.256 - - - 12 Administrasi Pemerintahan, Pertahanan dan Jaminan Sosial Wajib 63.753.603 103.091 - - - 13 Jasa Pendidikan - - - 492 - 14 Jasa Kesehatan dan Kegiatan Sosial - 5.391 - - - 15 Jasa Kemasyarakatan, Sosial Budaya, Hiburan dan Perorangan Lainnya - 553.300 - - - 16 Jasa Perorangan Yang Melayani Rumah Tangga - - - - - 17 Badan Internasional dan Badan Ekstra Internasional Lainnya - - - - - 18 Kegiatan Yang Belum Jelas Batasannya - - - - - 19 Bukan Lapangan Usaha - - - - 10.446.036 20 Lainnya 66.641.568 25.048.772 - - 1.925.595   Total 166.586.251 98.388.298 - 41.291.283 12.371.631 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  743. Permodalan & Praktik Manajemen Risiko (dalam Juta Rupiah) Kredit Pegawai atau Pensiunan Tagihan kepada Usaha Mikro, Usaha Kecil, dan Portofolio Ritel 1.577 - 4.329.138 35.886.345 20.126 - 612.121 50 - 457.321 1.007.874 2.714 - 29.074 - - 47.688 4.547.346 511.140 - 268.878 88 - 3.064.988 71.474.919 987.039 - 1.676.912 - - 40.085 10.451.611 - - 1.286.500 - 1.075 387.033 24.736.079 230.439 - 1.637.684 3.650 5.520 14.479.784 49.400.857 783.542 - 2.427.390 - - 1.387.927 12.887.842 80.697 - 570.107 - 1.982 430.582 25.378.171 216.848 - 973.483 - 3.555 210.423 15.382.455 3.940 - 1.597.976 9.893.363 3.903 1.190.206 23.591.183 71.256 - 871.750 - - 2.814 12.699 - - - 351 - 56.749 1.033.281 - - 813.502 - 3.545 243.643 1.558.746 5.618 - 740.984 - 1.615 895.827 5.040.707 9.449 - 171.172 - - 35.574 5.488 158 - 6.640 - - - 2.988 - - - - - - - - - - 1.921.272 526.061 47.989.243 9.724.309 751.317 - 14.184.667 11.805 8.600 4.283.926 37.088.826 312.683 48.229.075 13.294.756 11.832.156 555.856 79.532.951 329.211.726 3.986.966 48.229.075 41.163.596 Kredit Beragun Properti Komersial PT Bank Negara Indonesia (Persero) Tbk  Tagihan kepada Korporasi Tagihan yang Telah Jatuh Tempo Eksposur di Unit Syariah Aset Lainnya Adapting Quickly to Face Change 743
  744. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 31-Des-2017 No 744 Sektor Ekonomi Tagihan kepada Bank Pembangunan Multilateral dan Lembaga Internasional Tagihan kepada Entitas Sektor Publik Tagihan kepada Pemerintah Tagihan kepada Bank Kredit Beragun Rumah Tinggal 1 Pertanian, Perburuan, Kehutanan - - - - - 2 Perikanan - 5.595.182 - - - 3 Pertambangan dan Penggalian 48.805 - - - - 4 Industri Pengolahan - 1.228.246 - - - 5 Listrik, Gas dan Air - 12.952.558 - - - 6 Konstruksi - 18.108.394 - - - 7 Perdagangan Besar dan Eceran - 8.922.321 - - - 8 Penyediaan Akomodasi dan Penyediaan Makanan Minum 362 - 502 - 133 9 Transportasi, Pergudangan dan Komunikasi - - - - - 10 Perantara Keuangan - 4.414.093 - 611.695 - 11 Real Estate, Usaha Persewaan dan Jasa Perusahaan 48.733.488 5.275.298 - 42.089.924 - 12 Administrasi Pemerintahan, Pertahanan dan Jaminan Sosial Wajib 3.815.351 325.598 - 37.965 - 13 Jasa Pendidikan 86.299.156 58.198 - - - 14 Jasa Kesehatan dan Kegiatan Sosial - - - - - 15 Jasa Kemasyarakatan, Sosial Budaya, Hiburan dan Perorangan Lainnya - - - 3.883 - 16 Jasa Perorangan yang Melayani Rumah Tangga - 46.657 - 29.872 - 17 Badan Internasional dan Badan Ekstra Internasional Lainnya - - - - - 18 Kegiatan yang Belum Jelas Batasannya - - - - - 19 Bukan Lapangan Usaha 2.827.075 - - 10.444 11.822.287 20 Lainnya 2.088.258 23.399.228 2.523 10.073.395 -   Total 143.812.495 80.325.773 3.025 52.857.178 11.822.421 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  745. Permodalan & Praktik Manajemen Risiko Kredit Pegawai atau Pensiunan Tagihan kepada Usaha Mikro, Usaha Kecil, dan Portofolio Ritel - - 33.453 2.679 - - 286.460 - - 2.284.297 35.559.831 1.206 - 28.031 - - 340.074 946.774 12.287 - 264.782 - - 145.288 7.746.170 - - 1.042.585 348 - 1.329.952 67.158.006 8.850 - 841.050 - - 51.720 8.793.115 53 - 1.183.005 - - 203.847 16.579.472 15.261 - 2.373.972 6.245 - 12.697.811 46.651.723 14.557 - 188.748 1.566 - 779.474 11.788.716 8.123 - 633.073 - - 266.570 20.806.061 - - 1.449.475 - - 84.903 1.681.632 20.728 - 714.374 7.187.433 - 776.991 15.000.323 23.648 - - - - 2.301 42 - - 433.799 385 - 55.768 579.931 - - 713.995 - - 109.364 1.373.243 2.763 - 180.225 172 - 412.096 3.215.026 - - 4.983 - - 30.949 4.692 82 - - - - - 5.953 - - - 2.086.629 844.201 43.512.475 11.642.210 163.411 - 12.848.859 - - 348.982 41.783.911 8.934 57.692.079 11.705.697 9.282.778 844.202 63.466.313 291.319.510 279.904 57.692.079 34.893.114 Kredit Beragun Properti Komersial PT Bank Negara Indonesia (Persero) Tbk  Tagihan kepada Korporasi Tagihan yang Telah Jatuh Tempo Eksposur di Unit Syariah Aset Lainnya Adapting Quickly to Face Change 745
  746. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 2.4.a Pengungkapan Tagihan dan Pencadangan Berdasarkan Wilayah Bank Secara Individu (dalam juta Rupiah) 31-Dec-18 No. Area Keterangan Grup A 1 Tagihan 2 Tagihan yang mengalami penurunan nilai (impaired) Grup B Grup C Grup D Grup E Total 98.155.349 43.655.370 117.396.466 404.107.153 51.798.417 715.112.755 - - - - - a. Belum jatuh tempo 445.040 110.308 841.695 1.035.228 192.008 2.624.279 b. Telah jatuh tempo 1.661.201 573.301 2.827.508 1.268.148 - 6.330.158 3 Cadangan kerugian penurunan nilai (CKPN) - Individual 999.044 30.907 1.111.630 3.575.653 192.900 5.910.133 4 Cadangan kerugian penurunan nilai (CKPN) - Kolektif 1.977.239 1.287.663 4.564.464 1.127.836 149.392 9.106.594 5 Tagihan yang dihapus buku 2.160.119 724.520 2.582.245 1.972.159 8.325 7.447.368 keterangan: Grup A : Wilayah Medan, Wilayah Padang, Wilayah Palembang, Wilayah Banjarmasin. Grup B : Wilayah Makassar, Wilayah Denpasar, Wilayah Manado, Wilayah Papua. Grup C : Wilayah Bandung, Wilayah Semarang, Wilayah Surabaya, Wilayah Jogyakarta, Wilayah Malang Grup D : Wilayah Jakarta Senayan, Wilayah Jakarta Kota, Wilayah Jakarta BSD, Wilayah Jakarta Kemayoran. Grup E : Wilayah Kantor Cabang Luar Negeri 31-Dec-17 No. Area Keterangan Grup A Grup B Grup C Grup D Grup E Total 81.238.049 37.815.260 101.591.686 348.572.230 42.320.424 611.537.649 a. Belum jatuh tempo 121.570 51.567 90.491 1.021.168 190.389 1.475.185 b. Telah jatuh tempo 1.958.180 517.096 3.710.568 2.040.349 302.065 8.528.258 3 Cadangan kerugian penurunan nilai (CKPN) - Individual 1.281.626 142.557 951.330 1.247.641 102.361 3.725.514 4 Cadangan kerugian penurunan nilai (CKPN) - Kolektif 2.325.870 1.053.740 3.894.534 3.169.422 93.875 10.537.441 5 Tagihan yang dihapus buku 1.336.207 558.072 2.813.489 4.023.273 - 8.731.041 1 Tagihan Tagihan yang mengalami penurunan nilai (impaired) 2 746 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  747. Permodalan & Praktik Manajemen Risiko 2.4.b Pengungkapan Tagihan dan Pencadangan Berdasarkan Wilayah Bank Secara Konsolidasi dengan Perusahaan Anak (dalam juta Rupiah) 31-Dec-18 No. Area Keterangan Grup A 1 Tagihan Grup C Grup D Grup E Total 105.029.308 45.708.191 128.029.762 419.889.251 51.799.409 - - - - - a. Belum jatuh tempo 6.187.265 2.843.171 9.160.563 25.730.920 192.008 44.113.927 b. Telah jatuh tempo 1.663.693 574.616 2.833.934 1.306.795 - 6.379.038 Tagihan yang mengalami penurunan nilai (impaired) 2 Grup B 750.455.921 3 Cadangan kerugian penurunan nilai (CKPN) - Individual 999.044 54.228 1.116.557 3.710.876 192.900 6.073.605 4 Cadangan kerugian penurunan nilai (CKPN) - Kolektif 2.153.389 1.380.937 4.765.214 1.291.727 149.392 9.740.659 5 Tagihan yang dihapus buku 2.430.270 803.736 2.873.707 3.019.615 8.325 9.135.653 keterangan: Grup A : Wilayah Medan, Wilayah Padang, Wilayah Palembang, Wilayah Banjarmasin. Grup B : Wilayah Makassar, Wilayah Denpasar, Wilayah Manado, Wilayah Papua. Grup C : Wilayah Bandung, Wilayah Semarang, Wilayah Surabaya, Wilayah Jogyakarta, Wilayah Malang Grup D : Wilayah Jakarta Senayan, Wilayah Jakarta Kota, Wilayah Jakarta BSD, Wilayah Jakarta Kemayoran. Grup E : Wilayah Kantor Cabang Luar Negeri 31-Dec-17 No. Area Keterangan Grup A Grup B Grup C Grup D Grup E Total 86.917.098 39.516.037 109.589.786 370.041.277 42.329.543 648.393.741 a. Belum jatuh tempo 5.644.924 1.750.455 7.932.244 21.016.651 190.389 36.534.663 b. Telah jatuh tempo 1.964.394 518.985 3.715.525 2.073.692 302.065 8.574.661 3 Cadangan kerugian penurunan nilai (CKPN) - Individual 1.281.626 142.557 952.371 1.402.579 102.361 3.881.494 4 Cadangan kerugian penurunan nilai (CKPN) - Kolektif 2.410.754 1.093.452 3.987.158 3.380.949 93.875 10.966.188 5 Tagihan yang dihapus buku 1.497.515 597.880 2.941.584 5.072.750 - 10.109.729 1 Tagihan Tagihan yang mengalami penurunan nilai (impaired) 2 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 747
  748. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 2.5.a Pengungkapan Tagihan dan Pencadangan Berdasarkan Sektor Ekonomi Bank Secara Individu (dalam juta Rupiah) 31-Des-2018 Tagihan yang Mengalami Penurunan Nilai No 748 Sektor Ekonomi 1 Pertanian, Perburuan, Kehutanan 2 Perikanan 3 Tagihan Belum Jatuh Tempo Cadangan Kerugian Penurunan Nilai (CKPN) Individu Telah Jatuh Tempo Cadangan Kerugian Penurunan Nilai (CKPN) Kolektif Tagihan yang Dihapus buku 46.696.455 2.837 54.564 110.655 421.847 266.701 1.562.693 - 7.425 2.159 41.568 89.310 Pertambangan dan Penggalian 15.400.192 386.987 934.133 1.470.616 123.183 1.066.573 4 Industri Pengolahan 99.031.758 611.292 2.459.450 2.537.988 2.336.860 1.393.207 5 Listrik, Gas dan Air 23.245.121 - - 7.181 109.591 357 6 Konstruksi 32.799.978 208.685 106.224 70.861 376.006 184.013 7 Perdagangan Besar dan Eceran 78.788.575 594.660 1.169.106 548.663 2.079.214 1.973.421 8 Penyediaan Akomodasi dan Penyediaan Makanan Minum 14.545.319 20.293 156.292 48.079 318.368 264.690 9 Transportasi, Pergudangan dan Komunikasi 30.454.446 209.023 22.281 151.249 327.620 120.634 10 Perantara Keuangan 81.568.922 10 12.908 58.786 211.109 64.195 11 Real Estate, Usaha Persewaan dan Jasa Perusahaan 36.371.174 5.653 260.936 288.364 705.259 258.865 12 Administrasi Pemerintahan, Pertahanan dan Jaminan Sosial Wajib 63.120.974 - - - 43.501 223 13 Jasa Pendidikan 1.089.572 - - - 15.626 4.688 14 Jasa Kesehatan dan Kegiatan Sosial 1.976.778 5.002 5.526 - 34.389 8.482 15 Jasa Kemasyarakatan, Sosial Budaya, Hiburan dan Perorangan Lainnya 6.527.606 - 37.044 644 113.653 106.151 16 Jasa Perorangan yang Melayani Rumah Tangga 41.908 - 433 - 1.397 271 17 Badan Internasional dan Badan Ekstra Internasional Lainnya 2.982 - - - 61 - 18 Kegiatan yang Belum Jelas Batasannya - - - - - 8.145 19 Bukan Lapangan Usaha 72.614.129 577.290 987.249 121.529 1.438.117 1.637.441 20 Lainnya 109.274.173 2.547 116.586 493.359 409.222 -   Total 715.112.755 2.624.279 6.330.157 5.910.133 9.106.591 7.447.367 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  749. Permodalan & Praktik Manajemen Risiko 31-Des-2017 No Sektor Ekonomi Tagihan yang Mengalami Penurunan Nilai Tagihan Belum Jatuh Tempo Cadangan Kerugian Penurunan Nilai (CKPN) - Individu Telah Jatuh Tempo Cadangan Kerugian Penurunan Nilai (CKPN) - Kolektif Tagihan yang Dihapusbuku 44.282.116 1.594 153.479 706.214 501.586 91.443 Perikanan 1.392.086 128 73.802 37.848 61.432 7.785 3 Pertambangan dan Penggalian 9.184.363 - 1.035.737 270.568 64.163 540.433 4 Industri Pengolahan 84.574.551 446.925 2.762.130 1.040.404 2.577.216 2.469.355 5 Listrik, Gas dan Air 25.923.685 - 220 6.906 143.545 133.396 6 Konstruksi 25.747.259 182.537 195.566 5.609 323.169 265.965 7 Perdagangan Besar dan Eceran 59.995.590 216.240 1.500.452 96.114 2.068.455 1.941.038 8 Penyediaan Akomodasi dan Penyediaan Makanan Minum 12.853.353 21.901 100.615 256.584 242.802 44.910 9 Transportasi, Pergudangan dan Komunikasi 25.077.058 2.463 147.734 123.399 255.033 1.447.253 10 Perantara Keuangan 96.919.335 150.681 56.261 266.286 141.537 47.885 11 Real Estate, Usaha Persewaan dan Jasa Perusahaan 14.235.111 81.014 439.528 618.261 988.368 74.589 12 Administrasi Pemerintahan, Pertahanan dan Jaminan Sosial Wajib 85.795.058 - - - 44.039 - 13 Jasa Pendidikan 615.487 - - - 15.085 1.066 14 Jasa Kesehatan dan Kegiatan Sosial 1.497.880 - 10.480 217 38.791 39.181 15 Jasa Kemasyarakatan, Sosial Budaya, Hiburan dan Perorangan Lainnya 3.738.904 2.784 69.215 10.998 87.673 71.206 16 Jasa Perorangan yang Melayani Rumah Tangga 36.127 - 238 - 1.475 928 17 Badan Internasional dan Badan Ekstra Internasional Lainnya 5.950 - - - 164 - 18 Kegiatan yang Belum Jelas Batasannya - - - - - 356 19 Bukan Lapangan Usaha 74.970.147 368.918 1.393.986 185.170 1.998.880 - 20 Lainnya 44.693.589 - 588.815 100.936 984.028 1.554.252   Total 611.537.649 1.475.185 8.528.258 3.725.514 10.537.441 8.731.041 1 Pertanian, Perburuan, Kehutanan 2 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 749
  750. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 2.5.b Pengungkapan Tagihan dan Pencadangan Berdasarkan Sektor Ekonomi Bank Secara Konsolidasi dengan Perusahaan Anak (dalam juta Rupiah) 31-Des-2018 Tagihan yang Mengalami Penurunan Nilai No 750 Sektor Ekonomi 1 Pertanian, Perburuan, Kehutanan 2 Perikanan 3 Pertambangan dan Penggalian 4 Industri Pengolahan 5 Tagihan Belum Jatuh Tempo Cadangan Kerugian Penurunan Nilai (CKPN) Individu Telah Jatuh Tempo Cadangan Kerugian Penurunan Nilai (CKPN) - Kolektif Tagihan yang Dihapus buku 47.316.011 620.967 57.175 110.655 435.720 312.888 1.592.195 29.391 7.535 2.159 42.133 91.298 15.671.991 658.436 934.483 1.470.616 129.625 1.070.438 100.733.754 2.312.636 2.461.167 2.543.603 2.374.231 1.429.520 Listrik, Gas dan Air 24.531.877 1.286.757 - 8.651 122.419 3.709 6 Konstruksi 33.840.516 1.858.487 114.817 70.861 410.671 241.464 7 Perdagangan Besar dan Eceran 81.754.165 3.138.845 1.188.893 576.958 2.252.027 2.087.236 8 Penyediaan Akomodasi dan Penyediaan Makanan Minum 15.117.014 591.872 156.408 48.079 325.127 268.172 9 Transportasi, Pergudangan dan Komunikasi 31.313.596 1.250.970 24.357 210.932 346.864 126.484 10 Perantara Keuangan 76.782.392 1.604.984 15.119 98.067 234.847 271.727 11 Real Estate, Usaha Persewaan dan Jasa Perusahaan 37.357.749 909.237 264.226 294.069 741.615 285.236 12 Administrasi Pemerintahan, Pertahanan dan Jaminan Sosial Wajib 63.120.974 - - - 43.501 223 13 Jasa Pendidikan 1.904.588 814.995 21 710 23.121 5.609 14 Jasa Kesehatan dan Kegiatan Sosial 2.546.220 756.004 5.536 8.836 40.795 10.519 15 Jasa Kemasyarakatan, Sosial Budaya, Hiburan dan Perorangan Lainnya 6.706.961 172.206 37.417 644 116.502 112.913 16 Jasa Perorangan yang Melayani Rumah Tangga 48.552 6.638 439 - 1.454 283 17 Badan Internasional dan Badan Ekstra Internasional Lainnya 2.982 - - - 61 - 18 Kegiatan yang Belum Jelas Batasannya - - - - - 11.760 19 Bukan Lapangan Usaha 86.977.640 14.956.669 994.563 135.406 1.677.277 2.371.494 20 Lainnya 123.136.744 13.144.833 116.882 493.359 422.669 434.680   Total 750.455.921 44.113.927 6.379.038 6.073.605 9.740.659 9.135.653 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  751. Permodalan & Praktik Manajemen Risiko 31-Des-2017 No. Sektor Ekonomi Tagihan yang Mengalami Penurunan Nilai Tagihan Belum Jatuh Tempo Cadangan Kerugian Penurunan Nilai (CKPN) Individu Telah Jatuh Tempo Cadangan Kerugian Penurunan Nilai (CKPN) Kolektif Tagihan yang Dihapus buku 44.611.333 293.334 154.927 706.214 510.482 135.809 Perikanan 1.421.905 29.862 73.886 37.848 63.349 9.189 3 Pertambangan dan Penggalian 9.475.562 265.121 1.035.737 270.569 66.145 632.273 4 Industri Pengolahan 85.775.546 1.497.570 2.766.046 1.040.404 2.596.973 2.626.526 5 Listrik, Gas dan Air 26.790.595 841.251 220 7.137 151.782 134.007 6 Konstruksi 26.992.830 1.367.700 207.742 5.609 348.588 304.774 7 Perdagangan Besar dan Eceran 62.474.870 2.657.104 1.509.458 120.952 2.179.356 2.104.991 8 Penyediaan Akomodasi dan Penyediaan Makan Minum 13.045.660 211.016 101.242 256.584 245.107 46.926 9 Transportasi, Pergudangan dan Komunikasi 25.779.334 648.675 149.003 134.987 262.317 1.452.243 10 Perantara Keuangan 99.631.805 1.705.871 57.669 365.477 163.090 244.174 11 Real estate, Usaha Persewaan dan Jasa Perusahaan 15.082.423 814.518 445.077 622.364 1.013.555 88.288 12 Administrasi Pemerintahan, Pertahanan dan Jaminan Sosial Wajib 85.796.533 - - - 44.039 - 13 Jasa Pendidikan 1.049.685 434.197 - 1.041 17.844 1.302 14 Jasa Kesehatan dan Kegiatan Sosial 2.235.182 714.207 10.480 4.545 43.791 39.291 15 Jasa Kemasyarakatan, Sosial Budaya, Hiburan dan Perorangan Lainnya 3.923.169 184.043 69.341 10.998 90.304 78.188 16 Jasa Perorangan yang Melayani Rumah Tangga 41.164 5.030 245 - 1.565 940 17 Badan Internasional badan Ekstra Internasional Lainnya 5.950 - - - 164 - 18 Kegiatan yang Belum Jelas Batasannya - - - - - 4.178 19 Bukan Lapangan Usaha 87.971.667 13.361.606 1.402.818 195.830 2.173.565 213.031 20 Lainnya 56.288.530 11.503.559 590.769 100.936 994.173 1.993.599 648.393.741 36.534.664 8.574.660 3.881.493 10.966.189 10.109.729 1 Pertanian, Perburuan dan Kehutanan 2 Total PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 751
  752. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 2.6.a Pengungkapan Rincian Mutasi Cadangan Kerugian Penurunan Nilai (CKPN) Bank Secara Individu No 1 2 Keterangan (dalam juta Rupiah) 31-Des-18 CKPN Individu 31-Des-17 CKPN Kolektif CKPN Individu CKPN Kolektif Saldo awal CKPN 4.419.430 10.299.301 8.164.248 8.418.756 Pembentukan (pemulihan) CKPN pada periode berjalan (Net) 2.782.977 4.576.268 (684.686) 7.677.958 2.a Pembentukan CKPN pada periode berjalan 2.675.373 4.123.217 (1.017.865) 7.521.029 107.604 453.050 333.179 156.929 (1.353.692) (6.093.701) (3.361.222) (5.368.832) 2.b Pemulihan CKPN pada periode berjalan 3 CKPN yang digunakan untuk melakukan hapus buku atas tagihan pada peride berjalan 4 Pembentukan (pemulihan) lainnya pada periode berjalan Saldo akhir CKPN 61.418 324.726 8.942 (196.228) 5.910.133 9.106.594 4.127.282 10.531.654 2.6.b Pengungkapan Rincian Mutasi Cadangan Kerugian Penurunan Nilai (CKPN) Bank secara Konsolidasi dengan Perusahaan Anak No Keterangan (dalam juta Rupiah) 31-Des-18 CKPN Individu 31-Des-17 CKPN Kolektif 1 Saldo awal CKPN 4.419.429 10.898.677 Pembentukan (pemulihan) CKPN pada periode berjalan (Net) 2.788.725 2 2.a Pembentukan CKPN pada periode berjalan 2.681.121 2.b Pemulihan CKPN pada periode berjalan 3 CKPN yang digunakan untuk melakukan hapus buku atas tagihan pada peride berjalan 4 Pembentukan (pemulihan) lainnya pada periode berjalan Saldo akhir CKPN CKPN Individu CKPN Kolektif 8.164.248 8.935.654 5.255.832 (685.831) 8.367.209 4.707.292 (1.019.010) 8.145.346 107.604 548.540 333.179 221.863 (1.353.692) (6.480.881) (3.361.222) (6.034.722) 55.670 280.300 10.087 (138.637) 5.910.132 9.953.928 4.127.282 11.129.504 PENGUKURAN RISIKO KREDIT DENGAN PENDEKATAN STANDAR PENGGUNAAN PERINGKAT DARI LEMBAGA PEMERINGKAT EKSTERNAL Sesuai dengan Surat Edaran Otoritas Jasa Keuangan (SEOJK) No. 42/SEOJK.03/2016 tanggal 28 September 2016,BNI menggunakan Peringkat Eksternal dalam Perhitungan Aset Tertimbang Menurut Risiko (ATMR) yaitu: 1. Peringkat suatu Bank hanya berlaku untuk Bank tersebut, sehingga walaupun berada dalam satu kelompok usaha peringkat suatu perusahaan tidak dapat digunakan untuk menetapkan bobot risiko dari perusahaan lain. 2. Peringkat domestik (Pefindo, Fitch Indonesia dan ICRA Indonesia) hanya digunakan untuk penetapan bobot risiko tagihan dalam mata uang Rupiah, sedangkan peringkat internasional (Moody’s, S&P dan Fitch) digunakan untuk penetapan bobot risiko tagihan dalam valuta asing. 3. Penetapan bobot risiko atas tagihan dalam bentuk surat berharga didasarkan pada peringkat dari surat berharga dimaksud (issue rating). Dalam hal surat berharga tidak memiliki peringkat maka penetapan bobot risiko didasarkan pada bobot risiko dari tagihan tanpa peringkat. Penetapan bobot risiko atas tagihan dalam bentuk selain surat berharga, didasarkan pada peringkat debitur (issue rating). Dalam hal tagihan berbentuk selain surat berharga yang tidak memiliki peringkat maka penetapan bobot risiko didasarkan pada bobot risiko dari tagihan tanpa peringkat. 4. Peringkat jangka pendek digunakan untuk penetapan bobot risiko dari surat berharga yang memiliki jangka waktu pendek dan diterbitkan oleh pihak yang termasuk dalam cakupan Tagihan Kepada Bank atau Tagihan Kepada Korporasi. Dalam hal tagihan jangka pendek tidak mempunyai peringkat jangka pendek, maka penetapan bobot risiko menggunakan peringkat jangka panjang. 5. Apabila suatu eksposur mempunyai lebih dari satu peringkat yang eligible, maka yang digunakan adalah peringkat yang memberikan bobot risiko terendah kedua. Dalam hal ini apabila hanya terdapat dua peringkat, maka yang digunakan adalah peringkat yang terendah. 752 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  753. Permodalan & Praktik Manajemen Risiko KATEGORISASI PORTOFOLIO YANG MENGGUNAKAN PERINGKAT Penentuan bobot risiko berdasarkan peringkat eksposur sebagaimana tersebut di atas hanya diberlakukan untuk kategori portofolio sebagai berikut: 1. Tagihan kepada Pemerintah Negara lain. 2. Tagihan kepada Entitas Sektor Publik. 3. Tagihan kepada Bank Pembangunan Multilateral dan Lembaga Internasional. 4. Tagihan kepada Bank (Jangka Panjang dan Jangka Pendek). 5. Tagihan kepada Korporasi (Jangka Panjang dan Jangka Pendek). Komposisi per eksposur untuk risiko kredit per Bobot Risiko 31 Desember 2018 (%) berdasar peringkat terkini yang dikeluarkan oleh lembaga pemeringkat. 0,7% 0,7% 24,6% 24,7% 2,9% 2,4% 46,1% 45,2% BNI Individual BNI Konsolidasi 0,3% 1,0% 1,9% 15,3% 14,9% 9,6% Bobot Risiko 0%.....................24,6% Bobot Risiko 50%...................15,3% Bobot Risiko 20%.....................2,4% Bobot Risiko 75%......................9,6% Bobot Risiko 25%.....................0,3% Bobot Risiko 100%......................46,1% Bobot Risiko 30%...................1,0% Bobot Risiko 150%........................0,7% Bobot Risiko 40%.....................0,0% Lainnya..............................0,0% Bobot Risiko 45%.....................0,0% 0,5% 9,2% Bobot Risiko 0%.........24,7% Bobot Risiko 20%.........2,9% Bobot Risiko 25%.........0,5% Bobot Risiko 50%.........14,9% Bobot Risiko 75%.........9,2% Bobot Risiko 100%.....45,2% Bobot Risiko 35%.........1,9% Bobot Risiko 150%.......0,7% Bobot Risiko 40%.........0,0% Lainnya.............................0,0% Bobot Risiko 40%.........0,0% LEMBAGA PEMERINGKAT YANG DIGUNAKAN Daftar lembaga pemeringkat dan peringkat yang diakui adalah sebagai berikut: 1. Fitch Ratings 2. Moody’s Investor Service 3. Standard and Poor’s 4. PT Fitch Ratings Indonesia 5. PT ICRA Indonesia 6. PT Pemeringkat Efek Indonesia PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 753
  754. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 3.1.a Tagihan Bersih Berdasarkan Kategori Portofolio dan Skala Peringkat Bank Secara Individu 31-Des-2018 Lembaga Pemeringkat No Kategori Portofolio Standards and Poor's AAA AA+ s.d AA- A+ s.d A- BBB+ s.d BBB- BB+ s.d BB- Fitch Rating AAA AA+ s.d AA- A+ s.d A- BBB+ s.d BBB- BB+ s.d BB- Moody's Aaa Aa1 s.d Aa3 A1 s.d A3 Baa1 s.d Baa3 Ba1 s.d Ba3 PT. Fitch Ratings Indonesia AAA (idn) AA+(idn) s.d AA-(idn) A+(idn) s.d. A-(idn) BBB+(idn) s.d BBB-(idn) BB+(idn) s.d BB-(idn) PT. ICRA Indonesia [Idr] AAA [Idr]AA+ s.d [Idr]AA- [Idr]A+ s.d [Idr]A- [Idr]BBB+ s.d [Idr]BBB- [Idr]BB+ s.d [Idr]BB- PT Pemeringkat Efek Indonesia idAAA idA+ s.d id A- id BBB+ s.d id BBB- id BB+ s.d id BB- 1 Tagihan kepada Pemerintah 7.444.866 1.787.433 699.454 155.667.273 999.622 2 Tagihan kepada Entitas Sektor Publik 1.583.783 25.383 4.232 812.223 484.784 3 Tagihan kepada - Bank Pembangunan Multilateral dan Lembaga Internasional - - - - - 4 Tagihan kepada Bank 9.862.518 3.064.041 1.065.843 970.432 184.853 5 Kredit Beragun Rumah Tinggal - - - - - 6 Kredit Beragun Properti Komersial - - - - - 7 Kredit Pegawai atau Pensiunan - - - - - 8 Tagihan Kepada Usaha Mikro, Usaha Kecil, dan Portofolio Ritel - - - - - 9 Tagihan kepada Korporasi 4.084 108.881 57.885 366.831 3.530.117 10 Tagihan yang Telah Jatuh Tempo 74.050 - - 61.900 122.642 11 Aset Lainnya - - - - - 12 Eksposur di Unit Syariah - - - - - 18.969.301 4.985.738 1.827.414 157.878.659 5.322.018 Total 754 Peringkat Jangka Panjang Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  755. Permodalan & Praktik Manajemen Risiko (dalam juta Rupiah) Tagihan Bersih Peringkat Jangka Pendek B+ s.d B- Kurang dari B- A-1 A-2 A-3 Kurang dari A-3 B+ s.d B- Kurang dari B- F1+ s.d F1 F2 F3 Kurang dari F3 B1 s.d B3 Kurang dari B3 P-1 P-2 P-3 Kurang dari P-3 B+(idn) s.d B-(idn) Kurang dari B-(idn) F1+(idn) s.d F1(idn) F2(idn) F3(idn) Kurang dari F3(idn) [Idr]B+ s.d [Idr]B- Kurang dari [Idr]B- [Idr]A1+ s.d [Idr]A1 [Idr]A2+ s.d [Idr]A2 [Idr]A3+ s.d [Idr] A3 Kurang dari [Idr]A3 id B+ s.d id B- Kurang dari idB- idA1 idA2 idA3 s.d id A4 Kurang dari idA4 Tanpa Peringkat Total - - - - - - - 166.598.648 - - - - - - 95.532.327 98.442.732 - - - - - - - - - - - - - - 32.059.374 47.207.061 - - - - - - 12.371.631 12.371.631 - - - - - - 11.832.156 11.832.156 - - - - - - 555.856 555.856 - - - - - - 78.406.749 78.406.749 621.750 - - - - - 325.872.516 330.562.064 252 - - - - - 3.728.122 3.986.966 - - - - - - 46.930.109 46.930.109 - - - - - - - - 622.002 - - - - - 607.288.840 796.893.972 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 755
  756. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Bank Secara Individu 31-Des-2017 Lembaga Pemeringkat No Kategori Portofolio Standards and Poor's AAA AA+ s.d AA- A+ s.d A- BBB+ s.d BBB- BB+ s.d BB- Fitch Rating AAA AA+ s.d AA- A+ s.d A- BBB+ s.d BBB- BB+ s.d BB- Moody's Aaa Aa1 s.d Aa3 A1 s.d A3 Baa1 s.d Baa3 Ba1 s.d Ba3 PT. Fitch Ratings Indonesia AAA (idn) AA+(idn) s.d AA-(idn) A+(idn) s.d. A-(idn) BBB+(idn) s.d BBB-(idn) BB+(idn) s.d BB-(idn) PT. ICRA Indonesia [Idr] AAA [Idr]AA+ s.d [Idr]AA- [Idr]A+ s.d [Idr]A- [Idr]BBB+ s.d [Idr]BBB- [Idr]BB+ s.d [Idr]BB- PT Pemeringkat Efek Indonesia idAAA idA+ s.d id A- id BBB+ s.d id BBB- id BB+ s.d id BB- 1 Tagihan kepada Pemerintah 52.208.665 2.218.316 653.182 88.687.817 44.517 2 Tagihan kepada Entitas Sektor Publik 21.696.657 5.064.528 8.481.352 373.173 625.447 3 Tagihan kepada - Bank Pembangunan Multilateral dan Lembaga Internasional - - - - - 4 Tagihan kepada Bank 9.702.304 3.634.931 2.077.900 2.478.600 1.520.698 5 Kredit Beragun Rumah Tinggal - - - - - 6 Kredit Beragun Properti Komersial - - - - - 7 Kredit Pegawai atau Pensiunan - - - - - 8 Tagihan kepada Usaha Mikro, Usaha Kecil, dan Portofolio Ritel - - - - - 9 Tagihan kepada Korporasi - 2.572.222 531.230 2.382.065 3.262.023 10 Tagihan yang Telah Jatuh Tempo 73.666 - - 289 48.115 11 Aset Lainnya - - - - - 12 Eksposur di Unit Syariah - - - - - 83.681.292 13.489.997 11.743.664 93.921.944 5.500.800 Total 756 Peringkat Jangka Panjang Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  757. Permodalan & Praktik Manajemen Risiko (dalam juta Rupiah) Tagihan Bersih Peringkat Jangka Pendek B+ s.d B- Kurang dari B- A-1 A-2 A-3 Kurang dari A-3 B+ s.d B- Kurang dari B- F1+ s.d F1 F2 F3 Kurang dari F3 B1 s.d B3 Kurang dari B3 P-1 P-2 P-3 Kurang dari P-3 B+(idn) s.d B-(idn) Kurang dari B-(idn) F1+(idn) s.d F1(idn) F2(idn) F3(idn) Kurang dari F3(idn) [Idr]B+ s.d [Idr]B- Kurang dari [Idr]B- [Idr]A1+ s.d [Idr]A1 [Idr]A2+ s.d [Idr]A2 [Idr]A3+ s.d [Idr] A3 Kurang dari [Idr]A3 id B+ s.d id B- Kurang dari idB- idA1 idA2 idA3 s.d id A4 Kurang dari idA4 Tanpa Peringkat Total - - - - - - - 143.812.495 - - - - - - 44.084.616 80.325.773 - - - - - - 3.025 3.025 - - - - - - 33.179.785 52.594.218 - - - - - - 11.822.421 11.822.421 - - - - - - 9.282.778 9.282.778 - - - - - - 844.202 844.202 - - - - - - 62.903.387 62.903.387 898.861 - - - - - 281.673.108 291.319.514 251 - - - - - 157.583 279.904 - - - - - - 55.874.743 55.874.743 - - - - - - - - 899.112 - - - - - 499.825.651 709.062.460 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 757
  758. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 3.1.b Tagihan Bersih Berdasarkan Kategori Portofolio dan Skala Peringkat Bank secara Konsolidasi dengan Perusahaan Anak 31-Des-2018 Lembaga Pemeringkat No Kategori Portofolio Standards and Poor's AAA AA+ s.d AA- A+ s.d A- BBB+ s.d BBB- BB+ s.d BB- Fitch Rating AAA AA+ s.d AA- A+ s.d A- BBB+ s.d BBB- BB+ s.d BB- Moody's Aaa Aa1 s.d Aa3 A1 s.d A3 Baa1 s.d Baa3 Ba1 s.d Ba3 PT. Fitch Ratings Indonesia AAA (idn) AA+(idn) s.d AA-(idn) A+(idn) s.d. A-(idn) BBB+(idn) s.d BBB-(idn) BB+(idn) s.d BB-(idn) PT. ICRA Indonesia [Idr] AAA [Idr]AA+ s.d [Idr]AA- [Idr]A+ s.d [Idr]A- [Idr]BBB+ s.d [Idr]BBB- [Idr]BB+ s.d [Idr]BB- PT Pemeringkat Efek Indonesia idAAA idA+ s.d id A- id BBB+ s.d id BBB- id BB+ s.d id BB- 1 Tagihan kepada Pemerintah 7.444.867 1.787.433 699.454 155.667.273 987.225 2 Tagihan kepada Entitas Sektor Publik 1.583.783 25.383 4.232 812.223 484.784 3 Tagihan kepada - Bank Pembangunan Multilateral dan Lembaga Internasional - - - - - 4 Tagihan kepada Bank 9.862.517 3.064.041 1.065.843 970.432 184.853 5 Kredit Beragun Rumah Tinggal - - - - - 6 Kredit Beragun Properti Komersial - - - - - 7 Kredit Pegawai atau Pensiunan - - - - - 8 Tagihan kepada Usaha Mikro, Usaha Kecil, dan Portofolio Ritel - - - - - 9 Tagihan kepada Korporasi 4.084 108.881 57.885 366.831 3.530.117 10 Tagihan yang Telah Jatuh Tempo 74.050 - - 61.900 122.642 11 Aset Lainnya - - - - - 12 Eksposur di Unit Syariah - - - - - 18.969.301 4.985.738 1.827.414 157.878.659 5.309.621 Total 758 Peringkat Jangka Panjang Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  759. Permodalan & Praktik Manajemen Risiko (dalam juta Rupiah) Tagihan Bersih Peringkat Jangka Pendek B+ s.d B- Kurang dari B- A-1 A-2 A-3 Kurang dari A-3 B+ s.d B- Kurang dari B- F1+ s.d F1 F2 F3 Kurang dari F3 B1 s.d B3 Kurang dari B3 P-1 P-2 P-3 Kurang dari P-3 B+(idn) s.d B-(idn) Kurang dari B-(idn) F1+(idn) s.d F1(idn) F2(idn) F3(idn) Kurang dari F3(idn) [Idr]B+ s.d [Idr]B- Kurang dari [Idr]B- [Idr]A1+ s.d [Idr]A1 [Idr]A2+ s.d [Idr]A2 [Idr]A3+ s.d [Idr] A3 Kurang dari [Idr]A3 id B+ s.d id B- Kurang dari idB- idA1 idA2 idA3 s.d id A4 Kurang dari idA4 Tanpa Peringkat Total - - - - - - - 166.586.252 - - - - - - 95.477.892 98.388.296 - - - - - - - - - - - - - - 26.143.598 41.291.284 - - - - - - 12.371.631 12.371.631 - - - - - - 11.832.156 11.832.156 - - - - - - 555.856 555.856 - - - - - - 79.532.951 79.532.951 621.750 - - - - - 324.522.178 329.211.726 252 - - - - - 3.728.122 3.986.966 - - - - - - 48.229.075 48.229.075 - - - - - - 41.163.596 41.163.596 622.002 - - - - - 643.557.055 833.149.789 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 759
  760. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 31-Des-2017 Lembaga Pemeringkat No Kategori Portofolio Standards and Poor's AAA AA+ s.d AA- A+ s.d A- BBB+ s.d BBB- BB+ s.d BB- Fitch Rating AAA AA+ s.d AA- A+ s.d A- BBB+ s.d BBB- BB+ s.d BB- Moody's Aaa Aa1 s.d Aa3 A1 s.d A3 Baa1 s.d Baa3 Ba1 s.d Ba3 PT. Fitch Ratings Indonesia AAA (idn) AA+(idn) s.d AA-(idn) A+(idn) s.d. A-(idn) BBB+(idn) s.d BBB-(idn) BB+(idn) s.d BB-(idn) PT. ICRA Indonesia [Idr] AAA [Idr]AA+ s.d [Idr]AA- [Idr]A+ s.d [Idr]A- [Idr]BBB+ s.d [Idr]BBB- [Idr]BB+ s.d [Idr]BB- PT Pemeringkat Efek Indonesia idAAA idA+ s.d id A- id BBB+ s.d id BBB- id BB+ s.d id BB- 1 Tagihan kepada Pemerintah 52.208.665 2.218.316 653.182 88.687.817 44.515 2 Tagihan kepada Entitas Sektor Publik 21.696.657 5.064.528 8.481.352 373.173 625.447 3 Tagihan kepada - Bank Pembangunan Multilateral dan Lembaga Internasional - - - - - 4 Tagihan kepada Bank 9.702.304 3.634.931 2.077.900 2.478.600 1.520.698 5 Kredit Beragun Rumah Tinggal - - - - - 6 Kredit Beragun Properti Komersial - - - - - 7 Kredit Pegawai atau Pensiunan - - - - - 8 Tagihan kepada Usaha Mikro, Usaha Kecil, dan Portofolio Ritel - - - - - 9 Tagihan kepada Korporasi - 2.572.222 531.230 2.382.065 3.262.028 10 Tagihan yang Telah Jatuh Tempo 73.666 - - 289 48.115 11 Aset Lainnya - - - - - 12 Eksposur di Unit Syariah 568.443 - 93.020 - - 84.249.735 13.489.997 11.836.684 93.921.944 5.500.805 Total 760 Peringkat Jangka Panjang Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  761. Permodalan & Praktik Manajemen Risiko Tagihan Bersih Peringkat Jangka Pendek B+ s.d B- Kurang dari B- A-1 A-2 A-3 Kurang dari A-3 B+ s.d B- Kurang dari B- F1+ s.d F1 F2 F3 Kurang dari F3 B1 s.d B3 Kurang dari B3 P-1 P-2 P-3 Kurang dari P-3 B+(idn) s.d B-(idn) Kurang dari B-(idn) F1+(idn) s.d F1(idn) F2(idn) F3(idn) Kurang dari F3(idn) [Idr]B+ s.d [Idr]B- Kurang dari [Idr]B- [Idr]A1+ s.d [Idr]A1 [Idr]A2+ s.d [Idr]A2 [Idr]A3+ s.d [Idr] A3 Kurang dari [Idr]A3 id B+ s.d id B- Kurang dari idB- idA1 idA2 idA3 s.d id A4 Kurang dari idA4 Tanpa Peringkat Total - - - - - - - 143.812.495 - - - - - - 44.084.618 80.325.775 - - - - - - 3.026 3.026 - - - - - - 33.442.746 52.857.179 - - - - - - 11.822.420 11.822.420 - - - - - - 9.282.778 9.282.778 - - - - - - 844.201 844.201 - - - - - - 63.466.314 63.466.314 898.861 - - - - - 281.673.102 291.319.508 251 - - - - - 157.583 279.904 - - - - - - 57.692.079 57.692.079 - - - - - - 34.231.651 34.893.114 899.112 - - - - - 536.700.518 746.598.793 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 761
  762. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk RISIKO KREDIT PIHAK LAWAN (COUNTERPARTY CREDIT RISK) COUNTERPARTY CREDIT RISK Counterparty credit risk merupakan bagian dari risiko kredit. Counterparty credit risk merupakan risiko akibat kegagalan pihak lawan sebelum penyelesaian akhir dari arus kas pada transaksi tersebut baik dipengaruhi oleh kondisi usaha maupun karena faktor pergerakan nilai wajar atau nilai pasar, misalnya dalam transaksi derivative, repo maupun reverse repo. Jenis instrumen mitigasi risiko dari counterparty credit risk yang diterima oleh bank antara lain: 1. Uang tunai yang disimpan oleh bank 2. Giro, tabungan, atau deposito yang diterbitkan oleh bank 3. Surat berharga pemerintah Indonesia dan Surat Berharga Syariah Negara Masing-masing counterparty memiliki limit yang berbeda-beda, dan untuk menentukan besarnya limit dari masing-masing counterparty digunakan aplikasi Counterparty Limit Application Package (CLAP). Asesmen terhadap limit counterparty dilakukan oleh Divisi Risiko Kredit Korporasi dan di-review secara periodik atau disesuaikan dengan kebutuhan yang dipengaruhi oleh dinamika bisnis dan tingkat risiko masing-masing counterparty. Untuk perhitungan kecukupan modal dengan mempertimbangkan hasil perhitungan ATMR pendekatan Standar, maka telah disiapkan perhitungan tambahan ATMR risiko kredit dari Counterparty Risk dengan memasukkan komponen CVA (Credit Valuation Adjustment). 1. TRANSAKSI DERIVATIF Transaksi derivatif yang dilakukan oleh Bank umumnya adalah transaksi Forward, Cross Currency Swap (CCS), dan Interest Rate Swap (IRS). Nasabah Bank yang akan melakukan transaksi derivatif harus memiliki limit transaksi yang ditentukan oleh Unit Bisnis dan Unit Risiko. Dalam kebijakan transaksi derivatif juga ditentukan besarnya marginal deposit minimum yang harus disetor oleh nasabah sesuai dengan jenis dan risiko yang melekat dalam transaksi derivatif. Pengungkapan risiko kredit pihak lawan transaksi derivatif dimuat dalam Tabel 3.2.a Risiko Kredit Pihak Lawan: Transaksi Derivatif. 3.2.a Risiko Kredit Pihak Lawan : Transaksi Derivatif (dalam juta Rupiah) 31-Dec-18 No Variabel yang Mendasari Notional Amount ≤1 tahun >1 thn - ≤5 thn Tagihan Derivatif >5 tahun Kewajiban Derivatif Tagihan Bersih sebelum MRK Tagihan Bersih setelah MRK MRK BANK SECARA INDIVIDUAL 1 Suku Bunga 19.996.408 16.991 - 156.187 - 240.131 - 240.131 2 Nilai Tukar 8.879.650 16.788.650 - 424.098 - 624.912 - 624.912 3 Lainnya TOTAL 558.306 329.213 - 24.963 - 47.006 - 47.006 29.434.364 17.134.854 - 605.248 - 912.049 - 912.049 BANK SECARA KONSOLIDASI 1 Suku Bunga 19.996.408 16.991 - 156.187 - 240.131 - 240.131 2 Nilai Tukar 8.879.650 16.788.650 - 424.098 - 624.912 - 624.912 3 Saham - - - - - - - - 4 Emas - - - - - - - - 5 Logam selain Emas - - - - - - - - 6 Lainnya 558.306 329.213 - 24.963 - 47.006 - 47.006 29.434.364 17.134.854 - 605.248 - 912.049 - 912.049 TOTAL 762 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  763. Permodalan & Praktik Manajemen Risiko 31-Dec-17 No Variabel yang Mendasari Notional Amount ≤1 tahun Kewajiban Derivatif Tagihan Derivatif >1 thn - ≤5 thn >5 tahun Tagihan Bersih sebelum MRK Tagihan Bersih setelah MRK MRK BANK SECARA INDIVIDUAL 1 Suku Bunga 8.615.363 2 Nilai Tukar 3 Lainnya TOTAL 12.753.450 - 77.680 - 141.447 - 141.447 18.576.137 1.026 - 116.098 - 301.909 - 301.909 389.849 359.099 - 23.092 - 44.945 - 44.945 27.581.349 13.113.575 - 216.870 - 488.301 - 488.301 BANK SECARA KONSOLIDASI 1 Suku Bunga 8.615.363 12.753.450 - 77.680 - 141.447 - 141.447 2 Nilai Tukar 18.576.137 1.026 - 116.098 - 301.909 - 301.909 3 Saham - - - - - - - - 4 Emas - - - - - - - - 5 Logam selain Emas - - - - - - - - 6 Lainnya 389.849 359.099 - 23.092 - 44.945 - 44.945 27.581.349 13.113.575 - 216.870 - 488.301 - 488.301 TOTAL 2. Transaksi Repo dan Reverse Repo BNI hanya melakukan transaksi Repo maupun Reverse Repo dengan underlying aset Surat Berharga Pemerintah Republik Indonesia (Surat Utang Negara). 3.2.b.1 Transaksi Repo Bank Secara Individu (dalam juta Rupiah) 31-Des-18 No Kategori Portofolio Nilai Wajar SB Kewajiban Repo 31-Des-17 Tagihan Bersih Nilai Wajar SB ATMR Kewajiban Repo Tagihan Bersih ATMR 1 Tagihan kepada Pemerintah - - - - - - - - 2 Tagihan kepada Entitas Sektor Publik - - - - - - - - 3 Tagihan kepada - Bank Pembangunan Multilateral dan Lembaga Internasional - - - - - - - - 4 Tagihan kepada Bank 20.759.642 - 21.063.665 - 5.279.319 5.304.942 3.013.341 74.736 5 Tagihan kepada Usaha Mikro, Usaha Kecil, dan Portofolio Ritel - - - - - - - - 6 Tagihan kepada Korporasi - - - - - - - - 7 Eksposur di Unit Syariah - - - - - - - -   Total 20.759.642 - 21.063.665 - 5.279.319 5.304.942 3.013.341 74.736 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 763
  764. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 3.2.b.2 Repo Transaction Bank Consolidated with Subsidiaries (in million Rupiah) 31-Dec-18 No Portfolio Category Nilai Wajar SB Kewajiban Repo 31-Dec-17 Tagihan Bersih Nilai Wajar SB ATMR Kewajiban Repo ATMR 1 Receivables on Sovereigns - - - - - - - - 2 Receivables on Public Sector Entities - - - - - - - - 3 Receivables on Multilateral Development Banks and International Institutions - - - - 4 Receivables on Banks 5 Receivables on Micro Business, Small Business, and Retail Portfolio 6 7   Total - - - - 20.759.642 - 21.063.665 - 5.279.319 5.304.942 3.013.341 74.736 - - - - - - - - Receivables on Corporates - - - - - - - - Exposures at Sharia Unit - - - - - - - - 20.759.642 - 21.063.665 - 5.279.319 5.304.942 3.013.341 74.736 3.2.c1 Reverse Repo Transactions Bank Only No. Portfolio Category (in million Rupiah) 31-Dec-18 Net Receivables CRM Value Receivables Net of CRM RWA after CRM 1 Receivables on Sovereigns - - - - 2 Receivables on Public Sector Entities - - - - 3 Receivables on Multilateral Development Banks and International Institutions - - - - 4 Receivables on Banks - - - - 5 Receivables on Micro Business, Small Business, and Retail Portfolio - - - - 6 Receivables on Corporates - - - - 7 Exposures at Sharia Unit (if any) - - - - Total - - - - No. Portfolio Category 1 Receivables on Sovereigns 2 31-Dec-17 Net Receivables CRM Value Receivables Net of CRM RWA after CRM 387.845 387.845 - - Receivables on Public Sector Entities - - - - 3 Receivables on Multilateral Development Banks and International Institutions - - - - 4 Receivables on Banks - - - - 5 Receivables on Micro Business, Small Business, and Retail Portfolio - - - - 6 Receivables on Corporates - - - - 7 Exposures at Sharia Unit (if any) - - - - 387.845 387.845 - - Total 764 Tagihan Bersih Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  765. Permodalan & Praktik Manajemen Risiko 3.2.c2 Reverse Repo Transactions Bank Consolidated with Subsidiaries (in million Rupiah) 31-Dec-18 No. 1 Portfolio Category Net Receivables CRM Value Receivables Net of CRM RWA after CRM Receivables on Sovereigns - - - - 2 Receivables on Public Sector Entities - - - - 3 Receivables on Multilateral Development Banks and International Institutions - - - - 4 Receivables on Banks - - - - 5 Receivables on Micro Business, Small Business, and Retail Portfolio - - - - 6 Receivables on Corporates - - - - 7 Exposures at Sharia Unit (if any) - - - - Total - - - - 31-Dec-17 No. 1 Portfolio Category Receivables on Sovereigns Net Receivables CRM Value 387.845 Receivables Net of CRM 387.845 RWA after CRM - - 2 Receivables on Public Sector Entities - - - - 3 Receivables on Multilateral Development Banks and International Institutions - - - - 4 Receivables on Banks - - - - 5 Receivables on Micro Business, Small Business, and Retail Portfolio - - - - 6 Receivables on Corporates - - - - - - - - 387.845 387.845 - - 7 Exposures at Sharia Unit (if any) Total CREDIT RISK MITIGATION BY USING STANDARDIZED APPROACH IMPLEMENTATION OF CREDIT RISK MITIGATION TECHNIQUE BY USING STANDARDIZED APPROACH The main types of collateral received in respect to credit risk mitigation is the object financed by the Bank. While as complementary, the Bank may accept additional collateral. The main and additional collateral types can be grouped into: 1. Collateral, which can be either physical assets (land, buildings, machinery, equipment, etc.) or financial assets (cash collateral, marginal deposits, gold, receivables, debentures, or other securities). In credit risk mitigation technique, the physical assets are not counted as credit risk mitigation technique. 2. Guarantee, which is received from the Government of the Republic of Indonesia, Bank correspondents, as well as Insurance companies. In credit risk mitigation technique, the guarantees calculated are only guarantees issued by parties included in the category scope of Claims To the Government of Indonesia, Claims To Other Country’s Government, Claims To Bank and warranty/insurance institution by observing the fulfillment of requirements of guarantee and guarantee issuer. 3. Credit Insurance, which is issued by the insurer with due observance of the fulfillment of requirements of the insurance policy, the insurer, and the category of portfolio of insurance recipients. BNI regulates policies, procedures, and processes to assess and manage the collateral by type of exposure and financing schemes given. Assessment of adequacy of the collaterals received has calculated the existing of cash equivalent value. For credit exposure (loan), assessment of the collateral shall be made at least every 24 months by independent appraiser or by an independent internal appraisal staff in the credit provision process. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 765
  766. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk In addition to mitigation technique in the form of collateral, BNI also uses guarantee/collateral and credit insurance. Analysis of the main parties of the guarantor/warranty provider is part of the credit feasibility analysis and credit risk mitigation. The guarantor parties among others are: (1) Guarantee of the Government of the Republic of Indonesia to SOE in electricity sector for financing in the form of KMK subsidy and syndicated KI, (2) Warranty by Credit Insurance Company which is a State-Owned Enterprise to financing People’s Business Loan disbursed by BNI. 4.1.a Net Receivables By Risk Weight After Calculating Credit Risk Mitigation Impact Bank Only No Portfolio Category 0% A 25% 35% 40% Balance Sheet Exposures 1 Receivables on Sovereigns 164.648.163 699.454 - - - 2 Receivables on Public Sector Entities - 1.609.166 - - - 3 Receivables on Multilateral Development Banks and International Institutions - - - - - 4 Receivables on Banks - 14.840.780 - - - 5 Loans Secured by Residential Property - 1.826.873 2.347.676 8.197.082 - 6 Loans Secured by Commercial Real Estate - - - - - 7 Employee/Retiree Loans - - - - - 8 Receivables on Micro Business, Small Business, and Retail Portfolio - - - - - 9 Receivables on Corporates - 112.965 - - - 10 Past Due Receivables - - - - - 11 Other Assets 13.681.005 - - - - 12 Exposures at Sharia Unit (if any) - - - - - 178.329.168 19.089.238 2.347.676 8.197.082 - Total Balance Sheet Exposures B Commitment/Contingency Liabilities Exposure in Administrative Account Transactions 1 Receivables on Sovereigns 2 3 414.466 - - - - Receivables on Public Sector Entities - - - - - Receivables on Multilateral Development Banks and International Institutions - - - - - 4 Receivables on Banks - 16 - - - 5 Loans Secured by Residential Property - - - - - 6 Loans Secured by Commercial Real Estate - - - - - 7 Employee/Retiree Loans - - - - - 8 Receivables on Micro Business, Small Business, and Retail Portfolio - - - - - 9 Receivables on Corporates - - - - - 10 Past Due Receivables - - - - - 11 Exposures at Sharia Unit (if any) - - - - - 414.466 16 - - - 12.397 - - - - - - - - - Total Administrative Account Transactions Exposures C Counterparty Credit Risk 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions 4 Receivables on Banks 5 - - - - - 21.063.665 72.208 - - - Receivables on Micro Business, Small Business, and Retail Portfolio - - - - - 6 Receivables on Corporates - - - - - 7 Exposures at Sharia Unit (if any) - - - - - 21.076.062 72.208 - - - Total Counterparty Credit Risk Exposure 766 20% Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  767. Permodalan & Praktik Manajemen Risiko Until now, credit risk mitigation technique using collateral is still quite dominant and has a higher concentration than the guarantee/warranty from the Government and credit insurance from insurance companies. Disclosure of Bank’s net receivables in an individual and consolidated manner based on risk weighting after calculating the credit risk mitigation impacts is shown in Table 4.1.a and b. (in million Rupiah) 31-Dec-18 Net Receivables After Calculating Credit Risk Mitigation Impact 45% 50% 75% 100% 150% RWA Lainnya Capital Expense - 660.465 - 163.703 - 633.826 50.706 - 81.964.316 - 484.784 - 41.788.775 3.343.102 - - - - - - - - 17.861.520 - 184.853 - 12.083.768 966.701 - - - - - 3.821.272 305.702 - - - 11.832.156 - 11.832.156 946.572 - 555.856 - - - 277.928 22.234 - - 78.152.952 - - 58.614.714 4.689.177 - 57.885 - 310.847.069 621.750 311.831.229 24.946.498 - - - 150.002 3.836.964 5.905.448 472.436 - - - 31.672.568 1.576.289 34.037.001 2.722.960 - - - - - - - - - 101.100.041 78.152.952 355.335.135 6.035.003 - 480.826.118 38.466.089 - - - - - - - - 14.330.032 - - - 7.165.016 573.201 - - - - - - - - 8.404.115 - - - 4.202.061 336.165 - - - - - - - - - - - - - - - - - - - - - - - 253.797 - - 190.348 15.228 - - - 18.853.000 - 18.853.000 1.508.240 - - - - - - - - - - - - - - - - 22.734.146 253.797 18.853.000 - - 30.410.424 2.432.834 - - - - - - - - 95.201 - - - 47.600 3.808 - - - - - - - - 576.601 - - - 302.742 24.219 - - - - - - - - - - 83.416 - 83.416 6.673 - - - - - - - - - 671.802 - 83.416 - - 433.759 34.701 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 767
  768. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 31-Dec-2017 No Portfolio Category Net Receivables After Calculating Credit Risk Mitigation Impact 0% 768 A Balance Sheet Exposures 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions 4 Receivables on Banks 5 Loans Secured by Residential Property 20% 141.888.754 25% 653.182 35% - 40% - 41.737.900 - - - 125 - - - 309.621 15.184.148 - - - - - 11.822.420 6 Loans Secured by Commercial Real Estate - - - - 7 Employee/Retiree Loans - - - - 8 Receivables on Micro Business, Small Business, and Retail Portfolio 9 Receivables on Corporates 10 Past Due Receivables 11 Other Assets 12 Exposures at Sharia Unit (if any)   Total Balance Sheet Exposures 3.424.365 - - - 190.176 2.572.222 - - 41.750 - - - 12.481.313 - - - - - - - 200.074.004 18.409.552 - 11.822.420 - - B Commitment/Contingency Liabilities Exposure in Administrative Account Transactions 1 Receivables on Sovereigns 440.881 - 2 Receivables on Public Sector Entities - - - - 3 Receivables on Multilateral Development Banks and International Institutions - - - - 4 Receivables on Banks - 255.061 - - 5 Loans Secured by Residential Property - - - - 6 Loans Secured by Commercial Real Estate - - - - 7 Employee/Retiree Loans - - - - 8 Receivables on Micro Business, Small Business, and Retail Portfolio 9 Receivables on Corporates - - - - 253 44.078 - - 10 Past Due Receivables - - - - 11 Exposures at Sharia Unit (if any) - - - - 441.134 299.139 - - 387.845 - - - - - - -   Total Administrative Account Transactions Exposures C Counterparty Credit Risk 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions 4 Receivables on Banks - - - - 845.612 633.983 - - 5 Receivables on Micro Business, Small Business, and Retail Portfolio - - - - 6 Receivables on Corporates - - - - - - - - 1.233.457 633.983 - - 7 Exposures at Sharia Unit (if any)   Total Counterparty Credit Risk Exposure Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  769. Permodalan & Praktik Manajemen Risiko Portfolio Category 45% 50% - - - 75% 100% 150% RWA Lainnya Capital Expense 441.834 - - - 351.553 28.124 - - - 26.538.851 - 26.538.851 2.123.108 - 251 - 126 - 252 20 - - 25.566.087 - 673.429 - 16.493.302 1.319.464 - - - - - - 4.137.847 331.028 - - - - 9.282.778 - 9.282.778 742.622 - - 844.201 - - - 422.101 33.768 - - - 48.982.234 10.273.095 - 47.009.771 3.760.782 - - - - 269.235.215 695.349 270.792.683 21.663.415 - - - - 98.202 139.952 308.130 24.650 - - - - 38.899.569 4.493.861 45.640.361 3.651.229 - - - - - - - - - - - 26.852.373 48.982.234 355.001.265 5.329.162 - 420.977.629 33.678.210 - - - - - - - - - - 12.006.818 - - - 6.003.409 480.273 - - 2.524 - - - 1.262 101 - - 9.004.741 - - - 4.553.383 364.271 - - - - - - - - - - - - - - - - - - - - - - - - - - - 223.693 - - 167.770 13.422 - - - - 18.542.882 - 18.551.698 1.484.136 - - - - - - - - - - - - - - - - - - - 21.014.083 223.693 18.542.882 - - 29.277.522 2.342.203 - - - - - - - - - - 42.205 - - - 21.103 1.688 - - - - - - - - - - - - 121.536 - 248.333 19.867 - - - - - - - - - - - - 39.334 - 39.334 3.147 - - - - - - - - - - - 42.205 - 160.870 - - 308.770 24.702 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 769
  770. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 4.1.b Net Receivables By Risk Weight After Calculating Credit Risk Mitigation Impact 31-Dec-2018 No Portfolio Category Net Receivables After Calculating Credit Risk Mitigation Impact 0% A Balance Sheet Exposures 1 Receivables on Sovereigns 2 25% 35% 40% 175.556.629 699.454 - - - Receivables on Public Sector Entities - 2.143.727 - - - 3 Receivables on Multilateral Development Banks and International Institutions - - - - - 4 Receivables on Banks - 15.217.898 - - - 5 Loans Secured by Residential Property - 3.837.390 4.270.350 15.980.089 - 6 Loans Secured by Commercial Real Estate - 119.292 - - - 7 Employee/Retiree Loans - 30.513 - - - 8 Receivables on Micro Business, Small Business, and Retail Portfolio - 2.461.746 - - - 9 Receivables on Corporates - 272.824 - - - 10 Past Due Receivables - - - - - 11 Other Assets 13.681.005 - - - - 12 Exposures at Sharia Unit (if any) Total Balance Sheet Exposures - - - - - 189.237.634 24.782.844 4.270.350 15.980.089 - B Commitment/Contingency Liabilities Exposure in Administrative Account Transactions 1 Receivables on Sovereigns 2 414.466 - - - - Receivables on Public Sector Entities - - - - - 3 Receivables on Multilateral Development Banks and International Institutions - - - - - 4 Receivables on Banks - 16 - - - 5 Loans Secured by Residential Property - - - - - 6 Loans Secured by Commercial Real Estate - - - - - 7 Employee/Retiree Loans - - - - - 8 Receivables on Micro Business, Small Business, and Retail Portfolio - - - - - 9 Receivables on Corporates - - - - - 10 Past Due Receivables - - - - - 11 Exposures at Sharia Unit (if any) - - - - - 414.466 16 - - - 128.648 - - - - - - - - - Total Administrative Account Transactions Exposures C Counterparty Credit Risk 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions 4 Receivables on Banks 5 6 7 - - - - - 21.063.665 72.208 - - - Receivables on Micro Business, Small Business, and Retail Portfolio - - - - - Receivables on Corporates - - - - - - - - - - 21.192.313 72.208 - - - Exposures at Sharia Unit (if any) Total Counterparty Credit Risk Exposure 770 20% Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  771. Permodalan & Praktik Manajemen Risiko (in million Rupiah) 45% 50% 75% 100% 150% ATMR Lainnya Beban Modal - 660.465 - 163.703 - 633.826 50.706 - 84.448.019 - 484.784 - 43.137.539 3.451.003 - - - - - - - - 17.866.520 - 184.853 - 12.161.693 972.935 - - - - - 7.428.097 594.248 - - - 11.832.156 - 11.856.014 948.481 - 555.856 - - - 284.031 22.722 - - 78.152.952 - - 59.107.063 4.728.565 - 57.885 - 322.165.396 621.750 323.181.528 25.854.522 - - - 175.139 3.836.964 5.930.585 474.447 - - - 31.672.568 1.576.289 34.037.002 2.722.960 - - - - - - - - - 103.588.745 78.152.952 366.678.599 6.035.003 - 497.757.377 39.820.589 - - - - - - - - 14.332.848 - - - 7.166.424 573.314 - - - - - - - - 8.404.115 - - - 4.202.061 336.165 - - - - - - - - - - - - - - - - - - - - - - - 268.928 - - 201.696 16.136 - - - 18.871.172 - 18.871.172 1.509.694 - - - - - - - - - - - - - - - - 22.736.963 268.928 18.871.172 - - 30.441.353 2.435.309 - - - - - - - - 95.201 - - - 47.601 3.808 - - - - - - - - 576.601 - - - 302.742 24.219 - - - - - - - - - - 83.416 - 83.416 6.673 - - - - - - - - - 671.802 - 83.416 - - 433.759 34.700 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 771
  772. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 31-Dec-17 No Portfolio Category Net Receivables After Calculating Credit Risk Mitigation Impact 0% 772 A Balance Sheet Exposures 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions 4 Receivables on Banks 5 6 20% 25% 35% 40% 141.888.754 653.182 - - - 41.737.900 - - - - 125 - - - - 441.100 15.184.148 - - - Loans Secured by Residential Property - - - 11.822.420 - Loans Secured by Commercial Real Estate - - - - - 7 Employee/Retiree Loans - - - - - 8 Receivables on Micro Business, Small Business, and Retail Portfolio 3.565.097 - - - - 190.176 2.572.222 - - - 41.750 - - - - 9 Receivables on Corporates 10 Past Due Receivables 11 Other Assets 12.102.902 - - - - 12 Exposures at Sharia Unit (if any) 18.797.037 - - - - 218.764.841 18.409.552 - 11.822.420 -   Total Balance Sheet Exposures B Commitment/Contingency Liabilities Exposure in Administrative Account Transactions 1 Receivables on Sovereigns 440.881 - - - - 2 Receivables on Public Sector Entities - - - - - 3 Receivables on Multilateral Development Banks and International Institutions - - - - - 4 Receivables on Banks - 255.061 - - - 5 Loans Secured by Residential Property - - - - - 6 Loans Secured by Commercial Real Estate - - - - - 7 Employee/Retiree Loans - - - - - 8 Receivables on Micro Business, Small Business, and Retail Portfolio - - - - - 9 Receivables on Corporates 253 44.078 - - - 10 Past Due Receivables 11 Exposures at Sharia Unit (if any)   Total Administrative Account Transactions Exposures - - - - - 4.685 - - - - 445.819 299.139 - - - 387.845 - - - - C Counterparty Credit Risk 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities - - - - - 3 Receivables on Multilateral Development Banks and International Institutions - - - - - 4 Receivables on Banks 845.612 633.983 - - - 5 Receivables on Micro Business, Small Business, and Retail Portfolio - - - - - 6 Receivables on Corporates 7 Exposures at Sharia Unit (if any)   Total Counterparty Credit Risk Exposure Adapting Quickly to Face Change - - - - - 130.664 - - - - 1.364.121 633.983 - - - PT Bank Negara Indonesia (Persero) Tbk
  773. Permodalan & Praktik Manajemen Risiko 45% 50% 75% 100% 150% RWA Lainnya Capital Expense - 441.834 - - - 351.553 28.124 - - - 26.538.851 - 26.538.851 2.123.108 - 251 - 126 - 252 20 - 25.566.087 - 804.908 - 16.624.781 1.329.983 - - - - - 4.137.847 331.028 - - - 9.282.778 - 9.282.778 742.622 - 844.201 - - - 422.101 33.768 - - 48.982.234 10.695.290 - 47.431.966 3.794.557 - - - 269.235.214 695.349 270.792.682 21.663.415 - - - 98.202 139.952 308.130 24.650 - - - 41.095.317 4.493.861 47.836.109 3.826.889 - - - 15.896.412 - - 15.896.412 1.271.713 - 26.852.373 48.982.234 373.647.098 5.329.162 - 439.623.462 35.169.877 - - - - - - - - 12.006.818 - - - 6.003.409 480.273 - 2.524 - - - 1.262 101 - 9.004.741 - - - 4.553.383 364.271 - - - - - - - - - - - - - - - - - - - - - - - 223.693 - - 167.770 13.422 - - - 18.542.882 - 18.551.698 1.484.136 - - - - - - - - - - 64.315 - - 64.315 5.145 - 21.014.083 223.693 18.607.197 - - 29.341.837 2.347.348 - - - - - - - - 42.205 - - - 21.103 1.688 - - - - - - - - - - 121.536 - 248.333 19.867 - - - - - - - - - - 39.334 - 39.334 3.147 - - - - - - - - - 42.205 - 160.870 - - 308.770 24.702 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 773
  774. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 4.2.a Tagihan Bersih dan Teknik Mitigasi Risiko Kredit Bank Only (in million Rupiah) 31-Dec-18 No Portfolio Category A Balance Sheet Exposures 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions 4 Collateral Guarantee Credit Insurance Bagian yang Tidak Dijamin Others 166.171.785 - - - 166.171.785 84.058.266 19.268 - - 84.038.998 - - - - - Receivables on Banks 32.887.152 2.261 - - 32.884.891 5 Loans Secured by Residential Property 12.371.631 1.675 - - 12.369.956 6 Loans Secured by Commercial Real Estate 11.832.156 76.374 - - 11.755.782 7 Employee/Retiree Loans 555.856 19 - - 555.837 8 Receivables on Micro Business, Small Business, and Retail Portfolio 78.152.952 10.000.802 - - 68.152.150 9 Receivables on Corporates 311.639.669 1.054.311 - - 310.585.358 3.986.966 49.439 - - 3.937.527 46.929.862 - - - - - - - - - 748.586.295 11.204.149 - - - 737.382.146 414.466 - - - 414.466 14.330.032 - - - 14.330.032 - - - - - 10 Past Due Receivables 11 Other Assets 12 Exposures at Sharia Unit (if any) Total Balance Sheet Exposures 46.929.862 B Commitment/Contingency Liabilities Exposure in Administrative Account Transactions 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions 4 Receivables on Banks 8.404.131 - - - 8.404.131 5 Loans Secured by Residential Property - - - - - 6 Loans Secured by Commercial Real Estate - - - - - 7 Employee/Retiree Loans - - - - - 8 Receivables on Micro Business, Small Business, and Retail Portfolio 253.797 - - - 253.797 9 Receivables on Corporates 18.853.000 - - - 18.853.000 10 Past Due Receivables - - - - - 11 Exposures at Sharia Unit (if any) - - - - - - 42.255.426 - - - - 42.255.426 Total Administrative Account Transactions Exposures C Counterparty Credit Risk 1 Receivables on Sovereigns 12.397 12.397 - - - 2 Receivables on Public Sector Entities 95.201 95.201 - - - 3 Receivables on Multilateral Development Banks and International Institutions - - - - - 4 Receivables on Banks 21.712.474 5.915.777 - - 15.796.697 5 Receivables on Micro Business, Small Business, and Retail Portfolio - - - - - 83.416 83.416 - - - - - - - - - 21.903.488 6.106.791 - - - 15.796.697 6 Receivables on Corporates 7 Exposures at Sharia Unit (if any) Total Counterparty Credit Risk Exposure 774 Portion Secured By Net Receivables Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  775. Permodalan & Praktik Manajemen Risiko 31-Dec-2017 No Portfolio Category Bagian yang Dijamin Dengan Net Receivables Collateral Guarantee Credit Insurance Portion Unsecured Others A Balance Sheet Exposures 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 142.983.770 - - - 142.983.770 68.276.751 8.000 - - 3 Receivables on Multilateral Development Banks and International Institutions 68.268.751 501 - - - 501 4 5 Receivables on Banks 41.733.285 1.282 - - 41.732.003 Loans Secured by Residential Property 11.822.420 517 - - 6 Loans Secured by Commercial Real Estate 11.821.903 9.282.778 - - - 9.282.778 7 Employee/Retiree Loans 8 Receivables on Micro Business, Small Business, and Retail Portfolio 9 Receivables on Corporates 10 Past Due Receivables 11 Other Assets 12 Exposures at Sharia Unit (if any) Total Balance Sheet Exposures 844.201 - - - 844.201 62.679.695 86.411 - - 62.593.284 272.692.964 5.053.182 - - 267.639.782 279.905 900.000 - - (620.095) 55.874.743 1.421.353 - - 54.453.390 - - - - - - 666.471.013 7.470.745 - - - 659.000.268 B Commitment/Contingency Liabilities Exposure in Administrative Account Transactions 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 440.881 - - - 440.881 12.006.818 - - - 12.006.818 3 Receivables on Multilateral Development Banks and International Institutions 2.524 - - - 2.524 4 Receivables on Banks 5 Loans Secured by Residential Property 9.259.802 - - - 9.259.802 - - - - - 6 7 Loans Secured by Commercial Real Estate - - - - - Employee/Retiree Loans - - - - 8 Receivables on Micro Business, Small Business, and Retail Portfolio - 223.693 - - - 223.693 18.587.213 9 Receivables on Corporates 18.587.213 - - - 10 Past Due Receivables - - - - 11 Exposures at Sharia Unit (if any) - - - - - - 40.520.931 - - - - 40.520.931 387.845 387.845 - - - 42.205 - - - 42.205 - - - - - 1.601.132 160.499 - - 1.440.633 - - - - - 39.334 - - - - - - - - - 2.070.516 548.344 - - - 1.522.172 Total Administrative Account Transactions Exposures - C Counterparty Credit Risk 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions 4 Receivables on Banks 5 Receivables on Micro Business, Small Business, and Retail Portfolio 6 Receivables on Corporates 7 Exposures at Sharia Unit (if any) Total Counterparty Credit Risk Exposure PT Bank Negara Indonesia (Persero) Tbk  39.334 Adapting Quickly to Face Change 775
  776. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 4.2.b Net Receivables and Credit Risk Mitigation Technique Bank Consolidated with Subsidiaries (in million Rupiah) 31-Dec-18 No Portfolio Category A Balance Sheet Exposures 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions 4 Collateral Guarantee Credit Insurance Portion Unsecured Others 177.080.251 - - - 177.080.251 87.076.531 19.268 - - 87.057.263 - - - - - Receivables on Banks 33.269.270 2.261 - - 33.267.009 5 Loans Secured by Residential Property 24.087.829 1.675 - - 24.086.154 6 Loans Secured by Commercial Real Estate 11.951.448 76.374 - - 11.875.074 7 Employee/Retiree Loans 586.369 19 - - 586.350 8 Receivables on Micro Business, Small Business, and Retail Portfolio 80.614.697 10.000.802 - 27.261.590 43.352.305 9 Receivables on Corporates 323.117.854 1.054.311 - - 322.063.543 10 Past Due Receivables 4.012.102 49.439 - - 3.962.663 11 Other Assets 46.929.862 - - - 46.929.862 12 Exposures at Sharia Unit (if any) Total Balance Sheet Exposures - - - - - - 788.726.213 11.204.149 - 27.261.590 - 750.260.474 414.466 - - - 414.466 14.332.848 - - - 14.332.848 - - - - - 8.404.131 - - - 8.404.131 B Commitment/Contingency Liabilities Exposure in Administrative Account Transactions 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions 4 Receivables on Banks 5 Loans Secured by Residential Property - - - - - 6 Loans Secured by Commercial Real Estate - - - - - 7 Employee/Retiree Loans - - - - - 8 Receivables on Micro Business, Small Business, and Retail Portfolio 268.928 - - - 268.928 9 Receivables on Corporates 18.871.172 - - - 18.871.172 10 Past Due Receivables - - - - 11 Exposures at Sharia Unit (if any) - - - - - - 42.291.545 - - - - 42.291.545 Total Administrative Account Transactions Exposures - C Counterparty Credit Risk 1 Receivables on Sovereigns 12.397 12.397 - - - 2 Receivables on Public Sector Entities 95.201 95.201 - - - 3 Receivables on Multilateral Development Banks and International Institutions - - - - - 4 Receivables on Banks 21.712.474 5.915.777 - - 15.796.697 5 Receivables on Micro Business, Small Business, and Retail Portfolio - - - - - 6 Receivables on Corporates 83.416 83.416 - - - - - - - - - 21.903.488 6.106.791 - - - 15.796.697 7 Exposures at Sharia Unit (if any) Total Counterparty Credit Risk Exposure 776 Bagian yang Dijamin Dengan Net Receivables Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  777. Permodalan & Praktik Manajemen Risiko 31-Dec-2017 No Portfolio Category A Balance Sheet Exposures 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions 4 5 6 Loans Secured by Commercial Real Estate 7 Employee/Retiree Loans 8 Receivables on Micro Business, Small Business, and Retail Portfolio 9 Receivables on Corporates 10 Past Due Receivables 11 Other Assets 12 Exposures at Sharia Unit (if any) Bagian yang Dijamin Dengan Net Receivables Collateral Credit Insurance Guarantee Portion Unsecured Others 142.983.770 - - - 142.983.770 68.276.751 8.000 - - 68.268.751 501 - - - 501 Receivables on Banks 41.996.244 1.282 - - 41.994.962 Loans Secured by Residential Property 11.822.420 517 - - 11.821.903 9.282.778 - - - 9.282.778 844.201 - - - 844.201 63.242.621 86.411 - - 63.156.210 272.692.964 5.053.182 - - 267.639.782 279.905 900.000 - - (620.095) 57.692.079 1.421.353 - - 56.270.726 34.693.450 - - - - 34.693.450 703.807.684 7.470.745 - - - 696.336.939 Total Balance Sheet Exposures B Commitment/Contingency Liabilities Exposure in Administrative Account Transactions 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions 4 Receivables on Banks 5 6 440.881 - - - 440.881 12.006.818 - - - 12.006.818 2.524 - - - 2.524 9.259.802 - - - 9.259.802 Loans Secured by Residential Property - - - - - Loans Secured by Commercial Real Estate - - - - - 7 Employee/Retiree Loans - - - - - 8 Receivables on Micro Business, Small Business, and Retail Portfolio 9 Receivables on Corporates 10 Past Due Receivables 11 Exposures at Sharia Unit (if any) Total Administrative Account Transactions Exposures C Counterparty Credit Risk 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions 4 Receivables on Banks 5 Receivables on Micro Business, Small Business, and Retail Portfolio 6 Receivables on Corporates 7 Exposures at Sharia Unit (if any) Total Counterparty Credit Risk Exposure PT Bank Negara Indonesia (Persero) Tbk  223.693 - - - 223.693 18.587.213 - - - 18.587.213 - - - - - 69.000 - - - - 69.000 40.589.931 - - - - 40.589.931 387.845 387.845 - - - 42.205 - - - 42.205 - - - - - 1.601.132 160.499 - - 1.440.633 - - - - - 39.334 - - - 39.334 130.664 - - - - 130.664 2.201.180 548.344 - - - 1.652.836 Adapting Quickly to Face Change 777
  778. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk ASSET SECURITIZATION BNI’s securitization activities are limited to ownership of credit linked notes, but as of December 31, 2018, there was no asset securitization exposure. RWA CALCULATION OF CREDIT RISK WITH STANDARDIZED APPROACH RWA Calculation of Credit Risk with Standardized Approach - Bank Only is included in Table 6.1.1, Table 6.1.2, Table 6.1.3, and Table 6.1.7 The RWA Calculation of Credit Risk with Standardized Approach - Bank Consolidated is included in Table 6.2.1, Table 6.2.2, Table 6.2.3, Table 6.2.6 and Table 6.2.7. 1. Asset Exposure in Balance Sheet 6.1.1 Asset Exposure in Balance Sheet Bank Only (in million Rupiah) 31-Dec-18 No Portfolio Category 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions 4 RWA before CRM RWA after CRM 166.171.785 633.826 633.826 84.058.265 41.768.392 41.779.141 - - - Receivables on Banks 32.887.152 12.083.768 12.082.638 5 Loans Secured by Residential Property 12.371.631 3.821.272 3.820.713 6 Loans Secured by Commercial Real Estate 11.832.156 11.832.156 11.755.782 7 Employee or Retiree Loans 555.856 277.928 277.919 8 Receivables on Micro Business, Small Business, and Retail Portfolio 9 Receivables on Corporates 10 Past Due Receivables 11 Other Assets  Total No Portfolio Category 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions 4 5 6 Loans Secured by Commercial Real Estate 7 Employee or Retiree Loans 8 Receivables on Micro Business, Small Business, and Retail Portfolio 78.152.952 58.614.714 45.158.820 311.639.668 311.817.209 310.776.919 3.986.966 5.905.448 5.831.289 46.929.862 36.784.124 34.037.001 748.586.293 483.538.837 466.154.048 31-Dec-17 Net Receivables RWA before CRM RWA after CRM 142.983.770 351.553 351.553 68.276.751 26.538.851 26.538.851 501 251 251 Receivables on Banks 41.733.285 16.493.302 16.493.302 Loans Secured by Residential Property 11.822.420 4.137.847 4.137.847 9.282.778 9.282.778 9.282.778 9 Receivables on Corporates 10 Past Due Receivables 11 Other Assets  Total 778 Net Receivables Adapting Quickly to Face Change 844.201 422.101 422.101 62.679.695 47.009.771 47.009.771 272.692.964 270.792.685 270.792.685 279.905 308.130 308.130 55.874.743 - 45.640.360 666.471.013 375.337.269 420.977.629 PT Bank Negara Indonesia (Persero) Tbk
  779. Permodalan & Praktik Manajemen Risiko Tabel 6.2.1 Asset Exposure in Balance Sheet Bank Consolidated with Subsidiaries No Portfolio Category 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions (in million Rupiah) 31-Dec-18 Net Receivables RWA before CRM RWA after CRM 166.171.785 633.826 633.826 84.058.266 41.768.392 41.779.141 - - 12.082.638 4 Receivables on Banks 32.887.152 12.083.768 5 Loans Secured by Residential Property 12.371.631 3.821.272 3.820.713 6 Loans Secured by Commercial Real Estate 11.832.156 11.832.156 11.755.782 7 Employee or Retiree Loans 8 Receivables on Micro Business, Small Business, and Retail Portfolio 9 Receivables on Corporates 10 Past Due Receivables 11 Other Assets  Total No Portfolio Category 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions 555.856 277.928 277.919 78.152.952 58.614.714 45.158.820 311.639.669 311.817.209 310.776.919 3.986.966 5.905.448 5.831.289 46.929.862 36.784.124 34.037.001 748.586.295 483.538.837 466.154.048 31-Dec-17 Net Receivables RWA before CRM RWA after CRM 142.983.770 351.553 351.553 68.276.751 26.538.851 26.538.851 501 251 251 4 Receivables on Banks 41.996.244 16.624.781 16.624.781 5 Loans Secured by Residential Property 11.822.420 4.137.847 4.137.847 6 Loans Secured by Commercial Real Estate 9.282.778 9.282.778 9.282.778 7 Employee or Retiree Loans 8 Receivables on Micro Business, Small Business, and Retail Portfolio 9 Receivables on Corporates 10 Past Due Receivables 11 Other Assets  Total PT Bank Negara Indonesia (Persero) Tbk  844.201 422.101 422.101 63.242.621 47.431.966 47.431.966 272.692.964 270.792.685 270.792.685 279.905 308.130 308.130 57.692.079 - 47.836.107 669.114.234 375.890.943 423.727.050 Adapting Quickly to Face Change 779
  780. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Commitment/Contingency Liabilities Exposure in Administrative Account Transactions 6.1.2 Commitment/Contingency Liabilities Exposure in Administrative Account Transactions Bank Only No Portfolio Category 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions 4 Receivables on Banks 5 6 (in million Rupiah) 31-Dec-18 Net Receivables 31-Dec-17 RWA before CRM RWA after CRM Net Receivables RWA before CRM 414.466 - - 440.881 - - 14.330.032 7.165.015 7.165.016 12.006.818 6.003.409 6.003.409 - - - 2.524 1.262 1.262 8.404.131 4.202.061 4.202.061 9.259.802 4.553.383 4.553.383 Loans Secured by Residential Property - - - - - - Loans Secured by Commercial Real Estate - - - - - - 7 Employee or Retiree Loans - - - - - - 8 Receivables on Micro Business, Small Business, and Retail Portfolio 9 Receivables on Corporates 10 Past Due Receivables  Total 253.797 190.348 190.348 223.693 167.770 167.770 18.853.000 18.836.181 18.852.999 18.587.213 18.561.773 18.551.697 - - - - - - 42.255.426 30.393.605 30.410.424 40.520.931 29.287.597 29.277.521 Tabel 6.2.2 Commitment/Contingency Liabilities Exposure in Administrative Account Transactions Bank Consolidated with Subsidiaries No Portfolio Category (in million Rupiah) 31-Dec-18 31-Dec-17 Net Receivables RWA before CRM RWA after CRM Net Receivables RWA before CRM RWA after CRM 503.956 - - 440.881 - - - - - 12.006.818 6.003.409 6.003.409 8.760.711 4.380.355 4.380.355 2.524 1.262 1.262 1 Receivables on Sovereigns 2 Receivables on Public Sector Entities 3 Receivables on Multilateral Development Banks and International Institutions 4 Receivables on Banks 13.079.365 6.539.682 6.539.682 9.259.802 4.553.383 4.553.383 5 Loans Secured by Residential Property 18.606.766 18.606.766 18.603.185 - - - 6 Loans Secured by Commercial Real Estate 400.354 300.266 300.266 - - - 7 Employee or Retiree Loans - - - - - - 8 Receivables on Micro Business, Small Business, and Retail Portfolio - - - 223.693 167.770 167.770 9 Receivables on Corporates - - - 18.587.213 18.561.773 18.551.697 10 Past Due Receivables - - - - - - 41.351.152 29.827.069 29.823.488 40.520.931 29.287.597 29.277.521  Total 2. 2. Exposure Rising Credit Risk Due to Counterparty Credit Risk 6.1.3 Exposure Rising Credit Risk Due to Counterparty Credit Risk Bank Only (in million Rupiah) 31-Dec-18 No Portfolio Category Net Receivables 31-Dec-17 RWA before CRM RWA after CRM Net Receivables RWA before CRM RWA after CRM 1 Receivables on Sovereigns 12.397 - - 387.845 - - 2 Receivables on Public Sector Entities 95.201 47.600 47.600 42.205 21.103 21.103 3 Receivables on Multilateral Development Banks and International Institutions - - - - - - 4 Receivables on Banks 21.712.474 302.742 302.742 1.601.132 610.534 248.333 5 Receivables on Micro Business, Small Business, and Retail Portfolio 6 Receivables on Corporates  Total 780 RWA after CRM Adapting Quickly to Face Change - - - - - - 83.416 83.417 83.417 39.334 39.334 39.334 21.903.488 433.759 433.759 2.070.516 670.971 308.770 PT Bank Negara Indonesia (Persero) Tbk
  781. Permodalan & Praktik Manajemen Risiko 6.2.3 Exposure Rising Credit Risk Due to Counterparty Credit Risk Bank Consolidated with Subsidiaries (in million Rupiah) 31-Dec-18 No Portfolio Category Net Receivables 31-Dec-17 RWA before CRM Net Receivables RWA after CRM RWA after CRM RWA before CRM 1 Receivables on Sovereigns 12.397 - - 387.845 - - 2 Receivables on Public Sector Entities 95.201 47.600 47.600 42.205 21.103 21.103 3 Receivables on Multilateral Development Banks and International Institutions - - - - - - 4 Receivables on Banks 21.712.474 302.742 302.742 1.601.132 610.534 248.333 5 Receivables on Micro Business, Small Business, and Retail Portfolio - - - - - - 6 Receivables on Corporates 83.416 83.416 83.416 39.334 39.334 39.334 21.903.488 433.758 433.758 2.070.516 670.971 308.770  Total 3. Exposure Rising Credit Risk Due to Settlement Risk Per December 31, 2018, and December 31, 2017, the Bank did not have Credit Risk due to Settlement Risk. 4. Securitization Exposures 6.1.5 RWA Calculation of Credit Risk with Standardized Approach: Securitization Exposures Bank Only (in million Rupiah) 31-Dec-18 No. Type of Transactions Capital Reducing Factors 31-Dec-2017 Capital Reducing Factors RWA after CRM RWA after CRM 1 Supporting Credit Facilities Meeting the Requirements - - - - 2 Supporting Credit Facilities Not Meeting the Requirements - - - - 3 Liquidity Facilities Meeting the Requirements - - - 4 Liquidity Facilities Not Meeting the Requirements - - - - 5 Purchase of Asset-Backed Securities Meeting the Requirements - - - - 6 Purchase of Asset-Backed Securities Not Meeting the Requirements - - - - 7 Securitization Exposure not Covered in Bank Indonesia provisions on Prudential Principles in Asset Securitization Activities for Commercial Banks Total 307.604 - 307.604 6.2.5 RWA Calculation of Credit Risk with Standardized Approach: Securitization Exposures Bank Consolidated with Subsidiaries Jenis Transaksi - 77.390 (in million Rupiah) 31-Dec-18 No. 77.390 Capital Reducing Factors 31-Dec-17 Capital Reducing Factors RWA after CRM RWA after CRM 1 Supporting Credit Facilities Meeting the Requirements - - - - 2 Supporting Credit Facilities Not Meeting the Requirements - - - - 3 Liquidity Facilities Meeting the Requirements - - - 4 Liquidity Facilities Not Meeting the Requirements - - - 5 Purchase of Asset-Backed Securities Meeting the Requirements - - - - 6 Purchase of Asset-Backed Securities Not Meeting the Requirements - - - - 7 Securitization Exposure not Covered in Bank Indonesia provisions on Prudential Principles in Asset Securitization Activities for Commercial Banks Total PT Bank Negara Indonesia (Persero) Tbk  - - 307.604 77.390 307.604 77.390 Adapting Quickly to Face Change 781
  782. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 5. Exposures at Sharia Business Unit Per December 31, 2018, and December 31, 2017, the Bank did not have Exposures at Sharia Business Unit 6. Total Credit Risk Measurement 6.1.7 Total Credit Risk Measurement Bank Only Description (in million Rupiah) 31-Dec-18 31-Dec-17 TOTAL CREDIT RISK RWA 491.757.871 450.641.311 TOTAL CAPITAL REDUCING FACTORS (3.302.541) - 6.2.7 Total Credit Risk Measurement Bank Consolidated with Subsidiaries Description TOTAL CREDIT RISK RWA TOTAL CAPITAL REDUCING FACTORS (in million Rupiah) 31-Dec-18 31-Dec-7 511.541.518 469.351.459 (394.267 ) - MARKET RISK Most Market Risk of Trading Book is originating from Treasury business activities held domestically or by Overseas Branch Offices, while Market Risk of Banking Book, particularly the Interest Rate Risk in Banking Book and Net Open Position (NOP), is originating from all of the Bank’s activities. The Bank constantly monitors and manages market risk continuously and strictly. GOVERNANCE AND ORGANIZATION In the framework of effective and independent market risk management, the Treasury’s business activities are divided into 3 (three) parts, which are front office, middle office, and back office. Front office as a business unit seeks to achieve the business targets by conducting business activities and connecting with the customers. However, as part of the internal control system, the front office also functions as the first line of defense that will attempt to limit and anticipate the market risk caused by changes in exchange rates and interest rates in accordance with the predetermined limits. In conducting its activities, Treasury’s business is limited by the Risk Appetite and Risk Limit proposed by the Bank’s Risk Management Division to the Risk Management Sub-Committee of Risk and Capital Committee (KRK-RMC). The Treasury transaction limit is proposed by the Policy Governance Division through the Credit Procedure Committee (KPP), while counterparty limit is set by the Business Risk Unit. The Bank’s Risk Management Division as the second line of defense performs functions of monitoring on market risk and compliance with risk limit either market risk limit, authority limit, or counterpart limit, validating fixing price, checking price fairness of treasury transaction, investigating off market, and reviewing the use of limit. Furthermore, to complement the existing market risk management function, BNI also has the Middle Office function to monitor, control, and report the risks in Treasury transactions. Back office functions are in the Operational Division that performs activities of confirmation, bookkeeping, and transaction settlement of Treasury. POLICIES AND PROCEDURES In order to support business targets with due observance of the prudential principles, BNI already has Company Guidelines for Treasury and International Business. Moreover, to make market risk management effective, BNI is guided by the Market Risk Management Company Guidelines. The Company Guidelines contain the governance and methodology and model of market risk management, which is compiled and reviewed and periodically validated by the Bank’s Risk Management Division. PROCESS Identification, measurement, monitoring, and controlling risk market is carried out by a unit that is independent from business unit. Market Risk Identification is particularly carried out for each new product or activity. BNI conducts Risk Market measurement by using Standardized Method and Internal Method. Standardized Method is used to calculate the Minimum Capital Reserve Requirement (KPMM) of Market Risk, while daily Risk Market management uses Internal Method (Value at Risk). 782 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  783. Permodalan & Praktik Manajemen Risiko The portfolio coverage calculated in KPMM by using Standardized Method is the trading book portfolio for interest rate risk and the trading book and banking book portfolio for domestic and overseas branch office’s exchange rate risk. Market risk exposure of the Bank only and consolidation with subsidiaries by using standardized method is listed in Table 7.1 as follows. Tabel 7.1 Market Risk By Using Standardized Method Bank Only and Consolidated (in million Rupiah) 31-Des-18 No Bank Type of Risks Capital Expense 1 Interest Rate Risk   a. Specific Risk   b. General Risk 2 Exchange Rate Risk 3 4 31-Des-17 Consolidation Capital Expense RWA Bank Capital Expense RWA Consolidation Capital Expense RWA RWA 17.279 215.983 22.498 281.225 14.423 180.289 17.726 221.580 - - 3.884 48.552 - - 2.458 30.728 17.279 215.983 18.614 232.673 14.423 180.289 15.268 190.851 230.201 2.877.514 228.629 2.857.863 175.823 2.197.782 181.419 2.267.731 Equity Risk - - 2.393 29.908 - - 5.196 64.956 Commodity Risk - - - - - - - 5 Option Risk   Total 8.396 104.952 8.396 104.952 - - - - 255.876 3.198.449 261.916 3.273.949 190.246 2.378.070 204.341 2.554.267 VaR Composition per Type of Risks per December 31, 2018, is as follows: 8% 2018 Interest Rate Risk 92% Exchange Rate Market risk exposure (Value at Risk) of Domestic and Overseas Branches are regularly monitored daily and delivered to the Management on a weekly and monthly basis. The current price valuation policy for actively-traded instruments is mark-tomarket while the valuation method for less actively-traded instruments is using the fair price of an independent source. Market risk exposure of the Bank only and consolidation by using internal model (value at risk) is listed in Table 7.2 as follows. Tabel 7.2 Market Risk using Internal Method (Value at Risk/VaR) (in million Rupiah) 31-Dec-2018 No Type of Risks 1 Interest Rate Risk 2 Exchange Rate Risk 3 Option Risk Total Average VaR Maximum VaR 31-Dec-2017 End of Period VaR Minimum VaR Average VaR Maximum VaR End of Period VaR Minimum VaR 275.195 389.567 232.498 296.025 214.745 273.540 151.988 245.943 9.712 20.602 5.109 9.112 12.554 23.679 4.846 6.603 - - - - - - - - 284.907 410.169 237.607 305.137 227.299 297.219 156.833 252.546 Risk development in the banking book portfolio is periodically monitored entirely according to the measurement method set by the regulator, which is monitoring Net Open Position (NOP) for exchange rate risk and interest rate risk in banking book PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 783
  784. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk gap, and delivered to the management through the Risk and Capital Committee Forum of Asset & Liability Sub Committee (KRK-ALCO). Some information related to measurement of gap of the interest rate risk in banking book is as follows: 1. Non-Maturity Instrument Treatment Maturity assumptions for core deposit obligations, such as demand deposits, savings deposits, and time deposits, are grouped in a certain time scale in which these assumptions will be periodically analyzed by the Treasury Division and documented and submitted to the Bank’s Risk Management Division for obtaining validation. 2. Assumption of interest rate changes Using standard assumptions of interest rate changes of 0.25% and 0.5%, which are parallel in nature across the time band. 3. Measurement Frequency Measurement of interest rate risk in banking book gap is conducted monthly. TOOLS AND METHODS To support business processes and in line with market risk management, BNI already has market risk management tools. Whereas, to obtain market data from Reuters, Bloomberg, and other independent sources. Some predetermined limits for managing potential Market Risk losses in the Treasury Division or Overseas Branch Offices are as follows: 1. Value at Risk Limit (VaR Limit), which is the maximum potential loss that may occur at any time in the future with certain confidence level. 2. Stress Value at Risk Limit (Stress VaR Limit), which is a measurement of market risk adjusted to abnormal conditions in the market or maximum potential loss when the market is not normal. 3. Budget Loss Limit which is used to limit the realization of loss of business activities. 4. Management Action Trigger (MAT), which is the Limit to take action against the risk of changes in loss value (early warning signal). MAT completes the loss limit in the form of a certain percentage of the loss limit. 5. Limit on securities purchases, which is used to limit the concentration of purchases of corporate securities by rating and type of currency of the securities 6. Limit of asset and liability repricing gap (Interest Rate Risk in Banking Book) to limit the interest rate risk in banking book. 7. Nominal of open position limit, which is the maximum nominal of open position limit that a dealer can use. 8. Overall NOP internal limit (absolute), which is the maximum limit of NOP management. Measures to strengthen market risk management in order to deal with changes in economic conditions throughout 2018, among others, are by closely monitoring the movement of market factors that could potentially impact banks, such as 784 Adapting Quickly to Face Change exchange rates, interest rates, stock prices, and commodity prices. To know the potential impact on banks, Scenario Analysis and Stress Testing have been done periodically and incidentally. Stress Testing periodically uses scenarios referring to the regulatory provisions and internal Bank scenarios. While the scenarios of incidental Stress Testing and Scenario Analysis shall adjust to the macroeconomic conditions and market factor at that time. Each Overseas Branch Office also performs Stress Testing in accordance with the internal regulations and provisions of local regulators. Stress testing result is used to prepare contingency plan so that the risk that happens can still be limited and managed well. LIQUIDITY RISK Liquidity risk is related to the possibility that banks are unable to meet short-term liabilities to depositors, investors, and creditors, as well as the fulfillment of the minimum statutory reserves, which are among others due to limited access to funding or the inability to liquidate their owned assets at reasonable prices. Liquidity risk management aims to minimize the possibility of the Bank’s inability to obtain sources of cash flow funding, and to build bank’s balance sheet structural liquidity strengths to support sustainable long-term growth. GOVERNANCE AND ORGANIZATION Liquidity Risk Management is performed by the Bank’s Risk Management Division (ERM), Treasury Division (TRS), and Overseas Branch Offices. Liquidity Risk Policies and Procedures are prepared by the ERM Division, subsequently implemented by the TRS Division and all Overseas Branch Offices, as embodied in the liquidity strategy management. ERM Division also monitors the implementation of liquidity management conducted by the TRS Division. POLICIES AND PROCEDURES ERM Division develops Liquidity Risk Policy in the form of Guidelines for Implementation of Liquidity Risk Management, which is further elaborated into the Liquidity Risk Management Procedure containing guidance on the implementation of liquidity risk management, such as: 1. Availability of Liquid Equipment: Cash, Minimum Reserve Requirement (GWM), Secondary Reserve, Early Warning Indicator, Liquidity Contingency Plan of Head Office and Overseas Branch Office, and others. 2. Liquidity Risk Measurement: Liquidity Ratio, Cash Flow Projection, Maturity Profile, Liquidity Coverage Ratio, Stress testing, and others. 3. Liquidity Risk Monitoring 4. Liquidity Risk Control 5. Determination of Liquidity Limit: Cash limit of BNI Wide, limit of Secondary Reserve Ideal (SR Ideal), Maturity Profile limit, and restriction of Foreign Exchange Credit based on Availability of Fund. PT Bank Negara Indonesia (Persero) Tbk
  785. Permodalan & Praktik Manajemen Risiko PROCESS In managing liquidity, in addition to managing the primary reserve (cash and GWM), BNI holds and maintains secondary reserves to ensure that liquidity is at a safe level. For the reserve of secondary reserve, BNI holds and maintains tertiary reserve. Determination and monitoring of limits, which are Cash limit of BNI Wide, limit of Secondary Reserve Ideal (SR Ideal), Maturity Profile limit, and restriction of Foreign Exchange Credit based on Availability of Fund is conducted periodically by the ERM Division. Whereas, the availability of the entire reserve is monitored daily, weekly, and monthly by the TRS Division and ERM Division. TOOLS AND METHODS In managing liquidity risk, BNI uses daily cash flow projections and monthly maturity profiles, both contractually and behaviorally, in order to establish appropriate and accurate strategies to anticipate the Bank’s liquidity conditions in the future. Disclosure of the Bank’s Rupiah and Foreign Currency Maturity Profile either the Bank only or consolidated is listed in Table 9.1.a and b, Table 9.2.a and b. Tabel 9.1.a Rupiah Maturity Profile 2018 Bank Only (in million Rupiah) 31-Dec-2018 No. I Portfolio Category >1 month to 3 months ≤1 month >3 month to 6 months >6 month to 12 months >12 months BALANCE SHEET A. Assets 1. Cash 12.968.368 12.968.368 - - - 2. Placement with Bank Indonesia 51.957.966 48.357.966 - 600.000 3.000.000 - 3. Placement with other banks 3.783.777 2.407.670 30.000 640.000 606.107 100.000 4. Marketable Securities 5. Loans Provided 6. Other Receivables 7. Others Total Assets B. - 68.145.535 2.107.751 3.786.085 3.090.902 3.413.345 55.747.452 387.462.488 54.480.165 29.270.170 41.280.930 29.913.124 232.518.099 11.914.819 3.564.905 4.063.344 3.484.191 779.393 22.986 25.218.315 2.307.458 349.980 184.869 40.421 22.335.587 561.451.268 126.194.283 37.499.579 49.280.892 37.752.390 310.724.124 454.173.557 146.662.838 54.046.207 6.607.940 3.530.836 243.325.736 534.789 Liabilities 1. Third Party Fund 2. Liabilities with Bank Indonesia 534.789 - - - - 3. Liabilities with other banks 1.985.712 989.112 85.199 190.376 719.665 1.360 4. Securities Issued 3.098.997 - - - - 3.098.997 5. Received Loans 5.894 - - - - 5.894 6. Other Liabilities 18.681.840 17.181.723 632.074 404.971 463.072 - 7. Others 10.584.288 249.798 150.344 18.382 9.822 10.155.942 489.065.077 165.083.471 54.913.824 7.221.669 4.723.395 257.122.718 72.386.191 (38.889.188) (17.414.245) 42.059.223 33.028.995 53.601.406 19.493.440 13.662.126 2.145.251 1.648.170 2.037.893 - Total Liabilities Differences of Asset and Liabilities in Balance Sheet II Maturity Dates Balance ADMINISTRATIVE ACCOUNTS A. Administrative Account Receivables 1. Commitment 2. Contingency Total Administrative Account Receivables B. 5.745.560 5.745.560 - - - - 25.239.000 19.407.686 2.145.251 1.648.170 2.037.893 - 68.685.369 23.611.526 5.887.726 5.665.923 6.200.481 27.319.713 Administrative Account Liabilities 1. Commitment PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 785
  786. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 31-Dec-2018 No. Portfolio Category 2. Contingency Maturity Dates Balance ≤1 month >1 month to 3 months >3 month to 6 months >6 month to 12 months >12 months 33.696.127 8.859.815 5.304.010 3.691.626 5.393.569 10.447.107 Total Administrative Account Liabilities 102.381.496 32.471.341 11.191.736 9.357.549 11.594.050 37.766.820 Differences of Receivables and Liabilities in Administrative Accounts (77.142.495) (13.063.655) (9.046.485) (7.709.379) (9.556.157) (37.766.820) (4.756.304) (51.952.842) (26.460.730) 34.349.844 23.472.838 15.834.586 (51.952.842) (78.413.572) (44.063.728) (20.590.890) (4.756.304) Differences [(IA-IB)+(IIA-IIB)] Cumulative Differences Tabel 9.1.a Rupiah Maturity Profile 2017 Bank Only (in million Rupiah) 31-Dec-2017 No. I Portfolio Category >1 month to 3 months ≤1 month >3 month to 6 months >6 month to 12 months >12 months - BALANCE SHEET A. Assets 1. Cash 10.791.819 10.791.819 - - - 2. Placement with Bank Indonesia 39.242.672 29.571.320 3.250.000 4.541.865 1.879.487 - 3. Placement with other banks 5.642.755 4.463.998 280.000 300.000 348.756 250.001 4. Marketable Securities 5. Loans Provided 6. Other Receivables 7. Others Total Assets B. 1. Third Party Fund 2. Liabilities with Bank Indonesia 2.222.982 5.261.285 2.293.867 2.255.574 57.047.831 54.356.567 29.547.258 31.685.017 31.096.416 191.473.004 10.344.744 3.573.834 2.944.766 3.504.747 319.321 2.076 20.452.615 1.818.460 299.188 168.365 - 18.166.602 493.714.406 106.798.980 41.582.497 42.493.861 35.899.554 266.939.514 4.134.247 169.761.796 48.026.060 9.745.263 5.302.743 180.588.881 9.299 - - - - 9.299 3. Liabilities with other banks 6.117.254 1.806.676 24.024 2.593.330 815.102 878.122 4. Securities Issued 2.998.818 - - - - 2.998.818 5. Received Loans 5.888 - - - - 5.888 6. Other Liabilities 7. Others Differences of Asset and Liabilities in Balance Sheet II 69.081.539 338.158.262 Liabilities Total Liabilities 1.985.632 311.429 363.362 317.558 597.783 395.500 11.868.708 208.887 119.428 24.234 13.187 11.502.972 436.410.342 172.088.788 48.532.874 12.680.385 6.728.815 196.379.480 57.304.064 (65.289.808) (6.950.377) 29.813.476 29.170.739 70.560.034 ADMINISTRATIVE ACCOUNTS A. Administrative Account Receivables 1. Commitment 25.199.356 18.976.859 2.124.075 3.263.257 835.165 - 2. Contingency 6.105.543 6.105.543 - - - - 31.304.899 25.082.402 2.124.075 3.263.257 835.165 - Total Administrative Account Receivables B. 786 Maturity Dates Balance Administrative Account Liabilities Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  787. Permodalan & Praktik Manajemen Risiko 31-Dec-2017 No. Portfolio Category Maturity Dates Balance ≤1 month >1 month to 3 months >3 month to 6 months >6 month to 12 months >12 months 24.658.733 1. Commitment 62.483.360 17.023.789 8.336.836 7.398.904 5.065.098 2. Contingency 30.673.215 11.499.442 386.588 5.198.411 3.966.701 9.622.073 Total Administrative Account Liabilities 93.156.575 28.523.231 8.723.424 12.597.315 9.031.799 34.280.806 Differences of Receivables and Liabilities in Administrative Accounts (61.851.676) (3.440.829) (6.599.349) (9.334.058) (8.196.634) (34.280.806) (4.547.612) (68.730.637) (13.549.726) 20.479.418 20.974.105 36.279.228 (68.730.637) (82.280.363) (61.800.945) (40.826.840) (4.547.612) Differences [(IA-IB)+(IIA-IIB)] Cumulative Differences Tabel 9.1.b Rupiah Maturity Profile 2018 Bank Consolidated with Subsidiaries (in million Rupiah) 31 December 2018 No. I Portfolio Category ≤1 month >1 month to 3 months >3 month to 6 months >6 month to 12 months >12 months - - - 177 BALANCE SHEET A. Assets 1. Cash 13.282.120 13.281.943 2. Placement with Bank Indonesia 56.166.075 52.166.075 - 750.000 3.200.000 50.000 3. Placement with other banks 4.669.055 2.807.670 30.000 840.000 806.107 185.278 4. Marketable Securities 87.285.058 5.217.266 6.286.085 5.631.962 6.445.876 63.703.869 233.402.081 5. Loans Provided 388.420.315 54.480.165 29.270.170 41.280.930 29.986.969 6. Other Receivables 11.966.956 3.617.042 4.063.344 3.484.191 779.393 22.986 7. Others 40.555.770 3.307.458 5.549.980 834.869 909.232 29.954.231 602.345.349 134.877.619 45.199.579 52.821.952 42.127.577 327.318.622 461.609.124 150.100.296 54.179.620 6.680.990 3.718.883 246.929.335 534.789 - - - - 534.789 Total Assets B. Liabilities 1. Third Party Fund 2. Liabilities with Bank Indonesia 3. Liabilities with other banks 2.094.971 1.014.112 110.199 215.376 744.665 10.619 4. Securities Issued 3.087.417 - - - - 3.087.417 5. Received Loans 763.257 - - - - 763.257 6. Other Liabilities 18.733.977 17.181.723 632.074 404.971 463.072 52.137 7. Others Total Liabilities Differences of Asset and Liabilities in Balance Sheet II Maturity Dates Balance 22.986.962 452.472 350.344 18.382 9.822 22.155.942 509.810.497 168.748.603 55.272.237 7.319.719 4.936.442 273.533.496 92.534.852 (33.870.984) (10.072.658) 45.502.233 37.191.136 53.785.126 19.493.440 13.662.126 2.145.251 1.648.170 2.037.893 - ADMINISTRATIVE ACCOUNTS A. Administrative Account Receivables 1. Commitment 2. Contingency Total Administrative Account Receivables PT Bank Negara Indonesia (Persero) Tbk  5.817.015 5.817.015 - - - - 25.310.455 19.479.141 2.145.251 1.648.170 2.037.893 - Adapting Quickly to Face Change 787
  788. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 31 December 2018 No. Maturity Dates Portfolio Category B. Balance >1 month to 3 months ≤1 month >3 month to 6 months >6 month to 12 months >12 months Administrative Account Liabilities 1. Commitment 69.863.569 24.773.211 5.887.726 5.665.923 6.200.481 27.336.228 2. Contingency 33.753.856 8.913.561 5.304.010 3.691.626 5.393.569 10.451.090 103.617.425 33.686.772 11.191.736 9.357.549 11.594.050 37.787.318 (78.306.969) (14.207.631) (9.046.485) (7.709.379) (9.556.157) (37.787.318) 14.227.883 (48.078.615) (19.119.143) 37.792.854 27.634.979 15.997.808 (48.078.615) (67.197.758) (29.404.904) (1.769.925) 14.227.883 Total Administrative Account Liabilities Differences of Receivables and Liabilities in Administrative Accounts Differences [(IA-IB)+(IIA-IIB)] Cumulative Differences Tabel 9.1.b Rupiah Maturity Profile 2017 Bank Consolidated with Subsidiaries(in million Rupiah) 31-Dec-2017 No. I Portfolio Category ≤1 month >3 month to 6 months >6 month to 12 months >12 months Assets 1. Cash 11.025.722 11.025.722 - - - - 2. Placement with Bank Indonesia 44.001.259 33.635.571 3.270.000 4.891.201 2.204.487 - 3. Placement with other banks 6.879.363 5.463.998 480.000 336.000 349.364 250.001 4. Marketable Securities 86.747.060 13.576.912 7.341.193 3.095.867 2.350.574 60.382.514 5. Loans Provided 338.719.946 53.911.792 29.225.801 32.177.951 31.887.306 191.517.096 6. Other Receivables 10.491.320 3.720.410 2.944.766 3.504.747 319.321 2.076 7. Others 22.416.627 3.780.403 299.188 168.365 - 18.168.671 520.281.297 125.114.808 43.560.948 44.174.131 37.111.052 270.320.358 418.678.768 170.282.264 48.233.801 9.902.204 5.704.292 184.556.207 9.299 - - - - 9.299 Total Assets B. Liabilities 1. Third Party Fund 2. Liabilities with Bank Indonesia 3. Liabilities with other banks 6.534.099 2.142.865 24.024 2.593.330 815.102 958.778 4. Securities Issued 3.482.279 - - 500.000 - 2.982.279 5. Received Loans 514.637 - - - - 514.637 6. Other Liabilities 2.001.544 311.429 363.362 317.558 597.783 411.412 7. Others Total Liabilities Differences of Asset and Liabilities in Balance Sheet 22.787.735 708.887 519.428 43.261 13.187 21.502.972 454.008.361 173.445.445 49.140.615 13.356.353 7.130.364 210.935.584 66.272.936 (48.330.637) (5.579.667) 30.817.778 29.980.688 59.384.774 ADMINISTRATIVE ACCOUNTS A. Administrative Account Receivables 1. Commitment 25.199.356 18.976.859 2.124.075 3.263.257 835.165 - 2. Contingency 6.175.396 6.175.396 - - - - 31.374.752 25.082.402 2.124.075 3.263.257 835.165 - Total Administrative Account Receivables 788 >1 month to 3 months BALANCE SHEET A. II Maturity Dates Balance Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  789. Permodalan & Praktik Manajemen Risiko 31-Dec-2017 No. Portfolio Category B. Maturity Dates Balance >1 month to 3 months ≤1 month >3 month to 6 months >6 month to 12 months >12 months Administrative Account Liabilities 1. Commitment 63.531.244 18.071.673 8.336.836 7.398.904 5.065.098 24.658.733 2. Contingency 30.766.153 11.592.380 386.588 5.198.411 3.966.701 9.622.073 94.297.397 28.523.231 8.723.424 12.597.315 9.031.799 34.280.806 (62.922.645) (3.440.829) (6.599.349) (9.334.058) (8.196.634) (34.280.806) 3.350.291 (51.771.466) (12.179.016) 21.483.720 21.784.054 25.103.968 (51.771.466) (63.950.482) (42.466.762) (20.682.708) 4.421.260 Total Administrative Account Liabilities Differences of Receivables and Liabilities in Administrative Accounts Differences [(IA-IB)+(IIA-IIB)] Cumulative Differences Tabel 9.2.a Foreign Currency Maturity Profile 2018 Bank Only (in million Rupiah) 31-Dec-2018 No. I Portfolio Category Maturity Dates Balance >1 month to 3 months ≤1 month >3 month to 6 months >6 month to 12 months >12 months BALANCE SHEET A Assets 1 Cash 712.636 712.636 2 3 Placement with Bank Indonesia 12.372.153 12.372.153 Placement with other banks 14.467.347 14.046.948 4 Marketable Securities 44.323.826 7.080.798 5 Loans Provided 82.110.633 6 Other Receivables 9.103.024 7 Others Total Assets B - - - - - - - - 43.140 377.259 - - 6.455.728 1.835.132 13.345 28.938.822 12.362.659 4.090.779 8.962.047 1.778.864 54.916.284 3.825.693 2.179.562 2.228.253 866.337 3.178 219.506 219.506 - - - - 163.309.125 50.620.393 12.769.210 13.402.692 2.658.546 83.858.284 90.485.986 40.234.515 10.164.100 4.902.732 990.653 34.193.986 Liabilities 1 Third Party Fund 2 Liabilities with Bank Indonesia 3 Liabilities with other banks 4 Securities Issued 5 6 7 297.037 4.558 - - 292.479 - 11.430.961 8.521.556 1.824.664 1.019.427 65.314 - - - - - - - Received Loans 51.191.754 4.727.066 2.126.888 5.505.067 13.236.848 25.595.886 Other Liabilities 7.518.708 5.277.197 1.134.697 946.650 156.986 3.178 Others 1.462.825 259.545 356.106 94.577 20.046 732.551 162.387.271 59.024.437 15.606.456 12.468.452 14.762.325 60.525.601 921.854 (8.404.044) (2.837.246) 934.240 (12.103.779) 23.332.683 Total Liabilities Differences of Asset and Liabilities in Balance Sheet PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 789
  790. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk 31-Dec-2018 No. II Portfolio Category Maturity Dates Balance ≤1 month >1 month to 3 months >3 month to 6 months >6 month to 12 months >12 months ADMINISTRATIVE ACCOUNTS A Administrative Account Receivables 1 Commitment 49.897.895 41.377.904 1.480.076 5.287.152 1.752.764 - 2 Contingency 15.874.588 15.874.588 - - - - 65.772.484 57.252.492 1.480.076 5.287.152 1.752.764 - 65.209.103 31.644.342 14.248.682 13.455.007 4.276.698 1.584.374 Total Administrative Account Receivables B Administrative Account Liabilities 1 Commitment 2 Contingency 28.013.612 2.687.478 1.845.788 2.807.652 8.555.338 12.117.356 93.222.715 34.331.820 16.094.470 16.262.658 12.832.036 13.701.730 Differences of Receivables and Liabilities in Administrative Accounts (27.450.231) 22.920.671 (14.614.394) (10.975.506) (11.079.272) (13.701.730) Differences [(IA-IB)+(IIA-IIB)] (26.528.377) 14.516.628 (17.451.640) (10.041.266) (23.183.051) 9.630.953 14.516.628 (2.935.012) (12.976.279) (36.159.330) (26.528.377) Total Administrative Account Liabilities Cumulative Differences Tabel 9.2.a Foreign Currency Maturity Profile 2017 Bank Only (in million Rupiah) 31-Dec-2017 No. I Portfolio Category ≤1 month >1 month to 3 months >3 month to 6 months >6 month to 12 months >12 months BALANCE SHEET A 790 Maturity Dates Balance Assets 1 Cash 2 Placement with Bank Indonesia 6.363.497 6.363.497 3 Placement with other banks 24.950.490 24.725.324 4 Marketable Securities 35.508.537 6.400.061 5 Loans Provided 65.058.043 6 Other Receivables 8.675.709 7 Others 20.537 20.537 Adapting Quickly to Face Change 538.224 538.224 - - - - - - - - 203.513 21.654 - - 3.611.275 20.663 78.027 25.398.511 11.162.647 3.069.972 2.173.052 4.270.601 44.381.770 1.579.935 3.611.450 2.174.219 1.282.631 27.474 PT Bank Negara Indonesia (Persero) Tbk
  791. Permodalan & Praktik Manajemen Risiko 31-Dec-2017 No. Portfolio Category Total Assets B >1 month to 3 months ≤1 month >3 month to 6 months >6 month to 12 months >12 months 141.115.037 50.790.225 10.496.210 4.389.588 5.631.259 69.807.755 74.036.764 32.091.859 8.097.898 4.600.197 601.949 28.644.861 116.993 3.378 - - 113.615 - 5.843.203 5.617.820 224.759 624 - - Liabilities 1 Third Party Fund 2 Liabilities with Bank Indonesia 3 Liabilities with other banks 4 Securities Issued - - - - - - 5 Received Loans 44.081.237 1.305.723 3.498.909 2.769.574 3.511.785 32.995.246 6 Other Liabilities 5.009.673 1.086.418 1.036.923 2.537.747 321.116 27.470 7 Others Total Liabilities Differences of Asset and Liabilities in Balance Sheet II Maturity Dates Balance 2.142.904 165.741 2.591 - 168.305 1.806.267 131.230.774 40.270.938 12.861.081 9.908.142 4.716.769 63.473.844 9.884.263 10.519.287 (2.364.871) (5.518.553) 914.490 6.333.911 ADMINISTRATIVE ACCOUNTS A Administrative Account Receivables 1 Commitment 41.320.250 30.905.769 2.378.546 7.233.458 802.477 - 2 Contingency 16.725.543 16.725.543 - - - - 58.045.793 47.631.312 2.378.546 7.233.458 802.477 - 63.553.256 41.843.451 8.800.003 9.152.961 2.586.549 1.170.292 Total Administrative Account Receivables B Administrative Account Liabilities 1 Commitment 2 Contingency 28.702.243 2.629.978 1.806.282 2.747.568 8.372.246 13.146.168 92.255.498 44.473.430 10.606.285 11.900.529 10.958.795 14.316.460 Differences of Receivables and Liabilities in Administrative Accounts (34.209.706) 3.157.882 (8.227.739) (4.667.071) (10.156.318) (14.316.460) Differences [(IA-IB)+(IIA-IIB)] (24.325.443) 13.677.170 (10.592.610) (10.185.624) (9.241.829) (7.982.549) 13.677.170 3.084.559 (7.101.065) (16.342.894) (24.325.443) Total Administrative Account Liabilities Cumulative Differences PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 791
  792. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Tabel 9.2.b Foreign Currency Maturity Profile 2018 Bank Consolidated with Subsidiaries (in million Rupiah) 31-Dec-2018 No. I Portfolio Category >1 month to 3 months ≤1 month >3 month to 6 months >6 month to 12 months >12 months BALANCE SHEET A Assets 1 Cash 2 3 4 761.726 761.726 Placement with Bank Indonesia 12.718.438 12.718.438 Placement with other banks 14.499.233 14.056.948 Marketable Securities 44.731.281 7.285.698 82.110.633 9.103.024 5 Loans Provided 6 Other Receivables 7 Others Total Assets B - - - - - - - 45.026 397.259 - - 6.635.728 1.835.132 13.345 28.961.377 12.362.659 4.090.779 8.962.047 1.778.864 54.916.284 3.825.693 2.179.562 2.228.253 866.337 3.178 819.973 819.973 - - - - 164.744.308 51.831.135 12.951.096 13.422.692 2.658.546 83.880.839 90.563.077 40.263.343 10.165.830 4.903.812 991.458 34.238.634 297.037 4.558 - - 292.479 - 11.168.610 8.259.205 1.824.664 1.019.427 65.314 - 1 Third Party Fund 2 Liabilities with Bank Indonesia 3 Liabilities with other banks 4 Securities Issued - - - - - - 5 Received Loans 51.191.754 4.727.066 2.126.888 5.505.067 13.236.848 25.595.886 6 Other Liabilities 7.518.708 5.277.197 1.134.697 946.650 156.986 3.178 7 Others Differences of Asset and Liabilities in Balance Sheet II - Liabilities Total Liabilities 1.512.056 259.545 356.106 94.577 20.046 781.782 162.251.242 58.790.914 15.608.186 12.469.532 14.763.130 60.619.480 2.493.066 (6.959.779) (2.657.090) 953.160 (12.104.584) 23.261.359 ADMINISTRATIVE ACCOUNTS A Administrative Account Receivables 1 Commitment 49.897.895 41.377.904 1.480.076 5.287.152 1.752.764 - 2 Contingency 15.874.588 15.874.588 - - - - 65.772.484 57.252.492 1.480.076 5.287.152 1.752.764 - Total Administrative Account Receivables B Administrative Account Liabilities 1 Commitment 65.213.393 31.645.789 14.251.525 13.455.007 4.276.698 1.584.374 2 Contingency 28.013.612 2.687.478 1.845.788 2.807.652 8.555.338 12.117.356 93.227.005 34.333.267 16.097.313 16.262.658 12.832.036 13.701.730 Differences of Receivables and Liabilities in Administrative Accounts (27.454.521) 22.919.224 (14.617.237) (10.975.506) (11.079.272) (13.701.730) Differences [(IA-IB)+(IIA-IIB)] (24.961.455) 15.959.446 (17.274.327) (10.022.346) (23.183.856) 9.559.629 15.959.446 (1.314.881) (11.337.228) (34.521.084) (24.961.455) Total Administrative Account Liabilities Cumulative Differences 792 Maturity Dates Balance Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  793. Permodalan & Praktik Manajemen Risiko Tabel 9.2.b Foreign Currency Maturity Profile 2017 Bank Consolidated with Subsidiaries(in million Rupiah) 31-Dec-2017 No. I Portfolio Category >1 month to 3 months ≤1 month >3 month to 6 months >6 month to 12 months >12 months BALANCE SHEET A Assets 1 Cash 2 Placement with Bank Indonesia 6.718.708 6.718.708 3 Placement with other banks 25.033.071 24.807.905 4 Marketable Securities 35.923.731 6.795.188 5 Loans Provided 65.058.043 6 Other Receivables 8.675.709 7 Others 20.537 20.537 141.981.741 Total Assets B 551.942 551.942 - - - - - - - - 203.513 21.654 - - 3.611.275 20.663 78.027 25.418.578 11.162.647 3.069.972 2.173.052 4.270.601 44.381.770 1.579.935 3.611.450 2.174.219 1.282.631 27.474 51.636.862 10.496.210 4.389.588 5.631.259 69.827.822 74.069.179 32.114.011 8.099.803 4.600.597 602.170 28.652.599 116.993 3.378 - - 113.615 - 5.642.612 5.417.229 224.759 624 - - Liabilities 1 Third Party Fund 2 Liabilities with Bank Indonesia 3 Liabilities with other banks 4 Securities Issued - - - - - - 5 Received Loans 44.081.237 1.305.723 3.498.909 2.769.574 3.511.785 32.995.246 6 Other Liabilities 5.009.673 1.086.418 1.036.923 2.537.747 321.116 27.470 7 Others Total Liabilities Differences of Asset and Liabilities in Balance Sheet II Maturity Dates Balance 2.148.691 165.741 2.591 - 168.305 1.812.054 131.068.385 40.092.499 12.862.986 9.908.542 4.716.989 63.487.369 10.913.356 11.544.363 (2.366.776) (5.518.954) 914.270 6.340.454 ADMINISTRATIVE ACCOUNTS A Administrative Account Receivables 1 Commitment 41.320.250 30.905.769 2.378.546 7.233.458 802.477 - 2 Contingency 16.725.543 16.725.543 - - - - 58.045.793 47.631.312 2.378.546 7.233.458 802.477 - Total Administrative Account Receivables B Administrative Account Liabilities 1 Commitment 63.554.664 41.843.546 8.800.003 9.152.961 2.586.549 1.171.606 2 Contingency 28.702.242 2.633.036 1.806.282 2.747.568 8.372.246 13.143.110 92.256.907 44.476.582 10.606.285 11.900.529 10.958.795 14.314.716 Differences of Receivables and Liabilities in Administrative Accounts (34.211.114) 3.154.730 (8.227.739) (4.667.071) (10.156.318) (14.314.716) Differences [(IA-IB)+(IIA-IIB)] (23.297.758) 14.699.093 (10.594.515) (10.186.025) (9.242.049) (7.974.262) 14.699.093 4.104.578 (6.081.447) (15.323.496) (23.297.758) Total Administrative Account Liabilities Cumulative Differences PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 793
  794. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk The maturity profile calculation is in accordance with the regulatory requirements and does not include the maturity profile of the subsidiary engaged in insurance sector. One of the strengths of BNI’s risk monitoring process is the availability of Bank liquidity profile information. The information is available in the LDAP Executive Information Management (EIS) application, which can present daily information on funding and loan and can generate daily cash flow profile and monthly maturity profile that can be used as one of the bank’s liquidity risk monitoring and management system. EARLY WARNING INDICATOR Early warning indicators are outlined in Secondary Reserve Indicators under normal, moderate, or tight conditions for both Rupiah and foreign currency, among others, the trend of BI Rate 7 Days Reverse Repo Rate, JIBOR, LIBOR, average of interest rates of Competitors Deposit, or Credit Default Swap spread (CDS) which rises significantly according to the pre-determined limits, the significant downward trend of foreign exchange reserves in accordance with the established limits, the dominant customer fund trend that tends to decrease significantly according to the pre-determined limits, and others. Determination of SR Ideal in moderate or tight conditions may be considered in the event that one of the conditions/indicators or parameters occurs. Determination is carried out by ERM Division by referring to the indicators above and data obtained from TRS Division as business unit. The determination will then apply a moderate or tight SR Ideal of Liquidity Contingency Plan (LCP). The above indicators can be reviewed periodically according to the development of external and internal conditions in line with national, regional, and global economic developments. LIQUIDITY STRESS TESTING To know the liquidity resilience in crisis period, periodic liquidity stress testing has been done. The stress testing scenario is performed by using specific scenario on bank (Idiosyncratic Scenario) and the stress scenario on market (Market Wide Scenario). Specific scenario on bank (Idiosyncratic Scenario) uses the assumption that banks are in liquidity difficulties due to loss of confidence of the investors/ depositors in the banks. Whereas, the stress scenario on market (Market Wide Scenario) uses the assumption of disturbance in the market/financial system as a whole which resulting in disruption of bank operations. Stress testing result from this scenario is used for liquidity funding plan so that the risk that happens can still be limited and managed well. LIQUIDITY ADEQUACY RATIO In order to improve short-term liquidity resilience, the bank manages the Liquidity Coverage Ratio (LCR) by maintaining adequate High Quality Liquid Assets (HQLA) to meet liquidity needs over the next 30 days in a stress scenario, in such a way that the bank can maintain the liquidity adequacy ratio to always be above 100%, both individually (bank only) and consolidated with Subsidiaries, with an individual BNI LCR value as of December 2018 of 192%. 794 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  795. Permodalan & Praktik Manajemen Risiko OPERATIONAL RISK With the increasing diversity and complexity of products and banking activities offered to customers, the rapid development of systems and supporting technologies, and the rising customer expectations of the services provided by banks, the management of operational risks is of paramount importance. GOVERNANCE AND ORGANIZATION Operational risk management governance has been implemented by BNI whereby all business units and supporting units both at home and abroad serve as Risk Owner or Risk Taker which is the first line of defense. Such implementation is supported by the second line of defense run by the Bank’s Risk Management Division, Compliance Division, and Policy Governance Division as the Risk Control Units, and the third line of defense is the Internal Control Unit as the Risk Assurance Unit. POLICIES AND PROCEDURES The Bank’s Risk Management Division already has Operational Risk Management Implementation Guidelines to support the implementation of operational risk management on all units both within and outside the country, which are: 1. Domestic Operational Risk Management Policy 2. Operational Risk Management Policy for Overseas Branches The policy is elaborated in more details in the prudent transaction and operational Procedures or Standard Operating Procedures and Technical Guidelines to carry out daily business activities such as: 1. Domestic Operational Risk Management Procedures 2. Self Assessment (SA) Implementation Procedures of Operational Risk 3. Operational Risk Management Procedure for Overseas Branches 4. Operational Risk Self Assessment Manual for Overseas Branches 5. Loss Event Database (LED) Implementation Procedure 6. Implementation Procedure of Key Risk Indicators (KRI) 7. Implementation Guidelines on Recording of Operational Risk Expenses Account (BRO). PROCESS BNI’s operational risk management consists of 5 (five) main continuous processes, which are identification, assessment, measurement, monitoring, and control. 1. Risk Identification The operational risk identification mechanism is carried out by applying the Macro Process Mapping Assessment to the work processes/activities of each unit to capture the potential operational risks conducted by interview method (one on one meeting). 2. Risk Assessment Performed by each risk-owner unit through operational risk self assessment methods, including assessment of impacts, frequency and causes of risks and their solutions. 3. Risk Measurement In accordance with the Regulatory provisions, the current operational risk measurement uses the Basic Indicator Approach method. Tabel 8.1.a Disclosure of Operational Risk Quantitative Bank Only (in million Rupiah) 31-Dec-18 No 1 Total Approach Used Basic Indicator Approach Gross Income (Average Last 3 Years) Capital Expense 31-Dec-17 RWA 36.524.612 5.478.692 68.483.648 36.524.612 5.478.692 68.483.648 PT Bank Negara Indonesia (Persero) Tbk  Gross Income (Average Last 3 Years) Capital Expense RWA 32.743.042 4.911.456 61.393.204 32.743.042 4.911.456 61.393.204 Adapting Quickly to Face Change 795
  796. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Tabel 8.1.b Disclosure of Operational Risk Quantitative Bank Consolidated with Subsidiaries (in million Rupiah) 31-Dec-18 No Approach Used 1 Gross Income (Average Last 3 Years) Basic Indicator Approach Total Capital Expense 31-Dec-17 RWA Gross Income (Average Last 3 Years) Capital Expense RWA 38.203.610 5.730.541 71.631.769 34.293.623 5.144.044 64.300.544 38.203.610 5.730.541 71.631.769 34.293.623 5.144.044 64.300.544 4. Risk Monitoring Performed by all units as the first line of defense on the main risks during ongoing activities. Whereas, the Bank’s Risk Management Division evaluates and gives report/feedback on risk assessments based on self assessment results as well as realization on operational risk losses that happen that includes: a. Report feedback for all divisions/units/areas/branches b. Monthly reports on Operational Risk Expenses Monitoring to the Board of Directors c. Operational Risk Profile Report 5. Risk Control The mechanism for operational risk mitigation is reflected in the internal control processes by implementing the 4 (four) mitigation strategies: which are avoiding, mitigating, transferring, and accepting. The four mitigation strategies are stated in the Operational Risk mitigation procedures that include procedures of control, transaction settlement, accounting, asset and custodial storing, product supply, and fraud prevention. TOOLS AND METHODS To assist the operational risk management process in each unit, BNI has developed web-based operational risk management tools named PERISKOP (Operational Risk Tools). PERISKOP has a very important role, which is disseminating the Risk Culture and improving Risk Awareness because there are three (3) main processes in operational risk management using these tools: which are Self Assessment, Loss Event Database, and Key Risk Indicator. 796 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  797. Permodalan & Praktik Manajemen Risiko PERISKOP Self Assessment Module Self Assessment (SA) is a series of activities carried out independently by each unit (risk owner) in order to identify potential operational risks in the unit, to find the cause, to measure potential losses (impact and frequency) that may arise, and to find solutions in order to overcome them. SA results provide an overview of the potential risks faced by the unit for the next 3 months, which are based on the historical data of the previous 3 months as well as the inherent risk. Loss Event Database Module Is a database of all financial losses covering actual loss and near miss since the event occurs until the settlement due to the operational risks occurring in all units in the Bank. Loss data collected through the LED module, aside from being used for better operational risk management and for preventing similar cases, is also used for the basis for RWA calculation of operational risk in order to calculate the capital requirement to cover operational risk by using Advance Measurement Approach (AMA) method. Key Risk Indicator Module Key Risk Indicator is a measurement tool to identify early the potential operational risk losses inherent to products and activities and to provide an early warning signal if it exceeds a predetermined threshold to monitor the operational risk exposure and the Bank’s control effectiveness. BUSINESS CONTINUITY MANAGEMENT Disruptions or disasters caused by nature factors, human actions, and systems may happen to BNI’s critical business functions, causing disruptions on BNI’S business activities and services. To anticipate such events, BNI has implemented a Business Continuity Management (BCM) in every domestic and overseas unit that is expected to be able to minimize operational risk in emergency event or disaster situation. The development of this tool is in line with the Regulatory requirements requiring banks to implement risk control process to manage risks that could compromise a bank’s business continuity, and also in line with the Basel II document requiring banks to have business continuity management and contingency plans to ensure the bank’s ability to keep operating and to limit losses due to disruption to their business activities. Beside the provisions of the Regulator and Basel II for Overseas Branch Office, BCM is implemented by fulfilling BCM regulations in the local country. GOVERNANCE AND ORGANIZATION In a disaster situation, BNI has prepared a specific organization in the form of a Crisis Management Team (CMT) and Emergency Task Force (ETF) consisting of Senior Executives/Highest Unit Leaders as coordinators who have the highest level of authority. CMT will be active in the event that the Executive Management Team (EMT), as the highest CMT authority, declares a disaster condition. BNI already has the necessary infrastructures for BCM implementation, which are Disaster Recovery Center (DRC), Dual Data Center (DDC), an alternate location for BCM PT Bank Negara Indonesia (Persero) Tbk  building and Command Center, which are routinely managed. POLICIES AND PROCEDURES Related to Business Continuity Management (BCM) implementation, BNI has set: 1. Domestic Business Continuity Management (BCM) Policies. 2. Domestic Business Continuity Management (BCM) Procedures. 3. Business Continuity Management (BCM) Policy for Overseas Branches. 4. Business Continuity Management (BCM) Procedure for Overseas Branches. 5. Crisis Management Protocol (CMP) Policies. 6. Business Continuity Management (BCM) Building Governance Procedures. PROCESS Every Recovery Strategy and Restoration Strategy step taken is monitored and reported to the Crisis Management Team (CMT) until the conditions return to normal. To ensure preparation and evaluation level of Business Continuity Management (BCM), BNI tests the system to each critical division/unit once every 3 months, conducts site visits and disaster management simulations for BCM implementation to all operational units routinely every year to find out the preparation level of each unit, in terms of its organization or its BCM infrastructure. The evaluations and routine testing results will show the systematic and structured handling system in dealing with disasters caused by man, nature, or by the system that can make BNI’s operational activities in the disaster areas can continue to run at a certain level, although some facilities and infrastructure that supports the business activities may be temporarily down. Adapting Quickly to Face Change 797
  798. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk LEGAL RISK GOVERNANCE AND ORGANIZATION Legal risk management is carried out by the Legal Division under the active supervision of the Compliance Director. In conducting legal risk management, the Legal Division cooperates with the Legal Management Unit or staff who handle the legal function contained in the Division/Unit/ Regional Office or other organizational units where the Legal Affairs Unit is intended to function as a ‘legal watch’, which provides legal analysis/advice to the organizational unit and/ or employees at every level of the organization to minimize the possible negative impact due to weakness of the judicial aspect, absence and/or changes in legislations and litigation process. In managing legal risk, the Legal Division collaborates with the Bank’s Risk Management Division in regularly assessing and monitoring Legal Risk Management implementation. POLICIES AND PROCEDURES Legal risk management implementation refers to the Legal Risk Management Company Guidelines as well as other policies related to legal risk management. In order to produce the appropriate Legal Risk Management policies, the Legal Division and the Bank Risk Management Division periodically evaluates and updates the Legal Risk Control policies and procedures, in accordance with the developments of the applicable provisions and regulations. follow-up actions. 4. The legal risk control process is carried out primarily to activities that can disrupt BNI’s business continuity. Legal Risk control process is carried out among others by a. Conducting evaluation/assessment in the form of judicial reviews in the event of new products and/or new activities, or changes in/additional features on BNI’s products. b. Providing legal advice and/or legal assistance in the event of Legal Risks in the operational activities. c. Periodically reviewing standard agreement formats, in particular credit agreements, in order to ensure compliance with laws and regulations and other applicable provisions. d. Periodically reviewing contracts and agreements between BNI and other parties, among others by reviewing the effectiveness of enforcement process in order to check the validity of rights in the existing contracts and agreements, particularly for nonstandard agreements or agreements that have not been standardized in BNI’s Company Guidelines. e. Conducting intensive monitoring on legal issues, particularly lawsuits based on Act Against the Law involving the Bank as Defendant or Co-defendant. PROCESS In carrying out Legal Risk control function, BNI implements risk management policies in a flow process consisting of: 1. Identifying the Legal Risk periodically and continuously. The legal risk identification process is carried out by analyzing all legal risk sources, which at least to legal risk from BNI’s products and business activities, as well as the new products and business activities through viable legal risk management control process before they are introduced or implemented. 2. Carrying out Legal Risk measurements performed by using parameters of comparison between the case value faced and BNI’s capital, for indicators of litigation factor, weak binding factor, and factor of absence of or changes in regulations in Legal Risk identification. The results of Legal Risk measurement are reflected in the Legal Risk Profile. 3. Monitoring Legal Risk by evaluating the exposure of inherent legal risk, especially the material nature or its impact on BNI’s capital. Monitoring results that include an evaluation of the legal risk exposure are structured in a Legal Risk Management Information System (SIM Legal Risk) that provides regular legal risk exposure reports (monthly, quarterly, and yearly) including the required 798 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  799. Permodalan & Praktik Manajemen Risiko STRATEGIC RISK GOVERNANCE AND ORGANIZATION Strategic Risk management is carried out by the Strategic Planning Division under the active supervision of the Finance Director. Strategic risk management is carried out through a series of strategic planning process in the forms of planning and budgeting, which includes alignment with the corporate strategy and the unit strategy as well as cascading Bankwide targets into unit target outlined in the planning documents. Strategic planning documents include: 1. Corporate Plan, compiled once every 5 (five) years 2. Board of Directors General Policy (KUD), compiled once a year 3. Bank Business Plan (RBB), compiled annually 4. Business Plan, compiled annually Mechanism of strategic planning document preparation begins with preparing Corporate Plan as a target reference and the Board of Directors General Policy as guidance to prepare Bank Business Plan. Furthermore, the Board of Directors General Policy and Bank Business Plan will become a reference to prepare Operational Planning, which will be outlined in the Business Plan for Divisions, Regions, and Branches/Centers. The Business Plans for Regions will be a reference in Business Plan for Branches/ Centers. Through this mechanism, the strategy alignment process is maintained from the corporate level to the lowest level (branch). The Corporate Plan document must be reviewed annually to suit the changing business environment. The Document of the General Policy of Board of Directors and Bank’s Business Plan, Business Plan for Unit is reviewed in the first semester, even within a shorter period of time if significant environmental changes occur. POLICIES AND PROCEDURES Strategic Risk Management implementation refers to the Strategic Risk Management Implementation Guidelines and Policies and Procedures such as New Product and Activity Development Procedures. PROCESS In carrying out Strategic Risk control function, BNI implements strategic risk management policies in a flow process consisting of: 1. Identifying the Strategic Risk periodically and continuously. Strategic risk identification process is carried out by identifying strategic risk factors inherent PT Bank Negara Indonesia (Persero) Tbk  in every functional activity that potentially harms BNI for example due to inappropriate policy, less responsive to changes that occur, implementation of policies that are not according to plan, or because the implementation is not in line with the predefined schedule. 2. Conducting Strategic Risk measurement by using 4 (four) parameters, which are strategy suitability with business environment conditions, high-risk strategies and low-risk strategies, bank’s business position against competitors, and the achievement of Bank’s Business Plan (RBB) realization. Detailed assessment of the strategic risk profile is stated in the strategic risk profile report by referring to BNI’s Risk Profile Assessment Policy and Procedure. 3. Monitoring Strategic Risk, among others, by observing the experience of past losses caused by strategic risks and/or deviations in the implementation of the strategic plan. For bank wide scope, BNI has set a work unit that analyzes and monitors realization vs. targets in this case the Strategic Planning Division for strategy and the Budgeting and Financial Control Division for financial targets. Whereas for Division/Unit scope, a support unit and/or other specific unit is appointed to analyze and monitor the realization vs. target of the strategy implementation of the Division/Unit periodically. The mechanism to monitor achievements of the established business plans is carried out by comparing the targets with the actual business achievements under the following provisions: a. Monthly monitoring of performance and bank-wide strategy b. Quarterly monitoring of Division performance c. Semi-annual monitoring of the performance achievements of the Company and all units through Business Meetings forum at the Head Office and Regional Offices. 4. The Strategic Risk control process is carried out by comparing actual results with expected results to ensure that the risks taken are still within the tolerance limits and to report significant deviations to the Board of Directors. The risk control system is approved and reviewed periodically by the Board of Directors to ensure its continuing suitability. The strategic risk control mechanism is carried out on the monitoring results of the following factors: a. BNI’s performance achievement is compared to the proportional target and the current year target in a Adapting Quickly to Face Change 799
  800. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk b. c. d. e. monthly manner in the Board of Directors Meeting (Radisi) forum which can take strategic action to manage strategic risk. Realization of Business Plan Strategies for each Division/Unit so that problems can be identified in implementing strategies and work programs in order to be corrected immediately so that the financial targets that have been set can be achieved quarterly. Realization vs. Bank Business Plan targets to be reported to the Financial Services Authority (FSA) quarterly. Performance achievement of the company and all units is conducted semi-annually in the Business Meeting forum at Head Office and Regional Offices. The Board of Directors always monitors the realization of strategy implementation and the achievement of targets stated in the Bank’s Business Plan (RBB) periodically. In the event that there is a strategy implementation and achievement of the RBB that is not in line with the target, the Board of Directors asks the relevant unit to make improvements. COMPLIANCE RISK GOVERNANCE AND ORGANIZATION Compliance Risk management is carried out by the Compliance Division (KPN) under the active supervision of the Compliance Director. POLICIES AND PROCEDURES Compliance Risk Management Implementation refers to the Compliance Risk Management Implementation Guidelines and other relevant Policies and Procedures, among others Compliance Policy, Anti-Fraud Policy, and Anti-Money Laundering and Combating the Financing of Terrorism Procedures. PROCESS In order to contribute to BNI’s sound and sustainable business growth, the Compliance Division assists the Compliance Director in performing compliance functions and performing compliance risk management processes including Compliance Risk Management, covering: 1. Compliance risk identification, carried out to identify all types of risks inherent in every functional activity that potentially harms BNI, which are factors that can increase compliance risk exposure, such as: a. Type and complexity of BNI’s business activities, including new products and activities. b. The amount (volume) and materiality of BNI’s non-compliance with the internal policies and procedures, provisions and/or laws and regulations as well as sound business practices and ethics standards. 800 Adapting Quickly to Face Change 2. Compliance Risk Measurement, is carried out by using indicators/parameters such as: a. Types and significance of violations committed; b. Frequency of violation against the provisions (BNI’s compliance track record); c. Violation against certain financial transaction provisions. As part of the compliance risk measurement, the indicators/ parameters and the amount of weight and ratio used to measure the compliance risk profile are determined by the Compliance Division with due regard of input from the Board of Directors, Bank Risk Management Division (ERM), and other Units as well as Regulatory provisions. Detailed assessment of the compliance risk profile is stated in the compliance risk profile report by referring to BNI’s Risk Profile Assessment Procedure. Compliance Risk Assessment is carried out by conducting assessment or testing on compliance with policies that will be/have been effective, new product/activity, and compliance opinion on transactions that will be made by BNI. 3. Compliance Risk Monitoring includes monitoring and reporting Compliance Risk that occurs to the Board of Directors at any occurring time of the Compliance Risk or periodically on: a. Legal Lending Limit. b. Net Open Position. c. Minimum Statutory Reserves in rupiah and foreign currency. d. Establishment of Provision of Earning Assets. e. Non-performing Loan. f. Minimum Capital Reserve Requirement Ratio. g. Mandatory reporting to external parties. h. Implementation of bank commitments to external parties. i. Compliance Risk Level. j. Bank Composite Risk Rating. 4. Compliance Risk Control, is carried out by conducting actions or steps that are ex-ante (preventive) to ensure that policies, provisions, systems, and procedures, as well as business activities carried out by BNI are in accordance with the provisions of the Financial Services Authority (FSA) and Bank Indonesia (BI) and applicable laws and regulations, as well as ensuring BNI’s compliance with commitments made by the Bank to the Regulators (ie. FSA and BI) and/or other authorized supervisory authorities. Compliance Risk Control is not only carried out on organizational units that are in the country but also includes organizational units overseas. BNI shall ensure an adequate level of compliance with the laws and regulations where the BNI branch office is located. PT Bank Negara Indonesia (Persero) Tbk
  801. Permodalan & Praktik Manajemen Risiko REPUTATION RISK GOVERNANCE AND ORGANIZATION Reputation Risk management is carried out by the Corporate Communication and Secretariat Division (KMP) under the active supervision of the President Director. News management and communication crisis management as well as monitoring on opinions/comments in the news media or social media is carried out in collaboration with the Corporate Communication Division. Whereas management of customer complaints/grievances is carried out in cooperation with the Customer Services Central Unit. POLICIES AND PROCEDURES Implementation of reputation risk management refers to the Reputation Risk Management Implementation Guidelines as well as other relevant Policies and Procedures. PROCESS The Corporate Communication and Secretariat Division assists the President Director in implementing functions and processes of reputation risk management, among others, through the following processes: 1. Reputation Risk identification, is carried out from several sources of data and/or information such as mass media coverage, Bank website, and social media network analysis, customer complaints/grievances through customer service or mass media and social media, as well as customer satisfaction survey questionnaire. BNI shall record and administer every incident related to Reputation Risk, including the amount of potential loss due to the said incident in a data administration. Such data recording and administration is compiled in a statistical data that can be used to project potential loss in a certain period and activity. Each group of data and/or information is handled differently according to the impact of reputation risk it generates. 2. Reputation Risk measurement, is carried out by using indicators among others as follows: a. Frequency, Materiality, and Exposure of Negative News on BNI. The frequency, type of media, and materiality of negative news on BNI, also includes bank administrators, by using measurements and indicators as follows: i. The frequency and scale of negative news on BNI and its subsidiaries in print and online media. ii. Materialization on negative news is assessed based on BNI’s follow-up in response to the negative news. b. The frequency and materiality of Customer Complaints, the measurements and indicators are: i. Frequency of customer complaints. ii. Customer Complaint settlement. iii. Materiality of customer complaints. c. The frequency and materiality of generally applicable Violations of Business Ethics/business norms, the measurement and indicators include: i. The frequency and scale of negative news related to Transparency of Financial Information. ii. The frequency and scale of negative news related to BNI’s business cooperation with other stakeholders. 3. 3. Bank wide Reputation Risk monitoring, is carried out by the Corporate Communication and Secretariat Division (KMP), by reporting Reputation Risk that occurs to the Board of Directors both incidentally at the time of the incident and periodically including the necessary follow-up actions. News management and communication crisis management as well as monitoring on opinions/comments on news media or social media as well as choosing strategies to respond to opinions that develop on social media is carried out in coordination with the Corporate Communication & Secretariat (KMP) Division. Whereas management of customer complaints/grievances is carried out in cooperation with the Customer Services Central Unit (BCC). Daily, weekly, monthly, quarterly, and annual evaluations of reputation risk faced by BNI are outlined in the Media Monitoring Report. 4. Reputation Risk Control BNI immediately follows-up and settles customer complaints and lawsuits that can increase the Reputation Risk exposure and has also developed mechanisms for effective reputation risk control measures In general, reputation risk control is carried out through 2 (two) things, which are: PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 801
  802. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk a. Prevention of events leading to reputation risk b. Recovery of BNI’s reputation after an incident raises reputation risk. Mitigation on Reputation Risk or incidents causing Reputation Risk is carried out by considering the materiality of problems and costs. Nevertheless, a Reputation Risk may be accepted as long as it is still in line with the Risk level to be taken. Some risk control measures are: a. Standardizing the competence of public relation/media relations staff in the Corporate Communication Division, regional offices in order to have the ability and sensitivity in responding to issues and opinions that are developing. b. Establishing a Service Level Agreement (SLA) as a standard of speed in responding to customer complaints. Reputation Risk management in a crisis uses the standard determined in the Crisis Contingency Plan, which is implemented when a crisis occurs, from mild to severe level. The Crisis Contingency Plan consists of: i. Problem or chronology review ii. Information flow iii. Determination of the person in charge iv. Determination of authorities and spokesperson v. Schedule of crisis management activities vi. Alternative communication strategies vii. Evaluation INTEGRATED RISK MANAGEMENT IN BNI’S FINANCIAL CONGLOMERATION BNI’S BUSINESS GROUP STRUCTURE 1. Legal Entity of BNI’s Owner Based on the composition of share ownership, the majority of BNI ownership is the Government of Indonesia at 60%, Domestic Public of 8%, and Foreign Public of 32%. Ownership by Government of RI is represented by the Ministry of SOE, while for foreign public ownership through foreign institutions. For domestic public ownership, among others through mutual funds, pension funds, foundations, companies, insurance, other domestic institutions, and ownership by individuals. 2. Ultimate Shareholders The majority ownership of BNI shares is the Ministry of SOE as a representation of the Government of RI in the General Meeting of Shareholders with ownership of 60%. 3. Related Companies (Sister Companies) Cfm article 4 POJK No. 17/POJK.03/2014 on November 18, 2014, the related companies (sister companies) are several Financial Services Institution (FSI), which are institutionally and/or legally separate but owned and/or controlled by the same controlling shareholders. BNI’s main controlling shareholder is the Government of the Republic of Indonesia which is also the majority owner of other SOEs engaging in Financial Services Institution industry. However, based on the POJK, the relationship between the FSIs owned and controlled directly by the Central Government of the Republic of Indonesia is exempted from the definition of Financial Conglomeration, therefore, Himbara banks are not sister companies of BNI. 4. Subsidiary BNI has capital placement in 5 (five) subsidiaries with majority ownership and as a controlling entity, and 5 (five) financial services institutions with minority ownership and not as a controlling entity, as well as 1 (one) second-tier company. BNI’s Financial Conglomeration Holding Body is as follows: 802 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  803. Permodalan & Praktik Manajemen Risiko 99,98% Financing 1983 75,00% Securities 2010 60,00% Life Insurance 1996 99,94% 100% Sharia Banking 1995 Money Transfer 1997 99,9% PT BNI Asset Management 2011 1,93% 8,00% 2,50% 1,00% 0,52% Securities Rating 1994 Investment 1981 Securities Settlement Institution 1988 Financial Services 2003 Financial Service 2004 Sarana Bersama Pembiayaan Indonesia Based on POJK No. 17/POJK.03/2014 on the Implementation of Integrated Risk Management for Financial Conglomeration (KK), Financial Services Institutions (LJK) included in KK includes FSI types of banks, insurance and reinsurance companies, securities companies, and/or financing companies, including second-tier company. The structure of BNI’s Financial Conglomeration is determined by considering the conformity of the Subsidiary business type with FSA provisions and considering the significance of BNI’s inclusion in each FSI Subsidiary Company of BNI’s Financial Conglomeration. BNI’s Financial Conglomeration Structure consists of: 1. Main Entity: PT Bank Negara Indonesia Persero Tbk. 2. FSI Member of Financial Conglomeration: a. PT BNI Multifinance b. PT BNI Sekuritas c. PT BNI Life Insurance d. PT BNI Syariah e. PT BNI Asset Management Based on the composition of BNI’s share ownership in FSI members of BNI’s Financial Conglomeration as of December 31, 2018, BNI’s ownership in each LJK member of BNI’s Financial Conglomeration is as follows: 1. BNI Multifinance 99,98% 2. BNI Sekuritas 75,00% 3. BNI Life 60,00% 4. BNI Syariah 99,94% 5. BNI Asset Management 99,90% PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 803
  804. 2018 AN N NU U AALL REPOR R TT BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk BNI’s Financial Conglomeration Structure is as follows: MAIN ENTITY 99,98% 75% 60% 99,9% Financing Securities Life Insurance Sharia Banking 99,9% Asset Management TRANSACTION BETWEEN BANKS WITH RELATED PARTIES IN BNI’S FINANCIAL CONGLOMERATION 1. Financial Relationship To assess the inter-group material financial relationship among FSIs in BNI’s Financial Conglomeration, it is measured based on BNI’s financial transaction value with FSI members of BNI’s Financial Conglomeration, that includes transactions of: placement, bank guarantee, securities, and demand deposits. Contribution of inter-group transaction value among FSIs to the total transactions is as follows: Inter-Group Connection (%) Entity BNI BNI Syariah BNI Life BNI Multifinance BNI Sekuritas BNI Asset Management BNI BNI Syariah - BNI Life BNI Multifinance 21,06% 2,17% 0,11% - - 0,54% BNI Sekuritas BNI Asset Mngt 2,80% 0,54% 24,53% - - 0,62% 1,04% - 0,05% 3,78% 9,13% 0,15% - 0,04% - 0,04% 0,01% 25,42% - - - - 7,67% 0,29% - - - - - 2. Capital Participation Based on the banking regulation, PBI No. 15/11/PBI/2013 dated November 22, 2013, and POJK No. 36/POJK.03/2017 dated July 12, 2017, on Prudential Principles in Capital Participation Activities, Capital Participation is the placement of Bank funds in the form of shares in companies engaged in finance sector, including placement in the form of mandatory convertible bonds or certain types of transactions that result in the Bank having or will be having shares in a company engaged in finance sector. 804 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  805. Permodalan & Praktik Manajemen Risiko Value of Capital Participation among FSIs in BNI’s Financial Conglomeration position as of December 31, 2018, is as follows: No Name of FSI receiving capital (investee) Name of FSI placing capital (investor) Time of Capital Placement 1) Value Share of Capital Placement 1) to the total (%) Portion of Capital Placement 2) 1 BNI BNI Sekuritas Maret 1996 75,00% 3,03% 2 BNI BNI Life Insurance Agustus 2012 60,00% 11,97% 3 BNI BNI Syariah September 2014 999,4% 75,89% 4 BNI BNI Multifinance Juni 2016 99,99% 9,06% 5 BNI Life BNI Syariah November 2012 6 BNI Life BNI Syariah September 2014 0,70% 0,05% Desember 2017 Total Capital Participation 100.00% 100,00% Information: The effective date, month, and year of commencement of capital placement Percentage of capital placement (ownership) in the investee company per reporting position Value of capital placement per reporting position 3. Financial Support among FSIs in BNI’s Financial Conglomeration No Name of FSI depositing the Provision of Fund Name of FSI receiving the Provision of Fund Types of Provision of Fund Share of Fund Provision Value 1 BNI BNI Syariah Capital Placement, Bank Guarantee, Acceptance Receivables, Securities, SCO, SOF, Micro Financing, Hajj Fund Migration 21,06% 2 BNI BNI Multifinance Capital Placement, Bank Guarantee, KMK Provision 2,80% 3 BNI BNI Life PCapital Placement, Bank Guarantee, KMK Provision 2,17% 4 BNI BNI Sekuritas Capital Placement, Bank Guarantee, KMK Provision 0,54% 5 BNI BNI Asset Management PAsset Management, BNI’s DPLK Investment 6 BNI Syariah BNI Technical Assistance Agreements (SLA) 0,11% 6 BNI Syariah BNI Sekuritas Operating Lease 0,62% 7 BNI Syariah BNI Asset Management Reksadana Terpoteksi 1,04% 8 BNI Multifinance BNI Operating Lease, Finance Lease 0,15% 8 BNI Multifinance BNI Asset Management Operating Lease 0,01% 9 BNI Multifinance BNI Sekuritas Operating Lease Kendaraan dan Trading Platform 0,04% 24,53% BNI Multifinance BNI Life Insurance Operating Lease 0,04% 10 BNI Life Insurance BNI Asset Management Asuransi Kesehatan Pegawai, Reksadana 9,13% 11 BNI Life Insurance BNI Sekuritas Asuransi Kesehatan Pegawai, Transaksi Obligasi 3,78% 12 BNI Life Insurance BNI Multifinance Asuransi Kesehatan Pegawai, Operating Lease 0,05% 13 BNI Life Insurance BNI Syariah Asuransi Kesehatan Pegawai, Pemasaran in Branch, telemarketing, Flexi Umroh 0,54% BNI Sekutritas BNI Kerjasama Brokerage Obligasi BNI Sekuritas BNI Asset Management Transaksi Brokerage Surat Berharga, Reksadana BNI Asset Managemenet BNI Investasi DPLK BNI 14 Total Penyediaan Dana 25,42% 7,67% 0,29% 100,00% PENERAPAN MANAJEMEN RISIKO TERINTEGRASI PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 805
  806. AN N NU U AALL REPOR R TT 2018 BankNegara NegaraIndonesia Indonesia (Persero) (Persero) Tbk PT Bank Tbk Konglomerasi Keuangan BNI perlu memperhatikan seluruh Risiko melekat dalam Konglomerasi Keuangan yang dapat mempengaruhi kelangsungan usahanya. 1. Jenis Risiko dalam Konglomerasi Keuangan BNI Dalam penerapan Manajemen Risiko Terintegrasi, BNI sebagai Entitas Utama serta seluruh LJK anggota Konglomerasi Keuangan BNI wajib mengelola 10 (sepuluh) jenis Risiko, yaitu: a. Risiko Kredit. Risiko akibat kegagalan debitur dan/atau pihak lain dalam memenuhi kewajiban kepada Konglomerasi Keuangan. b. Risiko Pasar. Risiko akibat adanya pergerakan variabel pasar (adverse movement) dari portofolio yang dimiliki Konglomerasi Keuangan. c. Risiko Likuiditas. Risiko akibat ketidakmampuan Konglomerasi Keuangan untuk memenuhi kewajiban yang jatuh tempo dari sumber pendanaan arus kas dan/atau dari aset likuid berkualitas tinggi yang dapat diagunkan, tanpa mengganggu aktivitas dan kondisi keuangan dari Konglomerasi Keuangan. d. Risiko Operasional. Risiko akibat ketidakcukupan dan/atau tidak berfungsinya proses internal, kesalahan manusia, kegagalan sistem, dan/ atau adanya kejadian-kejadian eksternal yang mempengaruhi operasional Konglomerasi Keuangan. e. Risiko Hukum. Risiko akibat tuntutan hukum dan/atau kelemahan aspek yuridis. Kelemahan aspek yuridis antara lain disebabkan rendahnya pengetahuan/pemahaman atas hukum dan/atau peraturan perundang-undangan, ketiadaan peraturan perundang-undangan yang mendukung atau kelemahan perikatan seperti tidak dipenuhinya syarat sahnya perjanjian dan pengikatan agunan yang tidak sempurna. f. Risiko Stratejik. Risiko akibat ketidaktepatan dalam pengambilan dan/atau pelaksanaan suatu keputusan strategis serta kegagalan dalam mengantisipasi perubahan lingkungan bisnis. g. Risiko Kepatuhan. Risiko akibat tidak mematuhi dan/atau tidak melaksanakan ketentuan dan peraturan perundang-undangan. h. Risiko Reputasi. Risiko akibat menurunnya tingkat kepercayaan pemangku kepentingan (stakeholder) yang bersumber dari persepsi negatif baik terhadap LJK dalam Konglomerasi Keuangan maupun terhadap Konglomerasi Keuangan secara keseluruhan. i. Risiko Transaksi Intra-Grup. Risiko akibat ketergantungan suatu entitas baik secara langsung maupun tidak langsung terhadap entitas lainnya dalam satu Konglomerasi Keuangan dalam rangka pemenuhan kewajiban perjanjian tertulis maupun perjanjian tidak tertulis, baik yang diikuti perpindahan dana dan/atau tidak diikuti perpindahan dana j. Risiko Asuransi. Risiko akibat kegagalan perusahaan asuransi memenuhi kewajiban kepada pemegang polis sebagai akibat dari ketidakcukupan proses seleksi Risiko (underwriting), penetapan premi (pricing), penggunaan reasuransi, dan/atau penanganan klaim. 2. Potensi Kerugian yang Dihadapi Konglomerasi Keuangan BNI Untuk mengetahui potensi kerugian yang dihadapi Konglomerasi Keuangan BNI dilakukan melalui penilaian Profil Risiko Terintegrasi. Berdasarkan hasil Self Assessment Profil Risiko Terintegrasi terhadap 10 jenis Risiko posisi 31 Desember 2017, peringkat risiko Konglomerasi Keuangan BNI adalah 2 (low to moderate) yang berarti bahwa kemungkinan kerugian yang dihadapi Konglomerasi Keuangan tergolong rendah selama periode waktu tertentu di masa datang. 3. Mitigasi Risiko BNI sebagai Entitas Utama melakukan pengendalian risiko secara terintegrasi terutama risiko yang dapat membahayakan kelangsungan usaha Konglomerasi Keuangan. Metode pengendalian Risiko Terintegrasi dilakukan antara lain dengan: a. Menetapkan limit-limit risiko, yaitu: • Limit Risiko secara keseluruhan (limit terintegrasi Konglomerasi Keuangan BNI). • Limit untuk setiap jenis risiko. • Limit Risiko setiap LJK anggota Konglomerasi Keuangan BNI yang mempunyai eksposur Risiko. 806 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  807. Permodalan & Praktik Manajemen Risiko b. Mekanisme persetujuan atau eskalasi apabila terjadi pelampauan Limit Risiko secara keseluruhan. c. Mekanisme feedback/corrective action atas hasil pemantauan Profil Risiko Terintegrasi PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 807
  808. Financial Report 808 Adapting Quickly to Face Change  PT Bank Negara Indonesia (Persero) Tbk
  809. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 809
  810. PT Bank Negara Indonesia (Persero) Tbk dan Entitas Anak/and Subsidiaries Laporan keuangan konsolidasian Tanggal 31 Desember 2018 dan untuk tahun yang berakhir pada tanggal tersebut beserta laporan auditor independen/ Consolidated financial statements As of 31 December 2018 and for the year then ended with independent auditors’ report 810 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  811. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 811
  812. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK LAPORAN KEUANGAN KONSOLIDASIAN TANGGAL 31 DESEMBER 2018 DAN UNTUK TAHUN YANG BERAKHIR PADA TANGGAL TERSEBUT BESERTA LAPORAN AUDITOR INDEPENDEN Daftar Isi PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 DECEMBER 2018 AND FOR THE YEAR THEN ENDED WITH INDEPENDENT AUDITORS’ REPORT Table of Contents Halaman/ Page Laporan Auditor Independen Independent Auditors’ Report Laporan Posisi Keuangan Konsolidasian.................... 1-5 ……..Consolidated Statement of Financial Position Laporan Laba Rugi dan Penghasilan Komprehensif Lain Konsolidasian............................................... 6-8 Consolidated Statement of Profit or Loss and …………………..Other Comprehensive Income Laporan Perubahan Ekuitas Konsolidasian ................ 9 - 10 …….Consolidated Statement of Changes in Equity Laporan Arus Kas Konsolidasian ................................ 11 - 12 …………… Consolidated Statement of Cash Flows Catatan atas Laporan Keuangan Konsolidasian ...................................................... 13 - 245 Notes to the Consolidated Financial …………………………………………Statements Informasi Keuangan Tambahan ................................ 246 - 256 ………………Supplementary Financial Information ************************** 812 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  813. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 813
  814. 814 Adapting Quickly to Face Change  PT Bank Negara Indonesia (Persero) Tbk
  815. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 815
  816. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK LAPORAN POSISI KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION As of 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) 31 Desember/December Catatan/ Notes 2018 2017 ASET ASSETS Kas 4 14,043,846 11,577,664 Cash Giro pada Bank Indonesia 5 35,591,243 32,700,717 Current accounts with Bank Indonesia 78,908 13,058,191 1,407,434 19,931,003 Current accounts with other banks Related parties Third parties - 13,137,099 21,338,437 Giro pada bank lain - Pihak berelasi - Pihak ketiga Total giro pada bank lain Dikurangi: Cadangan kerugian penurunan nilai (3,271) 6,47b Penempatan pada bank lain dan Bank Indonesia - Pihak berelasi - Pihak ketiga Total penempatan pada bank lain dan Bank Indonesia Dikurangi: Cadangan kerugian penurunan nilai Efek-efek - Pihak berelasi - Pihak ketiga Total efek-efek Dikurangi: Cadangan kerugian penurunan nilai 1,298,627 27,294,621 39,324,460 28,593,248 28,592,738 8,590,229 23,772,178 6,053,845 30,305,149 32,362,407 36,358,994 Total wesel ekspor dan tagihan lainnya Dikurangi: Cadangan kerugian penurunan nilai Total placements with other banks and Bank Indonesia Less: Allowance for impairment losses Marketable securities Related parties Third parties Total marketable securities Less: Allowance for impairment losses 36,049,899 - 679,122 Securities purchased under agreements to resell 11,707,785 13,037,421 8,510,551 7,288,619 Bills and other receivables Related parties Third parties - 24,745,206 15,799,170 (158,344) 9,47f (309,095) Placements with other banks and Bank Indonesia Related parties Third parties - 32,044,270 14 Wesel ekspor dan tagihan lainnya - Pihak berelasi - Pihak ketiga (510) 39,324,445 (318,137) 8,47d 21,335,150 1,677,584 37,646,876 (15) 7,47c Efek-efek yang dibeli dengan janji dijual kembali 13,133,828 (3,287) Total current accounts with other banks Less: Allowance for impairment losses 24,586,862 (98,245) Total bills and other receivables Less: Allowance for impairment losses 15,700,925 The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole. Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan. 1 816 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  817. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK LAPORAN POSISI KEUANGAN KONSOLIDASIAN (lanjutan) Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued) As of 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) 31 Desember/December Catatan/ Notes 2018 2017 ASET (lanjutan) ASSETS (continued) Tagihan akseptasi - Pihak berelasi - Pihak ketiga Total tagihan akseptasi Dikurangi: Cadangan kerugian penurunan nilai 5,548,051 14,926,968 5,768,236 12,502,787 20,475,019 18,271,023 (179,742) 10,47g (164,611) Acceptances receivables Related parties Third parties Total acceptances receivables Less: Allowance for impairment losses 20,295,277 18,106,412 56,317 548,931 27,361 189,523 Derivative receivables Related parties Third parties - 605,248 216,884 Total derivatives receivables 107,404,932 405,373,565 86,415,498 354,898,068 Loans Related parties Third parties - 512,778,497 441,313,566 (14,891,609) (14,523,585) 12,47i 497,886,888 426,789,981 Obligasi Pemerintah 13,47e 86,791,402 79,849,452 Government bonds Pajak dibayar dimuka 27a 1,624,418 622,723 Prepaid taxes Beban dibayar dimuka 15 2,337,403 2,318,516 Prepaid expenses 785,007 785,823 47j (181,084) (72,400) Equity investments Less: Allowance for impairment losses 16 603,923 713,423 17 11,900,084 10,380,886 34,008,656 (7,882,148) 30,205,202 (7,400,513) 18 26,126,508 22,804,689 27d 1,676,366 890,903 Deferred tax assets - net 808,572,011 709,330,084 TOTAL ASSETS Tagihan derivatif - Pihak berelasi - Pihak ketiga Total tagihan derivatif 11,47h Pinjaman yang diberikan - Pihak berelasi - Pihak ketiga Total pinjaman yang diberikan Dikurangi: Cadangan kerugian penurunan nilai Penyertaan saham Dikurangi: Cadangan kerugian penurunan nilai Aset lain-lain - neto Aset tetap Dikurangi: Akumulasi penyusutan Aset pajak tangguhan - neto TOTAL ASET Total loans Less: Allowance for impairment losses Other assets - net Fixed assets Less: Accumulated depreciation The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole. Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan. 2 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 817
  818. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK LAPORAN POSISI KEUANGAN KONSOLIDASIAN (lanjutan) Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued) As of 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) 31 Desember/December Catatan/ Notes 2018 2017 LIABILITAS, DANA SYIRKAH TEMPORER DAN EKUITAS LIABILITIES, TEMPORARY SYIRKAH FUNDS AND EQUITY LIABILITAS Liabilitas segera LIABILITIES 19 Simpanan nasabah - Pihak berelasi - Pihak ketiga Total simpanan nasabah 20,47k 4,160,295 4,867,547 Obligations due immediately 87,463,874 464,708,328 87,756,080 404,991,868 Deposits from customers Related parties Third parties - 552,172,202 492,747,948 Total deposits from customers 2,968,169 10,906,326 2,246,156 9,488,051 Deposits from other banks Related parties Third parties - 13,874,495 11,734,207 Total deposits from other banks 41,234 280,794 30,630 83,190 Derivative payables Related parties Third parties - 322,028 113,820 Total derivative payables 21,524,329 2,390,066 Securities sold under agreements to repurchase 1,253,947 3,162,666 1,160,981 3,346,350 Acceptance payables Related parties Third parties - 4,416,613 4,507,331 Total acceptances payables 876,347 971,479 Accrued expenses 415,756 65,308 20,047 60,378 Taxes payable Corporate income tax Other taxes - Simpanan dari bank lain - Pihak berelasi - Pihak ketiga Total simpanan dari bank lain 21,47l Liabilitas derivatif - Pihak berelasi - Pihak ketiga Total liabilitas derivatif Efek-efek yang dijual dengan janji dibeli kembali 11,47o 22 Liabilitas akseptasi - Pihak berelasi - Pihak ketiga Total liabilitas akseptasi Beban yang masih harus dibayar 23,47r 24 Utang pajak - Pajak penghasilan badan - Pajak lainnya Total utang pajak 27b 481,064 80,425 Total taxes payable Imbalan kerja 44 3,512,266 4,093,855 Employee benefits Penyisihan 25 177,519 192,406 Provisions Liabilitas lain-lain 26 14,608,465 14,730,714 Other liabilities Efek-efek yang diterbitkan 28,47n 2,987,464 2,986,279 Securities issued Pinjaman yang diterima 29,47o 52,024,506 44,670,741 Borrowings Efek-efek subordinasi 30,47p 99,953 - Subordinated securities 671,237,546 584,086,818 TOTAL LIABILITIES TOTAL LIABILITAS The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole. Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan. 3 818 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  819. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK LAPORAN POSISI KEUANGAN KONSOLIDASIAN (lanjutan) Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued) As of 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) 31 Desember/December Catatan/ Notes 2018 2017 DANA SYIRKAH TEMPORER Simpanan nasabah Giro Mudharabah - Pihak berelasi - Pihak ketiga TEMPORARY SYIRKAH FUNDS 31,47s Deposits from customers Mudharabah current accounts Related parties Third parties - 209,056 957,683 319,334 609,829 1,166,739 929,163 Total Mudharabah current accounts 16,574 9,786,293 9,522 8,244,874 Mudharabah saving deposits Related parties Third parties - 9,802,867 8,254,396 Total Mudharabah saving deposits 370,527 15,262,439 7,843,403 6,323,072 Mudharabah time deposits Related parties Third parties - 15,632,966 14,166,475 Total Mudharabah time deposits 26,602,572 23,350,034 Total deposits from customers 24,314 21,739 Deposits from other banks Mudharabah current accounts Related parties Third parties - 24,314 21,739 Total Mudharabah current accounts 109,717 143,934 Mudharabah saving deposits Related parties Third parties - 109,717 143,934 Total Mudharabah saving deposits 224,073 328,255 Mudharabah time deposits Related parties Third parties - Total deposito Mudharabah 224,073 328,255 Total simpanan dari bank lain 358,104 493,928 Total deposits from other banks - 259,500 236,500 Mudharabah Sukuk issued Related parties Third parties - - 496,000 Total Mudharabah Sukuk issued 26,960,676 24,339,962 TOTAL TEMPORARY SYIRKAH FUNDS Total giro Mudharabah Tabungan Mudharabah - Pihak berelasi - Pihak ketiga 32,47u Total tabungan Mudharabah Deposito Mudharabah - Pihak berelasi - Pihak ketiga 33,47t Total deposito Mudharabah Total simpanan nasabah Simpanan dari bank lain Giro Mudharabah - Pihak berelasi - Pihak ketiga 31 Total giro Mudharabah Tabungan Mudharabah - Pihak berelasi - Pihak ketiga 32 Total tabungan Mudharabah Deposito Mudharabah - Pihak berelasi - Pihak ketiga Sukuk Mudharabah yang diterbitkan - Pihak berelasi - Pihak ketiga 33 34,47v Total Sukuk Mudharabah yang diterbitkan TOTAL DANA SYIRKAH TEMPORER Total Mudharabah time deposits The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole. Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan. 4 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 819
  820. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK LAPORAN POSISI KEUANGAN KONSOLIDASIAN (lanjutan) Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued) As of 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) 31 Desember/December Catatan/ Notes 2018 2017 EKUITAS EQUITY Ekuitas diatribusikan kepada pemilik entitas induk Modal saham: - Seri A Dwiwarna - nilai nominal Rp7.500 per saham (dalam Rupiah penuh) - Seri B - nilai nominal Rp7.500 per saham (dalam Rupiah penuh) - Seri C - nilai nominal Rp375 per saham (dalam Rupiah penuh) Modal dasar: - Seri A Dwiwarna - 1 saham - Seri B - 289.341.866 saham - Seri C - 34.213.162.660 saham Modal ditempatkan dan disetor penuh: - Seri A Dwiwarna - 1 saham - Seri B - 289.341.866 saham - Seri C - 18.359.314.591 saham 35 9,054,807 9,054,807 Equity attributable to equity holders of the parent entity Share capital: Class A Dwiwarna Rp7,500 par value per share (in full Rupiah amount) Class B - Rp7,500 par value per share (in full Rupiah amount) Class C - Rp375 par value per share (in full Rupiah amount) Share capital - Authorized: Class A Dwiwarna - 1 share Class B - 289,341,866 shares Class C - 34,213,162,660 shares Issued and fully paid: Class A Dwiwarna - 1 share Class B - 289,341,866 shares Class C -18,359,314,591 shares - Tambahan modal disetor 35 14,568,468 14,568,468 Additional paid-in capital Transaksi dengan kepentingan nonpengendali 1i 2,256,999 2,256,999 Transactions with non-controlling interests Cadangan revaluasi aset 18 14,978,731 12,283,125 Asset revaluation reserve 22,230 Unrealized (losses) gains on available-for-sale marketable securities and Government Bonds,net of tax 93,155 Exchange difference on translation of foreign currency financial statements 2,778,412 68,268,420 2,778,412 57,535,093 Retained earnings Appropriated General and legal reserves Specific reserves Unappropriated 71,046,832 60,313,505 Total retained earnings 108,076,884 98,592,289 Total equity attributable to equity holders of the parent entity 2,296,905 2,311,015 Non-controlling interests 110,373,789 100,903,304 TOTAL EQUITY 709,330,084 TOTAL LIABILITIES, TEMPORARY SYIRKAH FUNDS AND EQUITY (Rugi) laba yang belum direalisasi atas efekefek dan Obligasi Pemerintah dalam kelompok tersedia untuk dijual, setelah pajak 8,13 (3,913,839) Selisih kurs karena penjabaran laporan keuangan dalam mata uang asing Saldo laba Sudah ditentukan penggunaannya Cadangan umum dan wajib Cadangan khusus Tidak ditentukan penggunaannya 84,886 37 38 Total saldo laba Total ekuitas yang dapat diatribusikan kepada pemilik entitas induk Kepentingan nonpengendali TOTAL EKUITAS TOTAL LIABILITAS, DANA SYIRKAH TEMPORER DAN EKUITAS 808,572,011 The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole. Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan. 5 820 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  821. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN KONSOLIDASIAN Untuk Tahun yang Berakhir Pada Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the Year Ended 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) Tahun yang Berakhir pada tanggal 31 Desember/Year ended December Catatan/ Notes PENDAPATAN BUNGA DAN PENDAPATAN SYARIAH Pendapatan bunga Pendapatan syariah 39 TOTAL PENDAPATAN BUNGA DAN PENDAPATAN SYARIAH BEBAN BUNGA DAN BEBAN SYARIAH Beban bunga Beban syariah 2018 2017 50,571,284 3,567,329 45,003,201 3,174,648 INTEREST INCOME AND SHARIA INCOME Interest Income Sharia Income 54,138,613 48,177,849 TOTAL INTEREST INCOME AND SHARIA INCOME (17,684,456) (1,007,842) (15,272,144) (967,942) INTEREST EXPENSE AND SHARIA EXPENSE Interest Expense Sharia Expense (18,692,298) (16,240,086) TOTAL INTEREST EXPENSE AND SHARIA EXPENSE PENDAPATAN BUNGA DAN PENDAPATAN SYARIAH - NETO 35,446,315 31,937,763 PENDAPATAN PREMI DAN HASIL INVESTASI BEBAN KLAIM 5,997,417 (4,285,560) 6,871,380 (5,103,812) PREMIUM INCOME AND INVESTMENTS RETURN CLAIMS EXPENSE PENDAPATAN PREMI DAN HASIL INVESTASI - NETO 1,711,857 1,767,568 PREMIUM INCOME AND INVESTMENTS RETURN - NET 7,801,854 6,871,907 OTHER OPERATING INCOME Other fees and commission 1,997,152 1,732,289 40 TOTAL BEBAN BUNGA DAN BEBAN SYARIAH PENDAPATAN OPERASIONAL LAINNYA Provisi dan komisi lainnya Penerimaan kembali aset yang telah dihapusbukukan Keuntungan (kerugian) yang belum direalisasi dari perubahan nilai wajar aset keuangan yang dimiliki untuk diperdagangkan Keuntungan dari penjualan aset keuangan yang diklasifikasikan tersedia untuk dijual dan dimiliki untuk diperdagangkan Laba selisih kurs - neto Lain-lain TOTAL PENDAPATAN OPERASIONAL LAINNYA PEMBENTUKAN CADANGAN KERUGIAN PENURUNAN NILAI BEBAN OPERASIONAL LAINNYA Gaji dan tunjangan Umum dan administrasi Beban promosi Premi penjaminan simpanan Lain-lain 6,7,8,9,10 12,16,25b 41,44,47y 43 42 TOTAL BEBAN OPERASIONAL LAINNYA LABA OPERASIONAL 11,956 (38,254) INTEREST INCOME AND SHARIA INCOME - NET Recovery of assets written-off Unrealized gains (losses) on changes in fair value of assets held for trading 508,516 493,590 799,531 720,485 907,958 845,674 Gain on sale of financial assets classified as available-for-sale and held for trading Foreign exchange gains - net Others 11,612,599 11,040,059 TOTAL OTHER OPERATING INCOME (7,388,411) (7,126,335) ALLOWANCE FOR IMPAIRMENT LOSSES (9,518,738) (7,667,065) (1,290,553) (970,733) (2,335,872) (9,277,196) (6,922,572) (1,038,713) (877,307) (2,280,604) OTHER OPERATING EXPENSES Salaries and employee benefits General and administrative Promotion expense Deposit guarantee premium Others (21,782,961) (20,396,392) TOTAL OTHER OPERATING EXPENSES 19,599,399 17,222,663 OPERATING INCOME The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole. Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan. 6 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 821
  822. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN KONSOLIDASIAN (lanjutan) Untuk Tahun yang Berakhir Pada Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (continued) For the Year Ended 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) Tahun yang Berakhir pada tanggal 31 Desember/Year ended 31 December Catatan/ Notes PENDAPATAN (BEBAN) BUKAN OPERASIONAL - NETO 2018 2017 221,316 (57,276) NON-OPERATING INCOME (EXPENSE) - NET LABA SEBELUM BEBAN PAJAK 19,820,715 17,165,387 BEBAN PAJAK Kini Tangguhan (4,948,261) 219,309 (3,293,379) (101,416) TAX EXPENSE Current Deferred (4,728,952) (3,394,795) TOTAL TAX EXPENSE 15,091,763 13,770,592 TOTAL BEBAN PAJAK 27c LABA TAHUN BERJALAN INCOME BEFORE TAX EXPENSE INCOME FOR THE YEAR PENDAPATAN KOMPREHENSIF LAIN: Pos-pos yang tidak akan direklasifikasi ke laba rugi Keuntungan revaluasi aset tetap OTHER COMPREHENSIVE INCOME: 18 Pengukuran kembali liabilitas imbalan kerja Pajak penghasilan terkait Pos-pos yang akan direklasifikasi ke laba rugi Penyesuaian akibat penjabaran laporan keuangan dalam mata uang asing (Kerugian) keuntungan dari perubahan nilai aset keuangan dalam kelompok tersedia untuk dijual Pajak penghasilan terkait PENGHASILAN KOMPREHENSIF LAIN TAHUN BERJALAN SETELAH PAJAK TOTAL LABA KOMPREHENSIF TAHUN BERJALAN 2,815,509 (3,791) Items that will not be reclassified to profit or loss Gain on revaluation of fixed assets 601,440 (148,679) Remeasurement of post employment benefits (235,860) 29,736 Related income tax 11,440 Items that will be reclassified to profit or loss Translation adjustment of foreign currency financial statements 2,447,926 (Loss) gain on changes in value of financial assets categorized as available-for-sale (8,270) (5,035,413) 1,007,083 (855,511) 14,236,252 (489,585) Related income tax 1,847,047 OTHER COMPREHENSIVE INCOME FOR THE YEAR AFTER TAXES 15,617,639 TOTAL COMPREHENSIVE INCOME FOR THE YEAR LABA TAHUN BERJALAN DIATRIBUSIKAN KEPADA: INCOME FOR THE YEAR ATTRIBUTABLE TO: Pemilik entitas induk Kepentingan nonpengendali 15,015,118 76,645 13,616,476 154,116 Equity holders of the parent entity Non-controlling interests TOTAL 15,091,763 13,770,592 TOTAL The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole. Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan. 7 822 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  823. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN KONSOLIDASIAN (lanjutan) Untuk Tahun yang Berakhir Pada Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (continued) For the Year Ended 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) Tahun yang Berakhir pada tanggal 31 Desember/Year ended 31 December Catatan/ Notes 2018 2017 LABA KOMPREHENSIF TAHUN BERJALAN DIATRIBUSIKAN KEPADA: TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO: Pemilik entitas induk Kepentingan nonpengendali 14,250,362 (14,110) 15,403,290 214,349 Equity holders of the parent entity Non-controlling interests TOTAL 14,236,252 15,617,639 TOTAL 730 BASIC EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT ENTITY (IN FULL RUPIAH AMOUNT) LABA PER SAHAM DASAR DIATRIBUSIKAN KEPADA PEMILIK ENTITAS INDUK (DALAM RUPIAH PENUH) 805 45 The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole. Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan. 8 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 823
  824. Saldo laba /Retained earnings The original consolidated financial statements included herein are in the Indonesian language. PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For The Year Ended 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) (8,269) 93,155 2,695,606 12,283,125 - 2,778,412 15,499,094 57,535,093 14,250,362 98,592,289 (14,110) 2,311,015 14,236,252 100,903,304 Comprehensive income for the year Balance as of 31 December 2017 - - (3,913,839) - 84,886 - 14,978,731 - 2,778,412 - 68,268,420 (4,765,767) 108,076,884 (4,765,767) 2,296,905 - 110,373,789 (4,765,767) Balance as of 31 December 2018 Distribution of dividends Total ekuitas/ Total equity 22,230 Dicadangkan/ Total ekuitas Appropriated yang dapat diatribusikan kepada pemilik entitas induk/ Total equity Kepentingan Tidak attributable to nonpengendali/ dicadangkan/ equity holders of Non-controlling Unappropriated*) the parent entity interests Transaksi dengan kepentingan nonpengendali/ Transactions with non-controlling interests (3,936,069) - 2,256,999 The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole. Included in unappropriated retained earnings is the remeasurement of post employment benefits, net of tax amounting to Rp483,976. 14,568,468 9 9,054,807 Cadangan umum dan wajib/ General and legal reserves Tambahan modal disetor/ Additional paid-in capital - 2,256,999 Cadangan revaluasi aset/ Asset revaluation reserve Modal ditempatkan dan disetor penuh/ Issued and fully paid-up capital - 14,568,468 (Rugi) laba yang belum direalisasi atas efek-efek dan Obligasi Pemerintah Selisih dalam kelompok kurs karena tersedia penjabaran untuk dijual, laporan setelah pajak/ keuangan Unrealized dalam mata (losses)gains uang asing/ on availableExchange for-sale difference on marketable translation of securities and foreign Government currency Bonds, financial net of tax statements - *) 9,054,807 PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK LAPORAN PERUBAHAN EKUITAS KONSOLIDASIAN Untuk Tahun yang Berakhir Pada Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 8,13 Catatan/ Notes Laba komprehensif untuk tahun berjalan 36 Saldo per 31 Desember 2017 Pembagian dividen Saldo per 31 Desember 2018 *) Termasuk di dalam saldo laba tidak dicadangkan adalah pengukuran kembali liabilitas imbalan kerja, neto setelah pajak sebesar Rp483.976. Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan. PT Bank Negara Indonesia (Persero) Tbk Adapting Quickly to Face Change 824
  825. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 825 36 Pembagian dividen 9,054,807 - - - 9,054,807 14,568,468 - - - 14,568,468 Tambahan modal disetor/ Additional paid-in capital 2,256,999 - - - 2,256,999 Transaksi dengan kepentingan nonpengendali/ Transactions with non-controlling interests 22,230 Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan. - - 1,910,697 (1,888,467) *) Termasuk di dalam saldo laba tidak dicadangkan adalah pengukuran kembali liabilitas imbalan kerja, neto setelah pajak sebesar Rp132.958. Saldo per 31 Desember 2017 Pelepasan tanah/bangunan yang telah direvaluasi 8,13 Laba komprehensif untuk tahun berjalan Saldo per 31 Desember 2016 Catatan/ Notes Modal ditempatkan dan disetor penuh/ Issued and fully paid-up capital 93,155 - - 11,440 81,715 (Rugi) laba yang belum direalisasi atas efek-efek dan Obligasi Pemerintah Selisih dalam kelompok kurs karena tersedia penjabaran untuk dijual, laporan setelah pajak/ keuangan Unrealized dalam mata (losses)gains uang asing/ on availableExchange for-sale difference on marketable translation of securities and foreign Government currency Bonds, financial net of tax statements PT BANK NEGARA INDONESIA (PERSERO) TbkDAN ENTITAS ANAK LAPORAN PERUBAHAN EKUITAS KONSOLIDASIAN (lanjutan) Untuk Tahun yang Berakhir Pada Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 10 12,283,125 - - (2,365) 12,285,490 Cadangan revaluasi aset/ Asset revaluation reserve *) 48,019,910 57,535,093 227 (3,968,562) 13,483,518 87,157,334 98,592,289 227 (3,968,562) 15,403,290 2,311,015 - - 214,349 2,096,666 100,903,304 227 (3,968,562) 15,617,639 89,254,000 Total ekuitas/ Total equity Balance as of 31 December 2016 Balance as of 31 December 2017 Land/building disposal after revaluation Distribution of dividends Comprehensive income for the year The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole. Included in unappropriated retained earnings is the remeasurement of post employment benefits, net of tax amounting to Rp132,958. 2,778,412 - - - 2,778,412 Cadangan umum dan wajib/ General and legal reserves Total ekuitas yang dapat diatribusikan kepada pemilik entitas induk/ Total equity Kepentingan Tidak attributable to nonpengendali/ dicadangkan/ equity holders of Non-controlling Unappropriated*) the parent entity interests Saldo laba/Retained earnings Dicadangkan/ Appropriated PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued) For The Year Ended 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) The original consolidated financial statements included herein are in the Indonesian language.
  826. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS For the Year Ended 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK LAPORAN ARUS KAS KONSOLIDASIAN Untuk Tahun yang Berakhir Pada Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) Tahun yang Berakhir pada tanggal 31 Desember/Year ended 31 December Catatan/ Notes ARUS KAS DARI AKTIVITAS OPERASI Penerimaan pendapatan bunga Penerimaan pendapatan syariah Pembayaran beban bunga Pembayaran beban syariah Pendapatan premi dan hasil investasi Beban klaim Pendapatan operasional lainnya Beban operasional lainnya Pendapatan (beban) bukan operasional - neto Pembayaran pajak penghasilan Arus kas sebelum perubahan dalam aset dan liabilitas operasi Perubahan dalam aset dan liabilitas operasi: Penurunan (kenaikan) aset operasi: Penempatan pada Bank Indonesia dan bank lain Efek-efek dan Obligasi Pemerintah yang diukur pada nilai wajar melalui laporan laba rugi Efek-efek yang dibeli dengan janji dijual kembali 14 Wesel ekspor dan tagihan lainnya Pinjaman yang diberikan Tagihan akseptasi Beban dibayar di muka 15 Aset lain-lain Kenaikan (penurunan) liabilitas operasi: Liabilitas segera Simpanan nasabah Simpanan dari bank lain Beban yang masih harus dibayar Imbalan kerja Liabilitas akseptasi Utang pajak Kenaikan efek-efek yang diterbitkan Liabilitas lain-lain 2018 2017 49,572,508 3,567,329 (17,367,950) (1,007,842) 5,997,417 (4,285,560) 11,540,546 (18,924,886) 221,316 (3,932,801) 44,494,561 3,174,648 (15,207,118) (967,942) 6,871,380 (5,103,812) 10,118,239 (18,715,640) (57,275) (3,365,755) 25,380,077 21,241,286 (941,829) Cash flows before changes in operating assets and liabilities Changes in operating asets and liabilities: Decrease (increase) in operating assets: Placements with Bank Indonesia and 759,492 other banks 3,516,732 Marketable securities and Government Bonds at fair value through profit or loss Securities purchased under agreements to resell Bills and other receivables Loans Acceptances receivables Prepaid expenses Other assets Increase (decrease) in operating liabilities: Obligations due immediately Deposits from customers Deposits from other banks Accrued expenses Employee benefits Acceptances payables Taxes payable Increase in marketable securities issued Other liabilities 2,620,714 3,263,207 Increase in deposits from temporary syirkah funds (4,274,095) 33,677,278 766,247 (5,941,473) 679,122 (8,946,036) (79,299,503) (2,203,996) (18,886) (2,141,799) 985,628 (6,835,671) (57,434,118) (3,461,795) 92,375 (3,445,990) 19 20 21 24 44 23 (707,252) 59,424,254 2,140,288 (95,132) (407,005) (90,718) 4,930 1,591,879 77,294,864 1,422,104 (75,760) 553,693 148,794 2,031 28 26 1,185 (438,756) Kenaikan dana syirkah temporer Kas neto (digunakan untuk) diperoleh dari aktivitas operasi CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interest income Receipts from sharia income Payments of interest expenses Payments of sharia expenses Premium income and investments return Claims expenses Other operating income Other operating expenses Non-operating income (expenses) - net Payment of income tax Net cash (used in) provided by operating activities The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole. Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan. 11 826 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  827. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (continued) For the Year Ended 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK LAPORAN ARUS KAS KONSOLIDASIAN (lanjutan) Untuk Tahun yang Berakhir Pada Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) Tahun yang Berakhir pada tanggal 31 Desember/Year ended 31 December Catatan/ Notes ARUS KAS DARI AKTIVITAS INVESTASI Penjualan (pembelian) efek-efek yang tersedia untuk dijual dan dimiliki hingga jatuh tempo - neto Pembelian Obligasi Pemerintah - neto Penambahan aset tetap Hasil penjualan aset tetap 18 18 Kas neto digunakan untuk aktivitas investasi ARUS KAS DARI AKTIVITAS PENDANAAN Kenaikan pinjaman yang diterima Penurunan efek-efek yang diterbitkan Kenaikan (penurunan) efek-efek yang dijual dengan janji dibeli kembali Kenaikan efek-efek subordinasi Pembayaran dividen 59 2018 2017 2,472,482 (8,672,745) (10,343,596) (1,945,179) 204,591 (12,695,997) (1,947,526) 41,997 CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of marketable securities available-for-sale and held-to-maturity - net Purchases of Government Bonds - net Acquisition of fixed assets Proceeds from sale of fixed assets (9,611,702) (23,274,271) Net cash used in investing activities 6,795,949 12,282,239 CASH FLOWS FROM FINANCING ACTIVITIES Increase in borrowings Decrease in marketable securities issued Increase (decrease) in securities sold under agreements to repurchase Increase in subordinated securities Payment of dividends - (3,744,836) 59 18,478,977 (1,374,895) 59 36 99,953 (4,765,767) (3,968,562) 20,609,112 3,193,946 Net cash provided by financing activities 6,723,315 13,596,953 NET INCREASE IN CASH AND CASH EQUIVALENTS 91,977,278 78,284,151 221,439 96,174 CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR Effect of foreign currency exchange rate changes 98,922,032 91,977,278 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR Kas neto diperoleh dari aktivitas pendanaan PENINGKATAN NETO KAS DAN SETARA KAS KAS DAN SETARA KAS PADA AWAL TAHUN Pengaruh perubahan kurs mata uang asing KAS DAN SETARA KAS PADA AKHIR TAHUN KOMPONEN KAS DAN SETARA KAS: COMPONENTS OF CASH AND CASH EQUIVALENTS: Kas 4 14,043,846 11,577,664 Cash Giro pada Bank Indonesia 5 35,591,243 32,700,717 Current accounts with Bank Indonesia Giro pada bank lain 6 13,137,099 21,338,437 Current accounts with other banks Penempatan pada Bank Indonesia dan bank lain - jangka waktu jatuh tempo tiga bulan atau kurang sejak tanggal perolehan 36,149,844 26,360,460 Placements with Bank Indonesia and other banks - maturing within three months of acquisition date Total kas dan setara kas 98,922,032 91,977,278 Total cash and cash equivalents The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements taken as a whole. Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan. 12 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 827
  828. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. INFORMASI UMUM a. 1. Pendirian Bank GENERAL INFORMATION a. Establishment of the Bank PT Bank Negara Indonesia (Persero) Tbk (“BNI” atau “Bank”) pada awalnya didirikan di Indonesia sebagai bank sentral dengan nama “Bank Negara Indonesia” berdasarkan Peraturan Pemerintah Pengganti UndangUndang No. 2 tahun 1946 tanggal 5 Juli 1946. Selanjutnya, berdasarkan Undang-Undang No. 17 tahun 1968, BNI ditetapkan menjadi “Bank Negara Indonesia 1946”, dan statusnya menjadi Bank Umum Milik Negara. PT Bank Negara Indonesia (Persero) Tbk (“BNI" or “Bank”) was originally established in Indonesia as the central bank under the name “Bank Negara Indonesia” based on Government Regulation in Lieu of Law No. 2 of 1946 dated 5 July 1946. Subsequently, by virtue of Law No. 17 of 1968, BNI became “Bank Negara Indonesia 1946”, and changed its status to a state-owned commercial bank. Berdasarkan Peraturan Pemerintah No. 19 tahun 1992, tanggal 29 April 1992, telah dilakukan penyesuaian bentuk hukum BNI menjadi perusahaan perseroan terbatas (Persero). Penyesuaian bentuk hukum menjadi Persero, dinyatakan dalam Akta No. 131, tanggal 31 Juli 1992, dibuat di hadapan Muhani Salim, S.H., yang telah diumumkan dalam Berita Negara Republik Indonesia No. 73 tanggal 11 September 1992 Tambahan No. 1A. Based on Government Regulation No. 19 of 1992, dated 29 April 1992, BNI changed its legal status to a limited liability corporation (Persero). The change in legal status to become a limited liability corporation was covered by Notarial Deed No. 131, dated 31 July 1992 of Muhani Salim, S.H., and was published in Supplement No. 1A of the State Gazette No. 73 dated 11 September 1992. Untuk memenuhi ketentuan Undang-Undang No. 40 Tahun 2007 tanggal 16 Agustus 2007 tentang Perseroan Terbatas, Anggaran Dasar BNI telah dilakukan penyesuaian. Penyesuaian tersebut dinyatakan dalam Akta No. 46 tanggal 13 Juni 2008 yang dibuat di hadapan Fathiah Helmi, S.H., notaris di Jakarta, berdasarkan keputusan Rapat Umum Pemegang Saham Luar Biasa tanggal 28 Mei 2008 dan telah mendapat persetujuan dari Menteri Hukum dan Hak Asasi Manusia Republik Indonesia, dengan Surat Keputusan No. AHU-AH.01.02-50609 tanggal 12 Agustus 2008 dan telah diumumkan dalam Berita Negara Republik Indonesia No. 103 tanggal 23 Desember 2008 Tambahan No. 29015. In compliance with the Indonesian Limited Liability Company Law No. 40 Year 2007 dated 16 August 2007, BNI’s Articles of Association has been amended. The amendment was covered by Notarial Deed No. 46 dated 13 June 2008 of Fathiah Helmi, S.H., a notary in Jakarta, as approved in the Extraordinary General Shareholders’ Meeting on 28 May 2008 and approved by the Ministry of Laws and Human Rights of the Republic of Indonesia, in its Decision Letter No. AHUAH.01.02-50609 dated 12 August 2008 and published in Supplement No. 29015 of the State Gazette No. 103 dated 23 December 2008. Perubahan terakhir Anggaran Dasar BNI dilakukan antara lain tentang penyusunan kembali seluruh Anggaran Dasar sesuai dengan Akta No. 45 tanggal 25 April 2017 Notaris Fathiah Helmi, S.H. telah mendapat persetujuan dari Menteri Hukum dan Hak Asasi Manusia Republik Indonesia, dengan surat keputusan No. AHU-0010821.AH.01.02. Tahun 2017 tanggal 17 Mei 2017. The latest amendment of BNI’s Articles of Association was made regarding, among other matters, realignment of the entire Articles of Association based on Notarial Deed No. 45 dated 25 April 2017 of Fathiah Helmi, S.H. and has been approved by the Ministry of Laws and Human Rights of the Republic of Indonesia, in its Decision Letter No. AHU0010821.AH.01.02 dated 17 May 2017. Berdasarkan pasal 3 Anggaran Dasar BNI, ruang lingkup kegiatan BNI adalah melakukan usaha di bidang perbankan umum. According to Article 3 of BNI’s Articles of Association, BNI’s scope of activity is to engage in general banking services. 13 828 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  829. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. INFORMASI UMUM (lanjutan) b. 1. Penawaran Umum Perdana Saham GENERAL INFORMATION (continued) b. Pada tanggal 28 Oktober 1996, BNI melakukan penawaran umum perdana atas 1.085.032.000 saham Seri B dengan nilai nominal sebesar Rp500 (nilai penuh) setiap saham dan harga penawaran setiap saham sebesar Rp850 (nilai penuh) kepada masyarakat di Indonesia. Saham yang ditawarkan tersebut mulai diperdagangkan di Bursa Efek Jakarta dan Surabaya (sekarang Bursa Efek Indonesia atau BEI) pada tanggal 25 November 1996. c. On 28 October 1996, BNI undertook an initial public offering of 1,085,032,000 Class B shares with a par value per share of Rp500 (full amount) and offering price per share of Rp850 (full amount) to the public in Indonesia. The shares began trading on the Jakarta and Surabaya Stock Exchanges (currently Indonesia Stock Exchange or IDX) on 25 November 1996. Penawaran Umum Saham Terbatas I c. Pada tanggal 30 Juni 1999, BNI melakukan Penawaran Umum Terbatas I dalam rangka penerbitan Hak Memesan Efek Terlebih Dahulu (HMETD) sebanyak 151.904.480.000 saham Seri C dengan nilai nominal sebesar Rp25 (nilai penuh) setiap saham. Setiap pemegang 1 saham lama berhak membeli 35 saham baru dengan harga Rp347,58 (nilai penuh) setiap saham. Dari penawaran umum ini, BNI meningkatkan modal sahamnya sebanyak 683.916.500 lembar saham Seri C yang diterbitkan kepada masyarakat umum pada tanggal 21 Juli 1999 dan terdaftar di Bursa Efek Jakarta dan Surabaya (sekarang BEI). BNI juga menerbitkan 151.220.563.500 lembar saham Seri C kepada Pemerintah Indonesia pada tanggal 7 April 2000 dan 30 Juni 2000 melalui program rekapitalisasi berdasarkan Peraturan Pemerintah No. 52 tahun 1999. d. Initial Public Offering (IPO) Limited Public Offering I On 30 June 1999, BNI undertook a Limited Public Offering I (“LPO I”) through the issuance of pre-emptive rights of 151,904,480,000 Class C shares with a par value per share of Rp25 (full amount). Each holder of 1 share was entitled to buy 35 new shares for Rp347.58 (full amount) per share. As a result of LPO I, BNI increased its share capital by 683,916,500 Class C shares to the public on 21 July 1999 and the LPO I was listed in the Jakarta and Surabaya Stock Exchanges (currently IDX). On 7 April 2000 and 30 June 2000, BNI also issued 151,220,563,500 Class C shares to the Government of Indonesia through the recapitalization program under the Government Regulation No. 52 year 1999. Rekapitalisasi d. Pada tanggal 30 Maret 2000, Menteri Keuangan menyetujui rekapitalisasi BNI sebesar Rp61,8 triliun, yang meningkat sebesar Rp9 triliun dibandingkan dengan jumlah yang ditetapkan dalam Peraturan Pemerintah No. 52 tahun 1999. Sehubungan dengan peningkatan rekapitalisasi tersebut, yang telah disetujui melalui Peraturan Pemerintah No. 32 tahun 2000, BNI menerbitkan tambahan saham Seri C sebanyak 44.946.404.500 saham tanpa Hak Memesan Efek Terlebih Dahulu. Recapitalization On 30 March 2000, the Ministry of Finance approved BNI’s recapitalization amounting to Rp61.8 trillion, which was Rp9 trillion higher than the amount stated in the Government Regulation No. 52 year 1999. In connection with the increase in the recapitalization amount, which was approved in the Government Regulation No. 32 year 2000, BNI issued additional 44,946,404,500 Class C shares without pre-emptive rights. 14 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 829
  830. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. INFORMASI UMUM (lanjutan) d. 1. Rekapitalisasi (lanjutan) GENERAL INFORMATION (continued) d. Pada tanggal 20 Juli 2001, modal saham BNI berkurang sebanyak 1.965.701.500 saham Seri C sehubungan dengan pengembalian kelebihan dana rekapitalisasi kepada Pemerintah Indonesia. Pengembalian tersebut telah disetujui oleh pemegang saham dalam Rapat Umum Pemegang Saham Luar Biasa pada tanggal 25 Juni 2001. e. Recapitalization (continued) On 20 July 2001, BNI’s share capital was reduced by 1,965,701,500 Class C shares in connection with the refund of excess recapitalization funds to the Government of Indonesia. The refund was approved by the shareholders at the Extraordinary General Shareholders’ Meeting held on 25 June 2001. Kuasi-reorganisasi e. Quasi-reorganisation Untuk menghilangkan konsekuensi negatif karena dibebani dengan saldo rugi, BNI melakukan kuasi-reorganisasi sesuai keputusan Rapat Umum Pemegang Saham Luar Biasa (“RUPS-LB”) tanggal 15 Desember 2003. In order for BNI to eliminate the negative consequences of being burdened by accumulated losses, BNI undertook quasireorganisation as approved in the Extraordinary General Shareholders’ Meeting (“RUPS-LB”) on 15 December 2003. Penyesuaian kuasi-reorganisasi yang telah dibukukan pada tanggal 30 Juni 2003 adalah sebagai berikut: The quasi-reorganisation adjustments which were booked on 30 June 2003 are as follows: Akumulasi kerugian Cadangan umum dan wajib Cadangan khusus Selisih penilaian kembali aktiva tetap Laba yang belum direalisasi atas efek-efek dalam kelompok tersedia untuk dijual Kenaikan penilaian kembali nilai wajar aktiva bersih Tambahan modal disetor (58,905,232) 432,952 382,541 1,190,598 58,660 2,472,634 54,367,847 Accumulated losses General and legal reserve Specific reserve Fixed assets revaluation reserve Unrealize gain on available-forsale securities Revaluation uplift in the fair value of net assets Additional paid-in capital - Anggaran Dasar BNI telah mengalami perubahan sehubungan dengan perubahan tambahan modal disetor karena adanya kuasireorganisasi sesuai dengan akta notaris Agung Prihatin, S.H., No. 42 tanggal 30 Desember 2003 dan telah disahkan oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia berdasarkan Surat Keputusan No.C-29647.HT.01.07.TH.2003 tanggal 19 Desember 2003 dan diumumkan pada Berita Negara Republik Indonesia No. 1152 tanggal 30 Januari 2004, Tambahan No. 9. f. BNI’s Articles of Association were amended to reflect the changes in additional paid-in capital as a result of the quasi-reorganisation, based on Notarial Deed of Agung Prihatin, S.H., No. 42 dated 30 December 2003 which was approved by the Ministry of Law and Human Rights of the Republic of Indonesia in its Decision Letter No. C29647.HT.01.07.TH.2003 dated 19 December 2003 and was published in the State Gazette No. 1152, Supplement No. 9 dated 30 January 2004. Penawaran Umum Saham Terbatas II f. Pada tanggal 30 Juli 2007, pada Rapat Umum Pemegang Saham Luar Biasa (RUPSLB), Pemegang Saham telah memutuskan untuk melakukan Penawaran Umum Terbatas II kepada para pemegang saham dalam rangka penerbitan sampai dengan sejumlah 1.992.253.110 saham Seri C baru dengan nilai nominal Rp375 (nilai penuh) setiap lembar saham. Limited Public Offering II On 30 July 2007, the Extraordinary General Shareholders’ Meeting approved the issuance of up to 1,992,253,110 new Class C shares through Limited Public Offering II with a par value per share of Rp375 (full amount). 15 830 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  831. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. INFORMASI UMUM (lanjutan) f. g. Penawaran (lanjutan) Umum Saham 1. Terbatas II GENERAL INFORMATION (continued) f. Setiap pemegang 20 saham lama yang namanya tercatat dalam Daftar Pemegang Saham BNI pada tanggal 9 Agustus 2007 pukul 16.00 WIB mempunyai 3 HMETD, dimana setiap 1 HMETD memberikan hak kepada pemegangnya untuk membeli sebanyak 1 (satu) saham baru dengan harga pelaksanaan Rp2.025 (nilai penuh) setiap saham. Dari Penawaran Umum Terbatas II, BNI mendapatkan tambahan modal disetor sebesar Rp747.094 dan tambahan agio saham sebesar Rp3.287.218 dan biaya emisi penerbitan saham sebesar Rp195.280. Each owner of 20 old shares whose name was registered in the List of Shareholders of BNI as of 9 August 2007 at 16.00 WIB was entitled to 3 pre-emptive rights where each right entitles the owner to buy a new share at the price of Rp2,025 (full amount) per share. From the Limited Public Offering II, BNI raised Rp747,094 additional share capital and Rp3,287,218 additional paid-in capital and Rp195,280 shares issuance cost. Perdagangan perdana dilaksanakan pada tanggal 13 Agustus 2007 di Bursa Efek Jakarta dan Bursa Efek Surabaya (sekarang BEI). The initial trading took place on 13 August 2007 at the Jakarta Stock Exchange and Surabaya Stock Exchange (currently IDX). Penawaran Umum Saham Terbatas III g. Pada tanggal 25 November 2010, dalam Rapat Umum Pemegang Saham Luar Biasa (RUPSLB), Pemegang Saham telah memutuskan antara lain untuk menyetujui peningkatan modal ditempatkan dan disetor BNI melalui Penawaran Umum Terbatas III (PUT III) dengan penerbitan HMETD sebesar 3.374.715.948 saham Seri C baru dengan nilai nominal Rp375 (nilai penuh) setiap lembar saham. HMETD tersebut dapat diperdagangkan di dalam dan di luar Bursa Efek Indonesia (BEI) mulai tanggal 10 Desember 2010 sampai dengan 16 Desember 2010, dengan memperhatikan ketentuan yang berlaku di bidang pasar modal. Dari PUT III tersebut, BNI mendapatkan tambahan modal disetor sebesar Rp1.265.519 dan tambahan agio saham, bersih setelah dikurangkan dengan biaya emisi penerbitan saham, sebesar Rp8.950.869. h. Limited Public Offering II (continued) Limited Public Offering III On 25 November 2010, at the Extraordinary General Shareholders’ Meeting, the shareholders decided, among other matters, to increase the issued and paid-up capital through limited public offering with preemptive rights (LPO III) to shareholders for the issuance of 3,374,715,948 new Class C shares with a par value per share of Rp375 (full amount). Such pre-emptive rights can be traded inside and outside the Indonesia Stock Exchange (IDX) starting 10 December 2010 until 16 December 2010, with consideration to the existing capital market regulation. From the LPO III, BNI obtained Rp1,265,519 additional share capital and Rp8,950,869 additional paid-in capital, net of shares issuance cost. Organisasi dan Struktur Manajemen h. Susunan Dewan Komisaris dan Direksi BNI pada tanggal 31 Desember 2018 dan 2017 yang ditetapkan berdasarkan RUPS Tahunan BNI tanggal 20 Maret 2018 yang dinyatakan dengan Akta Notarial No. 37 tanggal 20 Maret 2018 dan berdasarkan Rapat Umum Pemegang Saham (RUPS) Tahunan BNI tanggal 16 Maret 2017 yang dinyatakan dengan Akta Notarial No. 42 tanggal 16 Maret 2017 adalah sebagai berikut: Organizational and Management Structure The composition of the Boards of Commissioners and Directors of BNI as of 31 December 2018 and 2017 based on BNI’s Annual Stockholders’ General Meeting held on 20 March 2018, as stated under the Notarial Deed No. 37 dated 20 March 2018 and BNI’s Annual Stockholders’ General Meeting held on 16 March 2017, as stated under the Notarial Deed No. 42 dated 16 March 2017 are as follows: 16 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 831
  832. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. INFORMASI UMUM (lanjutan) h. Organisasi (lanjutan) dan Dewan Komisaris Komisaris Utama/ Komisaris Independen Wakil Komisaris Utama Komisaris Independen Komisaris Independen Komisaris Independen Komisaris Independen Komisaris Komisaris Komisaris Dewan Komisaris Komisaris Utama/ Komisaris Independen Wakil Komisaris Utama Komisaris Independen Komisaris Independen Komisaris Independen Komisaris Komisaris Komisaris 1. Struktur Manajemen h. *) Organizational and Management Structure (continued) 2018 Board of Commissioners President Commissioner/ Independent Commissioner Vice President Commissioner Independent Commissioner Independent Commissioner Independent Commissioner Independent Commissioner Commissioner Commissioner Commissioner Ari Kuncoro Wahyu Kuncoro Pataniari Siahaan Revrisond Baswir Ahmad Fikri Assegaf Sigit Widyawan Bistok Simbolon Joni Swastanto Marwanto Harjowiryono 2017 Board of Commissioners President Commissioner/ Independent Commissioner Vice President Commissioner Independent Commissioner Independent Commissioner Independent Commissioner Commissioner Commissioner Commissioner Ari Kuncoro Wahyu Kuncoro Pataniari Siahaan Revrisond Baswir Ahmad Fikri Assegaf Bistok Simbolon Joni Swastanto Marwanto Harjowiryono 2018 Direksi Direktur Utama Achmad Baiquni Wakil Direktur Utama Herry Sidharta Direktur Keuangan Anggoro Eko Cahyo Direktur Bisnis Korporasi Putrama Wahju Setyawan Direktur Treasury & Internasional Banking Rico Budidarmo Direktur Hubungan Kelembagaan Adi Sulistyowati Bob Tyasika Ananta Direktur Manajemen Risiko Direktur Bisnis Kecil & Jaringan Catur Budi Harto Direktur Bisnis Ritel Tambok P.S. Simanjuntak Direktur Teknologi Informasi & Operasi Dadang Setiabudi Direktur Kepatuhan Endang Hidayatullah Komite Audit*) Ketua Anggota Anggota Anggota GENERAL INFORMATION (continued) 2017 Board of Directors President Director Vice President Director Managing Director - Finance Managing Director - Corporate Putrama Wahju Setyawan Banking Managing Director - Treasury Panji Irawan & International Banking Adi Sulistyowati Managing Director - Institutional relation Imam Budi Sarjito Managing Director - Risk Management Managing Director - Small Business Catur Budi Harto & Network Anggoro Eko Cahyo Managing Director-Retail Banking Managing Director - Information Bob Tyasika Ananta Technology & Operation Managing Director - Compliance Achmad Baiquni Herry Sidharta Rico Budidarmo Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Lungguk Gultom Pataniari Siahaan Ahmad Fikri Assegaf Donnaria Silalahi Bambang Ratmanto Pembentukan Komite Audit Bank telah dilakukan sesuai dengan peraturan OJK No.55/POJK.04/2015 tanggal 29 Desember 2015. *) Pada tanggal 31 Desember 2018 dan 2017, Sekretaris Perusahaan BNI adalah Kiryanto. Audit Committee*) Chairman Member Member Member The formation of Audit Committee is in accordance with Financial Service Authority rule No.55/POJK.04/2015 dated 29 December 2015. As of 31 December 2018 and 2017, BNI’s Corporate Secretary is Kiryanto. 17 832 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  833. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. INFORMASI UMUM (lanjutan) h. Organisasi (lanjutan) dan 1. Struktur GENERAL INFORMATION (continued) Manajemen h. Jumlah pegawai BNI adalah sebagai berikut (tidak diaudit): Tetap/ Permanent 2018 2017 The number of employees of BNI are as follows (unaudited): Tidak tetap/ Non-permanent 25,839 24,641 Total 1,385 3,162 27,224 27,803 Kantor pusat BNI berlokasi di Jl. Jend. Sudirman Kav. 1, Jakarta. Pada tanggal 31 Desember 2018, BNI memiliki 201 kantor cabang, 1.109 kantor layanan serta 929 outlet lainnya (31 Desember 2017: 200 kantor cabang, 1.085 kantor layanan serta 848 outlet lainnya) (tidak diaudit). Selain itu, jaringan BNI juga meliputi 5 kantor cabang luar negeri yaitu Singapura, Hong Kong, Tokyo, London dan Seoul serta 1 kantor perwakilan di New York. i. i. BNI mempunyai kepemilikan langsung pada Entitas Anak berikut: Kegiatan Usaha/ Business Activity PT BNI Life Insurance Asuransi jiwa/ Life insurance Pembiayaan/ Financing PT BNI Multifinance PT BNI Sekuritas dan Entitas Anak/and Subsidiary BNI Remittance Ltd. PT Bank BNI Syariah Sekuritas/Securities Jasa keuangan/ Financial services Perbankan/Banking 2018 2017 BNI’s head office is located at Jl. Jend. Sudirman Kav. 1, Jakarta. As of 31 December 2018, BNI has 201 domestic branches, 1,109 sub-branches and 929 other outlets (31 December 2017: 200 domestic branches, 1,085 sub-branches and 848 other outlets) (unaudited). In addition, BNI’s network also includes 5 overseas branches located in Singapore, Hong Kong, Tokyo, London and Seoul and 1 agency in New York. Entitas Anak Nama Perusahaan/ Company Name Organizational and Management Structure (continued) Subsidiaries BNI has direct ownership in the following Subsidiaries: Tahun Mulai Beroperasi Komersial/ Year Started Commercial Operations Persentase Kepemilikan/ Percentage of Ownership 2018 2017 Total Aset/ Total Assets 2018 2017 1997 60.00% 60.00% 17,283,191 16,288,865 1983 99.99% 99.99% 1,322,611 912,422 1995 75.00% 75.00% 869,813 1,215,169 1998 2010 100.00% 99.90% 100.00% 99.90% 4,931 41,040,203 9,119 34,827,144 Semua Entitas Anak BNI berkedudukan di Jakarta, kecuali BNI Remittance Ltd. berkedudukan di Hong Kong. All of the Subsidiaries of BNI are domiciled in Jakarta, except for BNI Remittance Ltd. which is domiciled in Hong Kong. PT BNI Life Insurance (“BNI Life”) PT BNI Life Insurance (“BNI Life”) BNI Life pada awalnya didirikan dengan nama PT Asuransi Jiwa BNI Jiwasraya berdasarkan Akta Notaris No. 24 tanggal 28 November 1996. Pada tanggal 26 November 2004, PT Asuransi Jiwa BNI Jiwasraya telah mengubah nama menjadi PT BNI Life Insurance. BNI Life was originally established under the name PT Asuransi Jiwa BNI Jiwasraya based on Notarial Deed No. 24 dated 28 November 1996. On 26 November 2004, PT Asuransi Jiwa BNI Jiwasraya changed its name to PT BNI Life Insurance. Sesuai dengan pasal 3 Anggaran Dasar BNI Life, ruang lingkup kegiatan BNI Life adalah menjalankan usaha-usaha dalam bidang asuransi jiwa termasuk usaha asuransi jiwa dengan prinsip syariah. BNI Life memperoleh izin usaha sebagai perusahaan asuransi jiwa berdasarkan Keputusan Menteri Keuangan Republik Indonesia No. Kep-305/KMK.01 7/1997 tanggal 7 Juli 1997. In accordance with Article 3 of BNI Life’s Articles of Association, the scope of BNI Life’s activities is to engage in life insurance business including life insurance business under sharia principle. BNI Life obtained its operating license as a life insurance company based on the Ministry of Finance of the Republic of Indonesia Decree No. Kep305/KMK.017/1997 dated 7 July 1997. PT Bank Negara Indonesia (Persero) Tbk  18 Adapting Quickly to Face Change 833
  834. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. INFORMASI UMUM (lanjutan) i. 1. Entitas Anak (lanjutan) GENERAL INFORMATION (continued) i. Subsidiaries (continued) PT BNI Life Insurance (“BNI Life”) (lanjutan) PT BNI Life (continued) Insurance (“BNI Life”) Pada bulan Desember 2007, BNI telah meningkatkan penyertaannya pada BNI Life dari 59,78% menjadi 69,11%. In December 2007, BNI increased its investment in BNI Life from 59.78% to 69.11%. Pada tanggal 29 Juli 2008, BNI memberikan pinjaman subordinasi kepada BNI Life sebesar Rp50.000 yang dapat dikonversikan menjadi modal saham. Pada tahun 2008, BNI juga memberikan tambahan setoran modal kepada BNI Life sebesar Rp50.000. On 29 July 2008, BNI granted subordinated loan to BNI Life amounting to Rp50,000 which can be converted to share capital. In 2008, BNI also injected additional paid-up capital to BNI Life amounting to Rp50,000. Pada bulan Januari 2009, pinjaman subordinasi tersebut dikonversikan menjadi modal saham yang secara efektif meningkatkan investasi BNI dari 69,11% menjadi 85,11%. Tambahan investasi telah diaktakan dengan Akta Notaris Fathiah Helmi, S.H., No. 3 tanggal 6 Januari 2009 dan telah mendapat persetujuan dari Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dalam Surat Keputusan No. AHU.07779.AH.01.02.Tahun 2009 tanggal 16 Maret 2009. In January 2009, the subordinated loan was converted to share capital which effectively increased BNI’s investment from 69.11% to 85.11%. The additional investment was notarized by Notarial Deed No.3 dated 6 January 2009 of Fathiah Helmi, S.H., and has been approved by the Ministry of Laws and Human Rights of the Republic of Indonesia in its Decision Letter No. AHU.07779.AH.01.02.Tahun 2009 dated 16 March 2009. Pada 9 Desember 2011, BNI meningkatkan investasi yang dimiliki pada BNI Life senilai Rp149.999 yang meningkatkan kepemilikan BNI dari 85,11% menjadi 91,52%. On 9 December 2011, BNI increased its investment in BNI Life by Rp149,999 which increased BNI’s ownership from 85.11% to 91.52%. Pada bulan September 2012, BNI mengakuisisi 8,47% saham yang dimiliki oleh kepentingan nonpengendali dengan imbalan pembelian sebesar Rp93.330 sehingga BNI memiliki 99,99% modal saham BNI Life. Selisih antara nilai pembayaran dan nilai buku BNI Life pada tanggal transaksi sebesar Rp62.862 disajikan dalam ekuitas sebagai akun “Transaksi dengan kepentingan nonpengendali”. In September 2012, BNI acquired 8.47% of shares owned by a non-controlling interest for a purchase consideration of Rp93,330 thereby BNI now holds 99.99% of the equity share capital of BNI Life. The difference between the consideration paid and the book value of BNI Life at the transaction date amounting to Rp62,862 was presented in equity as “Transactions with non-controlling interests”. Pada tahun 2013, BNI mengumumkan kemitraan strategis dengan Sumitomo Life Insurance Company (“Sumitomo Life”). Kemitraan strategis ini dilakukan melalui akuisisi 40% saham BNI Life oleh Sumitomo Life senilai Rp4,2 trilliun. In 2013, BNI announced a new strategic partnership with Sumitomo Life Insurance Company (“Sumitomo Life”). The new strategic partnersip is through acquisition of 40% shares of BNI Life by Sumitomo Life amounting to Rp4.2 trillion. Pada tanggal 4 Desember 2013, BNI Life telah menerima uang muka sebesar 15% dari nilai akuisisi saham atau ekuivalen sebesar Rp630.000. On 4 December 2013, BNI Life has received advance payment of 15% from the total acquisition shares value or equivalent to Rp630,000. 19 834 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  835. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. INFORMASI UMUM (lanjutan) i. 1. Entitas Anak (lanjutan) GENERAL INFORMATION (continued) i. Subsidiaries (continued) PT BNI Life Insurance (“BNI Life”) (lanjutan) PT BNI Life (continued) Pada tanggal 11 Maret 2014, BNI Life telah menerima persetujuan dari OJK mengenai Persetujuan Rencana Perubahan Kepemilikan Saham melalui surat No. S-20/D.05/2014. Pada tanggal 27 Maret 2014, sisa nilai akuisisi saham sebesar Rp3.570.000 telah disetor penuh oleh Sumitomo Life. Seluruh penerimaan dari Sumitomo Life setelah dikurangi dengan biaya transaksi dicatat di dalam akun “transaksi dengan kepentingan nonpengendali”. On 11 March 2014, BNI Life has received approval from OJK, concerning the changes of share ownership plan in its letter No.S20/D.05/2014. On 27 March 2014, the remaining acquisition value amounting to Rp3,570,000 has been fully paid by Sumitomo Life. The total cash received from Sumitomo Life after deducted by the transaction cost is recorded as “Transactions with non-controlling interests”. Pada tanggal 3 April 2014, akuisisi ini telah diselesaikan dan diaktakan dengan Akta Notaris No.7 dan telah mendapatkan persetujuan dari Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dalam Surat Keputusan No. AHU.01557.40.21.2014 tanggal 29 April 2014. Akuisisi ini mengakibatkan kepemilikan saham BNI di BNI Life terdilusi dari sebelumnya 99,99% menjadi 60%. On 3 April 2014, the acquisition has been completed and notarized by Notarial Deed No.7 and was approved by the Ministry of Laws and Human Rights of the Republic of Indonesia in its Decision Letter No. AHU.01557.40.21.2014 dated 29 April 2014. This acquisition diluted BNI’s ownership in BNI Life from 99.99% to 60%. Kantor pusat BNI Life berlokasi di Centennial Tower, Lantai 9, 10, dan 11 Jl. Gatot Subroto Kav. 24-25, Jakarta 12930. Pada tanggal 31 Desember 2018 dan 2017, BNI Life memiliki 17 kantor pemasaran dan 47 kantor pemasaran mandiri yang tersebar di beberapa kota di Indonesia dan memiliki karyawan sebanyak 833 orang pada tanggal 31 Desember 2018 (31 Desember 2017: 854 karyawan) (tidak diaudit). BNI Life head office is located in Centennial Tower, 9th,10th, and11th floor Jl. Gatot Subroto Kav. 24-25, Jakarta 12930. As of 31 December 2018 and 2017, BNI Life has 17 marketing offices and 47 personal marketing offices located in various cities in Indonesia and has 833 employees as of 31 December 2018 (31 December 2017: 854 employees) (unaudited). PT BNI Multifinance (“BNI Multifinance”) PT BNI Multifinance (“BNI Multifinance”) Sesuai dengan Pasal 3 Anggaran Dasar BNI Multifinance, ruang lingkup kegiatan BNI Multifinance adalah menjalankan kegiatan dalam bidang pembiayaan investasi, pembiayaan modal kerja, pembiayaan multi guna dan sewa operasi. In accordance with Article 3 of BNI Multifinance’s Articles of Association, the scope of the BNI Multifinance’s activities involves investment financing, working capital financing, multipurpose financing and operation lease. Dalam Rapat Umum Pemegang Saham tanggal 19 Juni 2008, yang telah diaktakan dengan Akta Notaris Ariani Lakhsmijati Rachim, S.H., No. 20 tanggal 23 Desember 2008, pemegang saham telah memberikan persetujuan atas rencana kuasi-reorganisasi BNI Multifinance per tanggal 31 Juli 2008 yang efektif berlaku sejak tanggal 7 Juli 2008. In the General Shareholders’ Meeting on 19 June 2008, as covered in the Notarial Deed No. 20 dated 23 December 2008 of Ariani Lakhsmijati Rachim, S.H., the shareholders approved the planned quasi-reorganization of BNI Multifinance as of 31 July 2008 which became effective on 7 July 2008. Insurance (“BNI Life”) 20 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 835
  836. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. INFORMASI UMUM (lanjutan) i. 1. Entitas Anak (lanjutan) GENERAL INFORMATION (continued) i. Subsidiaries (continued) PT BNI Multifinance (“BNI Multifinance”) (lanjutan) PT BNI Multifinance (“BNI Multifinance”) (continued) Berikut adalah mutasi saldo tambahan modal disetor yang terjadi sebelum dan setelah kuasi-reorganisasi: The following are the movements of additional paid-in capital that occurred before and after quasi-reorganization: Tambahan modal disetor/ Additional paid-in capital Saldo per 31 Juli 2008 (sebelum kuasi-reorganisasi) Penurunan nilai nominal saham Eliminasi dalam rangka kuasi-reorganisasi Koreksi atas pajak tangguhan Selisih penilaian kembali aset dan liabilitas Saldo defisit 387,939 (15,208) (1,473) (370,033) Saldo per 31 Juli 2008 (setelah kuasi-reorganisasi) 1,225 Balance as of 31 July 2008 (before the quasi-reorganization) Decrease in par value of shares Elimination related to quasi-reorganization Correction of deferred tax Revaluation of assets and liabilities Deficit Balance as of 31 July 2008 (after the quasi-reorganization) Sesuai keputusan pemegang saham BNI Multifinance tanggal 7 Juni 2013, telah disetujui penambahan penyertaan BNI di BNI Multifinace dengan mengkonversi pinjaman subordinasi menjadi penyertaan sebesar Rp75.000. In accordance with decisions of BNI Multifinance’s shareholders on 7 June 2013, it was approved to increase BNI’s investment in BNI Multifinance by converting subordinated loans into equity amounting to Rp75,000. Atas konversi pinjaman subordinasi tersebut menyebabkan penyertaan BNI pada BNI Multifinance menjadi sebesar Rp95.414 (1.908.279.707 lembar saham dengan nilai nominal Rp50 (nilai penuh) per lembar saham). As a result of the above subordinated loans conversion, BNI’s investment in BNI Multifinance become Rp95,414 (1,908,279,707 shares with a nominal value of Rp50 (full amount) per share). Perubahan terakhir Anggaran Dasar BNI Multifinance dilakukan antara lain tentang penyusunan kembali Anggaran Dasar dan penambahan modal ditempatkan dan disetor Perusahaan sebesar Rp203.000.000.000 dan seluruhnya sejumlah penerbitan 4.060.000.000 saham Perusahaan oleh BNI sesuai dengan Akta No. 90 tanggal 23 Juni 2016 Notaris I Gede Buda Gunamanta, S.H. telah mendapat persetujuan dari Menteri Hukum dan Hak Asasi Manusia Republik Indonesia, dengan Surat Keputusan No. AHUAH.01.03-0060863 tanggal 24 Juni 2016. The latest amendment of BNI Multifinance’s Articles of Association was made regarding, among other matters, increase in issued and fully paid capital amounting Rp203,000,000,000 and issuance of 4,060,000,000 shares contributed by BNI, based on Notarial Deed No.90 dated 23 June 2016 of I Gede Buda Gunamanta, S.H. and has been approved by the Ministry of Laws and Human Rights of the Republic of Indonesia, in its Decision Letter No. AHUAH.01.03-0060863 dated 24 June 2016. Kantor pusat BNI Multifinance berlokasi di Gedung BNI Life Insurance, lantai 5, Jl. Aipda KS. Tubun No. 67, Jakarta 10260. Pada tanggal 31 Desember 2018 dan 2017, BNI Multifinance memiliki 9 outlet cabang tersebar di beberapa kota di Indonesia dan memiliki karyawan sebanyak 84 orang pada tanggal 31 Desember 2018 dan 31 Desember 2017 (tidak diaudit). BNI Multifinance head office is located in Gedung BNI Life Insurance, 5th floor, Jl. Aipda KS. Tubun No. 67, Jakarta 10260. As of 31 December 2018 and 2017, BNI Multifinance has 9 counters located in various cities in Indonesia and has 84 employees as of 31 December 2018 and 31 December 2017 (unaudited). 21 836 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  837. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. INFORMASI UMUM (lanjutan) i. 1. Entitas Anak (lanjutan) GENERAL INFORMATION (continued) i. Subsidiaries (continued) PT BNI Sekuritas (“BNI Sekuritas”) dan Entitas Anak PT BNI Sekuritas (“BNI Sekuritas”) and Subsidiary BNI Sekuritas didirikan berdasarkan Akta Notaris No. 22 tanggal 12 April 1995 dari Koesbiono Sarmanhadi, S.H., di Jakarta. Akta tersebut kemudian diubah dengan akta No. 39 dari notaris yang sama tanggal 3 Mei 1995. Akta pendirian dan perubahannya disahkan oleh Menteri Kehakiman Republik Indonesia dalam Surat Keputusan No. C26278.HT.01.01.Th.95 tanggal 19 Mei 1995, serta diumumkan dalam Berita Negara Republik Indonesia No. 55 tanggal 11 Juli 1995, Tambahan No. 5804. BNI Sekuritas was established by virtue of Notarial Deed No. 22 dated 12 April 1995 of Koesbiono Sarmanhadi, S.H., in Jakarta. The deed was amended by Notarial Deed No. 39 dated 3 May 1995 of the same notary. The Deed of Establishment and amendment thereon were approved by the Decision Letter of the Ministry of Justice of the Republic of Indonesia No. C2-6278.HT.01.01.Th.95 dated 19 May 1995 and was published in the State Gazette No. 55 dated 11 July 1995, Supplement No. 5804. Berdasarkan Pasal 3 dari Anggaran Dasar BNI Sekuritas, ruang lingkup kegiatan usahanya meliputi perdagangan efek, termasuk didalamnya bertindak sebagai penjamin dan penasehat investasi dan kegiatan lain yang berhubungan dengan kegiatan tersebut dengan memperhatikan peraturan Otoritas Jasa Keuangan (OJK), dahulu Badan Pengawas Pasar Modal dan Lembaga Keuangan (Bapepam dan LK) dan peraturan perundang-undangan lain yang berlaku. In accordance with Article 3 of BNI Sekuritas’ Articles of Association, the scope of its business activities comprises securities trading, including investment underwriting and advisory investment and other related activities allowed by Financial Service Authority (OJK), previously the Capital Market and Financial Institutions Supervisory Agency (Bapepam and LK) and other regulations. Pada bulan Juli 2011, SBI Securities Co. Ltd. memberikan dana untuk penanaman modal di BNI Sekuritas yang mengurangi kepemilikan BNI di BNI Sekuritas dari 99,85% menjadi 75%. In July 2011, SBI Securities Co. Ltd. made an equity investment in BNI Sekuritas which reduced BNI ownership in BNI Sekuritas from 99.85% to 75%. BNI Sekuritas memiliki 99,90% dari jumlah saham PT BNI Asset Management (“BNI Asset Management”), entitas anak yang didirikan tanggal 28 Maret 2011 dan bergerak di bidang manajemen dan penasehat investasi. BNI Sekuritas owns 99.90% of the total share capital of PT BNI Asset Management (“BNI Asset Management”), a subsidiary established on 28 March 2011 and engaged in investment management and advisory activities. BNI Asset Management merupakan hasil pemekaran usaha (spin-off) Divisi Manajemen Investasi BNI Sekuritas. Proses pendiriannya telah disetujui dalam Rapat Umum Pemegang Saham Luar Biasa BNI Sekuritas tanggal 1 Maret 2011. Pemekaran usaha tersebut dilakukan dengan mengacu kepada Peraturan Bapepam dan LK No. V.D.11 sebagai lampiran dalam surat keputusan Ketua Bapepam dan LK No. Kep-480/BL/2009 tentang Pedoman Pelaksanaan Fungsi-fungsi Manajer Investasi. BNI Asset Management was established from the spin-off of the Investment Management Division of BNI Sekuritas. The spin-off was approved during BNI Sekuritas Shareholders’ Extraordinary General Meeting dated 1 March 2011. The spin-off was conducted in accordance with Bapepam and LK Regulation No. V.D.11 as attached in the decree of the Chairman of Bapepam and LK No. Kep480/BL/2009 regarding the Guidelines for Investment Manager’s Functions. 22 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 837
  838. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. INFORMASI UMUM (lanjutan) i. 1. Entitas Anak (lanjutan) GENERAL INFORMATION (continued) i. Subsidiaries (continued) PT BNI Sekuritas (“BNI Sekuritas”) dan Entitas Anak(lanjutan) PT BNI Sekuritas (“BNI Sekuritas”) and Subsidiary (continued) Kantor pusat BNI Sekuritas berlokasi di Sudirman Plaza Indofood Tower, lantai 16, Jl. Jenderal Sudirman Kav. 76-78, Jakarta 12910, Indonesia. Pada tanggal 31 Desember 2018 BNI Sekuritas memiliki 50 outlet cabang yang tersebar di beberapa kota di Indonesia (31 Desember 2017: 51 outlet cabang) dan memiliki karyawan sebanyak 211 orang pada tanggal 31 Desember 2018 (31 Desember 2017: 171 karyawan) (tidak diaudit). BNI Sekuritas head office is located in Sudirman Plaza Indofood Tower, 16th floor, Jl. Jenderal Sudirman Kav. 76-78, Jakarta 12910, Indonesia. As of 31 December 2018 BNI Sekuritas has 50 counters located in various cities in Indonesia (31 December 2017: 51 outlets) and has 211 employees as of 31 December 2018 (31 December 2017: 171 employees) (unaudited). BNI Remittance Nakertrans) BNI Remittance Nakertrans) Ltd. (dahulu BNI Ltd. (formerly BNI telah menambah modalnya sebesar HKD7.434.944 (nilai penuh) setara dengan Rp10.000 pada tanggal 11 Juni 2009 yang dicatat menggunakan metode biaya. Kantor pusat BNI Remittance Ltd. berada di Causeway Bay, Hong Kong dan memiliki karyawan sebanyak 8 orang pada tanggal 31 Desember 2018 dan 2017 (tidak diaudit). On 11 June 2009 BNI increased its capital by HKD7,434,944 (full amount) equivalent to Rp10,000, which was recorded using the cost method. The main office of BNI Remittance Ltd. is located in Causeway Bay, Hong Kong and has 8 employees as of 31 December 2018 and 2017 (unaudited). PT Bank BNI Syariah (“BNI Syariah”) PT Bank BNI Syariah (“BNI Syariah”) BNI Syariah didirikan dengan Akta Pendirian Nomor 160 tanggal 22 Maret 2010 yang dibuat di hadapan Aulia Taufani, S.H., sebagai Pengganti Sutjipto, S.H., notaris di Jakarta. Akta Pendirian tersebut telah memperoleh pengesahan dari Menteri Hukum dan Hak Asasi Manusia Republik Indonesia melalui Surat No. AHU-15574.AH.01.01.Tahun 2010 tanggal 25 Maret 2010. BNI Syariah was established based on Establishment Deed No. 160 dated 22 March 2010 which was notarized by Aulia Taufani, S.H., as the substitute of Sutjipto, S.H., notary in Jakarta. The Establishment Deed was approved by the Ministry of Laws and Human Rights ofthe Republic of Indonesia through Letter No. AHU-15574.AH.01.01.Tahun 2010 dated 25 March 2010. BNI Syariah adalah bank umum syariah yang merupakan hasil pemekaran usaha (spin-off) Unit Usaha Syariah BNI (“UUS BNI”). Proses pendiriannya telah disetujui oleh Rapat Umum Pemegang Saham Luar Biasa BNI tanggal 5 Oktober 2009 sesuai akta No. 37 Notaris Fathiah Helmi, S.H. Pemekaran usaha dilakukan dengan mengacu kepada PBI No. 11/10/PBI/2009 tentang Unit Usaha Syariah dengan cara mendirikan bank umum syariah baru. BNI Syariah is a general sharia bank as a result of the spin-off of the Sharia Business Unit of BNI (“UUS BNI”). The establishment process was approved at the Shareholders’ Extraordinary General Meeting of BNI held on 5 October 2009 in accordance with the deed No. 37 of Notary Fathiah Helmi, S.H. The spinoff was conducted in accordance with PBI No. 11/10/PBI/2009 regarding Sharia Business Unit by establishing a new general sharia bank. 23 838 BNI Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  839. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. INFORMASI UMUM (lanjutan) i. 1. Entitas Anak (lanjutan) GENERAL INFORMATION (continued) i. Subsidiaries (continued) PT Bank BNI Syariah (“BNI Syariah”) (lanjutan) PT Bank BNI Syariah (“BNI Syariah”) (continued) Pemberitahuan atas rancangan spin-off kepada karyawan, nasabah dan pihak ketiga telah diumumkan di surat kabar nasional pada tanggal 12 Agustus 2009 sedangkan pemberitahuan atas rencana pengalihan hak dan liabilitas UUS BNI telah diumumkan di surat kabar nasional pada tanggal 15 Februari 2010. Pendirian tersebut dilakukan dengan izin Bank Indonesia melalui dua tahap yaitu persetujuan izin prinsip usaha dan izin usaha. Pada tanggal 8 Februari 2010 BNI Syariah telah mendapatkan izin prinsip dari Bank Indonesia untuk melaksanakan pemisahan UUS Bank BNI berdasarkan surat No. 12/2/DpG/Dpbs. Pemisahan UUS BNI dilakukan dengan Akta Pemisahan Nomor 159 tanggal 22 Maret 2010 yang dibuat di hadapan Aulia Taufani, S.H. sebagai pengganti Sutjipto, S.H., notaris di Jakarta. The announcement to the employees, customers and third parties regarding the planned spin-off was made through a national newspaper on 12 August 2009 while the announcement regarding the transfer of the rights and obligations of UUS BNI was made through a national newspaper on 15 February 2010. The establishment was approved by Bank Indonesia in two stages, which are the approval of the business license in principle and the business license. On 8 February 2010, BNI Syariah received its license in principle from Bank Indonesia to conduct the separation of UUS BNI based on Bank Indonesia letter No. 12/2/DpG/Dpbs. The separation of UUS BNI was made under Separation Deed No. 159 dated 22 March 2010 which was notarized by Aulia Taufani, S.H., as the substitute of Sutjipto, S.H., notary in Jakarta. Pada tanggal 21 Mei 2010, BNI Syariah memperoleh izin usaha dari Bank Indonesia, berdasarkan Keputusan Gubernur Bank Indonesia No. 12/41/KEP.GBI/2010. Selanjutnya pemisahan terjadi secara efektif pada tanggal 19 Juni 2010, yakni saat pertama kalinya BNI Syariah melakukan kegiatan usaha, sebagaimana yang dilaporkan kepada Bank Indonesia dengan surat No. Dir/1/03 tanggal 19 Juni 2010 perihal Laporan Pelaksanaan Pembukaan Bank Umum Syariah Hasil Pemisahan. On 21 May 2010, BNI Syariah received its business license from Bank Indonesia, based on the Decision Letter No. 12/41/ KEP.GBI/2010 of the Governor of Bank Indonesia. The separation became effective on 19 June 2010, in which BNI Syariah started its operational activity, as reported to Bank Indonesia under letter No. Dir/1/03 dated 19 June 2010 regarding the Report on the Implementation of the Opening of General Sharia Bank Resulting from the Spin-Off. BNI Syariah menjalankan operasional sebagai bank devisa sejak tanggal 9 Juli 2010 berdasarkan Salinan Surat Keputusan Deputi Gubernur Bank Indonesia No. 12/5/KEP.DpG/2010 tertanggal 9 Juli 2010. BNI Syariah started its operational activities as a foreign exchange bank on 9 July 2010 based on the Copy of the Decision Letter No. 12/5/KEP.DpG/2010 of the Deputy Governor of Bank Indonesia dated 9 July 2010. Sehubungan dengan telah beroperasinya BNI Syariah, maka Bank Indonesia pada tanggal 27 Agustus 2010 mencabut izin usaha UUS Bank BNI melalui keputusan Deputi Gubernur Bank Indonesia No.12/7/KEP.DpG/2010. As BNI Syariah has commenced its operations, UUS BNI’s business license was revoked pursuant to the Decision Letter No.12/7/KEP.DpG/2010 of the Deputy Governor of Bank Indonesia dated 27 August 2010. 24 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 839
  840. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. INFORMASI UMUM (lanjutan) i. 1. Entitas Anak (lanjutan) GENERAL INFORMATION(continued) i. Subsidiaries (continued) PT Bank BNI Syariah (“BNI Syariah”) (lanjutan) PT Bank BNI Syariah (“BNI Syariah”) (continued) Berdasarkan Keputusan Para Pemegang Saham sebagai pengganti Rapat Umum Pemegang Saham Luar Biasa BNI Syariah pada tanggal 18 September 2014 sesuai dengan Akta Notarial No. 53, BNI dan BNI Life masing-masing menambah modal ditempatkan dan disetor penuh sebesar Rp500.000.000.000 (nilai penuh) dan Rp500.000.000 (nilai penuh), secara tunai dengan mengeluarkan saham dari modal dasar sejumlah 500.500 lembar saham dengan nilai nominal Rp1.000.000 (nilai penuh) per saham. Based on Decision from Shareholders as a replacement of Extraordinary General Shareholders’ Meeting of BNI Syariah dated 18 September 2014 in accordance with Notarial Deed No. 53, BNI and BNI Life have increased the issued and fully paid capital amounting to Rp500,000,000,000 (full amount) and Rp500,000,000 (full amount), respectively, in cash through the issuance of shares from authorized capital amounting to 500,500 shares with nominal value of Rp1,000,000 (full amount) per share. Penambahan modal saham ini telah mendapatkan persetujuan dari OJK berdasarkan Surat OJK melalui Pelaksana Harian (Plh) Kepala Departemen Pengawasan Bank I No. S-67/PB.31/2014 tanggal 25 Agustus 2014. The additional share capital has been approved by OJK based on OJK Letter through Daily Executive Bank Supervision Department I No. S-67/PB.31/2014 dated 25 August 2014. Penambahan setoran modal ini telah mendapat persetujuan dari Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dengan Surat Keputusan No. AHU06781.40.21.2014 Perihal Penerimaan Pemberitahuan Perubahan Anggaran Dasar BNI Syariah. This additional share capital has been approved by Ministry of Laws and Human Rights of the Republic of Indonesia in Decision Letter No. AHU-06781.40.21.2014 regarding The Acceptance of Notification on the Amendement of BNI Syariah’s Articles of Association. Berdasarkan Keputusan Para Pemegang Saham sebagai pengganti Rapat Umum Pemegang Saham Luar Biasa BNI Syariah pada tanggal 29 Desember 2017, PT Bank Negara Indonesia (Persero) Tbk menambah modal ditempatkan dan disetor penuh sebesar Rp1.000.000.000.000 (nilai penuh), secara tunai dengan mengeluarkan saham dari modal dasar sejumlah 1.000.000 lembar saham dengan nilai nominal Rp1.000.000 (nilai penuh) per saham. Based on the Decision of the Shareholders in lieu of the Shareholders’ Extraordinary General Meeting of BNI Syariah on 29 December 2017, PT Bank Negara Indonesia Tbk increased its capital issued and fully paid-in capital by Rp1,000,000,000,000 (full amount), in cash by issuing shares of authorized capital of 1,000,000 shares with par value of Rp1,000,000 (full amount) per share Kantor pusat BNI Syariah berlokasi di Gedung Tempo Pavillion 1, Jl. HR Rasuna Said Kav. 11, Kuningan, Jakarta 12950 - Indonesia. Pada tanggal 31 Desember 2018, BNI Syariah memiliki 67 kantor cabang, 196 kantor cabang pembantu dan 91 outlet lainnya yang tersebar di beberapa kota di Indonesia (31 Desember 2017: 68 kantor cabang, 180 kantor cabang pembantu dan 98 outlet lainnya) dan memiliki karyawan sebanyak 4.942 orang pada tanggal 31 Desember 2018 (31 Desember 2017: 4.737 karyawan) (tidak diaudit). BNI Syariah’s head office is located in Gedung Tempo Pavillion 1, Jl. HR Rasuna Said Kav. 11, Kuningan, Jakarta 12950 - Indonesia. As of 31 Desember 2018, BNI Syariah has 67 branches, 196 sub-branches and 91 other outlets located in various cities in Indonesia (31 December 2017: 68 branches, 180 subbranches and 98 other outlets) and has 4,942 employees as of 31 December 2018 (31 December 2017: 4,737 employees) (unaudited). 25 840 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  841. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR PENTING KEBIJAKAN AKUNTANSI YANG 2. SUMMARY POLICIES OF SIGNIFICANT ACCOUNTING Laporan keuangan konsolidasian BNI dan Entitas Anak (“Grup”) ini diselesaikan dan diotorisasi untuk terbit oleh Direksi pada tanggal 16 Januari 2019. The consolidated financial statements of BNI and Subsidiaries (“the Group”) were completed and authorised for issuance by the Board of Directors on 16 January 2019. Kebijakan akuntansi utama yang diterapkan dalam penyusunan laporan keuangan konsolidasian Grup adalah seperti dijabarkan dibawah ini: The principal accounting policies adopted in preparing the consolidated financial statements of the Group are set out below: a. a. Dasar penyusunan konsolidasian laporan keuangan Basis of preparation of the consolidated financial statements Laporan keuangan konsolidasian disusun dan disajikan sesuai dengan Standar Akuntansi Keuangan di Indonesia, dan Peraturan Bapepam dan LK No. VIII.G.7 Lampiran Keputusan Ketua Bapepam dan LK No. KEP347/BL/2012 tanggal 25 Juni 2012 tentang “Pedoman Penyajian dan Pengungkapan Laporan Keuangan Emiten atau Perusahaan Publik”. The consolidated financial statements have been prepared and presented in accordance with Indonesian Financial Accounting Standards, and Bapepam and LK regulation No. VIII.G.7 Attachment of the Chairman of Bapepam and LK’s Decree No. KEP347/BL/2012 dated 25 June 2012, “Guidelines for Financial Statements Presentation and Disclosure for Issuer or Public Companies”. Entitas Anak, BNI Syariah, yang beroperasi dalam bidang perbankan dengan prinsip syariah menyajikan laporan keuangan sesuai dengan prinsip akuntansi syariah sesuai dengan PSAK No. 101 (Revisi 2016) tentang “Penyajian Laporan Keuangan Syariah”, PSAK No. 102 (Revisi 2016) tentang “Akuntansi Murabahah”, PSAK No. 105 tentang “Akuntansi Mudharabah”, PSAK No. 106 (Revisi 2016) tentang “Akuntansi Musyarakah”, PSAK No. 107 tentang “Akuntansi Ijarah” dan PSAK No. 110 (Revisi 2015) tentang “Akuntansi Sukuk”, Pedoman Akuntansi Perbankan Syariah Indonesia (PAPSI Revisi 2013) dan standar akuntansi keuangan lain yang ditetapkan Ikatan Akuntan Indonesia. A Subsidiary, BNI Syariah, which is engaged in sharia banking presents financial statements in conformity with sharia accounting principles in accordance with SFAS No. 101 (Revised 2016), "Presentation of Sharia Financial Statements",SFAS No. 102 (Revised 2016) "Accounting for Murabahah", SFAS No. 105 "Accounting for Mudharabah”, SFAS No. 106 (Revised 2016) "Accounting for Musyarakah", SFAS No. 107 "Accounting for Ijarah" and SFAS No. 110 (Revised 2015) “Accounting for Sukuk”, Accounting Guidelines for Indonesian Sharia Banking (PAPSI Revised 2013) and other Statements of Financial Accounting Standards established by the Indonesian Institute of Accountants. Laporan keuangan konsolidasian telah disajikan berdasarkan konsep harga perolehan, yang dimodifikasi oleh revaluasi tanah dan bangunan, aset keuangan tersedia untuk dijual dan aset dan liabilitas keuangan (termasuk instrumen derivatif) yang diukur pada nilai wajar melalui laporan laba rugi, serta disusun dengan dasar akrual, kecuali bagi hasil dari pembiayaan Mudharabah dan musyarakah dan laporan arus kas konsolidasian. The consolidated financial statements have been prepared on a historical cost basis, except revaluation of land and buildings, available-for-sale financial assets, and financial assets and liabilites (including derivative instruments) at fair value through profit or loss, and under the accrual basis of accounting, except for profit sharing for Mudharabah and musyarakah financing and the consolidated statement of cash flows. 26 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 841
  842. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) a. b. AKUNTANSI Dasar penyusunan laporan konsolidasian (lanjutan) YANG 2. keuangan SUMMARY OF SIGNIFICANT POLICIES (continued) a. ACCOUNTING Basis of preparation of the consolidated financial statements (continued) Laporan arus kas konsolidasian disusun dengan menggunakan metode langsung dengan mengelompokkan arus kas dalam aktivitas operasi, investasi dan pendanaan. Kas dan setara kas terdiri dari kas, giro pada Bank Indonesia dan giro pada bank lain, penempatan pada bank lain dan Sertifikat Bank Indonesia yang jatuh tempo dalam waktu 3 bulan atau kurang sejak tanggal perolehan, sepanjang tidak digunakan sebagai jaminan atas pinjaman yang diterima serta tidak dibatasi penggunaannya. The consolidated statement of cash flows is prepared in the direct method with cash flows classified into operating, investing and financing activities. Cash and cash equivalents consist of cash, current accounts with Bank Indonesia and current accounts with other banks, placements with other banks and Certificates of Bank Indonesia maturing within 3 months from the date of acquisition, as long as they are not pledged as collateral for borrowings nor restricted. Mata uang pelaporan yang digunakan dalam laporan keuangan konsolidasian adalah mata uang Rupiah (Rp). Angka-angka yang disajikan dalam laporan keuangan konsolidasian, kecuali bila dinyatakan secara khusus, adalah dibulatkan dalam jutaan Rupiah. The reporting currency used for the consolidated financial statements is the Indonesian Rupiah (Rp). Unless otherwise stated, all figures presented in the consolidated financial statements are rounded off to millions of Rupiah. b. Perubahan Pernyataan Standar Akuntansi Keuangan dan Interpretasi Standar Akuntansi Keuangan Changes to Statements of Financial Accounting Standards and Interpretations of Statements of Financial Accounting Standards Pada tanggal 1 Januari 2018, Grup menerapkan pernyataan standar akuntansi keuangan (“PSAK”) dan interpretasi standar akuntansi keuangan (“ISAK”) baru dan revisi yang efektif sejak tanggal tersebut. Perubahan kebijakan akuntansi Grup telah dibuat seperti yang disyaratkan, sesuai dengan ketentuan transisi dalam masingmasing standar dan interpretasi. On 1 January 2018, the Group adopted new and revised statements of financial accounting standards (“SFAS”) and interpretations of statements of financial accounting standards (“ISFAS”) that are mandatory for application from that date. Changes to the Group’s accounting policies have been made as required, in accordance with the transitional provisions in the respective standards and interpretations. Penerapan dari standar dan interpretasi baru berikut, tidak menimbulkan perubahan substansial terhadap kebijakan akuntansi Bank dan tidak berdampak signifikan terhadap jumlah yang dilaporkan pada tahun berjalan atau tahun sebelumnya: The adoption of these new and revised standards and interpretation did not result in substansial changes to the Bank’s accounting policies and had no material effect on the amounts reported for the current or prior financial years: • • • • PSAK 111 : Akuntansi Wa’d Amandemen PSAK 53: Pembayaran Berbasis Saham: Klasifikasi dan Pengukuran Transaksi Pembayaran Berbasis Saham Amandemen PSAK 46: Pajak Penghasilan tentang Pengakuan Aset Pajak Tangguhan untuk Rugi yang Belum Direalisasi Amandemen PSAK 2: Laporan Arus Kas tentang Prakarsa Pengungkapan • • • • SFAS No. 111 : Accounting for Wa’d Amendments of SFAS No. 53: Classification and Measurement of Share-based Payment Transactions Amendments of SFAS No. 46: Recognition of Deferred Tax Assets for Unrealised Losses Amendments of SFAS No. 2: Statement of Cash Flows regarding Recognition of Deferred Tax Assets for Unrealised Losses 27 842 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  843. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) b. YANG 2. Perubahan Pernyataan Standar Akuntansi Keuangan dan Interpretasi Standar Akuntansi Keuangan (lanjutan) • b. Annual Improvement 2017 of SFAS No. 15: Investment in Associates and Joint Ventures Annual Improvement 2017 of SFAS No. 67: Disclosures of Interest Other Entities. • c. Klasifikasi ACCOUNTING Changes to Statements of Financial Accounting Standards and Interpretations of Statements of Financial Accounting Standards (continued) • Aset dan liabilitas keuangan (i) SUMMARY OF SIGNIFICANT POLICIES (continued) Penyesuaian 2017 PSAK 15: Investasi pada Entias Asosiasi dan Ventura Bersama Penyesuaian 2017 PSAK 67: Pengungkapan Kepentingan dalam Entitas Lain. • c. AKUNTANSI Financial assets and liabilities (i) Classification Grup mengklasifikasikan aset keuangannya berdasarkan kategori sebagai berikut pada saat pengakuan awal: The Group classifies its financial assets in the following categories at initial recognition: • • Financial assets at fair value through profit or loss, which has 2 (two) subclassifications, i.e. financial assets designated as such upon initial recognition and financial assets held for trading; • • Loans and receivables; Held-to-maturity financial assets; • Available-for-sale financial assets. • • • Aset keuangan yang diukur pada nilai wajar melalui laporan laba rugi, yang memiliki 2 (dua) sub-klasifikasi, yaitu aset keuangan yang ditetapkan demikian pada saat pengakuan awal dan aset keuangan yang diklasifikasikan dalam kelompok yang diperdagangkan; Pinjaman yang diberikan dan piutang; Aset keuangan dimiliki hingga jatuh tempo; Aset keuangan tersedia untuk dijual. Financial liabilities are classified into the following categories at initial recognition: Liabilitas keuangan diklasifikasikan kedalam kategori sebagai berikut pada saat pengakuan awal: • • Liabilitas keuangan yang diukur pada nilai wajar melalui laporan laba rugi, yang memiliki 2 (dua) sub-klasifikasi, yaitu liabilitas keuangan yang ditetapkan demikian pada saat pengakuan awal dan liabilitas keuangan yang telah diklasifikasikan dalam kelompok diperdagangkan; Liabilitas keuangan lain. • Financial liabilities at fair value through profit or loss, which has 2 (two) sub-classifications, i.e. those designated as such upon initial recognition and those classified as held for trading; • Other financial liabilities. 28 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 843
  844. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) (i) SUMMARY OF SIGNIFICANT POLICIES (continued) c. Klasifikasi (lanjutan) ACCOUNTING Financial assets and liabilities (continued) (i) Classification (continued) Aset dan liabilitas keuangan yang diukur pada nilai wajar melalui laporan laba rugi Financial assets and liabilities at fair value through profit or loss Kelompok aset dan liabilitas diukur pada nilai wajar melalui laporan laba rugi adalah aset dan liabilitas keuangan dimiliki untuk diperdagangkan yang diperoleh atau dimiliki Grup terutama untuk tujuan dijual atau dibeli kembali dalam waktu dekat, atau dimiliki sebagai bagian dari portofolio instrumen keuangan tertentu yang dikelola bersama untuk memperoleh laba jangka pendek atau position taking. The sub-classification of financial assets and liabilities at fair value through profit or loss consists of financial assets and liabilities held for trading which the Group acquires or incurs principally for the purpose of selling or repurchasing in the near term, or holds as part of a portfolio that is managed together for short-term profit or position taking. Derivatif juga dikategorikan dalam kelompok ini, kecuali derivatif yang ditetapkan sebagai instrumen lindung nilai efektif. Aset dan liabilitas dalam kelompok ini dicatat pada nilai wajar dalam laporan posisi keuangan konsolidasian dengan keuntungan atau kerugian diakui pada laporan laba rugi. Derivatives are also categorized under this sub-classification unless they are designated as effective hedging instruments. Assets and liabilities classified under this category are carried at fair value in the consolidated statement of financial position, with any gains or losses being recognized in the profit or loss. Pinjaman yang diberikan dan piutang Loans and receivables Pinjaman yang diberikan dan piutang adalah aset keuangan non derivatif 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: • • • yang dimaksudkan oleh Grup untuk dijual segera dalam waktu dekat, yang diklasifikasikan dalam kelompok diperdagangkan, serta yang pada saat pengakuan awal ditetapkan sebagai diukur pada nilai wajar melalui laporan laba rugi; yang pada saat pengakuan awal ditetapkan dalam kelompok investasi tersedia untuk dijual; atau dalam hal Grup mungkin tidak akan memperoleh kembali investasi awal secara substansial kecuali yang disebabkan oleh penurunan kualitas pinjaman yang diberikan dan piutang, yang diklasifikasikan dalam kelompok tersedia untuk dijual. • those that the Group intends to sell immediately or in the short term, which are classified as held for trading, and those that the Group upon initial recognition designates as of fair value through profit or loss; • those that the Group upon initial recognition designates as availablefor-sale investments; or those for which the Group may not recover substantially all of its initial investment, other than because of loans and receivables deterioration, which shall be classified as availablefor-sale. • 29 844 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  845. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) (i) SUMMARY OF SIGNIFICANT POLICIES (continued) c. Klasifikasi (lanjutan) ACCOUNTING Financial assets and liabilities (continued) (i) Classification (continued) Aset keuangan dimiliki hingga jatuh tempo Held-to-maturity financial assets Aset keuangan dimiliki hingga jatuh tempo terdiri dari aset keuangan non derivatif dengan pembayaran tetap atau telah ditentukan dan jatuh temponya telah ditetapkan dimana Grup mempunyai intensi positif dan kemampuan untuk memiliki aset keuangan tersebut hingga jatuh tempo. Aset keuangan yang dimiliki untuk periode yang tidak dapat ditentukan tidak dikategorikan dalam klasifikasi ini. Held-to-maturity financial assets consist of quoted non-derivative financial assets with fixed or determinable payments and fixed maturities that the Group has the positive intention and ability to hold to maturity. Financial assets intended to be held for an undetermined period are not included in this classification. Aset keuangan tersedia untuk dijual Available-for-sale-financial assets Kategori tersedia untuk dijual terdiri dari aset keuangan non derivatif yang ditentukan sebagai tersedia untuk dijual atau tidak diklasifikasikan sebagai salah satu dari kategori aset keuangan lain. Setelah pengukuran awal, aset keuangan tersedia untuk dijual diukur menggunakan nilai wajar dengan keuntungan atau kerugian diakui pada laba rugi komprehensif (yang merupakan bagian dari ekuitas) sampai dengan aset keuangan dihentikan pengakuannya atau sampai aset keuangan dinyatakan mengalami penurunan nilai dimana akumulasi laba atau rugi sebelumnya dilaporkan dalam ekuitas dilaporkan dalam laporan laba rugi. The available-for-sale category consists of non-derivative financial assets that are designated as available-for-sale or are not classified in one of the other categories of financial assets. After initial recognition, available-for-sale financial assets are measured at fair value with gains or losses being recognized in other comprehensive income (as part of equity) until the financial assets is derecognized or until the financial assets is determined to be impaired at which time the cumulative gain or loss previously reported in equity is included in the profit or loss. Pendapatan bunga dihitung menggunakan suku bunga efektif dan keuntungan atau kerugian yang timbul akibat dari perubahan nilai tukar dari instrumen utang diakui pada laporan laba rugi. Untuk instrumen ekuitas, keuntungan atau kerugian yang timbul dan perubahan nilai tukar diakui pada laba rugi komprehensif (yang merupakan bagian dari ekuitas). Interest income is calculated using the effective interest rate and gains or losses arising from changes in exchange rate from debt instruments are recognized in the profit or loss. For equity instruments, gains and losses arising from change in exchange rate are recognized in other comprehensive income (as part of equity). Liabilitas keuangan lain Other financial liabilities Liabilitas keuangan lainnya merupakan liabilitas keuangan yang tidak dimiliki untuk dijual atau ditentukan sebagai nilai wajar melalui laporan laba rugi saat pengakuan liabilitas. Other financial liabilities pertain to financial liabilities that are not held for trading nor designated as fair value through profit or loss upon recognition of the liability. 30 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 845
  846. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) (i) c. Klasifikasi (lanjutan) Kategori yang didefinisikan oleh PSAK 55 (Revisi 2014)/ Category as defined by SFAS 55 (Revised 2014) SUMMARY OF SIGNIFICANT POLICIES (continued) ACCOUNTING Financial assets and liabilities (continued) (i) Classification (continued) Golongan (ditentukan oleh Grup)/ Class (as determined by the Group) Subgolongan/ Subclasses Efek-efek/Marketable securities Aset keuangan yang diukur pada nilai wajar melalui laba laoran rugi/Financial assets at fair value through profit or loss Aset keuangan dalam kelompok diperdagangkan/Financial assets held for trading Kas/Cash Obligasi Pemerintah/ Government Bonds Tagihan derivatif - Tidak terkait lindung nilai/Derivative receivables - Non hedging related Kas pada vendor/Cash in vendor 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 Aset keuangan/ Financial assets Pinjaman yang diberikan dan piutang/Loans and receivables Efek-efek yang dibeli dengan janji dijual kembali/Securities purchased under agreements to resell Wesel ekspor dan tagihan lainnya/Bills and other receivables Tagihan akseptasi/Acceptances receivables Pinjaman yang diberikan/Loans Piutang lain-lain/Other receivables Aset lain-lain/Other assets Piutang bunga/Interest receivables Lain-lain/Others Aset keuangan dimiliki hingga jatuh tempo/Held-to-maturity investments Aset keuangan tersedia untuk dijual/Available-for-sale financial assets Efek-efek/Marketable securities Obligasi Pemerintah/Government Bonds Efek-efek/Marketable securities Obligasi Pemerintah/Government Bonds Penyertaan saham/Equity investments 31 846 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  847. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) (i) SUMMARY OF SIGNIFICANT POLICIES (continued) c. Klasifikasi (lanjutan) Kategori yang didefinisikan oleh PSAK 55 (Revisi 2014)/ Category as defined by SFAS 55 (Revised 2014) ACCOUNTING Financial assets and liabilities (continued) (i) Classification (continued) Golongan (ditentukan oleh Grup)/ Class (as determined by the Group) Subgolongan/ Subclasses Derivatif lindung nilai/Hedging derivatives Lindung nilai atas nilai arus kas/Hedging instruments in cash flow hedges Tagihan derivatif - terkait lindung nilai atas arus kas/Derivative receivables - hedging instruments in cash flow hedges related Liabilitas keuangan yang diukur pada nilai wajar melalui laporan laba rugi/Financial liabilities at fair value through profit or loss Liabilitas keuangan dalam kelompok diperdagangkan/ Financial liabilities held for trading Liabilitas derivatif - tidak terkait lindung nilai/Derivative payables - non hedging related Liabilitas segera/Obligation due immediately Simpanan nasabah/Deposits from customers Simpanan dari bank lain/Deposits from other banks Efek-efek yang dijual dengan janji dibeli kembali/Securities sold under agreements to repurchase Liabilitas akseptasi/Acceptances payables Liabilitas keuangan/ Financial liabilities Liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi/Financial liabilities at amortised cost Beban yang masih harus dibayar/Accrued expenses Setoran jaminan/Security deposits Liabilitas lain-lain/Other liabilities Utang bunga/Interest payable Utang nasabah/Payable to customers Lain-lain/Others Efek-efek yang diterbitkan/Marketable securities issued Pinjaman yang diterima/Borrowings Efek-efek subordinasi/Subordinated securities Derivatif lindung nilai/Hedging derivatives Kontrak jaminan keuangan/ Financial guarantee contract Lindung nilai atas nilai 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 Letters of credit yang tidak dapat dibatalkan/Irrevocable letters of credit Garansi bank yang diberikan/Bank Guarantees issued Standby letters of credit 32 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 847
  848. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) c. (ii) Pengakuan awal ACCOUNTING Financial assets and liabilities (continued) (ii) Initial recognition a. Pembelian atau penjualan aset keuangan yang memerlukan penyerahan aset dalam kurun waktu yang telah ditetapkan oleh peraturan dan kebiasaan yang berlaku di pasar (pembelian secara reguler) diakui pada tanggal perdagangan, yaitu tanggal Grup berkomitmen untuk membeli atau menjual aset. a. Purchase or sale of financial assets that requires delivery of assets within a time frame established by regulation or convention in the market (regular purchases) is recognized on the trade date, i.e., the date that the Group commits to purchase or sell the assets. b. Aset keuangan dan liabilitas keuangan pada awalnya diukur pada nilai wajarnya. Dalam hal aset keuangan atau liabilitas keuangan tidak diklasifikasikan sebagai nilai wajar melalui laporan laba rugi, nilai wajar tersebut ditambah/dikurangi biaya transaksi yang dapat diatribusikan secara langsung dengan perolehan atau penerbitan aset keuangan atau liabilitas keuangan. b. Financial assets and financial liabilities are initially recognized at fair value. For those financial assets or financial liabilities not classified as fair value through profit or loss, the fair value is added/deducted with directly attributable transaction costs to the issuance of financial assets or liabilities. Grup, pada pengakuan awal, dapat menetapkan aset keuangan dan liabilitas keuangan tertentu sebagai nilai wajar melalui laporan laba rugi (opsi nilai wajar). Opsi nilai wajar dapat digunakan hanya bila memenuhi ketetapan sebagai berikut: • • • The Group, upon initial recognition, may designate certain financial assets and liabilities, at fair value through profit or loss (fair value option). The fair value option is only applied when the following conditions are met: penetapan sebagai opsi nilai wajar mengurangi atau mengeliminasi ketidak-konsistenan pengukuran dan pengakuan (accounting mismatch) yang dapat timbul; atau aset keuangan dan liabilitas keuangan merupakan bagian dari portofolio instrumen keuangan yang risikonya dikelola dan dilaporkan kepada manajemen kunci berdasarkan nilai wajar; atau aset keuangan dan liabilitas keuangan terdiri dari kontrak utama dan derivatif melekat yang harus dipisahkan, tetapi tidak dapat mengukur derivatif melekat secara terpisah. • the application of the fair value option reduces or eliminates an accounting mismatch that would otherwise arise; or • the financial assets and liabilities are part of a portfolio of financial instruments, the risks of which are managed and reported to key management on a fair value basis; or • the financial assets and liabilities consist of a host contract and an embedded derivative that must be bifurcated, but unable to measure the embedded derivative separately. 33 848 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  849. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) c. (iii) Pengukuran setelah pengakuan awal ACCOUNTING Financial assets and liabilities (continued) (iii) Subsequent measurement Aset keuangan dalam kelompok tersedia untuk dijual dan aset keuangan dan liabilitas keuangan yang diukur pada nilai wajar melalui laporan laba rugi diukur pada nilai wajarnya. Available-for-sale financial assets and financial assets and liabilities held at fair value through profit or loss are measured at fair value. Pinjaman yang diberikan dan piutang serta aset keuangan dimiliki hingga jatuh tempo dan liabilitas keuangan lainnya diukur pada biaya perolehan diamortisasi dengan menggunakan metode suku bunga efektif. Loans and receivables and held-tomaturity financial assets and other financial liabilities are measured at amortized cost using the effective interest rate method. (iv) Penghentian pengakuan a. Aset keuangan pengakuannya jika: (iv) Derecognition dihentikan a. Financial assets are derecognized when: - Hak kontraktual atas arus kas yang berasal dari aset keuangan tersebut berakhir; atau - the contractual rights to receive cash flows from the financial assets have expired; or - Grup telah mentransfer haknya untuk menerima arus kas yang berasal dari aset tersebut atau menanggung liabilitas untuk membayarkan arus kas yang diterima tersebut secara penuh tanpa penundaan berarti kepada pihak ketiga dibawah kesepakatan pelepasan, dan antara (a) Grup telah mentransfer secara substansial seluruh risiko dan manfaat atas aset, atau (b) Grup tidak mentransfer maupun tidak memiliki secara substansial seluruh risiko dan manfaat atas aset, tetapi telah mentransfer kendali atas aset. - the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flow in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. Ketika Grup telah mentransfer hak untuk menerima arus kas dari aset atau telah memasuki kesepakatan pelepasan dan tidak mentransfer serta tidak mempertahankan secara substansial seluruh risiko dan manfaat atas aset atau tidak mentransfer kendali atas aset, aset diakui sebesar keterlibatan Grup yang berkelanjutan atas aset tersebut. When the Group has transferred its rights to receive cash flows from an asset or has entered into a passthrough arrangement and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the Group’s continuing involvement in the asset. 34 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 849
  850. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) c. (iv) Penghentian pengakuan (lanjutan) a. SUMMARY OF SIGNIFICANT POLICIES (continued) Financial assets and liabilities (continued) (iv) Derecognition (continued) Aset keuangan dihentikan pengakuannya jika: (lanjutan) a. Pinjaman yang diberikan dihapusbukukan ketika tidak terdapat prospek yang realistis mengenai pengembalian pinjaman atau hubungan normal antara Grup dan debitur telah berakhir. Pinjaman yang tidak dapat dilunasi tersebut dihapusbukukan dengan mendebit cadangan kerugian penurunan nilai. b. ACCOUNTING Financial assets are derecognized when: (continued) Loans are written off when there is no realistic prospect of collection in the near future or the normal relationship between the Group and the borrowers have ceased to exist. When a loan is deemed uncollectible, it is written off against the related allowance for impairment losses. Liabilitas keuangan dihentikan pengakuannya jika liabilitas yang ditetapkan dalam kontrak dilepaskan atau dibatalkan atau kadaluarsa. b. Jika suatu liabilitas keuangan yang ada digantikan dengan liabilitas yang lain oleh pemberi pinjaman yang sama pada keadaan yang secara substansial berbeda, atau berdasarkan suatu liabilitas yang ada yang secara substansial telah diubah, maka pertukaran atau modifikasi tersebut diperlakukan sebagai penghentian pengakuan liabilitas awal dan pengakuan liabilitas baru, dan perbedaan nilai tercatat masingmasing diakui dalam laporan laba rugi. Financial liabilities are derecognized when the obligation under the liability is discharged or cancelled or expired. Where an existing financial liability is replaced by another liability from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in the profit or loss. (v) Pengakuan pendapatan dan beban (v) Income and expense recognition a. Pendapatan dan beban bunga atas aset tersedia untuk dijual serta aset keuangan dan liabilitas keuangan yang dicatat berdasarkan biaya perolehan diamortisasi, diakui pada laporan laba rugi dengan menggunakan metode suku bunga efektif. a. Interest income and expense on available-for-sale assets and financial assets and liabilities measured at amortized cost, are recognized in the profit or loss using the effective interest rate method. b. Keuntungan dan kerugian yang timbul dari perubahan nilai wajar aset keuangan dan liabilitas keuangan yang diklasifikasikan sebagai diukur pada nilai wajar melalui laporan laba rugi diakui pada laporan laba rugi. b. Gains and losses arising from changes in the fair value of the financial assets and liabilities classified as fair value through profit or loss are included in the profit or loss. 35 850 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  851. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) (v) Pengakuan (lanjutan) pendapatan dan SUMMARY OF SIGNIFICANT POLICIES (continued) c. beban ACCOUNTING Financial assets and liabilities (continued) (v) Income and (continued) expense recognition Keuntungan dan kerugian yang timbul dari perubahan nilai wajar atas aset keuangan yang diklasifikasikan dalam kelompok tersedia untuk dijual diakui secara langsung dalam laporan laba rugi komprehensif (merupakan bagian dari ekuitas) sampai aset keuangan tersebut dihentikan pengakuannya atau adanya penurunan nilai, kecuali keuntungan atau kerugian akibat perubahan nilai tukar untuk instrumen utang. Gains and losses arising from changes in the fair value of availablefor-sale financial assets other than foreign exchange gains or losses on debt instrument are recognized directly in other comprehensive income (as part of equity), until the financial asset is derecognized or impaired, except gain or loss arising from changes in exchange rate for debt instrument. Pada saat aset keuangan dihentikan pengakuannya atau dilakukan penurunan nilai, keuntungan atau kerugian kumulatif yang sebelumnya diakui dalam ekuitas harus diakui pada laporan laba rugi. When a financial asset is derecognized or impaired, the cumulative gains or losses previously recognized in equity are recognized in profit or loss. (vi) Reklasifikasi aset keuangan (vi) Reclassification of financial assets Grup tidak diperkenankan untuk mereklasfikasikan setiap instrumen keuangan dari atau ke klasifikasi yang diukur pada “Nilai Wajar melalui Laporan Laba Rugi”, jika pada pengakuan awal instrumen keuangan tersebut ditetapkan sebagai diukur pada nilai wajar melalui laporan laba rugi. The Group is not allowed to reclassify any financial instrument out of or into the “Fair Value through Profit and Loss”, if the initial recognition of financial instrument is determined as measured at fair value through profit and loss. Grup tidak boleh mengklasifikasikan aset keuangan sebagai investasi dimiliki hingga jatuh tempo, jika dalam tahun berjalan atau dalam kurun waktu 2 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 dimana: The Group cannot classify financial assets as held-to-maturity investments, if the entity has, during the current financial year or during the 2 preceding financial years, sold or reclassified a significant amount of held-to-maturity investments before maturity (more than insignificant in relation to the total amount of held-tomaturity investments) other than sales or reclassifications that: 36 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 851
  852. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) c. (vi) Reklasifikasi aset keuangan (lanjutan) ACCOUNTING Financial assets and liabilities (continued) (vi) Reclassification (continued) of financial assets a. dilakukan ketika aset keuangan sudah mendekati jatuh tempo atau tanggal pembelian kembali di mana perubahan suku bunga tidak akan berpengaruh secara signifikan terhadap nilai wajar aset keuangan tersebut; a. are so close to maturity or the financial asset’s repurchase date that changes in the market rate of interest would not have a significant effect on the financial asset’s fair value; b. terjadi setelah Grup telah memperoleh secara substansial seluruh jumlah pokok aset keuangan tersebut sesuai jadwal pembayaran atau Grup telah memperoleh pelunasan dipercepat; atau b. occur after the Group has collected substantially all of the original principal of the financial assets through scheduled payments or prepayments; or c. terkait dengan kejadian tertentu yang berada di luar kendali Grup, tidak berulang, dan tidak dapat diantisipasi secara wajar oleh Grup. c. are attributable to an isolated event that is beyond the Group’s control, is non-recurring and could not have been reasonably anticipated by the Group. 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 tahun berjalan. Reclassifications of financial assets from held-to-maturity classification to availablefor-sale are recorded at fair value. The unrealized gains or losses are recorded in equity section until the financial assets are derecognized, at which time the accumulative gain or loss previously recognized in equity shall be recognized as current year profit/loss. Reklasifikasi aset keuangan dari kelompok tersedia untuk dijual ke kelompok dimiliki hingga jatuh tempo dicatat pada nilai tercatat. Keuntungan atau kerugian yang belum direalisasi harus diamortisasi menggunakan suku bunga efektif sampai dengan tanggal jatuh tempo instrumen tersebut. Reclassification of financial assets from available-for-sale to held-to-maturity classification are recorded at carrying amount. The unrealized gains or losses are amortised by using effective interest rate up to the maturity date of that instrument. (vii) Saling hapus (vii) Offsetting Aset keuangan dan liabilitas keuangan saling hapus dan nilai netonya disajikan dalam laporan posisi keuangan konsolidasian jika, dan hanya jika Grup memiliki hak yang berkekuatan hukum untuk melakukan saling hapus atas jumlah yang telah diakui tersebut dan adanya maksud untuk menyelesaikan secara neto atau untuk merealisasikan aset dan menyelesaikan liabilitasnya secara bersamaan. Financial assets and liabilities are set off and the net amount is presented in the consolidated statement of financial position when, and only when, the Group has a legal right to set off the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. 37 852 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  853. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) c. (vii) Saling hapus (lanjutan) ACCOUNTING Financial assets and liabilities (continued) (vii) Offsetting (continued) Hal yang berkekuatan hukum harus tidak kontinjen atas peristiwa di masa depan dan harus dapat dipaksakan di dalam situasi bisnis yang normal, peristiwa kegagalan atau kebangkrutan dari entitas atas seluruh 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 bankruptcy of the company or the counterparty. Pendapatan dan beban disajikan dalam jumlah neto hanya jika diperkenankan oleh standar akuntansi. Income and expenses are presented on a net basis only when permitted by the accounting standards. (viii) Pengukuran biaya diamortisasi (viii) Amortized cost measurement Biaya perolehan diamortisasi dari aset keuangan atau liabilitas keuangan adalah jumlah aset keuangan atau liabilitas keuangan yang diukur pada saat pengakuan awal dikurangi pembayaran pokok pinjaman, ditambah atau dikurangi amortisasi kumulatif menggunakan metode suku bunga efektif yang dihitung dari selisih antara nilai pengakuan awal dan nilai jatuh temponya, dan dikurangi penurunan nilai. The amortized cost of a financial asset or liability is the amount at which the financial asset or liability is measured at initial recognition, minus principal repayments, plus or minus the cumulative amortization using the effective interest rate method of any difference between the initial amount recognized and the maturity amount, minus any reduction for impairment. (ix) Pengukuran nilai wajar (ix) Fair value measurement Nilai wajar adalah harga yang akan diterima untuk menjual suatu aset atau harga yang akan dibayar untuk mengalihkan suatu liabilitas dalam suatu transaksi teratur antara pelaku pasar pada tanggal pengukuran. 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 measurement date. Jika tersedia, Grup mengukur nilai wajar dari suatu instrumen dengan menggunakan harga kuotasi di pasar aktif untuk instrumen terkait. Suatu pasar dianggap aktif bila harga yang dikuotasikan tersedia sewaktu-waktu dari bursa, pedagang efek (dealer), perantara efek (broker), kelompok industri, badan pengawas (pricing service or regulatory agency), dan merupakan transaksi pasar aktual dan teratur terjadi yang dilakukan secara wajar. Nilai wajar dapat diperoleh dari Interdealer Market Association (IDMA) atau harga pasar atau harga yang diberikan oleh broker (quoted price) dari Bloomberg atau Reuters pada tanggal pengukuran. When available, the Group measures the fair value of an instrument using quoted prices in an active market for that instrument. A market is regarded as active 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 transaction on an arm’s length basis. The fair value can be obtained from IDMA’s (Interdealer Market Association) quoted market prices or broker’s quoted price from Bloomberg or Reuters on the measurement date. Jika pasar untuk instrumen keuangan tidak aktif, Grup menetapkan nilai wajar dengan menggunakan teknik penilaian. If a market for a financial instrument is not active, the Group establishes fair value using a valuation technique. 38 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 853
  854. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) c. (ix) Pengukuran nilai wajar (lanjutan) ACCOUNTING Financial assets and liabilities (continued) (ix) Fair value measurement (continued) Grup menggunakan beberapa teknik penilaian yang digunakan secara umum untuk menentukan nilai wajar dari instrumen keuangan dengan tingkat kompleksitas yang rendah, seperti opsi nilai tukar dan swap mata uang. Input yang digunakan dalam teknik penilaian untuk instrumen keuangan di atas adalah data pasar yang diobservasi. The Group uses widely recognized valuation models for determining fair values of financial instruments of lower complexity, such as exchange value options and currency swaps. For these financial instruments, inputs into models are generally market-observable. Untuk instrumen yang lebih kompleks, Grup 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 overthe-counter, unlisted debt securities (termasuk surat utang dengan derivatif melekat) dan instrumen utang lainnya yang pasarnya tidak aktif. For more complex instruments, the Group uses internally developed models, which are usually based on valuation methods and techniques generally recognized as standard within the industry. Valuation models are used primarily to value derivatives transacted in the over-thecounter market, unlisted debt securities (including those with embedded derivatives) and other debt instruments for which markets were or have become illiquid. Untuk instrumen keuangan yang tidak mempunyai harga pasar, estimasi atas nilai wajar efek-efek ditetapkan dengan mengacu pada nilai wajar instrumen lain yang substansinya sama atau dihitung berdasarkan arus kas yang diharapkan terhadap aset neto efek-efek tersebut. For financial instruments with no quoted market price, a reasonable estimate of the fair value is determined by reference to the fair value of another instrument which substantially has the same characteristics or calculated based on the expected cash flows of the underlying net asset base of the marketable securities. Hasil dari suatu teknik penilaian merupakan sebuah estimasi atau perkiraan dari suatu nilai yang tidak dapat ditentukan dengan pasti, dan teknik penilaian yang digunakan mungkin tidak dapat menggambarkan seluruh faktor yang relevan atas posisi yang dimiliki Grup. Dengan demikian, penilaian disesuaikan dengan faktor tambahan seperti model risk, risiko likuiditas dan risiko kredit counterparty. Berdasarkan kebijakan teknik penilaian nilai wajar, pengendalian dan prosedur yang diterapkan, manajemen berkeyakinan bahwa penyesuaian atas penilaian tersebut di atas diperlukan dan dianggap tepat untuk menyajikan secara wajar nilai dari instrumen keuangan yang diukur berdasarkan nilai wajar dalam laporan posisi keuangan konsolidasian. Data harga dan parameter yang digunakan didalam prosedur pengukuran pada umumnya telah direview dan disesuaikan jika diperlukan, khususnya untuk perkembangan atas pasar terkini. The output of a valuation technique is an estimation or approximation of a value that cannot be determined with certainty, and the valuation technique employed may not fully reflect all factors relevant to the positions that the Group holds. Valuations are therefore adjusted, with additional factors such as model risk, liquidity risk and counterparty credit risk. Based on the established fair value valuation technique policy, related controls and procedures applied, management believes that these valuation adjustments are necessary and considered appropriate to fairly state the values of financial instruments measured at fair value in the consolidated statement of financial position. Price data and parameters used in the measurement procedures applied are generally reviewed and adjusted, if necessary, particularly in view of the current market developments. 39 854 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  855. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) c. (ix) Pengukuran nilai wajar (lanjutan) ACCOUNTING Financial assets and liabilities (continued) (ix) Fair value measurement (continued) Pada saat nilai wajar dari unlisted equity instruments tidak dapat ditentukan dengan handal, instrumen tersebut dinilai sebesar biaya perolehan dikurangi dengan penurunan nilai. Nilai wajar atas pinjaman yang diberikan dan piutang, serta liabilitas kepada bank dan nasabah ditentukan menggunakan nilai 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 value. 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. Semua aset dan liabilitas dimana nilai wajar diukur atau diungkapkan dalam laporan keuangan dapat dikategorikan pada level hirarki nilai wajar, berdasarkan tingkatan sebagai berikut: All assets and liabilities which fair value is measured or disclosed in the financial statements can be classified in fair value hierarchy levels, based on following: - Tingkat 1: Harga kuotasian (tidak disesuaikan) dari pasar aktif untuk aset atau liabilitas yang identik. - Level 1: Quoted prices in active market for the same/identical financial asset or liability; - 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). - Level 2: Inputs other than quoted market prices included in Level 1 that are observable for the financial asset or liability, either directly (as a price) or indirectly (as derived from price); - Tingkat 3: Input untuk aset atau liabilitas yang tidak didasarkan pada data pasar yang dapat diobservasi (informasi yang tidak dapat diobservasi). - Level 3: Inputs for the financial assets or liability that are not based on observable market data (unobservable information). 40 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 855
  856. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) c. (x) Cadangan kerugian penurunan nilai atas aset keuangan ACCOUNTING Financial assets and liabilities (continued) (x) Allowance for impairment financial assets losses Pada setiap tanggal laporan posisi keuangan konsolidasian, Grup mengevaluasi apakah terdapat bukti obyektif bahwa aset keuangan yang tidak dicatat pada nilai wajar melalui laporan laba rugi telah mengalami penurunan nilai. Aset keuangan mengalami penurunan nilai jika bukti obyektif menunjukkan bahwa peristiwa yang merugikan telah terjadi setelah pengakuan awal aset keuangan, dan peristiwa tersebut berdampak pada arus kas masa datang atas aset keuangan yang dapat diestimasi secara handal. At each consolidated statement of financial position date, the Group assesses whether there is objective evidence that financial assets not carried at fair value through profit or loss are impaired. Financial assets are impaired when objective evidence demonstrates that loss event has occurred after the initial recognition of the asset, and that the loss event has an impact on the future cash flows on the asset that can be estimated reliably. Kriteria yang digunakan oleh Grup untuk menentukan bukti obyektif dari penurunan nilai adalah sebagai berikut: The criteria used by the Group to determine that there is objective evidence of impairment include: a) kesulitan keuangan signifikan yang dialami penerbit atau pihak peminjam; b) pelanggaran kontrak, seperti terjadinya wanprestasi atau tunggakan pembayaran pokok atau bunga; c) pihak pemberi pinjaman, dengan alasan ekonomi atau hukum sehubungan dengan kesulitan keuangan yang dialami pihak peminjam, memberikan keringanan (konsesi) pada pihak peminjam yang tidak mungkin diberikan jika pihak peminjam tidak mengalami kesulitan tersebut; d) terdapat kemungkinan bahwa pihak peminjam akan dinyatakan pailit atau melakukan reorganisasi keuangan lainnya; e) hilangnya pasar aktif dari aset keuangan akibat kesulitan keuangan; atau f) 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: a) significant financial difficulty of the issuer or obligor; b) a breach of contract, such as a default or delinquency in interest or principal payments; c) the lender, for economic or legal reasons relating to the borrower’s financial difficulty, grants the borrower a concession that the lender would not otherwise consider; d) it becomes probable that the borrower will enter into bankruptcy or other financial reorganisation; e) the disappearance of an active market for that financial asset because of financial difficulties; or f) 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 has yet been identified individually in the portfolio, including: 41 856 on Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  857. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) c. (x) Cadangan kerugian penurunan nilai atas aset keuangan (lanjutan) ACCOUNTING Financial assets and liabilities (continued) (x) Allowance for impairment financial assets (continued) losses on 1) memburuknya status pembayaran pihak peminjam dalam kelompok tersebut; dan 2) kondisi ekonomi nasional atau lokal yang berkorelasi dengan wanprestasi atas aset dalam kelompok tersebut. 1) adverse changes in the payment status of borrowers in the portfolio; and 2) national or local economic conditions that correlate with defaults on the assets in the portfolio. Estimasi periode antara terjadinya peristiwa dan teridentifikasinya kerugian ditentukan oleh manajemen untuk setiap portofolio yang diidentifikasi. Pada umumnya, periode tersebut bervariasi antara 3 sampai 12 bulan, untuk kasus tertentu diperlukan periode yang lebih lama. The estimated period between the occurrence of the event and identification of loss is determined by management for each identified portfolio. In general, the periods used vary between 3 to 12 months, for exceptional cases, longer periods are needed. Grup pertama kali menentukan apakah aset keuangan signifikan secara individual. Apabila aset keuangan signifikan secara individual, maka Grup akan menentukan apakah terdapat bukti obyektif penurunan nilai secara individual atas aset keuangan. Jika Grup menentukan tidak terdapat bukti obyektif mengenai penurunan nilai atas aset keuangan yang dinilai secara individual, terlepas aset keuangan tersebut signifikan atau tidak, maka Grup memasukkan aset tersebut ke dalam kelompok aset keuangan yang memiliki karakteristik risiko kredit yang serupa dan menilai penurunan nilai kelompok tersebut secara kolektif. Aset keuangan yang penurunan nilainya dilakukan secara individual, dan untuk itu kerugian penurunan nilai telah diakui atau tetap diakui, tidak termasuk dalam penilaian penurunan nilai secara kolektif. The Group first assesses whether the financial asset is individually significant. If the financial asset considered individually significant, the Group will determines whether there is an objective evidence of individual impairment exist or not. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Financial assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognized are not included in a collective assessment of impairment. A) Aset keuangan yang dicatat berdasarkan biaya perolehan diamortisasi A) Financial assets carried at amortised cost Perhitungan penurunan nilai secara individual Individual impairment calculation Bank menetapkan pinjaman yang diberikan yang harus dievaluasi penurunan nilainya secara individual, jika memenuhi salah satu kriteria di bawah ini: The Bank determines that loans should be evaluated for impairment through individual evaluation if one of the following criteria is met: 42 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 857
  858. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) c. (x) Cadangan kerugian penurunan nilai atas aset keuangan (lanjutan) ACCOUNTING Financial assets and liabilities (continued) (x) Allowance for impairment financial assets (continued) A) Aset keuangan yang dicatat berdasarkan biaya perolehan diamortisasi (lanjutan) losses A) Financial assets carried at amortised cost (continued) Perhitungan penurunan nilai secara individual (lanjutan) Individual impairment (continued) 1. Pinjaman yang diberikan yang secara individual memiliki nilai signifikan dan memiliki bukti obyektif penurunan nilai; atau 2. Pinjaman yang diberikan yang direstrukturisasi yang secara individual memiliki nilai signifikan. 1. Loans which individually have significant value and objective evidence of impairment; or calculation 2. Restructured loans which individually have significant value. Berdasarkan kriteria di atas, Bank melakukan penilaian secara individual untuk: (a) Pinjaman yang diberikan dalam segmen pasar korporasi dan usaha menengah dengan kolektibilitas kurang lancar, diragukan dan macet; atau (b) Pinjaman yang diberikan dalam segmen pasar korporasi dan usaha menengah yang direstrukturisasi. Based on the above criteria, the Bank performs individual assessment for: (a) Corporate and middle loans which collectibility are classified as substandard, doubtful and loss; or (b) Restructured corporate and middle loans. Jumlah kerugian penurunan nilai diukur berdasarkan selisih antara nilai tercatat aset keuangan dengan nilai kini dari estimasi arus kas masa datang (tanpa memperhitungkan kerugian penurunan nilai dimasa datang yang belum terjadi) yang didiskontokan menggunakan tingkat suku bunga efektif awal dari aset keuangan tersebut. Nilai tercatat aset tersebut dikurangi melalui akun cadangan kerugian penurunan nilai dan beban kerugian diakui pada laporan laba rugi. Jika pinjaman yang diberikan atau aset keuangan 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 impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance for impairment loss account and the amount of the loss is recognised in the profit or loss. If a loan or held-to-maturity financial assets has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. 43 858 on Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  859. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) c. (x) Cadangan kerugian penurunan nilai atas aset keuangan (lanjutan) ACCOUNTING Financial assets and liabilities (continued) (x) Allowance for impairment financial assets (continued) A) Aset keuangan yang dicatat berdasarkan biaya perolehan diamortisasi (lanjutan) losses on A) Financial assets carried at amortised cost (continued) Perhitungan penurunan nilai secara individual (lanjutan) Individual impairment (continued) Jika persyaratan pinjaman yang diberikan, piutang atau efek-efek yang dimiliki hingga jatuh tempo dinegosiasi ulang atau dimodifikasi karena debitur atau penerbit mengalami kesulitan keuangan, maka penurunan nilai diukur dengan suku bunga efektif awal yang digunakan sebelum persyaratan diubah. If the terms of the loans, receivables or held-to-maturity marketable securities are renegotiated or otherwise modified because of financial difficulties of the borrower or issuer, impairment is measured using the original effective interest rate before the modification of terms. Perhitungan nilai kini dari estimasi arus kas masa datang atas aset keuangan dengan agunan mencerminkan arus kas yang dapat dihasilkan dari pengambilalihan agunan dikurangi biaya-biaya 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, whether or not foreclosure is probable. Perhitungan penurunan nilai secara kolektif Collective impairment calculation Bank menetapkan pinjaman yang diberikan yang harus dievaluasi penurunan nilainya secara kolektif, jika memenuhi salah satu kriteria di bawah ini: The Bank determines loans to be evaluated for impairment through collective evaluation if one of the following criteria is met: 1. Pinjaman yang diberikan yang secara individual memiliki nilai tidak signifikan; 2. Pinjaman yang diberikan yang secara individual memiliki nilai signifikan namun tidak memiliki bukti obyektif penurunan nilai; atau 3. Pinjaman yang diberikan yang direstrukturisasi yang secara individual memiliki nilai tidak signifikan. 1. Loans which individually insignificant value; calculation have 2. Loans which individually have significant value but there is no objective evidence of impairment; or 3. Restructured loans which individually have insignificant value. 44 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 859
  860. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) c. (x) Cadangan kerugian penurunan nilai atas aset keuangan (lanjutan) ACCOUNTING Financial assets and liabilities (continued) (x) Allowance for impairment financial assets (continued) A) Aset keuangan yang dicatat berdasarkan biaya perolehan diamortisasi (lanjutan) losses A) Financial assets carried at amortised cost (continued) Perhitungan penurunan nilai secara kolektif (lanjutan) Collective (continued) Berdasarkan kriteria di atas, penilaian secara kolektif dilakukan untuk: (a) Pinjaman yang diberikan dalam segmen pasar korporasi dan usaha menengah dengan kolektibilitas lancar dan dalam perhatian khusus serta tidak direstrukturisasi; atau (b) Pinjaman yang diberikan dalam segmen pasar usaha kecil dan konsumen. Based on the above criteria, the Bank performs collective assessment for: (a) Corporate and middle loans which collectibility are classified as current and special mention, and have never been restructured; or (b) Retail and consumer loans. Cadangan kerugian penurunan nilai atas pinjaman yang diberikan yang dinilai secara kolektif dihitung berdasarkan pengalaman kerugian historis. Pengalaman kerugian historis disesuaikan menggunakan dasar data yang dapat diobservasi untuk mencerminkan efek dari kondisi saat ini terhadap Bank dan menghilangkan efek dari masa lalu yang sudah tidak berlaku saat ini. Pinjaman yang diberikan dikelompokan berdasarkan karakteristik risiko kredit yang sama antara lain dengan mempertimbangkan segmentasi dan tunggakan debitur. Calculation of allowance for impairment losses on loans are collectively evaluated on the basis of historical loss experience. Historical loss experience is adjusted on the basis of current observable data to reflect the effects of current conditions affecting the Bank and to remove the effects of conditions in the historical period that do not currently exist. Financial assets are grouped on the basis of similar credit risk characteristics by considering the segmentation and past due status of the debtors, among others. Bank menggunakan metode analisis model statistik seperti, migration analysis method dan roll rates analysis method, untuk menilai cadangan kerugian penurunan nilai. The Bank applies statistical model analysis method, which are migration analysis and roll rate analysis methods, to assess the allowance for impairment losses. Bank menerapkan roll rate method untuk pinjaman kartu kredit dengan menggunakan data historis selama 3 tahun dalam menghitung Probability of Default (PD) dan Loss Given Default (LGD). Untuk pinjaman selain kartu kredit, Bank menerapkan migration analysis method dengan menggunakan data historis selama 5 tahun dalam menghitung PD dan LGD. The Bank applies roll rate method for credit card loans using 3 years historical data to compute the Probability of Default (PD) and Loss Given Default (LGD). For loans other than credit card loans, the Bank applies migration analysis method using 5 years historical data to compute the PD and LGD. impairment calculation 45 860 on Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  861. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) c. (x) Cadangan kerugian penurunan nilai atas aset keuangan (lanjutan) ACCOUNTING Financial assets and liabilities (continued) (x) Allowance for impairment financial assets (continued) A) Aset keuangan yang dicatat berdasarkan biaya perolehan diamortisasi (lanjutan) losses on A) Financial assets carried at amortised cost (continued) Perhitungan penurunan nilai secara kolektif (lanjutan) Collective (continued) Grup menggunakan nilai wajar agunan sebagai dasar arus kas masa datang apabila memenuhi salah satu kondisi berikut: 1. Kredit bersifat collateral dependent, yaitu jika pelunasan kredit hanya bersumber dari agunan; atau 2. Pengambilalihan agunan kemungkinan besar terjadi dan didukung dengan perjanjian legal pengikatan agunan. The Group uses the fair value of collateral as the basis for future cash flow if one of the following conditions is met: 1. Loans are collateral dependent, i.e. if the source of loans repayment is only from the collateral; or 2. Foreclosure of collateral is most likely to occur and supported by legally binding collateral agreement. Sebagai panduan praktis, Grup dapat mengukur penurunan nilai berdasarkan nilai wajar instrumen dengan menggunakan harga pasar yang dapat diobservasi. Kerugian yang terjadi diakui pada laporan laba rugi dan dicatat pada akun cadangan kerugian penurunan nilai sebagai pengurang terhadap aset keuangan yang dicatat pada biaya perolehan diamortisasi. Pendapatan bunga atas aset keuangan yang mengalami penurunan nilai tetap diakui atas dasar suku bunga yang digunakan untuk mendiskonto arus kas masa datang dalam pengukuran kerugian penurunan nilai. As a practical guideline, the Group may measure impairment on the basis of an instrument’s fair value using an observable market price. Losses are recognized in the profit or loss and reflected in an allowance for impairment losses account against financial assets carried at amortised cost. Interest income on the impaired financial assets continues to be recognized using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. Ketika peristiwa yang terjadi setelah penurunan nilai menyebabkan jumlah kerugian penurunan nilai berkurang, kerugian penurunan nilai yang sebelumnya diakui harus dipulihkan dan pemulihan tersebut diakui pada laporan laba rugi. When a subsequent event causes the amount of impairment loss to decrease, the impairment loss previously recognized is reversed through profit or loss. impairment calculation 46 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 861
  862. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) c. (x) Cadangan kerugian penurunan nilai atas aset keuangan (lanjutan) ACCOUNTING Financial assets and liabilities (continued) (x) Allowance for impairment financial assets (continued) B) Aset keuangan yang tersedia untuk dijual B) Financial assets available-for–sale losses classified as Untuk aset keuangan yang tersedia untuk dijual, pada setiap tanggal laporan posisi keuangan konsolidasian, Bank mengevaluasi apakah terdapat bukti obyektif bahwa aset keuangan atau kelompok aset keuangan mengalami penurunan nilai. For financial assets classified as available-for-sale, the Bank assesses at each consolidated statement of financial position date whether there is an objective evidence that a financial asset or a group of financial assets is impaired. Dalam hal instrumen ekuitas yang diklasifikasikan sebagai aset keuangan yang tersedia untuk dijual, penurunan yang signifikan atau penurunan jangka panjang atas nilai wajar investasi, di bawah biaya perolehannya merupakan bukti obyektif terjadinya penurunan nilai dan menyebabkan pengakuan kerugian penurunan nilai. Kerugian penurunan nilai atas efek-efek yang tersedia untuk dijual diakui dengan mengeluarkan kerugian kumulatif yang telah diakui secara langsung dalam ekuitas ke dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian. In the case of equity instruments classified as available-for-sale financial assets, a significant or prolonged decline in the fair value of the investment below its cost is an objective evidence of impairment resulting in the recognition of an impairment loss. Impairment losses on available-for-sale marketable securities are recognized by transferring the cumulative loss that has been recognized directly in equity to the consolidated statement of profit or loss and other comprehensive income. Jika pada periode berikutnya, nilai wajar instrumen utang yang diklasifikasikan dalam kelompok tersedia untuk dijual meningkat dan peningkatan tersebut dapat secara obyektif dihubungkan dengan peristiwa yang terjadi setelah pengakuan kerugian nilai pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian, maka kerugian penurunan nilai tersebut harus dipulihkan dan diakui pada periode terjadinya. If in a subsequent period, the fair value of debt instrument classified as available-for-sale securities increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in the consolidated statement of profit or loss and other comprehensive income, the impairment loss is reversed and recognized in the period it occurred. Kerugian penurunan nilai yang diakui dalam laba rugi atas investasi ekuitas yang diklasifikasikan sebagai tersedia untuk dijual tidak dapat dibalik melalui laba rugi. Impairment losses recognised in profit or loss for an investment in an equity instrument classified as available - for sale shall not be reversed through profit or loss. 47 862 on Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  863. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) c. AKUNTANSI YANG 2. Aset dan liabilitas keuangan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) c. (x) Cadangan kerugian penurunan nilai atas aset keuangan (lanjutan) Financial assets and liabilities (continued) (x) Allowance for impairment financial assets (continued) C) Penerimaan kembali atas aset keuangan yang telah dihapusbukukan d. ACCOUNTING C) Recoveries assets of losses written-off on financial Ketika pinjaman yang diberikan tidak tertagih, pinjaman yang diberikan tersebut dihapusbuku dengan menjurnal balik cadangan kerugian penurunan nilai. Pinjaman 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. Penerimaan kembali atas aset keuangan yang telah dihapusbukukan pada tahun berjalan dikreditkan dengan menyesuaikan akun cadangan kerugian penurunan nilai. Penerimaan kembali atas aset keuangan yang telah dihapusbukukan pada tahun sebelumnya dicatat sebagai pendapatan operasional selain pendapatan bunga. The recoveries of written-off financial assets in the current year are credited by adjusting the allowance for impairment losses accounts. Recoveries of written-off financial assets from previous years are recorded as operational income other than interest income. Prinsip konsolidasian d. Principles of consolidation Laporan keuangan konsolidasian meliputi laporan keuangan BNI beserta seluruh Entitas Anak yang berada di bawah pengendalian BNI. The consolidated financial statements include the financial statements of BNI and all its Subsidiaries that are controlled by BNI. Dalam hal pengendalian terhadap Entitas Anak dimulai atau diakhiri dalam suatu tahun berjalan, maka hasil usaha Entitas Anak yang diperhitungkan ke dalam laporan keuangan konsolidasian hanya sebatas hasil pada saat pengendalian tersebut mulai diperoleh atau hingga saat pengendalian itu berakhir. Where Subsidiaries either began or ceased to be controlled during the year, the results of operations of those Subsidiaries are included in the consolidated financial statements only from the date that the control has commenced or up to the date that the control has ceased. 48 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 863
  864. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) d. AKUNTANSI YANG 2. Prinsip konsolidasian (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) d. ACCOUNTING Principles of consolidation (continued) Entitas anak adalah seluruh entitas (termasuk entitas bertujuan khusus) dimana Grup memiliki kekuasaan untuk mengatur kebijakan keuangan dan operasional atas entitas anak, biasanya melalui kepemilikan lebih dari setengah hak suara. Keberadaan dan dampak dari hak suara potensial yang saat ini dapat dilaksanakan atau dikonversi, dipertimbangkan ketika menilai apakah Grup mengendalikan entitas lain. Grup juga menilai keberadaan pengendalian ketika Grup tidak memiliki lebih dari 50% hak suara namun dapat mengatur kebijakan keuangan dan operasional secara de-facto. Pengendalian de-facto dapat timbul ketika jumlah hak suara yang dimiliki Grup, secara relatif terhadap jumlah dan penyebaran kepemilikan hak suara pemegang saham lain memberikan Grup kemampuan untuk mengendalikan kebijakan keuangan dan operasi, serta kebijakan lainnya. Subsidiaries are all entities (including special purpose entities) over which the Group has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. The Group also assesses existence of control where it does not have more than 50% of the voting power but is able to govern the financial and operating policies by virtue of de-facto control. De-facto control may arise in circumstances where the size of the Group’s voting rights relative to the size and dispersion of holdings of other shareholders give the Group the power to govern the financial, operating and other policies. Seluruh saldo dan transaksi termasuk keuntungan/kerugian yang belum direalisasi antara BNI dan Entitas Anak yang signifikan dieliminasi untuk mencerminkan posisi keuangan dan hasil usaha konsolidasian BNI dan Entitas Anak sebagai satu kesatuan usaha. All significant balances and transactions, including unrealized gains/losses among BNI and Subsidiaries are eliminated to reflect the consolidated financial position and results of operations of BNI and its Subsidiaries as a single entity. Laporan keuangan konsolidasian disusun dengan menggunakan kebijakan akuntansi yang sama untuk peristiwa dan transaksi sejenis dalam kondisi yang sama. Apabila laporan keuangan Entitas Anak menggunakan kebijakan akuntansi yang berbeda dari kebijakan akuntansi yang digunakan dalam laporan keuangan konsolidasian, maka dilakukan penyesuaian yang diperlukan terhadap laporan keuangan Entitas Anak tersebut. The consolidated financial statements are prepared using uniform accounting policies for transactions and events in similar circumstances. If the Subsidiaries’ financial statements use accounting policies different from those adopted in the consolidated financial statements, appropriate adjustments are made to the Subsidiaries’ financial statements. Kepentingan nonpengendali disajikan di ekuitas dalam laporan posisi keuangan konsolidasian dan dinyatakan sebesar proporsi pemegang saham nonpengendali atas laba tahun berjalan dan ekuitas Entitas Anak tersebut sesuai dengan persentase kepemilikan pemegang saham nonpengendali pada Entitas Anak tersebut. The non-controlling interest is presented in the equity of the consolidated statement of financial position and represents the noncontrolling stockholders’ proportionate share in the income for the year and equity of the Subsidiaries based on the percentage of ownership of the non-controlling stockholders in the Subsidiaries. 49 864 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  865. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) e. AKUNTANSI YANG 2. Transaksi dalam mata uang asing dan penjabaran SUMMARY OF SIGNIFICANT POLICIES (continued) e. Foreign currency translations ACCOUNTING transactions and Transaksi dalam mata uang asing Transactions currencies BNI dan Entitas Anak yang berdomisili di Indonesia menyelenggarakan pembukuannya dalam mata uang Rupiah, kecuali untuk BNI Remittance yang pembukuan akuntansinya dilakukan dalam Dollar Amerika Serikat. Transaksi-transaksi dalam mata uang selain Rupiah yang terjadi di sepanjang tahun dicatat dengan nilai kurs yang berlaku pada saat terjadinya transaksi yang bersangkutan. BNI and its Subsidiaries domiciled in Indonesia maintain their accounting records in Rupiah, except for BNI Remittance which its accounting records is maintained in United States Dollar. Transactions during the year involving currencies other than Rupiah are recorded at the rates of exchange prevailing at the time the transactions were made. Pada tanggal laporan posisi keuangan konsolidasian, aset dan liabilitas moneter dalam mata uang asing dijabarkan ke dalam mata uang Rupiah dengan menggunakan kurs tengah Reuters pada pukul 16:00 WIB. Keuntungan atau kerugian yang timbul sebagai akibat dari penjabaran aset dan liabilitas moneter dalam mata uang asing dicatat dalam laporan laba rugi komprehensif konsolidasian tahun berjalan. At consolidated statement of financial position date, all monetary assets and liabilities denominated in foreign currencies are translated to Rupiah using the Reuters middle rate at 16:00 Western Indonesian Time (WIB). The resulting gains or losses from the translation of monetary assets and liabilities in foreign currencies are recognized in the consolidated statement of profit or loss and other comprehensive income for the current year. Penjabaran aset dan liabilitas dalam mata uang asing Translation of assets and denominated in foreign currencies Pada tanggal dan 31 Desember 2018 dan 2017, kurs mata uang asing yang digunakan untuk penjabaran mata uang asing terhadap Rupiah adalah sebagai berikut (dalam Rupiah penuh): As of 31 December 2018 and 2017, the foreign currency exchange rates used for translation of foreign currencies to Rupiah are as follows (amounts in full Rupiah): 2018 1 Pound Sterling Inggris 1 Euro 1 Dolar Amerika Serikat 1 Dolar Hong Kong 1 Yen Jepang denominated in foreign liabilities 2017 18,312 16,441 14,380 1,836 131 18,236 16,236 13,568 1,736 121 British Pound Sterling 1 Euro 1 United States Dollar 1 Hong Kong Dollar 1 Japanese Yen 1 Penjabaran laporan keuangan sehubungan dengan konsolidasian laporan cabang BNI yang berkedudukan di luar negeri Translation of financial statements relating to consolidation of BNI branches domiciled outside of Indonesia Cabang BNI yang berkedudukan di luar negeri menyelenggarakan pembukuannya dalam mata uang negara tempat kedudukannya. BNI’s branches domiciled outside of Indonesia maintain their accounting records in their respective domestic currencies. 50 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 865
  866. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) e. f. AKUNTANSI YANG 2. Transaksi dalam mata uang asing dan penjabaran (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) e. ACCOUNTING Foreign currency transactions translations (continued) Untuk tujuan konsolidasian, laporan keuangan cabang BNI tersebut dijabarkan ke dalam mata uang Rupiah dengan cara sebagai berikut: For consolidation purposes, the financial statements of such branches domiciled outside of Indonesia are translated into Rupiah as follows: • Saldo akun-akun aset, liabilitas, komitmen dan kontinjensi dijabarkan dengan menggunakan kurs spot Reuters jam 16:00 WIB pada tanggal laporan posisi keuangan konsolidasian; • Assets, liabilities, commitments and contingencies accounts are translated using the Reuters spot rates at 16:00 WIB at the consolidated statement of financial position date; • Saldo akun-akun laba rugi setiap bulannya dijabarkan dengan menggunakan kurs spot Reuters jam 16:00 WIB rata-rata untuk bulan yang bersangkutan. Saldo untuk tahun berjalan merupakan jumlah dari penjabaran bulanan tersebut; • Revenues and expenses accounts are translated on a monthly basis using the average month-end Reuters spot rate at 16:00 WIB. The balances for the year represent the sum of those monthly translations; • Akun ekuitas dijabarkan dengan menggunakan kurs historis; dan • Equity accounts are recorded using the historical rates; and • Selisih yang timbul sebagai akibat dari penjabaran ini disajikan di laporan posisi keuangan konsolidasian sebagai bagian dari ekuitas pada akun "Selisih Kurs karena Penjabaran Laporan Keuangan dalam Mata Uang Asing". • Differences arising from translation are presented in the consolidated statement of financial position balance as part of equity under "Exchange Difference on Translation of Foreign Currency Financial Statements". Giro pada bank lain dan Bank Indonesia f. Current accounts with other banks and Bank Indonesia Giro pada bank lain dan Bank Indonesia diklasifikasikan sebagai pinjaman yang diberikan dan piutang. Giro pada bank lain dan Bank Indonesia dinyatakan sebesar biaya perolehan diamortisasi menggunakan metode suku bunga efektif dikurangi cadangan kerugian penurunan nilai. The current accounts with other banks and Bank Indonesia are classified as loans and receivables. Current accounts with other banks and Bank Indonesia are stated at amortized cost using the effective interest rate method less allowance for impairment losses. Lihat Catatan 2c untuk kebijakan akuntansi atas aset dan liabilitas keuangan. Refer to Note 2c for the accounting policies of financial assets and liabilities. Entitas Anak yang menjalankan kegiatan usaha dengan prinsip syariah, giro pada Bank Indonesia dan bank lain dinyatakan sebesar saldo giro dikurangi dengan cadangan kerugian penurunan nilai. Subsidiary that engages in sharia banking presents current accounts with Bank Indonesia and other banks at their outstanding balance net of allowance for impairment losses. 51 866 and Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  867. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) g. h. AKUNTANSI YANG 2. Penempatan pada bank lain dan Bank Indonesia SUMMARY OF SIGNIFICANT POLICIES (continued) g. ACCOUNTING Placements with other banks and Bank Indonesia Penempatan pada bank lain dan Bank Indonesia terdiri dari Fasilitas Simpanan Bank Indonesia (FASBI), call money dan deposito berjangka. Placements with other banks and Bank Indonesia consist of Bank Indonesia Deposit Facility (FASBI), call money and time deposits. Penempatan pada bank lain dan Bank Indonesia diklasifikasikan sebagai pinjaman yang diberikan dan piutang. Penempatan pada bank lain dinyatakan sebesar biaya perolehan diamortisasi menggunakan metode suku bunga efektif dikurangi cadangan kerugian penurunan nilai. Placements with other banks and Bank Indonesia are classified as loans and receivables. Placements with other banks are stated at amortized cost using the effective interest rate method less allowance for impairment losses. Lihat Catatan 2c untuk kebijakan akuntansi atas aset dan liabilitas keuangan. Refer to Note 2c for the accounting policies of financial assets and liabilities. Efek-efek dan Obligasi Pemerintah h. Marketable Bonds securities and Government Efek-efek yang dimiliki terdiri dari Sertifikat Bank Indonesia (SBI), Sertifikat Deposito Bank Indonesia, unit penyertaan reksa dana, obligasi, obligasi subordinasi dan instrumen utang lainnya yang diperdagangkan di pasar uang dan pasar modal. Marketable securities consist of Certificates of Bank Indonesia (SBI), Certificates of Deposits of Bank Indonesia, mutual fund units, bonds, subordinated bonds and other debt instruments traded in the money market and stock exchanges. Obligasi Pemerintah terdiri dari Obligasi Rekapitalisasi Pemerintah yang diterbitkan kepada BNI dan bank lainnya berkaitan dengan program rekapitalisasi Pemerintah dan obligasi lainnya yang diterbitkan oleh Pemerintah Indonesia dan negara lainnya yang tidak berkaitan dengan program rekapitalisasi yang diperoleh melalui pasar perdana dan sekunder. Government Bonds consist of Government Recapitalization Bonds issued to BNI and other banks with respect to the recapitalization program of the Government and other bonds issued by the Government of Indonesia and other countries, that are not related to the recapitalization program, acquired through the primary and secondary markets. Pada saat pengakuan awal, efek-efek dan Obligasi Pemerintah dicatat sesuai dengan kategorinya yaitu aset keuangan tersedia untuk dijual, aset keuangan dimiliki hingga jatuh tempo atau nilai wajar melalui laporan laba rugi serta disajikan sebesar nilai wajarnya At initial recognition, the securities and Government Bonds are recorded according to their category, i.e., available-for-sale financial assets, held-to-maturity financial assets or at fair value through profit or loss and initially measured at fair value Lihat Catatan 2c untuk kebijakan akuntansi atas aset dan liabilitas keuangan. Refer to Note 2c for the accounting policies of financial assets and liabilities. Surat Berharga Syariah adalah surat bukti investasi berdasarkan prinsip syariah yang lazim diperdagangkan di pasar uang syariah dan/atau pasar modal syariah antara lain obligasi syariah (sukuk) dan surat berharga lainnya berdasarkan prinsip syariah. Sharia Securities are proof of investment based on sharia principles that arecommonly traded in the sharia money market and/or sharia capital markets, including sharia bonds (sukuk) and other securities following sharia principles. 52 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 867
  868. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) h. i. Efek-efek (lanjutan) dan AKUNTANSI Obligasi YANG 2. Pemerintah SUMMARY OF SIGNIFICANT POLICIES (continued) h. Marketable securities Bonds (continued) and ACCOUNTING Government Bank menentukan klasifikasi investasi pada surat berharga, khususnya sukuk, berdasarkan model usaha yang ditentukan berdasarkan klasifikasi sesuai PSAK No. 110 (Revisi 2015) tentang “Akuntansi Sukuk" sebagai berikut: The Bank defined the classification of Investment in marketable securities, specifically sukuk, based on busines model in accordance with SFAS No. 110 (Revised 2015) on "Accounting for Sukuk" as follows: 1) Surat berharga diukur pada biaya perolehan disajikan sebesar biaya perolehan (termasuk biaya transaksi) yang disesuaikan dengan premi dan/atau diskonto yang belum diamortisasi. Premi dan diskonto diamortisasi selama periode hingga jatuh tempo. 1) At cost securities are stated at cost (including transaction costs), adjusted by unamortised premium and/or discount. Premium and discount are amortised over the period until maturity. 2) Surat berharga diukur pada nilai wajar melalui laporan laba rugi, yang dinyatakan sebesar nilai wajar. Keuntungan atau kerugian yang belum direalisasi akibat kenaikan atau penurunan nilai wajarnya disajikan dalam laporan laba rugi tahun yang bersangkutan. 2) At fair value securities are stated at fair values through profit or loss. Unrealised gains or losses from the increase or decrease in fair values are presented in current year profit or loss. 3) Surat berharga yang diukur pada nilai wajar melalui penghasilan komprehensif lainnya. Surat berharga disajikan sebesar nilai wajar. Keuntungan atau kerugian yang belum direalisasi akibat kenaikan atau penurunan nilai wajarnya disajikan dalam penghasilan komprehensif lain. Premi dan diskonto diamortisasi selama periode hingga jatuh tempo. 3) At fair value through other comprehensive income securities are measured at fair value. Unrealized gains or losses from the increase or decrease in fair value are presented in other comprehensive income. Premium and discount are amortized over the period until maturity. Penyisihan kerugian wajib diakui sesuai dengan pedoman dari Bank Indonesia dan disajikan sebagai pengurang saldo investasi pada surat berharga. Allowance for possible losses are recognised in accordance with the guidelines of Bank Indonesia and are stated as a deduction of investments in marketable securities. Efek-efek yang dibeli/dijual dengan janji dijual/dibeli kembali i. Efek-efek yang dibeli dengan janji untuk dijual kembali diklasifikasikan sebagai pinjaman yang diberikan dan piutang. Securities purchased/sold agreements to resell/repurchase under Securities purchased under agreements to resell are classified as loans and receivables. 53 868 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  869. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) i. j. AKUNTANSI YANG 2. Efek-efek yang dibeli/dijual dengan janji dijual/dibeli kembali (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) i. Securities agreements (continued) ACCOUNTING purchased/sold under to resell/repurchase Efek-efek yang dibeli dengan janji untuk dijual kembali disajikan sebagai aset dalam laporan posisi keuangan konsolidasian sebesar jumlah penjualan kembali dikurangi dengan pendapatan bunga yang belum diamortisasi dan cadangan kerugian penurunan nilai. Selisih antara harga beli dan harga jual kembali diperlakukan sebagai pendapatan bunga yang ditangguhkan, dan diakui sebagai pendapatan selama periode sejak efek-efek tersebut dibeli hingga dijual menggunakan suku bunga efektif. Securities purchased under agreements to resell are presented as assets in the consolidated statement of financial position, at the resale price net of unamortized interest income and allowance for impairment losses. The difference between the purchase price and the resale price is treated as unearned interest income, and recognized as income over the period starting from when those securities are purchased until they are sold using effective interest rate method. Efek-efek yang dijual dengan janji untuk dibeli kembali diklasifikasikan sebagai liabilitas keuangan yang diukur dengan biaya perolehan diamortisasi. Securities sold under agreements to repurchase are classified as financial liabilities measured at amortized cost. Efek-efek yang dijual dengan janji untuk dibeli kembali disajikan sebagai liabilitas dalam laporan posisi keuangan konsolidasian sebesar jumlah pembelian kembali, dikurangi dengan bunga dibayar di muka yang belum diamortisasi. Selisih antara harga jual dan harga beli kembali diperlakukan sebagai bunga dibayar di muka dan diakui sebagai beban bunga selama jangka waktu sejak efekefek tersebut dijual hingga dibeli kembali menggunakan metode suku bunga efektif. Securities sold under agreements to repurchase are presented as liabilities in the consolidated statement of financial position, at the repurchase price, net of unamortized prepaid interest. The difference between the selling price and the repurchase price is treated as prepaid interest and recognized as interest expense over the period starting from when those securities are sold until they are repurchased using effective interest rate method. Lihat Catatan 2c untuk kebijakan akuntansi atas aset dan liabilitas keuangan. Refer to Note 2c for the accounting policies of financial assets and liabilities. Wesel ekspor dan tagihan lainnya j. Bills and other receivables Wesel ekspor dan tagihan lainnya terdiri atas tagihan dari Letters of Credit dan Surat Kredit Berdokumen Dalam Negeri (SKBDN) kepada eksportir. Bills and other receivables consist of receivables from Letters of Credit and Domestic Documentary Letters of Credit to exporters. Wesel ekspor dan tagihan lainnya dicatat pada biaya perolehan diamortisasi setelah dikurangi cadangan kerugian penurunan nilai. Bills and other receivables are stated at amortized cost less allowance for impairment losses. Wesel ekspor dan diklasifikasikan sebagai diberikan dan piutang. tagihan lainnya pinjaman yang Bills and other receivables are classified as loans and receivables. Lihat Catatan 2c untuk kebijakan akuntansi atas aset dan liabilitas keuangan. Refer to Note 2c for the accounting policies of financial assets and liabilities. 54 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 869
  870. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) k. l. AKUNTANSI YANG 2. Instrumen keuangan derivatif SUMMARY OF SIGNIFICANT POLICIES (continued) k. ACCOUNTING Derivative financial instruments Dalam melakukan usaha bisnisnya, BNI melakukan transaksi instrumen keuangan derivatif seperti kontrak berjangka mata uang asing, swap mata uang asing, swap atas suku bunga, dan transaksi spot untuk mengelola eksposur pada risiko pasar seperti risiko mata uang dan risiko tingkat suku bunga. In the normal course of its business, BNI enters into transactions involving derivative financial instruments such as foreign currency forward contracts, foreign currency swaps, interest rate swaps, and spot transactions to manage exposures on market risks, such as currency risk and interest rate risks. Instrumen keuangan derivatif diakui di laporan posisi keuangan konsolidasian pada nilai wajar. Setiap kenaikan nilai wajar kontrak derivatif dicatat sebagai aset apabila memiliki nilai wajar positif dan sebagai liabilitas apabila memiliki nilai wajar negatif. Derivatives financial instruments are recognized in the consolidated statement of financial position at fair value. Each increase in fair value derivative contract is carried as asset when the fair value is positive and as liability when the fair value is negative Tagihan dan liabilitas derivatif diklasifikasikan sebagai aset dan liabilitas keuangan yang diukur pada nilai wajar melalui laporan laba rugi. Derivatives receivables and payables are classified as financial assets and liabilities at fair value through profit or loss. Keuntungan atau kerugian yang terjadi dari perubahan nilai wajar diakui dalam laporan laba rugi. Gains or losses resulting from fair value changes are recognized in profit or loss. Nilai wajar instrumen derivatif ditentukan berdasarkan diskonto arus kas dan model penentu harga atau harga yang diberikan oleh broker (quoted price) atas instrumen lainnya yang memiliki karakteristik serupa. The fair value of derivative instruments is determined based on discounted cash flows and pricing models or quoted prices from brokers of other instruments with similar characteristics. Kontrak berjangka mata uang asing, swap mata uang asing dan cross currency swap dan tingkat suku bunga swap dilakukan untuk tujuan pendanaan dan perdagangan. Foreign currency forward contracts, foreign currency swaps, and cross currency and interest rate swaps are for funding and trading purposes. Pinjaman yang diberikan l. Loans Pinjaman yang diberikan adalah penyediaan uang atau tagihan yang dapat disetarakan dengan itu, berdasarkan persetujuan atau kesepakatan pinjam-meminjam dengan debitur yang mewajibkan debitur untuk melunasi utang dan bunganya setelah jangka waktu tertentu, dan tagihan yang berasal dari fasilitas trade finance yang telah jatuh tempo yang belum diselesaikan dalam waktu 15 hari. Loans represent funds provided or receivables that can be considered as equivalents thereof, based on agreements or financing contracts with borrowers, where borrowers are required to repay their debts with interest after a specified period, and matured trade finance facilities which have not been settled within 15 days. Pinjaman yang diberikan diklasifikasikan sebagai pinjaman yang diberikan dan piutang. Loans are classified as loans and receivables. 55 870 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  871. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) l. AKUNTANSI YANG 2. Pinjaman yang diberikan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) l. ACCOUNTING Loans (continued) Pinjaman yang diberikan pada awalnya diukur pada nilai wajar ditambah dengan biaya transaksi yang dapat diatribusikan secara langsung dan biaya tambahan untuk memperoleh aset keuangan tersebut, dan setelah pengakuan awal diukur pada biaya perolehan diamortisasi menggunakan metode suku bunga efektif dikurangi dengan cadangan kerugian penurunan nilai. Loans are initially measured at fair value plus transaction costs that are directly attributable and additional costs to obtain financial assets, and after initial recognition are measured at amortized cost based on the effective interest rate method less allowance for impairment losses. Pinjaman sindikasi dan pinjaman penerusan dicatat sesuai dengan porsi pinjaman yang risikonya ditanggung oleh Grup. Syndicated loans and two step loans are recorded according to the proportion of risks borned by the Group. Lihat Catatan 2c untuk kebijakan akuntansi atas aset dan liabilitas keuangan. Refer to Note 2c for the accounting policies of financial assets and liabilities. Restrukturisasi kredit Loan restructuring 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. Untuk restrukturisasi kredit bermasalah dengan cara konversi kredit yang diberikan menjadi saham atau instrumen keuangan lainnya, kerugian dari restrukturisasi kredit diakui hanya apabila nilai wajar penyertaan saham atau instrumen keuangan yang diterima dikurangi estimasi biaya untuk menjualnya, adalah kurang dari nilai tercatat kredit yang diberikan. For non-performing loan restructuring which involves a conversion of loan into equity or other financial instrument, a loss on loan restructuring is recognized only if the fair value of the equity investment or other financial instrument received, reduced by estimated costs to sell the equity or other financial instrument, is less than the carrying value of the loan. BNI menyusun ketentuan internal mengenai debitur yang berakhir masa restrukturisasinya yaitu debitur yang telah memenuhi kriteria sebagai berikut: The Bank formed internal regulation regarding the debtors who ended their restructuring period, namely debtors who had met the following criteria: 1) Debitur mampu memenuhi syarat-syarat sesuai Perjanjian Kredit Restrukturisasi dengan mempertimbangkan kemampuan debitur untuk memenuhi penilaian propsek usaha, kinerja dan kemampuan membayar; 1) The debtor is able to fulfill the conditions under the Restructuring Credit Agreement by considering the ability of the debtor to fulfill the business performance assessment, performance and ability to pay; 2) Kredit berada pada kualitas kredit lancar (kolektibilitas 1) sesuai dengan ketentuan Bank Indonesia dan 2) Credit’s quality is in current (collectibility 1) in accordance with Bank Indonesia regulations and 3) Debitur mampu membayar bunga di atas tingkat bunga tertentu minimal 3 (tiga) bulan atau periode angsuran berturutturut. 3) Debtors are able to pay interest above a certain interest rate of at least 3 (three) months or a period of successive installments. 56 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 871
  872. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) l. AKUNTANSI YANG 2. Pinjaman yang diberikan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) l. ACCOUNTING Loans (continued) Pinjaman berdasarkan prinsip syariah Sharia financing Pinjaman yang diberikan meliputi pembiayaan syariah yang terutama terdiri dari piutang syariah, pembiayaan Mudharabah dan pembiayaan musyarakah. Loans include sharia financing, which consists mainly of sharia receivables, Mudharabah financing and musyarakah financing. Piutang syariah adalah tagihan yang timbul dari transaksi berdasarkan akad-akad ijarah, murabahah dan qardh. Sharia receivables arise from transactions based on ijarah, murabahah, and qardh agreements. Ijarah adalah sewa menyewa atas suatu barang dan/atau jasa antara pemilik objek sewa termasuk kepemilikan hak pakai atas objek sewa dengan penyewa untuk mendapatkan imbalan atas objek sewa yang disewakan. Ijarah muntahiyah bittamlik adalah sewa menyewa antara pemilik objek sewa dan penyewa untuk mendapatkan imbalan atas obyek sewa yang disewakan dengan opsi perpindahan hak milik objek sewa baik dengan jual beli atau pemberian (hibah) pada saat tertentu sesuai akad sewa. Ijarah is a leasing arrangement of goods and/or services between the owner of a leased object (lessor) and lessee including the right to use the leased object, for the purpose of obtaining a return on the leased object. Ijarah muntahiyah bittamlik is a leasing arrangement between the lessor and lessee to obtain profit on the leased object being leased with an option to transfer ownership of the leased object through purchase/sale or giving (hibah) at certain time according to the lease agreement (akad). Murabahah adalah transaksi penjualan barang dengan menyatakan harga perolehan dan keuntungan (marjin) yang disepakati oleh penjual dan pembeli. Murabahah is sales transaction for goods that provides the purchase price and margin agreed by both buyer and seller. Piutang murabahah pada awalnya diukur pada nilai bersih yang dapat direalisasi ditambah dengan biaya transaksi yang dapat diatribusikan secara langsung dan biaya tambahan untuk memperoleh aset keuangan tersebut, dan setelah pengakuan awal diukur pada biaya perolehan diamortisasi menggunakan metode tingkat imbal hasil efektif dikurangi cadangan kerugian penurunan nilai. Murabahah receivables are initially measured at net realizable value plus transaction costs that are directly attributable and additional costs to obtain financial assets, and after initial recognition are measured at amortized cost based on effective rate of return method less allowance for impairment losses. Pada setiap tanggal laporan posisi keuangan konsolidasian, Bank mengevaluasi apakah terdapat bukti obyektif bahwa piutang murabahah yang tidak dicatat pada nilai wajar melalui laporan laba rugi telah mengalami penurunan nilai. Piutang murabahah mengalami penurunan nilai jika bukti obyektif menunjukkan bahwa peristiwa yang merugikan telah terjadi setelah pengakuan awal, dan peristiwa tersebut berdampak pada arus kas masa datang yang dapat diestimasi secara handal. At each consolidated statement of financial position date, the Bank assesses whether there is objective evidence that Murabahah receivables not carried at fair value through profit or loss are impaired. Murabahah receivables are impaired when objective evidence demonstrates that loss event has occurred after the initial recognition, and the loss event has an impact on the future cash flows that can be estimated reliably. 57 872 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  873. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) l. AKUNTANSI YANG 2. Pinjaman yang diberikan (lanjutan) Pinjaman (lanjutan) berdasarkan prinsip SUMMARY OF SIGNIFICANT POLICIES (continued) l. syariah ACCOUNTING Loans (continued) Sharia financing (continued) Kriteria yang digunakan oleh Bank untuk menentukan bukti obyektif dari penurunan nilai adalah sebagai berikut: The criteria used by the Bank to determine that there is objective evidence of impairment include: a) kesulitan keuangan signifikan yang dialami penerbit atau pihak peminjam; b) pelanggaran kontrak, seperti terjadinya wanprestasi atau tunggakan pembayaran pokok atau marjin; c) pihak pemberi pinjaman, dengan alasan ekonomi atau hukum sehubungan dengan kesulitan keuangan yang dialami pihak peminjam, memberikan keringanan (konsesi) pada pihak peminjam yang tidak mungkin diberikan jika pihak peminjam tidak mengalami kesulitan tersebut; d) terdapat kemungkinan bahwa pihak peminjam akan dinyatakan pailit atau melakukan reorganisasi keuangan lainnya; e) hilangnya pasar aktif dari aset keuangan akibat kesulitan keuangan; atau a) significant financial difficulty of the issuer or obligor; b) a breach of contract, such as a default or delinquency in principal or margin payments; c) the lender, for economic or legal reasons relating to the borrower’s financial difficulty, grants the borrower a concession that the lender would not otherwise consider; d) it becomes probable that the borrower will enter into bankruptcy or other financial reorganisation; e) the disappearance of an active market for that financial asset because of financial difficulties; or f) 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 has not yet been identified individually in the portfolio, including: f) 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: 1) memburuknya status pembayaran pihak peminjam dalam kelompok tersebut; dan 2) kondisi ekonomi nasional atau lokal yang berkorelasi dengan wanprestasi atas aset dalam kelompok tersebut. 2) national or local conditions that correlate with defaults on the assets in the portfolio. Estimasi periode antara terjadinya peristiwa dan teridentifikasinya kerugian ditentukan oleh manajemen untuk setiap portofolio yang diidentifikasi. Pada umumnya, periode tersebut bervariasi antara 3 sampai 12 bulan, untuk kasus tertentu diperlukan periode yang lebih lama. The estimated period between the occurrence of the event and identification of loss is determined by management for each identified portfolio. In general, the periods used vary between 3 months to 12 months; in exceptional cases, longer periods are warranted. 1) adverse changes in the payment status of borrowers in the portfolio; and 58 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 873
  874. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) l. AKUNTANSI YANG 2. Pinjaman yang diberikan (lanjutan) Pinjaman (lanjutan) berdasarkan prinsip SUMMARY OF SIGNIFICANT POLICIES (continued) l. syariah ACCOUNTING Loans (continued) Sharia financing (continued) Bank pertama kali menentukan apakah piutang murabahah jumlahya signifikan secara individual. Apabila piutang murabahah jumlahnya signifikan secara individual, maka Bank akan menentukan apakah terdapat bukti obyektif penurunan nilai secara individual atas piutang murabahah. Jika Bank menentukan tidak terdapat bukti obyektif mengenai penurunan nilai atas piutang murabahah yang dinilai secara individual, terlepas piutang murabahah tersebut signifikan atau tidak, maka Bank memasukkan aset tersebut ke dalam kelompok piutang murabahah yang memiliki karakteristik risiko kredit yang serupa dan menilai penurunan nilai kelompok tersebut secara kolektif. Piutang murabahah yang penurunan nilainya dilakukan secara individual, dan untuk itu kerugian penurunan nilai telah diakui atau tetap diakui, tidak termasuk dalam penilaian penurunan nilai secara kolektif. The Bank first assesses whether the Murabahah receivables is individually significant. If the Murabahah receivables considered individually significant, the Bank will determines that objective of evidence of impairment exist or not. If the Bank determines that no objective evidence of impairment exists for an individually assessed Murabahah receivables, whether significant or not, it includes the asset in a group of Murabahah receivables with similar credit risk characteristics and collectively assesses them for impairment. Murabahah receivables that are individually assessed for impairment and for which an impairment loss is or continues to be recognized are not included in a collective assessment of impairment. Pinjaman qardh adalah pinjam meminjam dana tanpa imbalan yang diperjanjikan dengan kewajiban pihak peminjam mengembalikan pokok pinjaman secara sekaligus atau cicilan dalam jangka waktu tertentu. Pinjaman qardh meliputi hawalah dan rahn. Funds of qardh is borrowing funds without an agreed commitment of benefits where the borrower is obligated to repay the principal simultaneously or in installments in certain periods. Funds of qardh consists of hawalah and rahn. Hawalah merupakan akad pemindahan utang piutang nasabah kepada Bank dan atas transaksi ini Bank mendapat ujrah (imbalan) dan diakui pada saat diterima. Hawalah is a transfer of debt from the indebted parties (customers) to the Bank and for this transaction the Bank obtained an ujrah (fee) and is recognised upon receipt. Rahn merupakan transaksi menggadaikan barang atau harta dari nasabah kepada Bank dengan uang sebagai gantinya. Barang atau harta yang digadaikan tersebut dinilai sesuai harga pasar dikurangi persentase tertentu dan sebagai imbalannya Bank mendapatkan ujrah (imbalan) dan diakui berdasarkan basis akrual. Rahn is the pawn of goods or assets from customers to the Bank with the money as compensation. Goods or assets being pawned are valued in accordance with the market price less a certain percentage and in exchange for the Bank to obtain ujrah (benefits) and are recognised based on accrual basis. Pinjaman qardh diakui sebesar jumlah dana yang dipinjamkan pada saat terjadinya. Kelebihan penerimaan dari pinjaman atas qardh yang dilunasi diakui sebagai pendapatan pada saat terjadinya. Pinjaman qardh disajikan sebesar saldonya dikurangi penyisihan kerugian. Bank menetapkan penyisihan kerugian qardh berdasarkan penelaahan atas masing-masing saldo. Funds of qardh is recognised at the amount lent at the transaction date. Any excess amount paid by the borrower in repaying a qardh is recognised as revenue upon realization. Funds of qardh is stated at its outstanding balance less allowance for possible losses. The Bank provides allowance for possible losses on qardh based on the review of the quality of individual outstanding balances. 59 874 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  875. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) l. AKUNTANSI YANG 2. Pinjaman yang diberikan (lanjutan) Pinjaman (lanjutan) berdasarkan prinsip SUMMARY OF SIGNIFICANT POLICIES (continued) l. syariah ACCOUNTING Loans (continued) Sharia financing (continued) Pembiayaan Mudharabah adalah penanaman dana dari pemilik dana (shahibul maal) kepada pengelola dana (mudharib) untuk melakukan kegiatan usaha tertentu, dengan menggunakan bagi laba (profit sharing) atau metode bagi hasil usaha (gross profit margin) antara kedua belah pihak berdasarkan nisbah yang telah disepakati sebelumnya. Bank mengenakan bagi hasil berdasarkan metode bagi hasil usaha (gross profit margin). Mudharabah financing is investment of funds from the owner of funds (shahibul maal) to the fund manager (mudharib) to conduct certain business activity, with profit sharing or net revenue sharing method between the two parties based on a mutually agreed predetermined ratio. The Bank uses profit sharing scheme based on gross profit margin method. Pembiayaan Mudharabah dinyatakan sebesar saldo pembiayaan dikurangi dengan penyisihan kerugian. Bank menetapkan penyisihan kerugian sesuai dengan kualitas pembiayaan berdasarkan penelaahan atas masing-masing saldo pembiayaan. Apabila sebagian pembiayaan Mudharabah hilang sebelum dimulainya usaha karena adanya kerusakan atau sebab lainnya tanpa adanya kelalaian atau kesalahan pihak pengelola dana, maka rugi tersebut mengurangi saldo pembiayaan Mudharabah dan diakui sebagai kerugian Bank. Apabila sebagian pembiayaan Mudharabah hilang setelah dimulainya usaha tanpa adanya kelalaian atau kesalahan pengelola dana, maka rugi tersebut diperhitungkan pada saat bagi hasil. Kerugian pembiayaan mudharabah akibat kelalaian atau kesalahan pengelola dana dibebankan pada pengelola dana dan tidak mengurangi saldo pembiayaan mudharabah. Mudharabah financing is stated at the outstanding balance, net of allowance for possible losses. The Bank provides allowance for possible losses based on the financing quality as determined by a review of each account. In the event that a portion of the mudharabah financing is lost prior to the start of operations due to damage or any other reasons without negligence or error on the part of the fund manager, the loss shall be deducted from mudharabah financing balance and shall be recognised as a loss by the Bank. If part of financing is lost after the commencement of business without negligence or fault of the fund manager, such loss is calculated during profit sharing. Loss on mudharabah financing due to negligence or error on the part of the fund manager is charged to the fund manager and not deducted from the mudharabah financing balance. Pembiayaan 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 non-kas yang diperkenankan oleh syariah. Musyarakah financing is an agreement between two or more parties for a particular business, in which each party contributes funds provided that the profits are divided according to the agreement, while losses are based on the portion of fund contributions. The fund consists of cash or non-cash assets allowed by sharia. Pembiayaan musyarakah dinyatakan sebesar saldo pembiayaan dikurangi dengan saldo penyisihan kerugian. Bank menetapkan penyisihan kerugian sesuai dengan kualitas pembiayaan berdasarkan penelaahan atas masing-masing saldo pembiayaan. Musyarakah financing is stated at outstanding balance, net of allowance for possible losses. The Bank provides allowance for possible losses based on the financing quality as determined by a review of each account. 60 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 875
  876. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) AKUNTANSI YANG 2. m. Kontrak jaminan keuangan n. SUMMARY OF SIGNIFICANT POLICIES (continued) ACCOUNTING m. Financial guarantee contracts 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 dan fasilitas-fasilitas perbankan lainnya. 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 and other banking facilities. Jaminan keuangan diakui awalnya 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. Setelah pengakuan awal, liabilitas atas jaminan tersebut diukur pada jumlah yang lebih tinggi antara jumlah awal, dikurangi amortisasi provisi dan estimasi terbaik dari jumlah yang diharapkan akan terjadi untuk menyelesaikan jaminan tersebut. Estimasi ini ditentukan berdasarkan pengalaman transaksi yang sejenis dan kerugian historis masa lalu, dilengkapi dengan penilaian manajemen. Pendapatan provisi yang diperoleh diamortisasi selama jangka waktu jaminan menggunakan metode garis lurus. Financial guarantees are initially recognised 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. Subsequent to initial recognition, the bank’s liabilities under such guarantees are measured at the higher of the initial amount, less amortisation of fees recognised, and the best estimate of the amount required to settle the guarantee. These estimates are determined based on experience of similar transactions and history of past losses, supplemented by the judgement of management. The fee income earned is amortised over the period of guarantees using the straight line method. Setelah pengakuan awal kontrak, jaminan keuangan dicatat pada nilai yang lebih tinggi antara nilai wajar amortisasi dengan present value atas pembayaran kewajiban yang diharapkan akan terjadi (ketika pembayaran atas jaminan menjadi probable). 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). Cadangan kerugian penurunan nilai atas kontrak jaminan keuangan yang memiliki risiko kredit dihitung berdasarkan kerugian historis. Allowances for impairment on financial guarantee contracts with credit risk are calculated based on historical experience. Tagihan dan liabilitas akseptasi n. Acceptances receivables and payables Tagihan akseptasi diklasifikasikan sebagai pinjaman yang diberikan dan piutang. Liabilitas akseptasi diklasifikasikan sebagai liabilitas keuangan lainnya. Acceptances receivables are classified as loans and receivables. Acceptances payables are classified as other financial liabilities. Tagihan dan liabilitas akseptasi dinyatakan sebesar biaya perolehan diamortisasi. Tagihan akseptasi disajikan setelah dikurangi cadangan kerugian penurunan nilai. Acceptances receivables and payables are stated at amortized cost. Acceptances receivables are stated net of allowance for impairment losses. Lihat Catatan 2c untuk kebijakan akuntansi atas aset dan liabilitas keuangan. Refer to Note 2c for the accounting policies of financial assets and liabilities. 61 876 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  877. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) o. AKUNTANSI YANG 2. Penyertaan saham SUMMARY OF SIGNIFICANT POLICIES (continued) o. ACCOUNTING Equity investments Penyertaan saham merupakan penanaman dana dalam bentuk saham pada perusahaan non-publik yang bergerak di bidang jasa keuangan untuk tujuan jangka panjang. Equity investments represent investments in the form of shares of stock, in non-public companies engaged in financial services held for long-term purposes. Investasi dalam saham yang diklasifikasikan sebagai aset keuangan tersedia untuk dijual dicatat sebesar biaya perolehan setelah pengakuan awalnya karena terdiri dari efek ekuitas tanpa harga kuotasi yang nilai wajarnya tidak dapat diukur secara andal, kecuali untuk investasi dalam saham tertentu yang memiliki harga kuotasi dicatat sebesar nilai wajar setelah pengakuan awalnya. Investments in shares classified as availablefor-sale financial asset is carried at cost after it’s initial recognition as it consist of unquoted equity securities whose fair value cannot be reliably measured, except for certain investment in shares that has quoted price which is accounted for at fair value after initial recognition. Investasi dimana BNI mempunyai persentase kepemilikan 20% sampai dengan 50% atau di perusahan asosiasi dimana Bank mempunyai pengaruh signifikan dicatat dengan metode ekuitas. Dengan metode ekuitas, investasi dicatat sebesar biaya perolehan dan disesuaikan dengan bagian BNI atas laba atau rugi neto perusahaan asosiasi sesuai dengan jumlah persentase kepemilikan dan dikurangi dengan penerimaan dividen sejak tanggal perolehan. Investments in which BNI has an ownership interest of 20% to 50% or an associated company in which the Bank has significant influence are recorded based on the equity method. Under equity method, investments are stated at cost and adjusted for BNI’s share in net income or losses of the associated companies based on its percentage of ownership and reduced by dividends received since the date of acquisition. Investasi dengan persentase kepemilikan dibawah 20% dan tidak memiliki pengaruh yang signifikan dicatat dengan metode biaya dikurangi dengan cadangan kerugian penurunan nilai. Investments with an ownership interest below 20% and have no significant influence are carried at cost reduced by an allowance for impairment losses. Penyertaan saham dengan metode biaya terdiri dari efek ekuitas tanpa harga kuotasi yang nilai wajarnya tidak dapat diukur secara handal, diklasifikasikan sebagai investasi tersedia untuk dijual dan diukur dengan menggunakan biaya perolehan dikurangi dengan penurunan nilai. Equity investments at cost method consist of unquoted equity shares whose fair value can not be reliably measured, are classified as available-for-sale investments and are carried at cost less impairment. Penyertaan sementara pada perusahaan debitur timbul akibat konversi pinjaman yang diberikan menjadi saham. Pada saat pengakuan awal, saham yang diterima diakui dengan nilai wajar. Selanjutnya, saham tersebut dinilai dengan menggunakan metode ekuitas apabila BNI memiliki pengaruh signifikan terhadap investees dan metode biaya atau nilai wajar apabila BNI tidak memiliki pengaruh signifikan terhadap investees. Kerugian penurunan nilai diakui apabila terdapat penurunan permanen atas penyertaan sementara dengan menggunakan metode individual assessment. Temporary investments in debtor companies arise from conversion of loans to shares/equity. At initial recognition, shares received were recognized at fair value. Subsequently, the shares are recognized using equity method if BNI has significant influence over the investees or at costs/fair value if BNI does not have significant influence over the investees. Loss from permanent decline in investment values of temporary investments are recognized using the individual assessment method. 62 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 877
  878. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) o. AKUNTANSI YANG 2. Penyertaan saham (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) o. Penyertaan sementara dihapusbuku dari laporan posisi keuangan konsolidasian apabila telah melampaui jangka waktu 5 tahun sesuai dengan Peraturan Bank Indonesia No. 7/2/PBI/2005 tanggal 20 Januari 2005 tentang “Penilaian Kualitas Aktiva Bank Umum”, sebagaimana telah diubah dengan PBI No. 11/2/2009 tanggal 29 Januari 2009. Sejak 24 Oktober 2012, Grup mengikuti PBI No. 14/15/PBI/2012 tanggal 24 Oktober 2012 tentang “Penilaian Kualitas Aset Bank Umum” dan Surat Edaran Bank Indonesia (SEBI) No. 15/28/DPNP tanggal 31 Juli 2013 tentang Penilaian Kualitas Aset Bank Umum. p. ACCOUNTING Equity investments (continued) Temporary investment is written-off from the consolidated statement of financial position if it is held for more than 5 years in accordance with Bank Indonesia Regulation No. 7/2/PBI/2005 dated 20 January 2005 on “Asset Quality Ratings for Commercial Banks”, as amended by Bank Indonesia Regulation No. 11/2/PBI/2009 dated 29 January 2009. Since 24 October 2012, the Group follows Bank Indonesia Regulation No. 14/15/PBI/2012 dated 24 October 2012 regarding “Asset Quality Rating for Commercial Banks” and Circular Letter of Bank Indonesia No.15/28/DPNP dated 31 July 2013 regarding Asset Quality Ratings for Commercial Banks. Aset tetap dan penyusutan p. Fixed assets and depreciation Grup menerapkan kebijakan akuntansi model revaluasi untuk aset tetap berupa tanah dan bangunan. Untuk aset tetap selain tanah dan bangunan menggunakan model biaya. The Group applies revaluation model as accounting policy for land and buildings. For fixed assets other than land and buildings, it applies cost model. Tanah dan bangunan disajikan sebesar nilai wajar, dikurangi akumulasi penyusutan untuk bangunan. Penilaian terhadap tanah dan bangunan dilakukan oleh penilai independen eksternal yang telah memiliki sertifikasi. Penilaian atas aset tersebut dilakukan secara berkala 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 shown at fair value, less subsequent depreciation for buildings. Valuation of land and buildings are performed by external independent valuers with certain qualification. Valuations are performed with sufficient regularity to ensure that the fair value of a 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. Penilaian terhadap tanah dan bangunan dilakukan oleh penilai independen eksternal yang memiliki sertifikasi. Penilaian atas aset tersebut dilakukan secara berkala untuk memastikan bahwa nilai wajar aset yang direvaluasi tidak berbeda secara material dengan nilai tercatatnya. Appraisal of land and buildings is carried out by a certified external independent appraiser. Assessment of these assets are conducted regularly to ensure that the fair value of the revaluated asset is not materially different from it’s carrying value. Jika nilai wajar dari aset yang direvaluasi mengalami perubahan yang signifikan dan fluktuatif, maka perlu direvaluasi secara tahunan, sedangkan jika nilai wajar dari aset yang direvaluasi tidak mengalami perubahan yang signifikan dan fluktuatif, maka perlu dilakukan revaluasi paling kurang 3 tahun sekali. If the fair value of the revalued asset change significantly, it is necessary to revaluate on an annual basis, whereas if the fair value of the revaluated asset does not change significantly, it is necessary to revaluate at a minimum every 3 years. 63 878 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  879. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) p. AKUNTANSI YANG 2. Aset tetap dan penyusutan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) p. ACCOUNTING Fixed assets and depreciation (continued) Kenaikan nilai tercatat yang timbul dari revaluasi tanah dan bangunan dicatat sebagai “Cadangan Revaluasi Aset” dan disajikan sebagai “Pendapatan Komprehensif Lain”. Penurunan nilai tercatat yang timbul dari revaluasi dicatat sebagai beban pada tahun berjalan. Apabila aset tersebut memilki saldo “Keuntungan Revaluasi Aset Tetap” yang disajikan sebagai “Pendapatan Komprehensif Lain”, maka selisih penurunan nilai tercatat tersebut dibebankan terhadap “Keuntungan Revaluasi Aset Tetap” dan sisanya diakui sebagai beban tahun berjalan. Increases in the carrying amount arising on revaluation of land and bulidings are recorded in “Asset Revaluation Reserve” and presented as “Other Comprehensive Income”. Decrease in carrying amount as the result of revaluation is recorded as expense in the current year. If the asset does have balance on its “Gain on Revaluation of Fixed Assets”, loss from revaluation of fixed asset is charged to “Gain on Revaluation of Fixed Assets” which is presented as “Other Comprehensive Income” and the rest of the amount is charged to current year’s expenses. Aset tetap selain tanah dan bangunan disajikan sebesar harga perolehan dikurangi dengan akumulasi penyusutan. Fixed assets besides land and buildings are stated at historical cost less accumulated depreciation. Biaya perolehan termasuk biaya penggantian bagian aset tetap saat biaya tersebut terjadi, jika memenuhi kriteria pengakuan. Cost includes the replacement cost of a part of the fixed assets when the expenditure meets the criteria for recognition. Semua biaya pemeliharaan dan perbaikan yang tidak memenuhi kriteria untuk dikapitalisasi diakui dalam laporan laba rugi pada saat terjadinya. Pada setiap akhir tahun buku, nilai residu, umur manfaat, dan metode penyusutan ditelaah kembali dan jika sesuai dengan keadaan, disesuaikan secara prospektif. All maintenance and repair costs which do not fulfill the capitalization criteria, are recognized in profit or loss upon occurrence. At each financial year end, the assets’ residual values, useful lives and methods of depreciation are reviewed, and adjusted prospectively as appropriate. Semua aset tetap kecuali tanah, disusutkan berdasarkan metode garis lurus selama estimasi masa manfaat aset tersebut sebagai berikut: All fixed assets, except land, are depreciated using the straight-line method over their expected useful lives as follows: Tarif Penyusutan/ Depreciation Rate Bangunan Perlengkapan kantor dan kendaraan bermotor Tahun/Years 6.67% 15 20.00% 5 Buildings Office equipment and motor vehicles 64 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 879
  880. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) p. AKUNTANSI YANG 2. Aset tetap dan penyusutan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) p. ACCOUNTING Fixed assets and depreciation (continued) Perlengkapan kantor terdiri dari perabotan dan perlengkapan, instalasi, Anjungan Tunai Mandiri (ATM), perangkat lunak dan perangkat keras komputer, peralatan komunikasi dan peralatan kantor lainnya. Office equipment consists of furniture and fixtures, installation, Automatic Teller Machines (ATM), computer software and hardware, communication and other office equipment. Semua biaya yang terjadi sehubungan dengan perolehan hak atas tanah, diakui sebagai biaya perolehan hak atas tanah. Biaya pengurusan legal hak atas tanah ketika tanah diperoleh pertama kali diakui sebagai bagian dari biaya perolehan aset tanah. Biaya pengurusan perpanjangan atau pembaruan legal hak atas tanah diakui sebagai aset tak berwujud dan diamortisasi sepanjang umur hukum hak atau umur ekonomis tanah, mana yang lebih pendek. All costs incurred in connection with the acquisition of land right are recognized as the acquisition cost of land right. The legal cost incurred when the land was first acquired is recognized as part of the acquisition cost of land right. Extension or renewal of the maintenance cost of legal rights over land is recognized as an intangible asset and amortized over the life of legal rights or economic life of the land, whichever is shorter. Hak atas tanah tidak disusutkan kecuali terdapat bukti sebaliknya yang mengindikasikan bahwa perpanjangan atau pembaruan hak atas tanah kemungkinan besar atau pasti tidak diperoleh. Land right is not depreciated unless there is contrary evidence indicating that the extension or renewal of land right is likely or definitely not obtainable. Apabila nilai tercatat aset lebih besar dari nilai yang dapat diperoleh kembali, nilai tercatat aset diturunkan menjadi sebesar nilai yang dapat diperoleh kembali, yang ditentukan sebagai nilai tertinggi antara harga jual neto dan nilai yang dipakai. When the carrying amount of an asset is greater than its estimated recoverable amount, it is written down to its recoverable amount, which is determined as the higher of the net selling price or value in use. Apabila aset tetap tidak digunakan lagi atau dijual, maka nilai perolehan dan akumulasi penyusutannya dihapuskan dari akun tersebut. Keuntungan atau kerugian yang terjadi diakui dalam laporan laba rugi. When fixed assets are retired or disposed of, their costs and the related accumulated depreciation are derecognized from the accounts. Any resulting gain or loss is recognized in profit or loss. Akumulasi biaya konstruksi aset tetap dikapitalisasi dan dicatat sebagai “Aset dalam Penyelesaian”. Biaya tersebut direklasifikasi ke akun aset tetap yang terkait pada saat proses konstruksi atau pemasangan telah selesai. The accumulated costs of construction of fixed assets are capitalized and recognized as “Construction in progress”. These costs are reclassified to the related fixed assets account when the construction or installation is completed. 65 880 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  881. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) q. r. AKUNTANSI YANG 2. Agunan yang diambil alih SUMMARY OF SIGNIFICANT POLICIES (continued) q. ACCOUNTING Foreclosed collaterals Agunan yang diambil alih disajikan dalam akun “Aset Lain-lain”. Foreclosed collaterals are included in the “Other Assets” account. Agunan yang diambil alih (AYDA) adalah aset yang diperoleh BNI 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 liabilitasnya kepada BNI dan entitas anak. AYDA merupakan jaminan kredit yang diberikan yang telah diambil alih sebagai bagian dari penyelesaian kredit yang diberikan dan disajikan pada “Aset lain-lain”. Foreclosed collaterals represent assets acquired by BNI and Subsidiaries, both from auction and non-auction based on voluntary transfer by the debtor or based on debtor’s approval to sell the collateral where the debtor could not fulfill its obligations to BNI and Subsidiaries. Foreclosed collaterals represent loan collateral that were taken over as part of loans settlement and presented in “Other Assets”. Agunan yang diambil alih diakui sebesar nilai neto yang dapat direalisasi atau sebesar nilai outstanding kredit yang diberikan, mana yang lebih rendah. Nilai neto yang dapat direalisasi adalah nilai wajar agunan yang diambil alih dikurangi dengan estimasi biaya untuk menjual agunan tersebut. Selisih lebih saldo kredit di atas nilai neto yang dapat direalisasi dari agunan yang diambil alih dibebankan ke dalam akun cadangan kerugian penurunan nilai aset. Selisih antara nilai agunan yang diambil alih dengan hasil penjualan diakui sebagai keuntungan atau kerugian pada saat penjualan. Foreclosed collaterals are stated at net realizable value or stated at loan outstanding amount, whichever is lower. Net realizable value is the fair value of the foreclosed collaterals less the estimated costs to sell the assets. The excess of loan receivable over the net realizable value of the foreclosed collateral is charged to allowance for impairment losses. The difference between the recorded amount of the foreclosed collateral and the proceeds from the sale of such collateral is recorded as a gain or loss at the time of sale. Beban-beban yang berkaitan dengan pemeliharaan agunan yang diambil alih dibebankan dalam laporan laba rugi pada saat terjadinya. Maintenance and repair costs related to foreclosed collaterals are charged as an expense in profit or loss when incurred. Bila terjadi penurunan nilai yang bersifat permanen, maka nilai tercatatnya dikurangi untuk mengakui penurunan tersebut dan kerugiannya dibebankan dalam laporan laba rugi. If there is permanent decline in value, the carrying amount of foreclosed collaterals is written down to recognise such permanent decline in value and any such write-down is recognized in profit or loss. Liabilitas segera r. Obligations due immediately Liabilitas segera dicatat pada saat liabilitas kepada masyarakat maupun kepada bank lain timbul. Obligations due immediately are recorded at the time obligations to public customers or other banks arise. Akun ini diklasifikasikan sebagai liabilitas keuangan lain dan dihitung berdasarkan biaya perolehan diamortisasi. This account is classified as other financial liabilities and is measured at amortized cost. Lihat Catatan 2c untuk kebijakan akuntansi atas aset dan liabilitas keuangan. Refer to Note 2c for the accounting policies of financial assets and liabilities. 66 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 881
  882. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) s. AKUNTANSI YANG 2. Simpanan Nasabah Giro merupakan simpanan nasabah penarikannya dapat dilakukan setiap menggunakan cek, atau dengan pemindah bukuan dengan bilyet giro sarana perintah pembayaran lainnya. SUMMARY OF SIGNIFICANT POLICIES (continued) s. ACCOUNTING Deposits from customers yang saat cara atau Current accounts represent funds deposited by customers whereby the withdrawal can be done at any time by using a cheque or through transfer with a bank draft or other forms of payment order. Tabungan merupakan simpanan nasabah di BNI dan Entitas Anak yang bergerak di bidang perbankan yang penarikannya hanya dapat dilakukan melalui counter dan Anjungan Tunai Mandiri (ATM) atau dengan cara pemindahbukuan melalui SMS Banking, Phone Banking dan Internet Banking jika memenuhi persyaratan yang disepakati, tetapi penarikan tidak dapat dilaksanakan dengan menggunakan cek atau instrumen setara lainnya. Savings account represent deposits of customers in BNI and a Subsidiary engaged in banking that may only be withdrawn over the counter and via ATMs or fund transfers by SMS Banking, Phone Banking and Internet Banking when certain agreed conditions are met, but which may not be withdrawn by cheque or other equivalent instruments. Deposito berjangka merupakan simpanan nasabah di BNI dan Entitas Anak yang bergerak di bidang perbankan yang penarikannya hanya dapat dilakukan pada waktu tertentu sesuai dengan perjanjian antara nasabah dengan BNI dan Entitas Anak yang bergerak di bidang perbankan. Time deposits represent customer’s deposits in BNI and a Subsidiary engaged in banking that may be withdrawn at a certain time based on the agreement between the depositor and BNI and a Subsidiary engaged in banking. Termasuk di dalam simpanan adalah simpanan syariah yang terdiri dari giro wadiah dan tabungan wadiah. Giro wadiah merupakan giro wadiah yad adh-dhamanah yakni titipan dana pihak lain dimana pemilik dana mendapatkan bonus berdasarkan kebijakan BNI Syariah. Giro wadiah dicatat sebesar nilai titipan pemegang giro wadiah. Deposits include sharia deposits consisting of wadiah deposit and saving deposit. Wadiah deposit is a wadiah yad adh-dhamanah deposit in which the depositor is entitled to receive bonus income based on the policy of BNI Syariah. Wadiah demand deposits are stated at the amount payable to customers. Tabungan wadiah merupakan simpanan pihak lain yang bisa diambil kapan saja (on call) atau berdasarkan kesepakatan dimana tidak ada imbalan yang disyaratkan kecuali dalam bentuk pemberian (‘Athaya) yang bersifat sukarela dari pihak Bank. Saving deposits represent third party funds that can be taken at any time (on call) or by an agreement which required no reward except in the form of (‘Athaya) is voluntary on the part of Banks. Simpanan nasabah diklasifikasikan sebagai liabilitas keuangan lain yang diukur dengan biaya perolehan diamortisasi menggunakan metode suku bunga efektif kecuali simpanan syariah yang dinyatakan sebesar nilai liabilitas BNI Syariah kepada nasabah. Biaya tambahan yang dapat diatribusikan secara langsung dengan perolehan simpanan nasabah dikurangkan dari jumlah simpanan yang diterima. Deposits from customers are classified as other financial liabilities which are measured at amortized cost using effective interest rate method except sharia deposits which are stated at the amount payable by BNI Syariah to customers. Incremental costs directly attributable to the acquisition of deposits from customers are deducted from the amount of deposits. Lihat Catatan 2c untuk kebijakan akuntansi atas aset dan liabilitas keuangan. Refer to Note 2c for the accounting policies of financial assets and liabilities. 67 882 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  883. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) t. u. v. AKUNTANSI YANG 2. Simpanan dari bank lain SUMMARY OF SIGNIFICANT POLICIES (continued) t. ACCOUNTING Deposits from other banks Simpanan dari bank lain terdiri dari liabilitas terhadap bank lain baik lokal maupun luar negeri, dalam bentuk giro, inter-bank call money dengan periode jatuh tempo menurut perjanjian kurang dari atau 90 hari, deposito berjangka, dan sertifikat deposito. Deposits from other banks represent liabilities to local and overseas banks, in the form of current accounts, inter-bank call money with original maturities of 90 days or less, time deposits and certificates of deposits. Di dalam simpanan dari bank lain termasuk simpanan syariah dalam bentuk giro wadiah dan tabungan wadiah. Deposits from other banks include sharia deposits in the form of wadiah demand deposits and saving deposits. Simpanan dari bank lain diklasifikasikan sebagai liabilitas keuangan lain yang diukur dengan biaya perolehan diamortisasi dengan menggunakan metode suku bunga efektif kecuali simpanan syariah yang dinyatakan sebesar nilai liabilitas BNI Syariah kepada nasabah. Biaya tambahan yang dapat diatribusikan secara langsung dengan perolehan simpanan dari bank lain dikurangkan dari jumlah simpanan yang diterima. Deposits from other banks are classified as other financial liabilities which are measured at amortised cost using effective interest rate method except sharia deposits which are stated at the amounts payable by BNI Syariah to the customers. Incremental costs directly attributable to the acquisition of deposits from other banks are deducted from the amount of deposits. Lihat Catatan 2c untuk kebijakan akuntansi atas aset dan liabilitas keuangan. Refer to Note 2c for the accounting policies of financial assets and liabilities. Efek-efek yang diterbitkan u. Securities issued Efek-efek yang diterbitkan terdiri dari obligasi yang diterbitkan oleh Grup. Securities issued consist of bonds issued by the Group. Efek-efek yang diterbitkan diklasifikasikan sebagai liabilitas keuangan lain yang diukur dengan biaya perolehan diamortisasi. Biaya tambahan yang dapat diatribusikan secara langsung dengan penerbitan efek dikurangkan dari jumlah efek-efek yang diterbitkan. Securities issued are classified as other financial liabilities which are measured at amortized cost. Incremental costs directly attributable to the issuance of marketable securities are deducted from the amount of securities issued. Obligasi yang diterbitkan dicatat sebesar nilai nominal dikurangi saldo diskonto yang belum diamortisasi. Biaya-biaya yang terjadi sehubungan dengan penerbitan obligasi dicatat sebagai pengurang hasil emisi dan diamortisasi selama jangka waktu obligasi dengan menggunakan metode suku bunga efektif. Bonds issued are presented at nominal value net of unamortized discount. Costs incurred related to the bonds issuance are presented as deduction from the proceeds of bonds issued and amortized over the term of the bonds using the effective interest rate method. Lihat Catatan 2c untuk kebijakan akuntansi atas aset dan liabilitas keuangan. Refer to Note 2c for the accounting policies of financial assets and liabilities. Pinjaman yang diterima v. Pinjaman diterima merupakan dana yang diterima dari bank lain, Bank Indonesia atau pihak lain dengan liabilitas pembayaran kembali sesuai dengan persyaratan perjanjian pinjaman. Borrowings Borrowings are funds received from other banks, Bank Indonesia or other parties with payment obligation based on borrowings agreement. 68 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 883
  884. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) v. AKUNTANSI YANG 2. Pinjaman yang diterima (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) v. ACCOUNTING Borrowings (continued) Pinjaman diterima diakui sebesar nilai wajar pada awalnya dan selanjutnya diukur sebesar biaya perolehan diamortisasi dengan menggunakan metode suku bunga efektif. Biaya perolehan diamortisasi dihitung dengan memperhitungkan adanya diskonto atau premi terkait dengan pengakuan awal pinjaman diterima dan biaya transaksi merupakan bagian tidak terpisahkan dari metode suku bunga efektif. Borrowings are initially recognized at fair value and subsequently measured at amortized cost using the effective interest rate method. Amortized cost is calculated by taking into account any discount or premium related to the initial recognition of borrowings and transaction costs that are an integral part of the effective interest rate method. Lihat Catatan 2c untuk kebijakan akuntansi atas aset dan liabilitas keuangan. Refer to Note 2c for the accounting policies of financial assets and liabilities. w. Temporary syirkah funds w. Dana syirkah temporer Dana syirkah temporer merupakan investasi dengan akad mudharabah mutlaqah, yaitu pemilik dana (shahibul maal) memberikan kebebasan kepada pengelola dana (mudharib/BNI Syariah) dalam pengelolaan investasinya dengan keuntungan dibagikan sesuai kesepakatan. Dana syirkah temporer terdiri dari giro mudharabah, tabungan mudharabah, deposito mudharabah dan sukuk mudharabah. Temporary syirkah funds represent investments from other parties conducted on the basis mudharabah mutlaqah contract in which the owners of the funds (shahibul maal) grant freedom to the fund manager (mudharib/BNI Syariah) in the management of their investments with profit distributed based on the contract. Temporary syirkah funds consist of mudharabah current accounts, mudharabah saving deposits, mudharabah time deposits and mudharabah sukuk issued. Giro dan tabungan mudharabah merupakan investasi yang bisa ditarik kapan saja (on call) atau sesuai dengan persyaratan tertentu yang disepakati. Giro dan tabungan mudharabah dinyatakan sebesar saldo giro dan tabungan nasabah di Bank. Mudharabah current accounts and saving deposits represent investment which could be withdrawn anytime (on call) or can be withdrawn based on certain agreed terms. Mudharabah current accounts and savings deposits are stated based on the customer’s current accounts and savings deposit balance in the Bank. Deposito mudharabah merupakan investasi yang hanya bisa ditarik pada waktu tertentu sesuai dengan perjanjian antara pemegang deposito mudharabah dengan Bank. Deposito mudharabah dinyatakan sebesar nilai nominal sesuai dengan perjanjian antara pemegang deposito dengan Bank. Mudharabah time deposits represent investment that can only be withdrawn at a certain time based on the agreement between the customer and the Bank. Mudharabah time deposits are stated at nominal amount as agreed between the deposit holder and the Bank. 69 884 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  885. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) AKUNTANSI YANG 2. w. Dana syirkah temporer (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) ACCOUNTING w. Temporary syirkah funds (continued) Sukuk mudharabah yang diterbitkan merupakan sukuk yang menggunakan akad mudharabah. Sukuk mudharabah diakui pada saat entitas menjadi pihak yang terikat dengan ketentuan penerbitan sukuk mudharabah. Sukuk mudharabah diakui sebesar nilai nominal. Biaya transaksi diakui secara terpisah dari sukuk mudharabah. Biaya transaksi untuk penerbitan sukuk mudharabah disajikan dalam aset sebagai biaya yang ditangguhkan dan diamortisasi sepanjang jangka waktu sukuk menggunakan garis lurus. Penerbitan sukuk dan perdagangan sukuk berdasarkan akad syariah, termasuk adanya aset/aktivitas yang mendasari. Pemilik sertifikat sukuk mudharabah mendapatkan bagi hasil. Mudharabah sukuk issued is a sukuk using the contract of mudharabah. Sukuk mudharabah is recognized when the entity becomes a party in the issuance of contract mudharabah sukuk. Sukuk mudharabah is recognized at nominal value. Transaction costs are recognised separately from the sukuk mudharabah. Transaction costs for the issuance of sukuk mudharabah are presented as deferred expenses and amortized over the term of sukuk using the straight-line method. Sukuk issuance and trading of sukuk are based on the principles of sharia, including any underlying assets/activities. The holders of mudharabah sukuk certificate receive profit sharing. Dana syirkah temporer tidak dapat digolongkan sebagai kewajiban. BNI Syariah tidak berkewajiban untuk mengembalikan jumlah dana awal dari pemilik dana kecuali akibat kelalaian atau wanprestasi ketika mengalami kerugian. Di sisi lain dana syirkah temporer tidak dapat digolongkan sebagai ekuitas karena mempunyai waktu jatuh tempo dan pemilik dana tidak mempunyai hak kepemilikan yang sama dengan pemegang saham seperti hak voting dan hak atas realisasi keuntungan yang berasal dari aset lancar dan aset non-investasi (current and other non-investment accounts). Temporary syirkah fund cannot be classified as liability. BNI Syariah does not have any liability to return the initial fund to the owners, except for losses due to BNI Syariah’s management negligence or default of loss is incurred. On the other hand, temporary syirkah fund cannot be classified as shareholders’ equity, because of the maturity period and the depositors do not have the same rights as the shareholders’ such as voting rights and the rights of realised gain from current assets and other non-investment accounts. Pemilik dana syirkah temporer mendapatkan imbalan bagi hasil sesuai dengan nisbah yang ditetapkan. The owners of temporary syirkah funds receive a return from the profit sharing based on a predetermined ratio. Hak nasabah atas bagi hasil dana syirkah temporer merupakan bagian bagi hasil milik nasabah yang didasarkan pada prinsip mudharabah atas hasil pengelolaan dana mereka oleh Bank. Pendapatan yang dibagikan adalah yang telah diterima (cash basis). Third parties’ share on returns of temporary syirkah funds represents customer’s share on the Bank’s income derived from the management of their funds by the Bank under mudharabah principles. Income that will be distributed is the cash received (cash basis) from the share. Pembagian hasil usaha dilakukan berdasarkan prinsip bagi hasil usaha yaitu dari pendapatan Bank yang diterima berupa laba kotor (gross profit margin). The distribution of revenue is based on profit sharing scheme on the Bank’s gross profit margin. 70 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 885
  886. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) AKUNTANSI YANG 2. w. Dana syirkah temporer (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) w. Temporary syirkah funds (continued) Pendapatan marjin dan bagi hasil atas pembiayaan yang diberikan dan atas aset produktif lainnya akan dibagikan kepada nasabah penyimpan dana dan Bank sesuai dengan proporsi dana yang dipakai dalam pembiayaan yang diberikan dan aset produktif lainnya. Selanjutnya, pendapatan marjin dan bagi hasil yang tersedia untuk nasabah tersebut kemudian dibagihasilkan ke nasabah penabung dan deposan sebagai shahibul maal dan Bank sebagai mudharib sesuai porsi nisbah bagi hasil yang telah disepakati bersama sebelumnya. Pendapatan marjin dan bagi hasil dari pembiayaan dan aset produktif lainnya yang memakai dana Bank, seluruhnya menjadi milik Bank, termasuk pendapatan dari investasi Bank berbasis imbalan. x. ACCOUNTING Margin income and profit sharing on financing facilities and other earning assets are distributed to fund owners and the Bank based on proportion of fund used in the financing and other earning assets. Margin income and profit sharing income allocated to the fund owners are then distributed to fund owners and depositors as shahibul maal and the Bank as mudharib based on a predetermined ratio (nisbah). Margin income and profit sharing from financing facilities and other earning assets using the Bank's funds, are entirely allocated to the Bank, including income from the Bank's fee-based transactions. Pendapatan bunga dan pendapatan syariah, beban bunga dan beban syariah x. Interest income and sharia income, interest expense and sharia expense Pendapatan dan beban bunga untuk semua instrumen keuangan yang dikenakan suku bunga diakui pada laporan laba rugi dengan menggunakan metode suku bunga efektif. Interest income and expense for all interestbearing financial instruments are recognized in profit or loss using the effective interest rate method. Suku bunga efektif adalah suku bunga yang secara tepat mendiskontokan estimasi pembayaran atau penerimaan kas di masa datang selama perkiraan umur dari aset keuangan atau liabilitas keuangan (atau, jika lebih tepat, digunakan periode yang lebih singkat) untuk memperoleh nilai tercatat neto dari instrumen keuangan atau liabilitas keuangan. Pada saat menghitung suku bunga efektif, Bank mengestimasi arus kas di masa datang dengan mempertimbangkan seluruh persyaratan kontraktual dalam instrumen keuangan tersebut, tetapi tidak mempertimbangkan kerugian kredit di masa mendatang. Perhitungan ini mencakup seluruh komisi, provisi, dan bentuk lain diterima oleh para pihak dalam kontrak yang merupakan bagian tidak terpisahkan dari suku bunga efektif, biaya transaksi, dan seluruh premi atau diskon lainnya. The effective interest rate is the rate that exactly discounts the estimated future cash payments or receipts through the expected life of the financial assets and financial liabilities (or, where appropriate, a shorter period) to the carrying amount of the financial asset or financial liability. When calculating the effective interest rate, the Bank estimates future cash flows considering all contractual terms of the financial instrument but not future credit losses. This calculation includes all commissions, fees, and other forms received by the parties in the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts. Kredit yang pembayaran angsuran pokok atau bunganya telah lewat 90 hari atau lebih setelah jatuh tempo, atau kredit yang pembayarannya secara tepat waktu diragukan, secara umum diklasifikasikan sebagai kredit yang mengalami penurunan nilai (impairment). Loans for which the principal or interest has been past due for 90 days or more, or where reasonable doubt exists as to its timely collection, are generally classified as impaired loans. 71 886 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  887. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) x. y. AKUNTANSI YANG 2. Pendapatan bunga dan pendapatan syariah, beban bunga dan beban syariah (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) x. ACCOUNTING Interest income and sharia income, interest expense and sharia expense (continued) Jika aset keuangan atau kelompok aset keuangan serupa telah diturunkan nilainya sebagai akibat kerugian penurunan nilai, maka pendapatan bunga yang diperoleh setelahnya diakui berdasarkan suku bunga efektif yang digunakan untuk mendiskonto arus kas masa datang dalam menghitung kerugian penurunan nilai. If a financial asset or group of similar financial assets’ value has diminished as a result of impairment losses, interest income subsequently obtained is recognized based on the effective interest rate used to discount future cash flows in calculating impairment losses. Pendapatan dan beban bunga termasuk pendapatan dan beban syariah. Pendapatan syariah terdiri dari marjin murabahah, pendapatan ijarah (sewa), bagi hasil pembiayaan mudharabah dan musyarakah serta pendapatan qardh. Beban syariah terdiri dari beban bagi hasil mudharabah dan beban bonus wadiah. Interest income and expense include sharia income and expense. Sharia income represents profit from murabahah margin, lease income from ijarah, profit sharing from mudharabah and musyarakah financing and income from qardh. Sharia expenses consist of mudharabah profit sharing expenses and wadiah bonus expenses. Marjin Murabahah dan pendapatan ijarah 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 transaksi qardh diakui pada saat diterima. Murabahah margin and ijarah income are recognized over the period of the agreement based on accrual basis. Mudharabah and musyarakah income is recognized when cash is received or in a period where the right of revenue sharing is due based on agreed portion (nisbah). Qardh income is recognized upon receipt. Beban syariah merupakan bagi hasil untuk dana pihak ketiga dengan menggunakan prinsip bagi hasil berdasarkan porsi bagi hasil (nisbah) yang telah disepakati sebelumnya yang didasarkan pada prinsip mudharabah mutlaqah. Sharia expense represents revenue sharing for third party fund using the revenue sharing principle based on pre-determined nisbah in accordance with mudharabah mutlaqah principle. Pendapatan provisi dan komisi y. Fees and commission income Pendapatan provisi dan komisi yang berkaitan langsung dengan kegiatan pinjaman, atau pendapatan provisi dan komisi yang berhubungan dengan jangka waktu tertentu, diamortisasi sesuai dengan jangka waktu kontrak menggunakan metode suku bunga efektif dan diklasifikasikan sebagai bagian dari pendapatan bunga pada laporan laba rugi. Fees and commissions directly related to lending activities, or fees and commission income which relates to a specific period, is amortized over the term of contract using the effective interest rate method and classified as part of interest income in profit or loss. Pendapatan provisi dan komisi yang tidak berkaitan dengan kegiatan pemberian kredit atau 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 or a specific period are recognised as revenues on the transaction date as other operating income. 72 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 887
  888. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) z. AKUNTANSI YANG 2. Kontrak asuransi SUMMARY OF SIGNIFICANT POLICIES (continued) z. ACCOUNTING Insurance contract Kontrak asuransi adalah kontrak yang diterbitkan oleh perusahaan asuransi dimana pada saat penerbitan polis perusahaan asuransi menerima risiko asuransi yang signifikan dari pemegang polis. Insurance contract is contract issued by insurance company which accepts significant insurance risk from policyholder upon the issuance of the policy. Risiko asuransi yang signifikan adalah kemungkinan untuk membayar manfaat secara signifikan kepada pemegang polis apabila suatu kejadian yang diasuransikan terjadi dibandingkan dengan manfaat minimum yang akan dibayarkan apabila risiko yang diasuransikan tidak terjadi. Skenario-skenario yang diperhatikan adalah skenario yang mengandung unsur komersial. Significant insurance risk is the possibility of paying significantly more benefit to the policyholder upon the occurrence of insured event compared to the minimum benefit payable in a scenario where the insured event does not occur. Scenarios considered are those with commercial substance. BNI Life mendefinisikan risiko asuransi yang signifikan sebagai kemungkinan membayar manfaat pada saat terjadinya suatu kejadian yang diasuransikan, yang setidaknya 10% lebih besar dari manfaat yang dibayarkan jika kejadian yang diasuransikan tidak terjadi. Jika suatu kontrak asuransi tidak mengandung risiko asuransi yang signifikan, maka kontrak tersebut diklasifikasikan sebagai kontrak investasi. Ketika sebuah kontrak telah diklasifikasi sebagai kontrak asuransi, reklasifikasi terhadap kontrak tersebut tidak dapat dilakukan kecuali ketentuan perjanjian kemudian diamandemen. BNI Life defines significant insurance risk as the possibility of having to pay benefits on the occurrence of an insured event of at least 10% more than the benefits payable if the insured event did not occur. If the insurance contract does not contain significant insurance risk, the contract will be deemed as an investment contract. Once a contract has been classified as an insurance contract, no reclassification is subsequently performed unless the terms of the agreement are later amended. BNI Life menerbitkan kontrak asuransi untuk produk asuransi tradisional dan produk asuransi yang dikaitkan dengan investasi. Kedua jenis produk ini mempunyai risiko asuransi yang signifikan. BNI Life issues insurance contracts for traditional insurance products and investment linked insurance products. These products have significant insurance risk. Produk-produk dari BNI Life dibagi berdasarkan kategori utama sebagai berikut: BNI Life’s products may be divided into the following main categories: Tipe polis/ Policy type 1) Produk tradisional/ Traditional products Deskripsi manfaat/ Description of benefits Produk yang memberikan perlindungan untuk menutupi risiko kematian, kecelakaan, penyakit kritis, dan kesehatan dari pemegang polis. Total uang pertanggungan akan dibayarkan pada saat terjadinya risiko yang ditanggung/Products which provide protection to cover the risk of death, accident, critical illness, and health of the insured. The basic sum insured will be paid upon the occurrence of the risks covered. 73 888 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  889. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) z. AKUNTANSI YANG 2. Kontrak asuransi (lanjutan) z. Tipe polis/ Policy type 2) SUMMARY OF SIGNIFICANT POLICIES (continued) ACCOUNTING Insurance contract (continued) Deskripsi manfaat/ Description of benefits Produk asuransi yang dikaitkan dengan investasi/Investment linked insurance products Produk yang memberikan manfaat untuk risiko kematian dari uang pertanggungan dan akumulasi nilai tunai yang berasal dari pengembangan premi yang dibayar/Products which provide benefit to cover the risk of death from sum insured and accumulated cash value from investment yield from paid premium. Produk asuransi unit link/ Unit-linked insurance products Nilai dana investasi akan dihitung berdasarkan tingkat pengembalian investasi yang diterima dari aset dasar tergantung dari tipe pendanaan yang dipilih oleh pemegang polis/The investment fund value will be measured based on the yield of return from the underlying assets depending on the fund type which is chosen by the policyholders. BNI Life memisahkan komponen deposit dari kontrak unit link seperti yang disyaratkan oleh PSAK No. 62 hanya jika kondisi-kondisi dibawah ini terpenuhi: BNI Life unbundles the deposit component of unit-linked contract as required by PSAK No. 62 only when both of the following conditions are met: - - - BNI Life dapat mengukur komponen “deposit” secara terpisah (termasuk opsi penyerahan melekat, yaitu tanpa memperhitungkan komponen “asuransi”); dan Kebijakan akuntansi BNI Life tidak mensyaratkan untuk mengakui semua hak dan kewajiban yang timbul dari komponen “deposit”. - BNI Life can measure separately the “deposit” component (including any embedded surrender option, i.e. without taking into account the “insurance” component); and BNI Life’s accounting policies do not otherwise require to recognise all obligations and rights arising from the “deposit” component. Karena hanya kondisi pertama di atas terpenuhi, maka BNI Life tidak memisahkan komponen deposit dari kontrak unit link. Since only the first condition above is met, therefore BNI Life does not unbundle the deposit component of unit-linked contracts. Pengujian kecukupan liabilitas Liability adequacy tests Untuk asuransi jiwa, liabilitas kepada pemegang polis khususnya kewajiban untuk klaim masa depan diuji untuk menentukan apakah liabilitas tersebut cukup untuk menutupi semua arus kas keluar di masa depan termasuk semua manfaat yang dijamin dan manfaat tambahan yang dijamin, manfaat partisipasi yang tidak dijamin (jika ada), semua biaya untuk penerbitan polis dan pemeliharaan polis, serta mencerminkan arus kas masuk masa depan, yaitu premi yang diterima di masa depan. For life insurance, the liabilities to policyholder in particular the liabilities for future claim is tested to determine whether they are sufficient to cover all related future cash out flow including all guaranteed benefits and guaranteed embedded additional benefits, non-guaranteed participation benefits feature (if any), all the expense for policies issuance and maintaining the policies, as well as reflecting the future cash inflow, i.e. premium receipt in the future. 74 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 889
  890. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) z. AKUNTANSI YANG 2. Kontrak asuransi (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) z. ACCOUNTING Insurance contract (continued) Pengujian kecukupan liabilitas (lanjutan) Liability adequacy tests (continued) Liabilitas dihitung berdasarkan diskonto dari arus kas untuk semua arus kas yang terkait yaitu arus kas keluar dan arus kas masuk seperti yang disebutkan di atas dengan menggunakan asumsi-asumsi aktuaria berdasarkan estimasi terbaik terkini yang ditetapkan oleh aktuaris BNI Life, termasuk asumsi mortalitas/morbiditas, lapse, biaya dan inflasi serta marjin atas risiko pemburukan. The liabilities are calculated based on discounted cash flow basis for all related cash flows i.e. both of cash outflows and cash inflows as mentioned above using a set of most recent best estimate actuarial assumptions which is set by BNI Life’s actuary, including mortality/morbidity assumptions, lapse assumptions, expense assumptions and inflation assumptions as well as margin for adverse deviation assumptions. BNI Life menerapkan metode Gross Premium Valuation dalam perhitungan liabilitas kepada pemegang polis dengan menggunakan asumsi aktuaria berdasarkan asumsi estimasi terbaik dan marjin atas risiko pemburukan. BNI Life applies the Gross Premium Valuation method to calculate the policyholder liabilities based on actuarial assumptions which is based on best estimate assumptions and margin for adverse deviation. Premi bruto Gross premiums Premi atau ujrah/fee kontrak jangka pendek diakui sebagai pendapatan dalam periode kontrak sesuai dengan proporsi total proteksi asuransi yang diberikan. Premi ujrah/fee kontrak jangka panjang diakui sebagai pendapatan pada saat jatuh tempo dari pemegang polis. Premiums or ujrah/fee received from shortterm insurance contracts are recognized as income within the contract period based on the insurance coverage provided. Premiums or ujrah/fee received from long-term insurance contracts are recognized as income when these are due. Premi reasuransi bruto diakui sebagai beban pada saat dibayarkan atau pada tanggal di mana polis tersebut efektif. Gross reinsurance premiums are recognized as an expense when payable or on the date in which the policy becomes effective. BNI Life menghitung cadangan atas premi yang belum merupakan pendapatan dengan menggunakan metode amortisasi harian. BNI Life calculates unearned premium reserves using daily amortization method. Cadangan atas premi yang belum merupakan pendapatan hanya diterapkan terhadap premi yang mempunyai risiko (asuransi jangka warsa, kecelakaan diri, dan kesehatan) yang periode asuransinya tidak lebih dari satu tahun. Unearned premium reserves only apply for premiums that are short-term with less than one year insurance period which have risk component only (term life, personal accident and health insurance). Perubahan cadangan atas premi yang belum merupakan pendapatan diakui dalam laba rugi tahun berjalan. Changes in unearned premium reserves is recognised in the current year’s profit or loss. Premi yang diterima sebelum diterbitkannya polis asuransi dicatat sebagai titipan premi pada laporan posisi keuangan konsolidasian. Premiums received prior to the issuance of insurance policies is recorded as policyholders’ deposit in the consolidated statement of financial position. 75 890 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  891. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) z. AKUNTANSI YANG 2. Kontrak asuransi (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) z. ACCOUNTING Insurance contract (continued) Reasuransi Reinsurance BNI Life mereasuransikan sebagian porsi risikonya kepada perusahaan reasuradur. Total premi yang dibayar atau porsi premi atas transaksi reasuransi prospektif diakui sesuai dengan proporsi total proteksi reasuransi yang diterima berdasarkan kontrak reasuransi. BNI Life reinsures a portion of its risk with reinsurance companies. The amount of premium paid or portion of premium from prospective reinsurance transactions is recognized over the reinsurance contract in proportion with the protection received. Aset reasuransi termasuk saldo yang diharapkan dibayarkan oleh perusahaan reasuransi untuk ceded liabilitas manfaat polis masa depan, ceded estimasi liabilitas klaim dan ceded premi yang belum merupakan pendapatan. Total manfaat yang ditanggung oleh reasuradur diperkirakan secara konsisten sesuai dengan liabilitas yang terkait dengan polis reasuransi. Reinsurance assets include balances expected to be recovered from reinsurance companies for ceded liability for future policy benefits, ceded estimated claim liabilities and ceded unearned premiums. Amounts recoverable from reinsurers are estimated in a manner consistent with the liability associated with the reinsured policy. BNI Life menyajikan aset reasuransi secara terpisah sebagai aset atas liabilitas manfaat polis masa depan, premi yang belum merupakan pendapatan, dan estimasi liabilitas klaim. BNI Life presents separately reinsurance assets of future policy benefit liabilities, unearned premium, and estimated claim liabilities. Jika aset reasuransi mengalami penurunan nilai, Perusahaan mengurangi nilai tercatat dan mengakui kerugian penurunan nilai tersebut dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian. Aset reasuransi mengalami penurunan nilai jika ada bukti obyektif, sebagai akibat dari suatu peristiwa yang terjadi setelah pengakuan awal aset reasuransi, bahwa Perusahaan tidak dapat menerima seluruh total karena di bawah syarat-syarat kontrak, dan dampak pada total yang akan diterima dari reasuradur dapat diukur secara andal. If a reinsurance asset is impaired, the Company reduces the carrying amount and recognises the impairment loss in the consolidated statement of profit or loss and other comprehensive income. A reinsurance asset is impaired if there is objective evidence, as a result of an event that occurred after initial recognition of the reinsurance asset, that the Company may not receive all amounts due to it under the terms of the contract, and the impact of the amounts that the Company will receive from the reinsurer can be reliably measured. Klaim dan manfaat polis Claims and policy benefits Klaim dan manfaat polis terdiri dari klaim yang telah diselesaikan, klaim dalam proses penyelesaian dan estimasi atas klaim yang telah terjadi namun belum dilaporkan (IBNR). Klaim dan manfaat polis diakui sebagai beban pada saat terjadinya liabilitas untuk memberikan proteksi. Klaim reasuransi yang diperoleh dari BNI Life reasuradur diakui dan dicatat sebagai pengurang klaim dan manfaat polis pada periode yang sama dengan periode pengakuan klaim dan manfaat polis. Claims and policy benefits consist of settled claims, claims that are still in process of completion and estimated claims incurred but not yet reported (IBNR). Claims and policy benefits are recognised as expenses when the liabilities to cover claims are incurred. Reinsurance claims recoveries from reinsurance companies are recognised and recorded as deduction from claims and policy benefits consistent in the same period with the claims and policys benefits recognition. 76 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 891
  892. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) z. AKUNTANSI YANG 2. Kontrak asuransi (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) z. ACCOUNTING Insurance contract (continued) Klaim dan manfaat polis (lanjutan) Claims and policy benefits (continued) Total klaim dalam penyelesaian, termasuk klaim yang telah terjadi namun belum dilaporkan, dinyatakan berdasarkan estimasi menggunakan teknik perhitungan teknis oleh aktuaris yang dilaporkan sebagai bagian dari ”Estimasi liabilitas klaim” dalam laporan posisi keuangan konsolidasian. Perubahan dalam estimasi liabilitas klaim, sebagai hasil dari evaluasi lebih lanjut dan perbedaan antara estimasi klaim dengan klaim yang dibayarkan, diakui sebagai biaya tambahan atau pengurang biaya pada periode terjadinya perubahan. Total claims in process, including claims incurred but not yet reported, are stated at estimated amounts determined based on the actuarial technical insurance calculations which is reported as part of “Estimated claim liabilities” in the consolidated statement of financial position. Changes in estimated claim liabilities as a result of further evaluation and the difference between estimated claims and paid claims are recognised as addition to or deduction from expenses in the period the changes occurred. Liabilitas manfaat polis masa depan Liability for future policy benefits Liabilitas manfaat polis masa depan merupakan nilai sekarang estimasi manfaat polis masa depan yang akan dibayarkan kepada pemegang polis atau ahli warisnya dikurangi dengan nilai sekarang dari estimasi premi masa depan yang akan diterima dari pemegang polis dan diakui secara konsisten pada saat pengakuan pendapatan premi. Liabilitas manfaat polis masa depan ditentukan dan dihitung dengan menggunakan rumus tertentu oleh aktuaris BNI Life. The liabilities for future policy benefits represent the present value of estimated future policy benefits to be paid to policyholders or their heirs less present value of estimated future premiums to be received from the policyholders and recognised consistenly with the recognition of premium income. The liabilities for future policy benefits are determined and computed based on certain formula by BNI Life’s actuary. BNI Life menghitung liabilitas manfaat polis masa depan dengan menggunakan metode Gross Premium Valuation yang mencerminkan nilai sekarang estimasi pembayaran seluruh manfaat yang diperjanjikan termasuk seluruh opsi yang disediakan, nilai sekarang estimasi seluruh biaya yang dikeluarkan dan juga mempertimbangkan penerimaan premi di masa depan. BNI Life calculates the liabilities for future policy benefits using Gross Premium Valuation method that reflects the present value of estimated payments throughout the guaranteed benefits including all the embedded options available, the estimated present value of all handling costs incurred and also considering the future premium receipt. Perubahan liabilitas manfaat polis masa depan diakui dalam laba rugi tahun berjalan. Changes in the liabilities for future policy benefits are recognized in the current year’s profit or loss. Untuk produk unit link, liabilitas kepada pemegang polis unit link diakui pada saat penerimaan dana dikonversi menjadi unit setelah dikurangi biaya-biaya dan akan bertambah atau berkurang sesuai dengan nilai aset bersih efektif yang berlaku. Risiko investasi terkait ditanggung oleh pemegang polis unit link. For unit-linked products, the liabilities to unitlinked policy holders is recognised at the time the funds received are converted into units, net of related expenses and will increase or decrease in accordance with effective net assets value. Related investment risk are borned by the unit-linked policyholders. 77 892 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  893. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) z. AKUNTANSI YANG 2. Kontrak asuransi (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) z. ACCOUNTING Insurance contract (continued) Liabilitas manfaat polis masa depan (lanjutan) Liabilities for future policy benefits (continued) Penerimaan dana dari nasabah untuk produk non syariah diakui sebagai pendapatan premi bruto di laporan laba rugi dan penghasilan komprehensif lain konsolidasian. Liabilitas kepada pemegang polis unit link diakui di laporan posisi keuangan konsolidasian yang termasuk di dalam liabilitas manfaat polis masa depan sebesar jumlah yang diterima setelah dikurangi dengan bagian premi yang merupakan pendapatan Entitas Anak, disertai dengan pengakuan kenaikan liabilitas kepada pemegang polis unit link di laba rugi. Funds received from customers for non-sharia products are recognised as gross premiums income in the consolidated statement of profit and loss and other comprehensive income. Liabilities to unit-linked policy holders are recognised in the consolidated statement of financial position which is included in the liabilities for future policy benefits for the amount received net of the portion of premium representing Subsidiary’s revenue, with corresponding profit or loss recognition for the increase in liabilities to unit-linked policyholders. Setiap bunga, keuntungan atau kerugian dari kenaikan atau penurunan nilai pasar investasi dicatat sebagai pendapatan atau beban, disertai dengan pengakuan kenaikan atau penurunan liabilitas manfaat polis masa depan di laba rugi dan liabilitas manfaat polis masa depan di laporan posisi keuangan konsolidasian. Any interest, gain or loss due to increases or decreases in market value of investments are recorded as income or expense, with a corresponding recognition of increase or decrease in liabilities for future policy benefits in the profit or loss and liabilities for future policy benefits in the consolidated statement of financial position. Penerimaan dana dari peserta untuk produk Syariah diakui sebagai pendapatan kontribusi dari dana tabarru’ sesuai dengan akad asuransinya dan bukan merupakan pendapatan entitas pengelola atau perusahaan, karena entitas pengelola sebagai wakil para peserta untuk mengelola dana tabarru’. Bagian kontribusi untuk ujrah entitas pengelola dalam rangka mengelola dana tabarru’ diakui sebagai pendapatan ujrah pada laporan laba rugi. Bagian penerimaan dana dari peserta untuk investasi dari akad mudharabah diakui sebagai dana investasi mudharabah dan penerimaan dari peserta untuk investasi dari akad wakalah diakui sebagai dana investasi wakalah di laporan posisi keuangan Dana Peserta. Funds received from participant for Sharia unit products is recognized as contributions income from tabarru fund’ according to the insurance contract and not as income for operator/company, as the operator only act as a representative of the participant to manage the tabarru’ funds’. The contribution portion for operator’s ujrah in effort to manage the tabarru’ funds is recognized as ujrah income in profit or loss. Portion of fund received from participant for investment of mudharabah contract is recognized as mudharabah investment fund and receipt from wakalah contract is recognized as wakalah investment fund in the statement of financial position for Participant Funds. aa. Perpajakan aa. Taxation Beban pajak terdiri dari pajak kini dan pajak tangguhan. Pajak diakui dalam laporan laba rugi, kecuali jika pajak tersebut terkait dengan transaksi atau kejadian yang diakui di 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 are recognised in the profit or loss, 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. 78 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 893
  894. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) AKUNTANSI YANG 2. aa. Perpajakan (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) ACCOUNTING aa. Taxation (continued) Beban pajak kini dihitung berdasarkan peraturan perpajakan yang berlaku pada tanggal pelaporan keuangan. Manajemen secara periodik mengevaluasi posisi yang dilaporkan di Surat Pemberitahuan Tahunan (SPT) sehubungan dengan situasi dimana aturan pajak yang berlaku membutuhkan interpretasi. Jika perlu, manajemen menentukan provisi berdasarkan jumlah yang diharapkan akan dibayar kepada otoritas pajak. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the reporting date. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provision where appropriate on the basis of amounts expected to be paid to the tax authorities. Pajak penghasilan tangguhan diakui, dengan menggunakan metode posisi keuangan untuk semua perbedaan temporer antara dasar pengenaan pajak aset dan liabilitas dengan nilai tercatatnya pada laporan keuangan konsolidasian. Namun, liabilitas pajak penghasilan tangguhan tidak diakui jika berasal dari pengakuan awal goodwill atau pada saat pengakuan awal aset dan liabilitas yang timbul dari transaksi selain kombinasi bisnis yang pada saat transaksi tersebut tidak mempengaruhi laba rugi akuntansi dan laba rugi kena pajak. Pajak penghasilan tangguhan ditentukan dengan menggunakan tarif pajak yang telah berlaku atau secara substantif telah berlaku pada akhir periode pelaporan dan diharapkan diterapkan ketika aset pajak penghasilan tangguhan direalisasi atau liabilitas pajak penghasilan tangguhan diselesaikan. Deferred income tax is recognised, using the financial position method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill and deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates that have been enacted or substantially enacted as at reporting period and is expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Aset pajak penghasilan tangguhan diakui hanya jika besar kemungkinan jumlah penghasilan kena pajak dimasa depan akan memadai untuk dikompensasi dengan perbedaan temporer yang masih dapat dimanfaatkan. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Aset dan liabilitas pajak penghasilan tangguhan dapat saling hapus apabila terdapat hak yang berkekuatan hukum untuk melakukan saling hapus antara aset pajak kini dengan liabilitas pajak kini dan apabila aset dan liabilitas pajak penghasilan tangguhan dikenakan oleh otoritas perpajakanyang sama, baik atas entitas kena pajak yang sama ataupun berbeda dan adanya niat untuk melakukan penyelesaian saldo-saldo tersebut secara neto. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. Koreksi terhadap kewajiban perpajakan diakui saat surat ketetapan pajak diterima atau jika mengajukan keberatan, pada saat keputusan atas keberatan tersebut telah ditetapkan. Corrections to taxation obligations are recorded when an assessment is received or, if appealed against, when the appeal has been decided 79 894 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  895. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) AKUNTANSI YANG 2. ab. Imbalan kerja SUMMARY OF SIGNIFICANT POLICIES (continued) ACCOUNTING ab. Employee benefits Imbalan kerja jangka pendek Short-term employee benefits Imbalan kerja jangka pendek diakui pada saat terutang kepada karyawan. Short-term employee benefits are recognised when they accrued to the employees. Imbalan pensiun dan imbalan pasca-kerja lainnya Pension benefitsand employment BNI memiliki program pensiun imbalan pasti dan iuran pasti. BNI has defined benefit contribution pension plans. Program pensiun imbalan pasti adalah program pensiun yang menetapkan jumlah imbalan pensiun yang akan diterima oleh karyawan pada saat pensiun, yang biasanya tergantung pada satu faktor atau lebih, seperti umur, masa kerja, dan jumlah kompensasi. Program ini dikelola oleh Dana Pensiun PT Bank Negara Indonesia (Persero) Tbk (“Dana Pensiun”). A defined benefit pension plan is a pension plan that defines an amount of pension that will be received by the employee on becoming entitled to a pension, which usually depends on one or more factors such as age, years of service and compensation. This plan is managed by Dana Pensiun PT Bank Negara Indonesia (Persero) Tbk (“Dana Pensiun”). Program pensiun iuran pasti adalah program pensiun dimana Bank akan membayar iuran tetap kepada sebuah entitas yang terpisah (dana pensiun) dan tidak memiliki liabilitas hukum atau konstruktif untuk membayar kontribusi lebih lanjut. Program ini dikelola oleh Dana Pensiun Lembaga Keuangan PT Bank Negara Indonesia (Persero) Tbk (“DPLK”). A defined contribution plan is a pension plan under which the Bank pays fixed contributions into a separate entity (pension fund) and has no legal or constructive obligation to pay further contributions. This plan is managed by Dana Pensiun Lembaga Keuangan PT Bank Negara Indonesia (Persero)Tbk (“DPLK”). BNI diharuskan menyediakan imbalan pensiun minimum yang diatur dalam UU No. 13/2003, yang merupakan liabilitas imbalan pasti. Jika imbalan pensiun sesuai dengan UU No. 13/2003 lebih besar, selisih tersebut diakui sebagai bagian dari liabilitas imbalan pensiun. BNI is required to provide minimum pension benefits as stipulated by Law No. 13/2003 which represents an underlying defined benefit obligation. If the pension benefits based on Law No. 13/2003 are higher, the difference is recorded as part of the overall pension benefits obligation. Karena UU Ketenagakerjaan menentukan rumus tertentu untuk menghitung jumlah minimal imbalan pensiun, pada dasarnya program pensiun berdasarkan UU Ketenagakerjaan adalah program imbalan pasti. 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. Sehubungan dengan program imbalan pasti, liabilitas diakui pada laporan posisi keuangan sebesar nilai kini kewajiban imbalan pasti pada akhir periode pelaporan dikurangi nilai wajar aset program. Kewajiban imbalan pasti dihitung setiap tahun oleh aktuaris yang independen dengan menggunakan metode projected unit credit. 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 end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. other post- and defined 80 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 895
  896. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) AKUNTANSI YANG 2. ab. Imbalan kerja (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) ACCOUNTING ab. Employee benefits (continued) Imbalan pensiun dan imbalan pasca-kerja lainnya (lanjutan) Pension benefits and other employment benefits (continued) post- Nilai kini kewajiban imbalan pasti ditentukan dengan mendiskontokan arus kas keluar yang diestimasi dengan menggunakan tingkat bunga Obligasi Pemerintah (dikarenakan saat ini tidak ada pasar aktif untuk obligasi perusahaan yang berkualitas tinggi) yang didenominasikan dalam Rupiah dimana imbalan akan dibayarkan dan memiliki jangka waktu jatuh tempo mendekati jangka waktu kewajiban pensiun. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of Government Bonds (considering currently there is no deep market for highquality corporate bonds) that are denominated in Rupiah in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. Keuntungan dan kerugian aktuarial yang timbul dari penyesuaian dan perubahan dalam asumsi-asumsi aktuarial langsung diakui seluruhnya melalui pendapatan komprehensif lainnya pada saat terjadinya. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. Biaya jasa lalu diakui segera dalam laporan laba rugi. Past-service costs 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. Grup juga memberikan imbalan pasca kerja lainnya, seperti uang penghargaan dan uang pisah. Imbalan berupa uang penghargaan diberikan apabila karyawan bekerja hingga mencapai usia pensiun. Sedangkan imbalan berupa uang pisah, dibayarkan kepada karyawan yang mengundurkan diri secara sukarela, setelah memenuhi minimal masa kerja tertentu. Imbalan ini dihitung dengan menggunakan metodologi yang sama dengan metodologi yang digunakan dalam perhitungan program pensiun imbalan pasti. The Group also provides other postemployment benefits, such as service pay and separation pay. The service pay benefit vests when the employees reach their retirement age. The separation pay benefit is paid to employees in the case of voluntary resignation, subject to a minimum number of years of service. These benefits have been accounted for using the same methodology as for the defined benefit pension plan. Dana Pensiun Pension Fund Bank memberikan manfaat bulanan (anuitas) yang didefinisikan berdasarkan gaji dan periode kepesertaan yang terkait dengan masa kerja. The Bank provides a monthly benefit pension (annuity) which is defined by salary and period of membership. Berdasarkan skema program, risiko yang mempengaruhi hasil perhitungan dalam laporan keuangan adalah sebagai berikut: Tingkat imbal hasil atas Dana Pensiun Pemberi Kerja (DPPK) (hasil investasi DPPK yang lebih rendah dari asumsi akan meningkatkan nilai kini kewajiban imbalan pasti). The plan design means that the risks most commonly affecting the reported financial results are expected to be: Investment risk (strong investment returns tending to improve the balance sheet position, whilst poor or negative investment returns tending to weaken the position). 81 896 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  897. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) AKUNTANSI YANG 2. ab. Imbalan kerja (lanjutan) SUMMARY OF SIGNIFICANT POLICIES (continued) ACCOUNTING ab. Employee benefits (continued) Dana Pensiun (lanjutan) Pension Fund (continued) - - Interest rate risk (the defined benefit obligation calculated under SFAS 24 uses a discount rate based on bond yields. If bond yields fall, the defined benefit obligation will tend to increase). - Changes in turnover (the plan only provides benefits upon reaching retirement. Therefore, if turnover rates increase prior to retirement, then the liability will tend to fall significantly as fewer employees reach retirement age). - Salary inflation risk (higher than expected increases in salary will increase the defined benefit obligation). - - Risiko atas tingkat suku bunga (kewajiban imbalan pasti yang dihitung berdasarkan PSAK 24 menggunakan tingkat diskonto berdasarkan imbalan hasil pasar atas bunga obligasi. Apabila imbal hasil pasar atas bunga obligasi menurun, nilai kini kewajiban imbalan pasti akan meningkat). Risiko atas pengunduran diri (program memberikan manfaat terbesar ketika peserta mencapai usia pensiun. Apabila tingkat pengunduran diri sebelum pensiun meningkat. Nilai kini kewajiban imbalan pasti cenderung menurun karena jumlah peserta yang mencapai usia pensiun lebih sedikit). Risiko atas tingkat kenaikan gaji (tingkat kenaikan gaji aktual yang lebih tinggi dari asumsi akan meningkatkan nilai kini kewajiban imbalan pasti). Dana Pensiun Lembaga Keuangan (DPLK) Defined Contribution (DC) Plan Program memberikan manfaat sekaligus (lump sum) yang didefinisikan berdasarkan gaji dan periode kepesertaan yang terkait dengan masa kerja. Namun, akumulasi saldo program iuran pasti (DPLK) akan mengurangi kewajiban Bank. Laporan ini menghitung pembayaran yang harus dilakukan Bank (apabila ada) jika manfaat pasti yang dijanjikan perusahaan melebihi akumulasi saldo DPLK. Kontribusi perusahaan ke DPLK dicatat secara terpisah dan tidak disajikan dalam laporan ini. The Bank provides a defined benefit lump sum benefit pension which is defined by salary and period of membership. However, the Bank’s obligation is reduced by the proceeds of a separate defined contribution plan (DPLK). These disclosures measure the Bank’s additional payment required (if any) if the defined benefit exceeds the proceeds of that defined contribution plan. The Bank expenses the contribution it pays into the defined contribution on cash basis, and separately to the amount shown in these disclosures. Berdasarkan skema program, risiko yang mempengaruhi hasil perhitungan dalam laporan keuangan konsolidasian adalah sebagai berikut: Tingkat imbal hasil atas DPLK (hasil investasi DPLK yang lebih rendah dari asumsi akan meningkatkan nilai kini kewajiban imbalan pasti). Risiko atas tingkat suku bunga (kewajiban imbalan pasti yang dihitung berdasarkan PSAK 24 menggunakan tingkat diskonto berdasarkan imbalan hasil pasar atas bunga obligasi. Apabila imbal hasil pasar atas bunga obligasi menurun, nilai kini kewajiban imbalan pasti akan meningkat). The plan design means that the risk most commonly affecting the consolidated financial statement are expected to be : Net investment return on DC fund (lower than expected return will increase the defined benefit obligation). - Interest rate risk (the defined benefit obligation calculated under SFAS 24 uses a discount rate based on bond yields. If bond yields fall, the defined benefit obligation will tend to increase). 82 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 897
  898. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) AKUNTANSI YANG 2. ab. Imbalan kerja (lanjutan) Dana Pensiun (lanjutan) - - Lembaga SUMMARY OF SIGNIFICANT POLICIES (continued) ACCOUNTING ab. Employee benefits (continued) Keuangan Defined Contribution Plan (continued) Risiko atas tingkat kenaikan gaji (tingkat kenaikan gaji aktual yang lebih tinggi dari asumsi akan meningkatkan nilai kini kewajiban imbalan pasti). Risiko atas pengunduran diri (program memberikan manfaat terbesar ketika peserta mencapai usia pensiun. Apabila tingkat pengunduran diri sebelum pensiun meningkat. Nilai kini kewajiban imbalan pasti cenderung menurun karena jumlah peserta yang mencapai usia pensiun lebih sedikit). - Salary inflation risk (higher than expected increases in salary will increase the defined benefit obligation). - Changes in turnover. The plan only provides benefit upon reaching retirement. Therefore if turnover rates increase prior to retirement, then the liability will tend to fall significanly as fewer employees reach retirement age. Imbalan jangka panjang lainnya Other long-term benefits Imbalan jangka panjang lainnya seperti cuti berimbalan jangka panjang, imbalan cacat permanen dan penghargaan jubilee dihitung dengan menggunakan metode projected unit credit dan didiskontokan ke nilai kini. Keuntungan dan kerugian aktuarial yang timbul dari penyesuaian dan perubahan dalam asumsi-asumsi aktuarial diakui dalam laporan laba rugi. Other long-term employee benefits such as long service leave, permanent disability benefit and jubilee awards are calculated using the projected unit credit method and discounted to present value. Actuarial gains and losses arising from experience adjustments and change in actuarial assumption are charged or credited to profit or loss. ac. Laba per saham dasar ac. Basic earnings per share Laba per saham dasar dihitung dengan membagi laba tahun berjalan yang tersedia bagi pemegang saham biasa (laba residual) dengan jumlah rata-rata tertimbang lembar saham biasa yang beredar selama tahun berjalan. Basic earnings per share is computed by dividing income for the year available to shareholders of ordinary shares (residual income) by the weighted average number of ordinary shares outstanding during the current year. ad. Transaksi dengan pihak-pihak berelasi ad. Transactions with related parties BNI dan Entitas Anak melakukan transaksi dengan pihak - pihak berelasi seperti yang didefinisikan dalam PSAK 7 tentang “Pengungkapan Pihak-pihak Berelasi” dan Peraturan Bapepam-LK No. KEP347/BL/2012 tanggal 25 Juni 2012 tentang “Pedoman Penyajian dan Pengungkapan Laporan Keuangan Emiten atau Perusahaan Publik” yang didefinisikan antara lain: BNI and Subsidiaries enter into transactions with parties which are defined as related parties in accordance with SFAS No. 7 regarding “Related Party Disclosures” and Bapepam-LK No. KEP-347/BL/2012 regarding “Guidelines for Financial Statements Presentation and Disclosure of Issuers or Public Companies”, which are defined, among others, as: 83 898 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  899. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) ad. Transaksi (lanjutan) (i) (ii) (iii) (iv) (v) (vi) dengan AKUNTANSI pihak-pihak YANG 2. berelasi SUMMARY OF SIGNIFICANT POLICIES (continued) ad. Transactions (continued) perusahaan di bawah pengendalian BNI dan Entitas Anak; perusahaan asosiasi; investor yang memiliki hak suara, yang memberikan investor tersebut suatu pengaruh yang signifikan; perusahaan di bawah pengendalian investor yang dijelaskan dalam Catatan iii di atas; karyawan kunci dan anggota keluarganya; dan entitas yang dikendalikan, dikendalikan bersama atau dipengaruhi secara signifikan oleh Pemerintah yaitu Menteri Keuangan atau Pemerintah Daerah yang merupakan pemegang saham dari entitas. with ACCOUNTING related parties (i) entities under the control of BNI and Subsidiaries; (ii) associated companies; (iii) investors with voting rights that gives them significant influence; (iv) entities controlled by investors under Note iii above; (v) key employees and family members; and (vi) entity that is controlled, jointly controlled or significantly influenced by Government, which is defined as the Minister of Finance or Provincial Government who has share ownership in the entity. Semua transaksi signifikan dengan pihakpihak berelasi, telah diungkapkan pada catatan atas laporan keuangan konsolidasian. All significant transactions with related parties have been disclosed in the notes to the consolidated financial statements. ae. Dividen ae. Dividends Pembagian dividen kepada para pemegang saham diakui sebagai liabilitas dalam laporan keuangan konsolidasian pada periode ketika dividen tersebut disetujui oleh para pemegang saham. Dividend distribution to the shareholders is recognized as a liability in the consolidated financial statements in the period in which the dividends are approved by the shareholders. af. Pelaporan segmen af. Segment reporting BNI dan Entitas Anak menentukan dan menyajikan segmen operasi berdasarkan informasi yang secara internal diberikan kepada pengambil keputusan operasional. BNI and Subsidiaries determine and present operating segments based on the information that is internally provided to the chief operating decision maker. Grup mengidentifikasikan segmen operasi sebagai suatu komponen dari entitas: The Group defines an operating segment as a component of an entity: a) a) that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity); b) whose operating results are reviewed regularly by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and c) for which discrete financial information is available. b) c) yang terlibat dalam aktivitas bisnis yang mana memperoleh pendapatan dan menimbulkan beban (termasuk pendapatan dan beban terkait dengan transaksi dengan komponen lain dari entitas yang sama); hasil operasinya dikaji ulang secara reguler oleh pengambil keputusan operasional untuk membuat keputusan tentang sumber daya yang dialokasikan pada segmen tersebut dan menilai kinerjanya; dan tersedia informasi keuangan yang dapat dipisahkan. 84 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 899
  900. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 2. IKHTISAR KEBIJAKAN PENTING (lanjutan) AKUNTANSI YANG 2. af. Pelaporan segmen (lanjutan) ACCOUNTING af. Segment reporting (continued) Grup mengungkapkan segmen operasionalnya berdasarkan segmen usaha yang meliputi Korporasi, Komersial dan Kecil, Konsumer dan Ritel, Tresuri dan Institusi Keuangan, Kantor Pusat dan Entitas Anak. The Group discloses its operating segments based on operating segments that consist of Corporate, Commercial and Small, Consumer and Retail, Treasury and Financial Institution, Head Office and Subsidiaries. ag. Biaya emisi penerbitan saham ag. Shares issuance costs Biaya-biaya emisi efek yang terjadi sehubungan dengan penawaran saham kepada masyarakat (termasuk penerbitan hak memesan efek terlebih dahulu) dikurangkan langsung dari hasil emisi dan disajikan sebagai pengurang pada akun “Tambahan Modal Disetor - Neto”, sebagai bagian dari Ekuitas pada laporan posisi keuangan konsolidasian. 3. SUMMARY OF SIGNIFICANT POLICIES (continued) Costs related to the public offering of shares (including pre-emptiverights issue) are deducted from the proceeds and presented as a deduction of “Additional Paid-In Capital Net” account, under equity section in the consolidated statement of financial position. PENGGUNAAN ESTIMASI DAN PERTIMBANGAN AKUNTANSI YANG PENTING 3. USE OF CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS 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 assumptions are made in the preparation of the consolidated financial statements these 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 pada 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 experiences and other factors, including expectations with regards to future events. 85 900 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  901. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 3. PENGGUNAAN ESTIMASI DAN PERTIMBANGAN AKUNTANSI YANG PENTING (lanjutan) 3. USE OF CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS (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 assumptions. Sumber utama ketidakpastian estimasi: Key sources of estimation uncertainty: a. a. b. Cadangan kerugian penurunan nilai aset keuangan Allowances for impairment losses of financial assets Kondisi spesifik counterparty yang mengalami penurunan nilai 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. In the calculation of allowance for impairment losses of financial assets, the specific condition of impaired counterparty is individually evaluated based on management's best estimate of the present value of the expected cash flows 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. Perhitungan cadangan penurunan nilai kolektif meliputi kerugian kredit yang melekat dalam portofolio aset keuangan dengan karakteristik ekonomi yang sama ketika terdapat bukti objektif penurunan nilai terganggu, tetapi penurunan nilai secara individu belum dapat diidentifikasi. Dalam menilai kebutuhan untuk cadangan kolektif, manajemen mempertimbangkan faktor-faktor seperti kualitas kredit dan jenis produk. Guna membuat estimasi cadangan yang diperlukan, manajemen membuat asumsi untuk menentukan kerugian yang melekat, dan untuk menentukan parameter input yang diperlukan, berdasarkan pengalaman masa lalu dan kondisi ekonomi saat ini. 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. Collectively assessed impairment allowances cover credit losses inherent in portfolios of financial assets with similar economic characteristics when there is objective evidence to suggest that they contain impaired financial assets, but the individual impaired items cannot yet be identified. In assessing the need for collective allowances, management considers factors such as credit quality and type of product. 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 experiences and current economic conditions. The accuracy of the allowances depends on how well are the estimated future cash flows for specific counterparty allowances and the model assumptions and parameters used in determining collective allowances. Menentukan nilai wajar instrumen keuangan b. Dalam menentukan nilai wajar aset keuangan dan liabilitas yang tidak mempunyai harga pasar, Grup menggunakan teknik penilaian seperti yang dijelaskan dalam Catatan 2c. Untuk instrumen keuangan yang jarang diperdagangkan dan memiliki informasi harga yang terbatas, nilai wajar menjadi kurang objektif dan membutuhkan berbagai tingkat penilaian tergantung pada likuiditas, konsentrasi, faktor ketidakpastian pasar, asumsi harga dan risiko lainnya. 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, the Group uses the valuation techniques as described in Note 2c. For financial instruments that are traded infrequently and a lack of price transparency, fair value is less objective and requires varying degrees of judgement depending on liquidity, concentration, uncertainty of market factors, pricing assumptions and other risks affecting the specific instrument. 86 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 901
  902. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 3. PENGGUNAAN ESTIMASI DAN PERTIMBANGAN AKUNTANSI YANG PENTING (lanjutan) 3. USE OF CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS (continued) Sumber utama ketidakpastian estimasi: (lanjutan) Key sources of estimation uncertainty: (continued) b. b. Menentukan nilai wajar instrumen keuangan (lanjutan) Masukan (input) untuk model ini berasal dari data pasar yang bisa diamati. Bila data pasar yang bisa diamati tersebut tidak tersedia, manajemen mempertimbangkan masukan dan asumsi diperlukan untuk menentukan nilai wajar. Pertimbangan tersebut mencakup feedback model atas likuiditas volatilitas untuk transaksi derivatif dan tingkat diskonto yang berjangka waktu panjang, tingkat pelunasan dipercepat dan asumsi tingkat gagal bayar. c. d. Determining fair values of financial instruments (continued) The input for this model comes from observable market data. When observable market data are not available, management considers necessary inputs and assumptions to determine the fair value. The above considerations include liquidity and volatility feedback model for derivative transactions and long term discount rate, the level of early payment and the level of default assumption. Imbalan kerja karyawan c. Employee benefits Present value atas imbalan kerja karyawan tergantung dari banyaknya faktor yang dipertimbangkan oleh aktuaris berdasarkan beberapa asumsi. Perubahan atas asumsiasumsi tersebut akan mempengaruhi carrying amount atas imbalan kerja karyawan. The present value of the employee benefits obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. Any changes in these assumptions will impact the carrying amount of employee benefit obligations. Asumsi yang digunakan dalam menentukan biaya atau pendapatan untuk imbalan kerja termasuk tingkat diskonto. Grup menentukan tingkat diskonto yang tepat pada setiap akhir tahun. Ini merupakan tingkat suku bunga yang digunakan untuk menentukan nilai kini atas arus kas masa depan yang diestimasi akan digunakan untuk membayar imbalan kerja. Dalam menentukan tingkat diskonto yang tepat, Grup mempertimbangkan tingkat suku bunga atas Obligasi Pemerintah yang mempunyai jatuh tempo yang menyerupai jangka waktu imbalan kerja karyawan. The assumptions used in determining the net cost (income) for employee benefits include the discount rate. The Group determines the appropriate discount rate at the end of each year. 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, the Group considers the interest rates of Government Bonds that have terms to maturity approximating the terms of the related employee benefits liability. Asumsi kunci liabilitas pensiun sebagian ditentukan berdasarkan pasar saat ini. Other key assumptions for pension obligations are partly based on current market conditions. lainnya kondisi Provisi perpajakan d. Grup 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 atau rugi. Provision for taxes The Group provides for tax provision based on estimates whether 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 or loss. 87 902 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  903. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 3. PENGGUNAAN ESTIMASI DAN PERTIMBANGAN AKUNTANSI YANG PENTING (lanjutan) 3. USE OF CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS (continued) Sumber utama ketidakpastian estimasi (lanjutan) Key sources of estimation uncertainty (continued) e. e. Liabilitas asuransi untuk kontrak asuransi Cadangan teknis Entitas Anak dicatat di laporan posisi keuangan konsolidasian sebagai bagian dari “Liabilitas lain-lain” berdasarkan perhitungan teknis asuransi dengan menggunakan asumsi-asumsi aktuarial yaitu asumsi estimasi terbaik dan marjin atas risiko pemburukan. Termasuk dalam cadangan teknis adalah liabilitas manfaat polis masa depan, estimasi liabilitas klaim, dan premi yang belum merupakan pendapatan. Entitas Anak menggunakan metode Gross Premium Reserve yang menghitung liabilitas manfaat polis masa depan berdasarkan asumsi estimasi terbaik dan marjin atas risiko pemburukan. f. Technical reserves of a Subsidiary recorded in the consolidated statement of financial position as part of “Other liabilities” are calculated based on insurance technical calculation using certain actuarial assumptions which are based on best estimate assumptions and margin for adverse risk. Included in the technical reserves are liability for future policy benefits, estimated claim liabilities, and unearned premium income. The Subsidiary uses Gross Premium Reserve method in calculating liability for future policy benefits which are based on best estimate assumptions and margin for adverse risk. Aset Pajak Tangguhan f. Aset pajak tangguhan diakui atas jumlah pajak penghasilan terpulihkan (recoverable) pada periode mendatang sebagai akibat perbedaan temporer yang boleh dikurangkan. Justifikasi manajemen diperlukan untuk menentukan jumlah aset pajak tangguhan yang dapat diakui, sesuai dengan waktu yang tepat dan tingkat laba fiskal di masa mendatang sejalan dengan strategi rencana perpajakan ke depan. g. Deferred Tax Assets Deferred tax assets are recognized for the future recoverable taxable income arising from temporary differences. Management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing on level of future taxable profits together with future strategic planning. Revaluasi Aset Tetap g. Revaluasi aset tetap Bank bergantung pada pemilihan asumsi yang digunakan oleh penilai independen dalam menghitung jumlah-jumlah tersebut. Asumsi tersebut termasuk antara lain: tingkat diskonto, nilai tukar, tingkat inflasi dan tingkat kenaikan pendapatan dan biaya. Bank berkeyakinan bahwa asumsi tersebut adalah wajar dan sesuai, perbedaan signifikan dalam asumsi yang ditetapkan Bank dapat mempengaruhi secara material nilai aset tetap yang direvaluasi. h. Insurance liabilities on insurance contracts Fixed Assets Revaluation The Bank’s fixed assets revaluation depends on its selection of certain assumptions used by the independent appraisal in calculating such amounts. Those assumptions include among others, discount rate, exchange rate, inflation rate and revenue and cost increase rate. The Bank believes that its assumptions are reasonable and appropriate and significant differences in the Bank’s assumptions may materially affect the valuation of its fixed assets. Konsolidasian Entitas Terstruktur h. Dalam menentukan tingkat pengendalian yang dimiliki, Grup mempertimbangkan apakah entitas tersebut memenuhi definisi Entitas Terstruktur sesuai dengan Standar Akuntansi Keuangan (SAK) yang berlaku di Indonesia yang dijabarkan dalam Catatan 2d dan apakah Grup, secara substansi, mengendalikan entitas tersebut. Consolidation of Structured Entities In determining the degree of control exercised, the Group considers whether these entities meet the definition of Structured Entities in accordance with applicable Financial Accounting Standard in Indonesia as set out in Note 2d and whether the Group, in substance, controls such entities. 88 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 903
  904. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 3. PENGGUNAAN ESTIMASI DAN PERTIMBANGAN AKUNTANSI YANG PENTING (lanjutan) 3. USE OF CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS (continued) Sumber utama ketidakpastian estimasi (lanjutan) Key sources of estimation uncertainty (continued) h. h. Konsolidasian Entitas Terstruktur (lanjutan) Ketika Grup, secara substansi, mengendalikan entitas terstruktur tersebut, entitas tersebut dikonsolidasikan oleh Grup. i. Consolidation (continued) of Structured Entities When the Group, in substance, controls the entity to which the financial assets have been transferred, the entity is consolidated by the Group. Penurunan nilai aset non-keuangan i. Impairment of non-financial assets Bank mengevaluasi penurunan nilai aset apabila terdapat kejadian atau perubahan keadaan yang mengindikasikan bahwa nilai tercatat aset tidak dapat dipulihkan kembali. Faktor-faktor penting yang dapat menyebabkan penelaahan penurunan nilai adalah sebagai berikut: The Bank assesses impairment of assets whenever events or changes in circumstances would indicate that the carrying amount of an asset may not be recoverable. The factors that the Bank considers important which could trigger an impairment review include the following: a) a) significant underperformance relative to expected historical or projected future operating results; b) significant changes in the manner of use of the acquired assets or the strategy for overall business; and significant negative industry or economic trends. b) c) Performa yang tidak tercapai secara signifikan terhadap ekspektasi historis atau proyeksi hasil operasi di masa yang akan datang; perubahan yang signifikan dalam cara penggunaan aset atau strategi bisnis secara keseluruhan; dan industri atau tren ekonomi yang secara signifikan bernilai negatif. c) Bank mengakui kerugian penurunan nilai apabila nilai tercatat aset melebihi nilai yang dapat dipulihkan. Jumlah terpulihkan adalah nilai yang lebih tinggi antara nilai wajar dikurang biaya untuk menjual dengan nilai pakai aset (atau unit penghasil kas). Jumlah terpulihkan diestimasi untuk aset individual atau, jika tidak memungkinkan, untuk unit penghasil kas yang mana aset tersebut merupakan bagian daripada unit tersebut. The Bank recognizes an impairment loss whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of an asset’s (or cash-generating unit’s) fair value less costs to sell and its value in use. Recoverable amounts are estimated for individual assets or, if it is not possible, for the cash-generating unit to which the asset belongs. 89 904 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  905. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 4. KAS 4. Kas terdiri dari: CASH Cash consists of the following: 31 Desember/December 2018 2017 Rupiah Mata uang asing Dolar Amerika Serikat Dolar Singapura Yuan China Euro Real Arab Saudi Dolar Australia Yen Jepang Dolar Hong Kong Ringgit Malaysia Pound Sterling Inggris Dirham Uni Emirat Arab Franc Swiss Dolar Brunei Dolar Kanada Won Korea Selatan Dolar Taiwan Baht Thailand Total 13,282,121 11,025,722 Rupiah 350,566 228,256 60,491 37,043 25,779 14,161 12,171 11,288 6,843 4,253 3,871 3,612 1,179 725 674 671 142 275,409 126,759 21,841 31,946 23,294 19,192 13,782 17,493 10,777 6,828 900 1,158 1,242 481 356 358 126 Foreign currencies United States Dollar Singapore Dollar Chinese Yuan Euro Saudi Arabian Real Australian Dollar Japanese Yen Hong Kong Dollar Malaysian Ringgit Great Britain Pound Sterling United Arab Emirates Dirham Swiss Franc Brunei Dollar Canadian Dollar South Korean Won Taiwan Dollar Thailand Baht 761,725 551,942 14,043,846 11,577,664 Saldo dalam mata uang Rupiah termasuk uang pada mesin ATM (Anjungan Tunai Mandiri) sejumlah Rp5.087.355 dan Rp4.972.026 masingmasing pada tanggal 31 Desember 2018 dan 2017. 5. Total The Rupiah balance includes cash in ATMs (Automatic Teller Machines) of Rp5,087,355 and Rp4,972,026 as of 31 December 2018 and 2017, respectively. GIRO PADA BANK INDONESIA 5. CURRENT ACCOUNTS WITH BANK INDONESIA 31 Desember/December 2018 2017 Rupiah Dolar Amerika Serikat 27,877,724 7,713,519 26,321,196 6,379,521 Rupiah United States Dollar Total 35,591,243 32,700,717 Total Bank dan Entitas Anak dipersyaratkan untuk memiliki Giro Wajib Minimum (GWM) dalam mata uang Rupiah dalam kegiatannya sebagai bank umum dan syariah, serta GWM dalam mata uang asing dalam kegiatannya melakukan transaksi mata uang asing. The Bank and Subsidiaries are required to maintain minimum statutory reserves (GWM) in Rupiah for conventional and sharia banking and statutory reserves in foreign currencies for foreign exchange transactions. 90 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 905
  906. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 5. GIRO PADA BANK INDONESIA (lanjutan) 5. CURRENT ACCOUNTS WITH BANK INDONESIA (continued) BNI BNI Pada tanggal 31 Desember 2018 dan 2017, Giro Wajib Minimum (GWM) Bank telah sesuai dengan Peraturan Bank Indonesia (PBI) No.15/15/PBI/2013 tanggal 24 Desember 2013 tentang Giro Wajib Minimum Bank Umum Dalam Rupiah dan Valuta Asing Bagi Bank Umum Konvensional sebagaimana telah diubah beberapa kali dengan PBI No.17/11/PBI/2015 tanggal 25 Juni 2015, PBI No.17/21/PBI/2015 tanggal 26 November 2015, PBI No.18/3/PBI/2016 tanggal 10 Maret 2016, PBI No.18/14/PBI/2016 tanggal 18 Agustus 2016, PBI No. 19/6/PBI/2017 tanggal 17 April 2017 dan PBI No. 20/3/PBI/2018 tanggal 29 Maret 2018, yang masing-masing sebesar: As of 31 December 2018 and 2017, the Bank's Minimum Statutory Reserve complies with Bank Indonesia (BI) Regulation No. 15/15/PBI/2013 dated 24 December 2013 which have been further amended with PBI No. 17/11/PBI/2015 dated 25 June 2015, PBI No.17/21/PBI/2015 dated 26 November 2015, PBI No. 18/3/PBI/2016 dated 10 March 2016, PBI No. 18/14/PBI/2016 dated 18 August 2016, PBI No. 19/6/PBI/2017 dated 17 April 2017 and PBI No. 20/3/PBI/2018 dated 29 March 2018 concerning Minimum Statutory Reserve of Commercial Banks with BI in Rupiah and foreign currency, which are as follows: 31 Desember/December 2018 2017 Rupiah - GWM Primer Harian*) Rata-rata*) 6.50% 3.50% 3.00% 6.50% 5.00% 1.50% - GWM Sekunder**) - PLM***) Mata uang asing 4.00% 8.00% 4.00% 8.00% Rupiah Primary Minimum Statutory Reserve Daily*) Average*) Secondary Minimum Statutory Reserve**) PLM***) Foreign Currencies *) **) Mulai berlaku per 16 Juli 2018 Per 1 Juli 2017, excess GWM tidak diperhitungkan sebagai pemenuhan GWM Sekunder. ***) Per 16 Juli 2018, berdasarkan PBI No. 20/4PBI/2018 tanggal 29 Maret 2018, istilah GWM Sekunder berubah menjadi PLM (Penyangga Likuiditas Makroprudensial) dan GWM LFR berubah menjadi RIM (Rasio Intermediasi Makroprudensial) *) **) Effective on 16 July 2018 Starting 1 July 2017, excess GWM is not considered as Secondary Minimum Statutory Reserve. ***) As of 16 July 2018, based on PBI No.20/4/PBI/ 2018 dated 29 March 2018, the term GWM Secondary changed to PLM (Macroprudential Liquidity Buffer) and the LFR GWM changed to RIM (Macroprudential Intermediation Ratio) GWM Primer adalah simpanan minimum yang wajib dipelihara oleh Bank dalam bentuk saldo Rekening Giro pada Bank Indonesia. GWM Sekunder dan Penyangga Likuiditas Makroprudensial (PLM) adalah cadangan minimum yang wajib dipelihara oleh Bank berupa SBI, Surat Utang Negara (SUN), Surat Berharga Syariah Negara (SBSN) dan/atau excess reserve yang merupakan kelebihan saldo Rekening Giro Rupiah Bank dari GWM Primer, GWM LFR dan Rasio Intermediasi Makroprudensial (RIM). GWM LFR dan RIM adalah tambahan simpanan minimum yang wajib dipelihara oleh Bank dalam bentuk saldo Rekening Giro pada Bank Indonesia, jika LFR dan RIM Bank dibawah minimum LFR dan RIM target Bank Indonesia (80%) atau jika di atas maksimum LFR dan RIM target BI (92%) dan Kewajiban Penyediaan Modal Minimum (KPMM) Bank lebih kecil dari KPMM Insentif BI sebesar 14%. Primary Minimum Statutory Reserve is a minimum reserve that should be maintained by the Bank in Current Accounts with Bank Indonesia. Secondary Minimum Statutory Reserve and Macroprudential Liquidity Buffer are the minimum reserves that should be maintained by the Bank which comprised of Certificates of Bank Indonesia (SBI), Government Debenture Debt (SUN), Sharia Government Securities (SBSN), and/or excess reserve which represent the excess reserve of the Bank’s Current Accounts in Rupiah over the Primary Minimum Statutory Reserve, Minimum Statutory Reserve on LFR and Macroprudential Intermediation Ratio (RIM). Minimum Statutory Reserve on LFR and RIM 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 and RIM is below the minimum of LFR and RIM targeted by Bank Indonesia (80%) or if the Bank’s LFR and RIM is above the maximum of LFR and RIM targeted by BI (92%) and the Capital Adequacy Ratio (CAR) is below BI requirement of 14%. 91 906 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  907. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 5. GIRO PADA BANK INDONESIA (lanjutan) 5. Rasio Giro Wajib Minimum untuk rekening Rupiah dan mata uang asing (BNI saja) pada tanggal 31 Desember 2018 dan 2017 masing-masing sebesar: Rupiah - GWM Primer Harian Rata-rata - GWM Sekunder - PLM Mata uang asing CURRENT ACCOUNTS WITH BANK INDONESIA (continued) The ratio of the Minimum Statutory Reserve requirement (BNI only) for its Rupiah and foreign currencies accounts as of 31 December 2018 and 2017, are as follows: 31 Desember/December 2018 2017 6.53% 3.50% 3.03% 12.53% 8.01% 6.57% 5.00% 1.57% 15.18% 8.01% Rupiah Primary Minimum Statutory Reserve Daily Average Secondary Minimum Statutory Reserve PLM Foreign currencies BNI Syariah BNI Syariah Rasio Giro Wajib Minimum (GWM) untuk rekening Rupiah dan mata uang asing pada tanggal-tanggal 31 Desember 2018 dan 2017 adalah sebagai berikut: The Ratio of Mnimum Statutory Reserve Requirement (“GWM”) for its Rupiah and foreign currencies as of 31 December 2018 and 2017, are as follows: 31 Desember/December 2018 2017 Rupiah Mata uang asing 5.13% 1.64% 7.25% 1.45% Rupiah Foreign currencies Sesuai dengan Peraturan Bank Indonesia (PBI) No. 6/21/PBI/2004 tanggal 3 Agustus 2004 tentang “Giro Wajib Minimum Dalam Rupiah dan Valuta Asing Bagi Bank Umum yang Melaksanakan Kegiatan Usaha Berdasarkan Prinsip Syariah” sebagaimana telah diubah dengan PBI No. 8/23/PBI/2006 tanggal 5 Oktober 2006, PBI No. 10/23/PBI/2008 tanggal 16 Oktober 2008 yang kemudian dicabut dan digantikan dengan PBI No. 15/16/PBI/2013 tanggal 24 Desember 2013, setiap bank diwajibkan memelihara GWM dalam Rupiah dan valuta asing yang besarnya ditetapkan masingmasing sebesar 5,00% dan 1,00% dari dana pihak ketiga dalam Rupiah dan valuta asing. Based on Bank Indonesia Regulation (PBI) No.6/21/PBI/2004 dated 3 August 2004 regarding “Minimum Statutory Reserve Requirements in Rupiah and Foreign Currencies of Commercial Banks under Sharia Principle” as amended, by PBI No. 8/23/PBI/2006 dated 5 October 2006, PBI No. 10/23/PBI/2008 dated 16 October 2008 which has revoked and amended with PBI No. 15/16/PBI/2013 dated 24 December 2013, each bank is required to maintain Minimum Statutory Reserve Requirements (GWM) in Rupiah and foreign currencies equivalent to 5.00% and 1.00% of its third party funds denominated in Rupiah and foreign currencies, respectively. Saldo giro pada Bank Indonesia disediakan untuk memenuhi persyaratan GWM dari Bank Indonesia. The balance of current accounts with Bank Indonesia is provided to meet GWM from Bank Indonesia. BNI Syariah telah memenuhi ketentuan Bank Indonesia tentang GWM per tanggal-tanggal 31 Desember 2018 dan 2017. BNI Syariah has complied with the Bank Indonesia regulations regarding the GWM as of 31 December 2018 and 2017. BNI Syariah menempatkan dana pada Bank Indonesia dengan rata-rata tingkat bonus tahunan sebagai berikut: BNI Syariah placed its fund with Bank Indonesia with average annual bonuses as follows: 31 Desember/December 2018 Fasilitas Simpanan Bank Indonesia Syariah (FASBIS) Sertifikat Bank Indonesia Syariah Deposito Berjangka Syariah Bank Indonesia 2017 4.09% 5.99% 1.90% 3,50% 5,62% 1,07% Bank Indonesia Sharia Deposit Facilities (FASBIS) Bank Indonesia Sharia Certificate Bank Indonesia Sharia Term Deposit 92 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 907
  908. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 6. GIRO PADA BANK LAIN a. 6. Berdasarkan mata uang CURRENT ACCOUNTS WITH OTHER BANKS a. By currency 31 Desember/December 2018 2017 Rupiah 289,649 343,537 Rupiah 6,196,149 2,542,238 2,075,662 1,171,986 479,448 206,950 67,557 39,081 23,492 19,006 11,037 4,834 4,799 3,199 2,012 17,163,340 929,878 690,009 1,073,590 636,990 221,024 166,828 29,436 25,505 46,423 2,179 8,087 766 845 Foreign currencies United States Dollar Chinese Yuan Japanese Yen Euro Singapore Dollar Hong Kong Dollar Great Britain Pound Sterling United Arab Emirates Dirham Australian Dollar Canadian Dollar Swiss Franc Malaysian Ringgit South Korean Won Saudi Arabian Real Thailand Baht 12,847,450 20,994,900 Total Cadangan kerugian penurunan nilai 13,137,099 21,338,437 Neto 13,133,828 Mata uang asing Dolar Amerika Serikat Yuan China Yen Jepang Euro Dolar Singapura Dolar Hong Kong Pound Sterling Inggris Dirham Uni Emirat Arab Dolar Australia Dolar Kanada Franc Swiss Ringgit Malaysia Won Korea Selatan Real Arab Saudi Baht Thailand b. (3,271) Berdasarkan hubungan (3,287) Total Allowance for impairment losses 21,335,150 b. Net By relationship 31 Desember/December 2018 2017 c. Pihak berelasi Rupiah Mata uang asing 656 78,252 5,736 1,401,698 Related parties Rupiah Foreign currencies Total pihak berelasi 78,908 1,407,434 Total related parties Pihak ketiga Rupiah Mata uang asing 288,993 12,769,198 337,801 19,593,202 Third parties Rupiah Foreign currencies Total pihak ketiga 13,058,191 19,931,003 Total third parties Total Cadangan kerugian penurunan nilai 13,137,099 21,338,437 Total Allowance for impairment losses Neto 13,133,828 (3,271) Berdasarkan kolektibilitas Bank Indonesia (3,287) 21,335,150 c. Seluruh giro pada bank lain pada tanggaltanggal 31 Desember 2018 dan 2017 diklasifikasikan lancar. By Bank Indonesia collectibility All current accounts with other banks as of 31 December 2018 and 2017 are classified as current. 93 908 Adapting Quickly to Face Change Net PT Bank Negara Indonesia (Persero) Tbk
  909. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 6. GIRO PADA BANK LAIN (lanjutan) d. 6. Cadangan kerugian penurunan nilai CURRENT ACCOUNTS WITH OTHER BANKS (continued) d. Perubahan cadangan kerugian penurunan nilai adalah sebagai berikut: Allowance for impairment losses The movements in the allowance impairment losses are as follows: for 31 Desember/December 2018 2017 Saldo awal (Pembalikan) penyisihan selama tahun berjalan Penyesuaian karena penjabaran laporan keuangan 3,287 1,748 170 119 Beginning balance (Reversal) provision during the year Foreign exchange translation adjustment Saldo akhir 3,271 3,287 Ending balance (186) 1,420 Manajemen berpendapat bahwa jumlah cadangan kerugian penurunan nilai di atas telah memadai. e. Management believes that the allowance for impairment losses is adequate. Tingkat suku bunga per tahun e. Yuan China/ Chinese Yuan % 0.01 - 2.50 0.01 - 1.50 2.00 2.50 2018 2017 Giro pada bank lain selain dalam mata uang Dolar Amerika Serikat dan Yuan China tidak mendapat bunga. 7. 2018 2017 Current accounts with other banks stated in currency other than United States Dollar and Chinese Yuan do not earn interest. PENEMPATAN PADA BANK LAIN DAN BANK INDONESIA a. Annual interest rates Dolar Amerika Serikat/ United States Dollar % 7. Berdasarkan jenis dan mata uang PLACEMENTS WITH BANK INDONESIA a. OTHER BANKS AND By type and currency 31 Desember/December 2018 2017 Rupiah Bank Indonesia - FASBI Call Money PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk PT Bank Mandiri (Persero) Tbk PT Bank HSBC Indonesia PT Bank Nationalnobu Tbk PT Bank DKI PT Bank Pembangunan Daerah Riau The Bank of Tokyo-Mitsubishi UFJ, Ltd, Cabang Jakarta PT Bank ICBC Indonesia PT Bank Victoria Internasional Tbk PT Bank Sumitomo Mitsui Indonesia PT Bank Mega Tbk PT Bank Yudha Bhakti Tbk PT Bank Negara Indonesia (Persero) Tbk  Rupiah 28,288,351 17,680,063 500,000 500,000 350,000 250,000 200,000 150,000 500,000 - 150,000 150,000 100,000 100,000 90,000 75,000 60,000 60,000 45,000 94 60,000 50,000 Bank Indonesia - FASBI Call Money PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk PT Bank Mandiri (Persero) Tbk PT Bank HSBC Indonesia PT Bank Nationalnobu Tbk PT Bank DKI PT Bank Pembangunan Daerah Riau The Bank of Tokyo-Mitsubishi UFJ, Ltd, Jakarta Branch PT Bank ICBC Indonesia PT Bank Victoria Internasional Tbk PT Bank Sumitomo Mitsui Indonesia PT Bank Mega Tbk PT Bank Yudha Bhakti Tbk Adapting Quickly to Face Change 909
  910. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 7. PENEMPATAN PADA BANK LAIN DAN BANK INDONESIA (lanjutan) a. 7. Berdasarkan jenis dan mata uang (lanjutan) PLACEMENTS WITH OTHER BANK INDONESIA (continued) a. BANKS AND By type and currency (continued) 31 Desember/December 2018 2017 Rupiah (lanjutan) PT Bank Danamon Indonesia Tbk PT Bank DBS Indonesia PT Bank OCBC NISP Tbk PT Bank Pembangunan Daerah Jawa Tengah PT Bank Bukopin Tbk PT Bank BNP Paribas Indonesia Lembaga Pembiayaan Ekspor Indonesia PT Bank ANZ Indonesia Deutsche Bank Cabang Jakarta PT Bank Pembangunan Daerah Istimewa Yogyakarta PT Bank Pembangunan Daerah Kalimantan Selatan PT Bank Pembangunan Daerah Sumatera Selatan dan Bangka Belitung PT Bank CIMB Niaga Tbk PT Bank Sinarmas Tbk PT Bank Tabungan Pensiunan Nasional Tbk PT Bank Pembangunan Daerah Sulawesi Tengah PT Bank Pembangunan Daerah Jambi PT Bank Pembangunan Daerah Jawa Timur Tbk Lain-lain Subtotal Negotiable Certificate of Deposit PT Bank Tabungan Negara (Persero) Tbk PT Bank Mandiri (Persero) Tbk PT Bank Mizuho Indonesia PT Bank Pembangunan Daerah Jawa Tengah PT Bank Commonwealth PT Bank Woori Saudara Indonesia 1906 Tbk PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk PT Bank Sumitomo Mitsui Indonesia PT Bank KEB Hana Indonesia Lain-lain Subtotal Deposito berjangka - 500,000 500,000 400,000 - 350,000 300,000 220,000 - 200,000 198,000 100,000 - 100,000 - 100,000 - 100,000 100,000 100,000 - 75,000 - 50,000 - 50,000 47,205 50,000 46,300 2,452,205 4,524,300 419,082 223,972 133,247 209,229 215,639 53,511 125,835 123,160 9,566 106,023 189,446 83,672 44,022 74,830 56,719 29,567 190,830 197,070 9,444 1,376,107 1,118,757 551,093 892,768 32,667,756 24,215,888 Rupiah (continued) PT Bank Danamon Indonesia Tbk PT Bank DBS Indonesia PT Bank OCBC NISP Tbk PT Bank Pembangunan Daerah Jawa Tengah PT Bank Bukopin Tbk PT Bank BNP Paribas Indonesia Lembaga Pembiayaan Ekspor Indonesia PT Bank ANZ Indonesia Deutsche Bank Jakarta Branch PT Bank Pembangunan Daerah Istimewa Yogyakarta PT Bank Pembangunan Daerah Kalimantan Selatan PT Bank Pembangunan Daerah Sumatera Selatan dan Bangka Belitung PT Bank CIMB Niaga Tbk PT Bank Sinarmas Tbk PT Bank Tabungan Pensiunan Nasional Tbk PT Bank Pembangunan Daerah Sulawesi Tengah PT Bank Pembangunan Daerah Jambi PT Bank Pembangunan Daerah Jawa Timur Tbk Others Subtotal Negotiable Certificate of Deposit PT Bank Tabungan Negara (Persero) Tbk PT Bank Mandiri (Persero) Tbk PT Bank Mizuho Indonesia PT Bank Pembangunan Daerah Jawa Tengah PT Bank Commonwealth PT Bank Woori Saudara Indonesia 1906 Tbk PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk PT Bank Sumitomo Mitsui Indonesia PT Bank KEB Hana Indonesia Others Subtotal Time deposits 95 910 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  911. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 7. PENEMPATAN PADA BANK LAIN DAN BANK INDONESIA (lanjutan) a. 7. Berdasarkan jenis dan mata uang (lanjutan) PLACEMENTS WITH OTHER BANK INDONESIA (continued) a. BANKS AND By type and currency (continued) 31 Desember/December 2018 2017 Mata uang asing Bank Indonesia - FASBI Call Money PT Bank Mandiri (Persero) Tbk DZ Bank AG London LandesBank Baden-Wuertemberg DZ Bank Singapore Lembaga Pembiayaan Ekspor Indonesia PT Bank BNP Paribas Indonesia Subtotal Deposito berjangka KEB Hana Bank, Seoul Bank of Nova Scotia, Hong Kong KB Kookmin Bank, Seoul DZ Bank AG, Singapura Oversea-Chinese Banking Corporation Limited The Bank of Tokyo Mitsubishi Woori Bank, Seoul Industrial Bank of Korea Lain-lain Foreign currencies 5,004,920 339,188 359,500 230,080 - 678,375 746,213 - 407,025 271,350 589,580 2,102,963 Bank Indonesia - FASBI Call Money PT Bank Mandiri (Persero) Tbk DZ Bank AG London LandesBank Baden-Wuertemberg DZ Bank Singapore Lembaga Pembiayaan Ekspor Indonesia PT Bank BNP Paribas Indonesia Subtotal 577,060 215,700 180,880 - 508,629 178,360 474,863 43,140 45,424 271,350 203,513 91,728 124,141 82,625 Time deposits KEB Hana Bank, Seoul Bank of Nova Scotia, Hong Kong KB Kookmin Bank, Seoul DZ Bank AG, Singapore Oversea-Chinese Banking Corporation Limited The Bank of Tokyo Mitsubishi Woori Bank, Seoul Industrial Bank of Korea Others Subtotal 1,062,204 1,935,209 Subtotal 6,656,704 4,377,360 Total Cadangan kerugian penurunan nilai 39,324,460 28,593,248 Neto 39,324,445 (15) Perincian penempatan pada bank lain dan Bank Indonesia berdasarkan mata uang adalah sebagai berikut: (510) 28,592,738 Total Allowance for impairment losses Net Placements with other banks and Bank Indonesia based on currencies are as follows: 31 Desember/December 2018 2017 Rupiah Mata uang asing Dolar Amerika Serikat Won Korea Selatan 32,667,756 24,215,888 Rupiah 6,279,440 377,264 3,916,172 461,188 Foreign currencies United States Dollar South Korean Won 6,656,704 4,377,360 Total Cadangan kerugian penurunan nilai 39,324,460 28,593,248 Neto 39,324,445 (15) (510) 28,592,738 Total Allowance for impairment losses Net 96 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 911
  912. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 7. PENEMPATAN PADA BANK LAIN DAN BANK INDONESIA (lanjutan) b. 7. Berdasarkan hubungan PLACEMENTS WITH OTHER BANK INDONESIA (continued) b. BANKS AND By relationship 31 Desember/December 2018 2017 Pihak berelasi Rupiah Call Money Negotiable Certificate Deposit Deposito berjangka 500,000 643,054 153,308 200,000 424,868 205,768 1,296,362 830,636 359,500 21,722 407,025 60,966 Mata uang asing Call Money Deposito berjangka 381,222 467,991 1,298,627 Total related parties 28,288,351 1,952,205 733,053 397,785 17,680,063 4,324,300 693,889 687,000 Third parties Rupiah Bank Indonesia - FASBI Call Money Negotiable Certificate Deposit Time deposits 31,371,394 23,385,252 5,004,920 230,080 1,040,482 339,188 1,695,938 1,874,243 Mata uang asing Bank Indonesia - FASBI Call Money Deposito berjangka c. Foreign currencies Bank Indonesia - FASBI Call Money Time deposits 6,275,482 3,909,369 Total pihak ketiga 37,646,876 27,294,621 Total third parties Total Cadangan kerugian penurunan nilai 39,324,460 28,593,248 Total Allowance for impairment losses Neto 39,324,445 (15) Berdasarkan kolektibilitas Bank Indonesia (510) 28,592,738 c. Seluruh penempatan pada bank lain dan Bank Indonesia pada tanggal-tanggal 31 Desember 2018 dan 2017 diklasifikasikan sebagai lancar. d. Foreign currencies Call Money Time deposits 1,677,584 Total pihak berelasi Pihak ketiga Rupiah Bank Indonesia - FASBI Call Money Negotiable Certificate Deposit Deposito berjangka Related parties Rupiah Call Money Negotiable Certificate Deposit Time deposits Net By Bank Indonesia collectibility All placements with other banks and Bank Indonesia as of 31 December 2018 and 2017 are classified as current. Cadangan kerugian penurunan nilai d. Perubahan cadangan kerugian penurunan nilai adalah sebagai berikut: Allowance for impairment losses The movements in the allowance impairment losses are as follows: for 31 Desember/December 2018 2017 Saldo awal Pembalikan selama tahun berjalan Penyesuaian karena penjabaran laporan keuangan Saldo akhir 510 500 (495) (12) Beginning balance - 22 Reversal during the year Foreign exchange translation adjustment 15 510 Ending balance 97 912 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  913. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 7. PENEMPATAN PADA BANK LAIN DAN BANK INDONESIA (lanjutan) d. Cadangan (lanjutan) kerugian penurunan 7. nilai PLACEMENTS WITH OTHER BANK INDONESIA (continued) d. Allowance (continued) Manajemen berpendapat bahwa jumlah cadangan kerugian penurunan nilai di atas telah memadai. e. Penempatan pada bank digunakan sebagai jaminan lain yang e. 2018 2017 Placements with other banks pledged as collateral f. Dolar Amerika Serikat/ United States Dollar % 0.00 - 10.00 0.00 - 8.40 Annual interest rates Won Korea/ Korean Won % 0.00 - 4.20 0.01 - 2.97 2.00 2.50 2018 2017 Placements with Bank Indonesia and other banks stated in currency other than Rupiah, United States Dollar, South Korean Won and Chinese Yuan do not earn interest. EFEK-EFEK a. Yuan China/ Chinese Yuan % 0.20 - 2.15 1.43 - 1.79 Penempatan pada Bank Indonesia dan bank lain selain dalam mata uang Rupiah, Dolar Amerika Serikat, Won Korea Selatan dan Yuan China tidak mendapat bunga. 8. losses There were no placements with other banks pledged as collateral as of 31 December 2018 and 2017. Tingkat suku bunga per tahun Rupiah % impairment AND Management believes that the allowance for impairment losses is adequate. Tidak terdapat penempatan pada bank lain yang digunakan sebagai jaminan pada tanggal 31 Desember 2018 dan 2017. f. for BANKS 8. Berdasarkan jenis dan mata uang MARKETABLE SECURITIES a. By type and currency 31 Desember/December 2018 Nilai nominal/ Nominal value Nilai wajar melalui laporan laba rugi Rupiah Reksadana Obligasi Obligasi subordinasi Efek lainnya Mata uang asing Reksadana Total nilai wajar melalui laporan laba rugi Tersedia untuk dijual Rupiah Sertifikat Bank Indonesia Sertifikat Deposito Bank Indonesia Obligasi Reksadana Obligasi subordinasi Efek beragunan aset 2017 Nilai tercatat/ Carrying value Nilai nominal/ Nominal value Nilai tercatat/ Carrying value Fair value through profit or loss Rupiah Mutual funds Bonds Subordinated bonds Other securites 4,012,920 2,105,701 674,095 480,589 4,014,594 2,106,061 673,956 416,297 3,928,671 2,484,552 1,599,506 408,167 3,930,025 2,487,170 1,600,139 361,399 7,273,305 7,210,908 8,420,896 8,378,733 38,196 38,475 50,972 50,972 38,196 38,475 50,972 50,972 7,311,501 7,249,383 8,471,868 8,429,705 Total fair value through profit or loss Available-for-sale Rupiah Certificates of Bank Indonesia Certificates of Deposits of Bank Indonesia Bonds Mutual funds Subordinated bonds Asset backed security 3,000,000 2,000,000 7,322,500 2,054,212 855,400 314,370 2,866,423 1,983,417 7,120,068 1,577,924 843,183 307,604 11,671,352 5,369,100 1,668,372 674,500 618,550 11,531,047 5,635,710 1,385,155 706,029 386,948 15,546,482 14,698,619 20,001,874 19,644,889 Foreign currencies Mutual funds 98 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 913
  914. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 8. EFEK-EFEK (lanjutan) a. 8. Berdasarkan jenis dan mata uang (lanjutan) MARKETABLE SECURITIES (continued) a. By type and currency (continued) 31 Desember/December 2018 Nilai nominal/ Nominal value 2017 Nilai tercatat/ Carrying value Nilai nominal/ Nominal value Nilai tercatat/ Carrying value Tersedia untuk dijual (lanjutan) Mata uang asing Sertifikat Bank Indonesia Obligasi Reksadana Total tersedia untuk dijual Dimiliki hingga jatuh tempo Rupiah Obligasi, setelah dikurangi premi yang belum diamortisasi sebesar Rp24.493 pada tanggal 31 Desember 2018 dan Rp66 pada tanggal 31 Desember 2017 Mata uang asing Obligasi Total dimiliki hingga jatuh tempo Total efek-efek Cadangan kerugian penurunan nilai Efek-efek - neto Available-for-sale (continued) 4,692,453 1,165,035 3,231,997 4,639,014 1,088,710 3,341,941 5,540,058 922,830 1,105,841 5,507,990 919,395 733,395 9,089,485 9,069,665 7,568,729 7,160,780 24,635,967 23,768,284 27,570,603 26,805,669 Foreign currencies Certificates of Bank Indonesia Bonds Mutual funds Total available-for-sale Held-to-maturity Rupiah 1,362,000 1,337,507 1,116,924 1,116,858 Bonds, net of unamortized premium Rp24,493 as of 31 December 2018 and Rp66 as of 31 December 2017 7,241 7,233 6,756 6,762 Foreign currencies Bonds 1,369,241 1,344,740 1,123,680 1,123,620 Total held-to-maturity 33,316,709 32,362,407 37,166,151 36,358,994 Total marketable securities (309,095) Allowance for impairment losses (318,137) 32,044,270 Perincian efek-efek berdasarkan mata uang adalah sebagai berikut: 36,049,899 Marketable securities - net Marketable securities based on currencies are as follow: 31 Desember/December 2017 2018 Rupiah 23,247,034 29,140,480 Rupiah 9,115,373 7,218,514 Foreign currencies United States Dollar Total Cadangan kerugian penurunan nilai 32,362,407 36,358,994 Neto 32,044,270 Mata uang asing Dolar Amerika Serikat (318,137) Harga pasar efek-efek dalam kelompok tersedia untuk dijual berkisar antara 88,99% 103,47%, dan berkisar antara 99,25% 102,04% masing-masing dari nilai nominal pada tanggal 31 Desember 2018 dan 2017. BNI mengakui adanya keuntungan atau kerugian yang belum direalisasi atas peningkatan atau penurunan nilai pasar efekefek dalam kelompok tersedia untuk dijual (neto setelah pajak) sebesar Rp507.953 (rugi) dan Rp88.971 (untung) masing-masing untuk tahun yang berakhir pada 31 Desember 2018 dan 2017. (309,095) Total Allowance for impairment losses 36,049,899 Net The market value of the available-for-sale securities as of 31 December 2018 and 2017, ranged between 88.99% - 103.47%, and between 99.25% - 102.04% of the nominal amounts, respectively. BNI recognized the unrealized gains or loss from increase or decrease in the market value of marketable securities categorized as available-for-sale (net of taxes) in the amount of Rp507,953 (loss) and Rp88,971 (gain) for the year ended 31 December 2018 and 2017, respectively. 99 914 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  915. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 8. EFEK-EFEK (lanjutan) a. 8. Berdasarkan jenis dan mata uang (lanjutan) MARKETABLE SECURITIES (continued) a. Pada tanggal 31 Desember 2018, Sertifikat Bank Indonesia dan Sertifikat Deposito Bank Indonesia masing-masing dengan jumlah nominal Rp2.000.000 dan Rp100.000 telah dijual dengan janji dibeli kembali hingga jatuh tempo. (lihat Catatan 22). b. By type and currency (continued) As of 31 December 2018, Certificates of Bank Indonesia and Certificates Deposits of Bank Indonesia has been sold under agreements to repurchase to maturity with nominal amount to Rp2,000,000 and Rp100,000, respectively. (refer to Note 22). Berdasarkan hubungan b. By relationship 31 Desember/December 2017 2018 c. Pihak berelasi Rupiah Mata uang asing 7,880,541 709,688 5,667,735 386,110 Related parties Rupiah Foreign currencies Total pihak berelasi 8,590,229 6,053,845 Total related parties Pihak ketiga Rupiah Mata uang asing 15,366,493 8,405,685 23,472,745 6,832,404 Third parties Rupiah Foreign currencies Total pihak ketiga 23,772,178 30,305,149 Total third parties Total Cadangan kerugian penurunan nilai 32,362,407 36,358,994 Total Allowance for impairment losses Neto 32,044,270 (318,137) Berdasarkan penerbit (309,095) 36,049,899 c. Net By issuer 31 Desember/December 2017 2018 Korporasi Bank Bank Indonesia 16,283,877 6,589,677 9,488,853 13,717,670 5,602,287 17,039,037 Corporates Banks Bank Indonesia Total Cadangan kerugian penurunan nilai 32,362,407 36,358,994 Total Allowance for impairment losses Neto 32,044,270 (318,137) (309,095) 36,049,899 Net 100 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 915
  916. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 8. EFEK-EFEK (lanjutan) d. 8. MARKETABLE SECURITIES (continued) Berdasarkan peringkat d. By rating 31 Desember/December 2018 Pemeringkat/ Agencies Peringkat/ Rating Nilai tercatat/ Carrying Value Nilai wajar melalui laporan laba rugi Rupiah Reksadana Obligasi Obligasi subordinasi Efek lainnya Fair value through profit or loss Pefindo Pefindo Pefindo (AA-) – (AAA) (A+) – (AA+) (A+) – (AAA) 4,014,594 2,106,061 673,956 416,297 Rupiah Mutual funds Bonds Subordinated bonds Other securities 7,210,908 Mata uang asing Reksadana Total nilai wajar melalui laporan laba rugi - - 38,475 7,249,383 Tersedia untuk dijual Rupiah Sertifikat Bank Indonesia Sertifikat Deposito Bank Indonesia Reksadana Obligasi subordinasi Efek beragunan aset Obligasi Bank Rakyat Indonesia BRI-7.6/20 Hutama Karya HUTAMA2027 Hutama Karya HUTAMA2022 Bank Tabungan Negara BTN-8.7C/24 Bank Tabungan Negara BTN-8.5B/22 Bank Rakyat Indonesia BRI-25/05/19 Bank CIMB Niaga BNGAIJ-2022 Bank Jabar Banten BJB-2021 Bank Mandiri Thp I th 2016 Seri C Bank Rakyat Indonesia BRI-8.0/22 Bank OCBC NISP NISPIJ-2021 Waskita Karya Thp II Th 2018 Seri B Bank Ekspor Indonesia BEXI-2019 Bank OCBC NISP NISPIJ-2020 Sumitomo Bank MTN-SUMIBK Bank Mandiri MANDIRI/8.00 OBL MTN II Bank Jambi 2017 Bank Rakyat Indonesia BRI-01/12/19 Bank Ekspor Indonesia BEXI-2020 Adira Finance Thp II Th 2018 Seri D Bank Ekspor Indonesia BEXI-2023 Bank Keb Hana MTN Bank Mandiri MANDIRI/-8.5B Bank Sulselbar Thp II Th 2016 Maybank Finance Thp I 2017 B Bank Ekspor Indonesia BEXI-2019 PT PLN (Persero) PLNIJ-2027C Bank Panin PNBNIJ-7.60 Bank Panin PNBNIJ-2021 Waskita Karya Thp II Th 2016 MTN VI Bank Resona Perdania 2016 Bank Mandiri BBMRI-ZERO Bank Tabungan Negara BTN-8A/19 Bank Mandiri Taspen Bank Ekspor Indonesia BEXI-2021 Bank Jateng MTN-Jateng20 BTN tahap I 2017 B Bank Mandiri BMRIIJ-2023 Maybank Finance Thp III 2016 B Maybank Finance Thp III 2016 C Bank Jabar Banten BJB-2020 Bank Rakyat Indonesia BRI-25/05/21 Foreign currencies Mutual funds Total fair value through profit and loss Available-for-sale - - 2,866,423 Pefindo Pefindo (A-) – (AA+) idAAA(sf) 1,983,417 1,577,924 843,183 307,604 Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Fitch Pefindo Pefindo Fitch Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Fitch Fitch Pefindo Pefindo idAAA idAAA idAAA idAA+ idAA+ idAAA idAAA idAAidAAA idAAA idAAA idAidAAA idAAA idAAA idAAA idA idAAA idAAA idAAA idAAA idAAA idAAA id A+ idAA+ idAAA idAAA idAA idAA id AidAAidAAA idAA+ idAA idAAA idAAAA+ idAAA idAA+ idAA+ idAAidAAA 364,298 351,760 291,908 254,703 246,170 207,923 200,246 197,744 176,274 146,783 144,252 129,845 125,504 104,556 103,790 102,118 100,000 99,884 99,410 97,629 97,467 96,899 96,829 96,350 96,139 95,212 93,044 92,646 88,485 88,164 84,500 83,090 74,111 73,202 71,988 68,821 67,915 65,190 54,965 53,853 52,939 52,371 Rupiah Certificates of Bank Indonesia Certificates of Deposits of Bank Indonesia Mutual funds Subordinated bonds Asset backed security Bonds Bank Rakyat Indonesia BRI-7.6/20 Hutama Karya HUTAMA2027 Hutama Karya HUTAMA2022 Bank Tabungan Negara BTN-8.7C/24 Bank Tabungan Negara BTN-8.5B/22 Bank Rakyat Indonesia BRI-25/05/19 Bank CIMB Niaga BNGAIJ-2022 Bank Jabar Banten BJB-2021 Bank Mandiri Thp I th 2016 Seri C Bank Rakyat Indonesia BRI-8.0/22 Bank OCBC NISP NISPIJ-2021 Waskita Karya Thp II Th 2018 Seri B Bank Ekspor Indonesia BEXI-2019 Bank OCBC NISP NISPIJ-2020 Sumitomo Bank MTN-SUMIBK Bank Mandiri MANDIRI/8.00 OBL MTN II Bank Jambi 2017 Bank Rakyat Indonesia BRI-01/12/19 Bank Ekspor Indonesia BEXI-2020 Adira Finance Thp II Th 2018 Seri D Bank Ekspor Indonesia BEXI-2023 Bank Keb Hana MTN Bank Mandiri MANDIRI/-8.5B Bank Sulselbar Thp II Th 2016 Maybank Finance Thp I 2017 B Bank Ekspor Indonesia BEXI-2019 PT PLN (Persero) PLNIJ-2027C Bank Panin PNBNIJ-7.60 Bank Panin PNBNIJ-2021 Waskita Karya Thp II Th 2016 MTN VI Bank Resona Perdania 2016 Bank Mandiri BBMRI-ZERO Bank Tabungan Negara BTN-8A/19 Bank Mandiri Taspen Bank Ekspor Indonesia BEXI-2021 Bank Jateng MTN-JATENG20 BTN tahap I 2017 B Bank Mandiri BMRIIJ-2023 Maybank Finance Thp III 2016 B Maybank Finance Thp III 2016 C Bank Jabar Banten BJB-2020 Bank Rakyat Indonesia BRI-25/05/21 101 916 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  917. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 8. EFEK-EFEK (lanjutan) d. 8. MARKETABLE SECURITIES (continued) Berdasarkan peringkat (lanjutan) d. By rating (continued) 31 Desember/December 2018 Pemeringkat/ Agencies Peringkat/ Rating Tersedia untuk dijual (lanjutan) Rupiah (lanjutan) Bank CIMB Niaga BNGAIJ-2019 PT Telkom MTN-TELKOM Summarecon Tahap II 2017 Maybank Finance Thp II 2016 SR B Pegadaian PGD-MTN2021 PNM Tahap I Seri B 2017 Exim Bank III Thp V 2017 Seri C Bank Ekspor Indonesia BEXI14/2/21N OBL BKLJT III PLN Tahap I 2018 seri B Waskita Karya thp I th 2017 seri B PT PLN (Persero) PLNIJ-2022A OBL BKLJ bank Panin III 2018 PT PLN (Persero) PLNIJ-2024B Bank Ekspor Indonesia BEXI-14/2/23 Bank Rakyat Indonesia BRI-6.65/23 Sarana Multigriya Finansial Thp VI Th 2016 Bank Tabungan Negara BTN-8.3A/20 Adira Finance Thp III Th 2018 Seri C Indosat Tahap I Thn 2014 Seri D Maybank Finance Thp II Th 2016 Seri A Adira Finance Thp I Th 2015 Seri B Bank Maybank Indonesia BNIIIJ-2023 Sukuk Ijarah I Angkasa Pura I 2016 Seri B Bank Tabungan Negara BTN-2020B Indosat VIII 2012 A XL Axiata Tahap I Tahun 2018 Seri B PNM tahap II th 2018 Seri B Indosat Tahap I Thn 2014 Seri B PT Jasa Marga JM/XIV-20-U Bank Ekspor Indonesia BEXI-8/11/21 Maybank Indonesia Tahap I 2017 Seri A Bank Tabungan Negara BTN-7.9/23 Bank Tabungan Negara BTN-7.9/22 PLN PLNIJ-2023A PLN XII Tahun 2010 Seri B Ijarah I Telkom Tahun 2018 Seri C Bank Panin PNBNIJ-9.15 Pelindo I Gerbang Nusantara 2016 B Indosat Tahap I Tahun 2014 Seri D Bank Tabungan Negara BTN-8B/8/21N Bank DKI BDKIIJ-2021 Bank Panin Tahap II 2016 Sukuk Ijarah PLN Tahap II 2018 Sr B Mandiri Tunas Finance Tahap II 2016 B Indonesia Eximbank III Thp V Th 2017 SR A Bank CIMB Niaga BNGAIJ-8.15 BPD Maluku dan Malut BMALIJ-2020 Waskita Karya Thp I Th 2016 Maybank Finance Thp III 2016 A Indosat Thp IV Tahun 2016 Seri E Mandiri Tunas Finance Thp II 2017 B Bank BTN Tahun 2010 Indosat Tahap I Tahun 2014 Seri C Indosat Thp II Th 2015 Seri C Bank BTN Tahun 2011 Adira Finance Thp IV Th 2016 Seri C Bank Ekspor Indonesia BEXI-15/8/20 Mitra Adiperkasa Tahap II 2014 SR B Astra Sedaya Thp I Th 16 Seri B Bank Maybank Indonesia BNIIIJ-2022 Bank Maybank Indonesia BNIIIJ-2024 Nilai tercatat/ Carrying Value Available-for-sale (continued) Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo idAAA idAAA idA idAA+ idAAA id A idAAA idAAA idAAA idAidAAA idAA idAAA idAAA idAAA Pefindo Pefindo Pefindo Pefindo idAAA idAA idAAA idAAA Pefindo Pefindo Pefindo idAA+ idAAA idAAA Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo idAAA(sy) idAA+ idAAA idAA+ idA idAAA idAA idAAA idAA+ idAA+ idAA+ idAAA idAAA idAAA idAAA Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo idAA idAAA idAA+ idAAidAAA idAAA AA+ Pefindo Pefindo Fitch Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo AAA idAAA idA idAidAA+ idAAA idAA+ idAA+ idAAA idAAA idAA+ idAAA idAAA idAA idAAA idAA+ idAA+ Rupiah (continued) 50,008 Bank CIMB Niaga BNGAIJ-2019 49,415 PT Telkom MTN-TELKOM 48,870 Summarecon Tahap II 2017 48,263 Maybank Finance Thp II 2016 SR B 48,037 Pegadaian PGD-MTN2021 47,811 PNM Tahap I Seri B 2017 47,486 Exim Bank III Thp V 2017 Seri C 47,471 Bank Ekspor Indonesia BEXI14/2/21N 47,306OBL BKLJT III PLN Tahap I 2018 seri B 47,214 Waskita Karya thp I th 2017 seri B 47,026 PT PLN (Persero) PLNIJ-2022A 46,323 OBL BKLJ bank Panin III 2018 46,222 PT PLN (Persero) PLNIJ-2024B 45,744 Bank Ekspor Indonesia BEXI-14/2/23 45,542 Bank Rakyat Indonesia BRI-6.65/23 Sarana Multigriya 45,043 Finansial THP VI TH 2016 42,826 Bank Tabungan Negara BTN-8.3A/20 42,509 Adira Finance Thp III Th 2018 Seri C 41,196 Indosat Tahap I Thn 2014 Seri D Maybank Finance Thp II 40,177 Th 2016 Seri A 38,915 Adira Finance Thp I Th 2015 Seri B 37,535 Bank Maybank Indonesia BNIIIJ-2023 Sukuk Ijarah I Angkasa Pura I 33,706 2016 Seri B 31,774 Bank Tabungan Negara BTN-2020B 31,130 Indosat VIII 2012 A 30,056 XL Axiata Tahap I Tahun 2018 Seri B 27,602 PNM tahap II th 2018 Seri B 25,448 Indosat Tahap I Thn 2014 Seri B 25,331 PT Jasa Marga JM/XIV-20-U 25,142 Bank Ekspor Indonesia BEXI-8/11/21 24,661 Maybank Indonesia Thp I 2017 Seri A 24,439 Bank Tabungan Negara BTN-7.9/23 23,243 Bank Tabungan Negara BTN-7.9/22 22,641 PLN PLNIJ-2023A 20,651 PLN XII Tahun 2010 Seri B 20,000 Ijarah I Telkom Tahun 2018 Seri C 19,943 Bank Panin PNBNIJ-9.15 Pelindo I Gerbang 19,888 Nusantara 2016 B Indosat TahapITahun 2014 Seri D 19,867Bank Tabungan Negara BTN-8B/8/21N 19,824 Bank DKI BDKIIJ-2021 19,663 Bank Panin Tahap II 2016 16,597 Sukuk Ijarah PLN Tahap II 2018 Sr B 15,085 Mandiri Tunas Finance Thp II 2016 B Indonesia Eximbank III 19,650 Thp V Th 2017 SR A 19,209 Bank CIMB Niaga BNGAIJ-8.15 16,963 BPD Maluku dan Malut BMALIJ-2020 14,995 Waskita Karya Thp I Th 2016 14,993 Maybank Finance Thp III 2016 A 14,704 Indosat Thp IV Tahun 2016 Seri E 14,558 Mandiri Tunas Finance Thp II 2017 B 12,300 Bank BTN Tahun 2010 10,372 Indosat Tahap I Tahun 2014 Seri C 10,201 Indosat Thp II Th 2015 Seri C 10,073 Bank BTN Tahun 2011 10,067 Adira Finance Thp IV Th 2016 Seri C 10,057 Bank Ekspor Indonesia BEXI-15/8/20 10,056 Mitra Adiperkasa Tahap II 2014 SR B 10,031 Astra Sedaya Thp I Th 16 Seri B 9,676 Bank Maybank Indonesia BNIIIJ-2022 9,133 Bank Maybank Indonesia BNIIIJ-2024 102 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 917
  918. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 8. EFEK-EFEK (lanjutan) d. 8. MARKETABLE SECURITIES (continued) Berdasarkan peringkat (lanjutan) d. By rating (continued) 31 Desember/December 2018 Pemeringkat/ Agencies Peringkat/ Rating Nilai tercatat/ Carrying Value Tersedia untuk dijual (lanjutan) Available-for-sale (continued) Rupiah (lanjutan) Bank Tabungan Negara BTN-28/06/21 Pefindo Bank Tabungan Negara BTN-9.875/20 Pefindo Bank OCBC NISP NISPIJ-2021 Pefindo PT PLN (Persero) PLN Pefindo Lainnya Beragam/Various idAA+ idAA+ idAAA idAAA Beragam/Various Subtotal Rupiah (continued) 8,058 Bank Tabungan Negara BTN-28/06/21 Bank Tabungan Negara 5,088 BTN-9.875/20 4,978 Bank OCBC NISP NISPIJ-2021 4,821 PT PLN (Persero) PLN 93,478 Others 7,120,068 Subtotal 14,698,619 Mata uang asing Sertifikat Bank Indonesia Reksadana Obligasi lainnya PLBIIJ-II/25 Bank BRI Pertamina 2023 Bank of America Suntrust USA Corestates Cap III / Wells Fargo M&T Bank USA Huntington USA JP Morgan Chase USA ICBC ASIA LTD Lainnya Foreign currencies Certificates of Bank Indonesia Mutual Funds - - 4,639,014 3,341,941 S&P Moodys S&P Moodys Moodys Fitch Moodys Moodys Moodys Fitch Beragam/Various BBBBBBBBBBaa2 Baa2 BBB Baa2 Baa2 Baa2 Baa2 Beragam/Various 328,705 284,971 72,973 65,823 62,050 62,004 61,899 60,591 59,851 29,588 255 PLBIIJ-II/25 Bank BRI Pertamina 2023 Bank of America Suntrust USA Corestates Cap III / Wells Fargo M&T Bank USA Huntington USA JP Morgan Chase USA ICBC ASIA LTD Others 1,088,710 Subtotal Subtotal 9,069,665 Total tersedia untuk dijual 23,768,284 Dimiliki hingga jatuh tempo Rupiah Obligasi PT Intan Baruprana Finance IBFI-17 MTN Syariah Mudharabah Pegadaian I Tahun 2018 MTN Syariah Bio Farma 2018 MTN Ijarah I Telkom Tahun 2018 Seri A Indonesia Eximbank II 2018 SR A MTN Syariah Ijarah Posindo-01 2018 Sukuk Mudharabah Maybank Tahap II Sukuk Mudharabah Subordinasi BSM 2016 Sukuk Mudharabah Berkelanjutan I Sarana Multi Infrastuktur Tahap I 2018 Seri A Sukuk Mudharabah Subrodinasi BRIS 2016 Sukuk Ijarah Berkelanjutan II XL Axiata Tahap I 2018 Seri A Sukuk Ijarah Berkelanjutan Indosat Thp IV 2016 B Sukuk Ijarah Berkelanjutan Indosat Tahap II 2017 B Sukuk Ijarah Berkelanjutan Timah Tahap I 2017 Seri A Sukuk Ijarah Berkelanjutan I XL Axiata Tahap II 2017 Seri B MTN Syariah Mudharabah I Bank Jambi Tahun 2017 Total available-for-sale Held-to-maturity - - Pefindo Pefindo Pefindo Pefindo Pefindo idAAA(sy) idAAA(sy) idAAA(sy) idAAA(sy) idA-(sy) Pefindo idAAA(sy) Pefindo idAA-(sy) Pefindo idAAA(sy) Fitch idA+(sy) Fitch idAAA(idn) Pefindo idAAA(sy) Pefindo idAAA(sy) Pefindo idA+(sy) Fitch idAAA(sy) Pefindo idAAA(sy) Rupiah Bonds 275,528 PT Intan Baruprana Finance IBFI-17 MTN Syariah Mudharabah 250,000 Pegadaian I 2018 100,000 MTN Syariah Bio Farma 2018 100,000 MTN Ijarah I Telkom 2018 Seri A 100,000 Indonesia Eximbank II 2018 SR A 50,000 MTN Syariah Ijarah Posindo-01 2018 Sukuk Mudharabah 50,000 Maybank Tahap II Subordinated Sukuk 50,000 Mudharabah BSM 2016 Continues Sukuk Mudharabah I Sarana Infrastucture 50,000 Step I 2018 Seri A Subordinated Sukuk Mudharabah 46,000 BRIS 2016 Continues Sukuk Ijarah II 38,000 XL Axiata Tahap I 2018 Seri A Continues Sukuk Ijarah 30,000 Indosat Step IV 2016 B Continues Sukuk Ijarah 30,000 Indosat Step II 2017 B Continues Sukuk Ijarah 28,000 Timah Step I 2017 Seri A Continues Sukuk Ijarah I 25,000 XL Axiata Step II 2017 Seri B MTN Syariah Mudharabah I 20,000 Bank Jambi Tahun 2017 103 918 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  919. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 8. EFEK-EFEK (lanjutan) d. 8. MARKETABLE SECURITIES (continued) Berdasarkan peringkat (lanjutan) d. By rating (continued) 31 Desember/December 2018 Pemeringkat/ Agencies Peringkat/ Rating Nilai tercatat/ Carrying Value Dimiliki hingga jatuh tempo (lanjutan) Held-to-maturity (continued) Rupiah (lanjutan) Sukuk Mudharabah Eximbank Thp I Pefindo XL Axiata Tahap I 2018 Seri B Pefindo Indosat V/2012 Pefindo Sukuk Ijarah Summarecon Agung Tahap II Tahun 2014 Pefindo Lainnya Beragam/Various idAAA(sy) idAA+ idAAA 20,000 18,000 16,982 idA+(sy) Beragam/Various 15,000 24,997 Rupiah (continued) Sukuk Mudharabah Eximbank Thp I XL Axiata Tahap I 2018 Seri B Indosat V/2012 Sukuk Ijarah Summarecon Agung Step II 2014 Others 1,337,507 Subtotal 7,233 Foreign currencies Bonds Majapahit Holding BV 1,344,740 Total held-to-maturity securities Subtotal Mata uang asing Obligasi Majapahit Holding BV Moodys AA+ Total dimiliki hingga jatuh tempo Total efek-efek 32,362,407 Cadangan kerugian penurunan nilai (318,137) Efek-efek - neto 32,044,270 Total marketable securities Allowance for impairment losses Marketable securities - net 31 Desember/December 2017 Pemeringkat/ Agencies Peringkat/ Rating Nilai tercatat/ Carrying Value Nilai wajar melalui laporan laba rugi Rupiah Reksadana Obligasi Obligasi subordinasi Efek lainnya Fair value through profit or loss Pefindo Pefindo Pefindo (AA-) – (AAA) (A+) – (AA+) (A+) – (AAA) 3,930,025 2,487,170 1,600,139 361,399 Rupiah Mutual funds Bonds Subordinated bonds Other securities 8,378,733 Mata uang asing Reksadana Total nilai wajar melalui laporan laba rugi - 50,972 8,429,705 Tersedia untuk dijual Rupiah Sertifikat Deposito Bank Indonesia Reksadana Obligasi subordinasi Efek beragunan aset Obligasi Hutama Karya HUTAMA2027 Bank Rakyat Indonesia BRI-7.6/20 Hutama Karya HUTAMA2022 Bank Tabungan Negara BTN-8.7C/24 Bank Tabungan Negara BTN-8.5B/22 Bank CIMB Niaga BNGAIJ-2022 Bank Rakyat Indonesia BRI-25/05/19 Bank Mandiri Thp I Th 2016 SERI C Bank Rakyat Indonesia BRI-8.0/22 Bank Mandiri MANDIRI/8.00 Bank OCBC NISP NISPIJ-2020 PLN Tho II 8.2 2027C Bank Mandiri MANDIRI-8.5B Bank Ekspor Indonesia BEXI-2023 Bank Ekspor Indonesia BEXI-2020 Foreign currencies Mutual funds Total fair value through profit and loss Available-for-sale Pefindo Pefindo (A-) – (AA+) idAAA(sf) Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo idAAA idAAA idAAA idAA+ idAA+ idAAA idAAA idAAA idAAA idAAA idAAA idAAA idAAA idAAA idAAA Rupiah 11,531,047 Certificates Deposits of Bank Indonesia 1,385,155 Mutual funds 706,029 Subordinated bonds 386,948 Asset backed security Bonds 386,274 Hutama Karya HUTAMA2027 356,601 Bank Rakyat Indonesia BRI-7.6/20 312,068 Hutama Karya HUTAMA2022 273,510 Bank Tabungan Negara BTN-8.7C/24 259,108 Bank Tabungan Negara BTN-8.5B/22 214,687 Bank CIMB Niaga BNGAIJ-2022 211,117 Bank Rakyat Indonesia BRI-25/05/19 180,432 Bank Mandiri Thp I Th 2016 SERI C 152,924 Bank Rakyat Indonesia BRI-8.0/22 109,451 Bank Mandiri MANDIRI/8.00 107,126 Bank OCBC NISP NISPIJ-2020 103,457 PLN Tho II 8.2 2027C 103,403 Bank Mandiri MANDIRI-8.5B 103,381 Bank Ekspor Indonesia BEXI-2023 103,208 Bank Ekspor Indonesia BEXI-2020 104 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 919
  920. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 8. EFEK-EFEK (lanjutan) d. 8. MARKETABLE SECURITIES (continued) Berdasarkan peringkat (lanjutan) d. By rating (continued) 31 Desember/December 2017 Pemeringkat/ Agencies Peringkat/ Rating Tersedia untuk dijual (lanjutan) Rupiah Bank Rakyat Indonesia BRI-01/12/19 BJB MTN-BJB Bank Resona Perdania VI Th 2016 MTN II Bank Jambi 2017 Bank Sulselbar Thp II Th 2016 Bank Ekspor Indonesia BEXI-2019 Bank Panin PNBNIJ-2021 Waskita Karya Thp II Th 2016 Nilai tercatat/ Carrying Value Available-for-sale (continued) Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo idAAA idAAAA-(idn) A(idn) idA+ idAAA idAA idA- Sarana Multigriya Financial Thp VI Th 2016 Bank Mandiri BBMRI-ZERO Bank Jateng MTN-JATENG20 Bank Tabungan Negara BTN-8A/19 Bank Ekspor Indonesia BEXI-2021 Pefindo Pefindo Pefindo Pefindo Pefindo idAAA idAAA idAAidAA+ idAAA Bank Mandiri Taspen Pos MANTAP20AN Maybank Finance Thp III Th 2016 B Sumitomo Bank MTN-SUMIBK Bank Jabar Banten BJB-2020 Bank Rakyat Indonesia BRI-25/05/21 Waskita Karya Thp I Th 2017 seri B Indonesia Eximbank III BTN Thp I Th 2017 B PLN Thp II 7.2 2022 PLN Tho II 7.5 2024B Maybank Finance Thp II Th 2016 Seri B Obligasi Berkelanjutan II Summarecon Adira Finance Thp III Th 2016 Seri C Maybank Finance Thp II Th 2016 Seri A Adira Finance Thp I Th 2015 Sukuk Ijarah I Angkasa Pura I 2016 Seri B Bank Tabungan Negara BTN-8.3A/20 Bank Tabungan Negara BTN-2020B Indosat Thp I Th 2014 Seri B Jasa Marga JM/XIV-20-U Bank Tabungan Negara BTN-7.9/23 PNM Thp II Th 2016 Seri B Bank Tabungan Negara BTN-7.9/2022 Indosat Thp I Th 2014 Seri D Bank CIMB Niaga BNGAIJ-8.15 Bank Panin PNBNIJ-9.15 Pelindo I Gerbang Nusantara 2016 B Indosat Thp VIII Th 2012 A Bank Panin Thp II Th 2016 Indonesia Eximbank III Thp V th2017 Seri A Bank Tabungan Negara BTN-8B/8/21N BTN Thp I Th 2017 B Bank DKI BDKIIJ-2021 BPD Maluku dan Malut BMALIJ-2020 Telkom Tahap I Indosat Thp IV Th 2016 Seri E Mandiri Tunas Finance Thp II Th 2016 B Maybank Finance Thp III 2016 A Indosat Thp II Th 2015 Seri B Indosat VIII Th 2012 Seri A Indosat Tahap I Tahun 2014 Seri C Indonesia Eximbank Thp VII Th 2016 C Indosat Thp II Th 2015 Seri C BII Finance Thp I Th 2015 Seri A Astra Sedaya Thp I Th 16 Seri B Bank Ekspor Indonesia BEXI-15/8/20 Bank Maybank Indonesia BNIIIJ-2022 PNM Thp II Th 2016 SERI A Bank Maybank Indonesia BNIIIJ-2024 Bank Tabungan Negara BTN-28/06/21 Bank Tabungan Negara BTN-9.875/20 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 Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo Pefindo AA(idn) AA+(idn) idAAA idAAidAAA idAidAAA AA(idn) idAAA idAAA AA+(idn) idA+ idAAA AA+(idn) idAAA Pefindo idAA+ idAA+ idAAA idAA idAA+ idA idAA+ idAAA idAAA idAA idAA idAAA idAA idAAA idAA+ AA(idn) idA+ idA idAAA idAAA idAA+ AA+(idn) idAAA idAAA idAAA idAAA idAAA AA+(idn) AAA(idn) idAAA idAAA idA idAAA idAA+ idAA+ Rupiah 101,584 Bank Rakyat Indonesia BRI-01/12/19 100,051 BJB MTN-BJB 100,000 Bank Resona Perdania VI Th 2016 100,000 MTN II Bank Jambi 2017 99,954 Bank Sulselbar Thp II Th 2016 96,543 Bank Ekspor Indonesia BEXI-2019 91,934 Bank Panin PNBNIJ-2021 90,580 Waskita Karya Thp II Th 2016 Sarana Multigriya Financial 83,405 Thp VI Th 2016 78,712 Bank Mandiri BBMRI-ZERO 74,822 Bank Jateng MTN-JATENG20 74,797 Bank Tabungan Negara BTN-8A/19 74,503 Bank Ekspor Indonesia BEXI-2021 Bank Mandiri Taspen 74,004 Pos MANTAP20AN 72,155 Maybank Finance Thp III Th 2016 B 61,526 Sumitomo Bank MTN-SUMIBK 55,144 Bank Jabar Banten BJB-2020 54,672 Bank Rakyat Indonesia BRI-25/05/21 51,286 Waskita Karya Thp I Th 2017 seri B 50,940 Indonesia Eximbank III 50,731 BTN Thp I Th 2017 B 50,326 PLN Thp II 7.2 2022 50,258 PLN Tho II 7.5 2024B 50,186 Maybank Finance Thp II Th 2016 B 49,995 Obligasi Berkelanjutan II Summarecon 45,113 Adira Finance Thp III Th 2016 C 41,031 Maybank Finance Thp II Th 2016 A 40,585 Adira Finance Thp I Th 2015 36,019 Sukuk Ijarah I Angkasa Pura I 2016 B 32,638 Bank Tabungan Negara BTN-8.3A/20 28,718 Bank Tabungan Negara BTN-2020B 26,395 Indosat Thp I Th 2014 Seri B 25,922 Jasa Marga JM/XIV-20-U 25,515 Bank Tabungan Negara BTN-7.9/23 25,047 PNM Thp II Th 2016 Seri B 24,491 Bank Tabungan Negara BTN-7.9/2022 21,766 Indosat Thp I Th 2014 Seri D 20,713 Bank CIMB Niaga BNGAIJ-8.15 20,690 Bank Panin PNBNIJ-9.15 20,590 Pelindo I Gerbang Nusantara 2016 B 20,490 Indosat Thp VIII Th 2012 A 20,430 Bank Panin Thp II Th 2016 20,414 Indonesia Eximbank III Thp V 2017 A 20,336 Bank Tabungan Negara BTN-8B/8/21N 20,293 BTN Thp I Th 2017 B 20,171 Bank DKI BDKIIJ-2021 17,332 BPD Maluku dan Malut BMALIJ-2020 16,970 Telkom Tahap I 15,935 Indosat Thp IV Th 2016 Seri E 15,461 Mandiri Tunas Finance Thp II 2016 B 15,195 Maybank Finance Thp III 2016 A 14,181 Indosat Thp II Th 2015 Seri B 11,810 Indosat VIII Th 2012 Seri A 11,003 Indosat Tahap I Tahun 2014 Seri C 10,609 Indonesia Eximbank Thp VII 2016 C 10,588 Indosat Thp II Th 2015 Seri C 10,297 BII Finance Thp I Th 2015 Seri A 10,269 Astra Sedaya Thp I Th 16 Seri B 10,207 Bank Ekspor Indonesia BEXI-15/8/20 10,115 Bank Maybank Indonesia BNIIIJ-2022 10,009 PNM Thp II Th 2016 SERI A 9,809 Bank Maybank Indonesia BNIIIJ-2024 8,273 Bank Tabungan Negara BTN-28/06/21 5,255 Bank Tabungan Negara BTN-9.875/20 105 920 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  921. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 8. EFEK-EFEK (lanjutan) d. 8. MARKETABLE SECURITIES (continued) Berdasarkan peringkat (lanjutan) d. By rating (continued) 31 Desember/December 2017 Pemeringkat/ Agencies Peringkat/ Rating Nilai tercatat/ Carrying Value Tersedia untuk dijual (lanjutan) Available-for-sale (continued) Rupiah (lanjutan) Rupiah (continued) Bank OCBC NISP NISPIJ-2019 Pefindo PLN Sukuk 7.70 II/07 Pefindo Sukuk Ijarah Berkelanjutan II Indosat tahap II 2017 Seri A Pefindo Lainnya Beragam/Various idAAA idAAA idAABeragam/Various Subtotal 5,045 5,077 Bank OCBC NISP NISPIJ-2019 PLN Sukuk 7.70 II/07 Sukuk Ijarah Berkelanjutan II Indosat 5,001 Tahap II 2017 Seri A 35,047 Others 5,635,710 Subtotal 19,644,889 Mata uang asing Sertifikat Bank Indonesia Reksadana Obligasi PLBIIJ-II/25 Pertamina 2023 Bank Boston USA Suntrust USA Huntington USA M&T Bank USA Bank of America Corestates Cap III / Wells Fargo JP Morgan Chase USA Korea Development Bank ICBC ASIA LTD SHINHAN BANK Lainnya Beragam/Various Beragam/Various 5,507,990 733,395 S&P S&P Moodys Moodys Moodys Moodys Moodys FITCH S&P Moodys FITCH S&P Beragam/Various BBBBBBBaa3 Baa2 Baa2 Baa2 Baa2 BBB BBBAa2 Baa2 A Beragam/Various 297,678 72,303 67,788 67,785 67,265 66,039 65,365 63,560 61,837 33,902 28,603 27,029 241 Subtotal 919,395 Foreign currencies Certificates of Bank Indonesia Mutual Funds Bonds PLBIIJ-II/25 Pertamina 2023 Bank Boston USA Suntrust USA Huntington USA M&T Bank USA Bank of America Corestates Cap III / Wells Fargo JP Morgan Chase USA Korea Development Bank ICBC ASIA LTD SHINHAN BANK Others Subtotal 7,160,780 Total tersedia untuk dijual 26,805,669 Dimiliki hingga jatuh tempo Rupiah Obligasi PT Intan Baruprana Finance IBFI-17 Pefindo Garuda Indonesia 1A Pefindo Bank Tabungan Negara BTN-IA/2015 Pefindo Bank Panin Thp II Th 2017 Pefindo Indosat Pefindo Sukuk Mudharabah Maybank Tahap II Pefindo Sukuk Mudharabah BSM 2016 Pefindo Sukuk Mudharabah BRIS 2016 Pefindo Sukuk Ijarah Indosat Thp IV Th 2016 Seri B Pefindo Sukuk Ijarah Indosat Thp II Th 2017 Seri B Pefindo Sukuk Ijarah Timah Thp I Th 2017 Seri A Pefindo Adira Multifinance Pefindo Sukuk Ijarah XL Axiata Thp II Th 2017 Seri A Pefindo Sukuk Ijarah XL Axiata Thp II Th 2017 Seri B Pefindo MTN Syariah Mudharabah I Bank Jambi th 2017 Pefindo Sukuk Ijarah Indosat Thp II Th 2017 Seri A Pefindo Indosat V/2012 Pefindo Sukuk Ijarah Summarecon Agung thp II Th 2014 Pefindo Bank Muamalat 2013 Pefindo Lainnya Beragam/Various Total available-for-sale Held-to-maturity idBBBidBBB+ idAA+ idA+ idAAA(sy) idAAA(sy) idAA-(sy) idA+(sy) idAAA(sy) idAAA(sy) idA+(sy) idAAA(sy) idAAA(sy) idAAA(sy) idAAA(sy) idAAA(sy) idAAA(sy) idA+(sy) idA-(sy) Beragam/Various Subtotal Rupiah Bonds 286,750 PT Intan Baruprana Finance IBFI-17 136,000 Garuda Indonesia 1A 120,000 Bank Tabungan Negara BTN-IA/2015 101,174 Bank Panin Thp II Th 2017 50,000 Indosat 50,000 Sukuk Mudharabah Maybank Tahap II 50,000 Sukuk Mudharabah BSM 2016 Sukuk Mudharabah BRIS 2016 46,000 30,000 Sukuk Ijarah Indosat Thp IV 2016 B 30,000 Sukuk Ijarah Indosat Thp II 2017 B 28,000 Sukuk Ijarah Timah Thp I Th 2017 A 25,000 Adira Multifinance 25,000 Sukuk Ijarah XL Axiata Thp II 2017 A 25,000 Sukuk Ijarah XL Axiata Thp II 2017 B MTN Syariah Mudharabah I 20,000 Bank Jambi Th 2017 20,000 Sukuk Ijarah Indosat Thp II 2017 A 16,951 Indosat V/2012 Sukuk Ijarah Summarecon Agung 15,000 Thp II Th 2014 10,000 Bank Muamalat 2013 31,983 Others 1,116,858 Subtotal 106 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 921
  922. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 8. EFEK-EFEK (lanjutan) d. 8. MARKETABLE SECURITIES (continued) Berdasarkan peringkat (lanjutan) d. By rating (continued) 31 Desember/December 2017 Pemeringkat/ Agencies Peringkat/ Rating Nilai tercatat/ Carrying Value Dimiliki hingga jatuh tempo (lanjutan) Held-to-maturity (continued) Mata uang asing Obligasi Majapahit Holding BV Pefindo Total dimiliki hingga jatuh tempo Total efek-efek Total held-to-maturity securities Total marketable securities Allowance for impairment losses 36,049,899 Underlying aset utama dari reksa dana yang dimiliki oleh Grup adalah deposito dan Obligasi Pemerintah. Pokok/ Principal Marketable securities - net The main underlying assets of the Group’s mutual funds consist of deposits and government bonds. Berdasarkan kolektibilitas Bank Indonesia e. By Bank Indonesia collectibility 31 Desember/December 2018 f. 1,123,620 (309,095) Efek-efek - neto Lancar Kurang lancar Macet Foreign currencies Bonds Majapahit Holding BV 36,358,994 Cadangan kerugian penurunan nilai e. 6,762 AAA Cadangan kerugian penurunan nilai/ Allowance for impairment losses 2017 Cadangan kerugian penurunan nilai/ Allowance for impairment losses Pokok/ Principal 31,797,196 289,431 275,780 (10,691) (31,918) (275,528) 35,787,371 284,622 287,001 (6,618) (15,727) (286,750) 32,362,407 (318,137) 36,358,994 (309,095) Cadangan kerugian penurunan nilai f. Perubahan cadangan kerugian penurunan nilai adalah sebagai berikut: Current Substandard Loss Allowance for impairment losses Movements in the allowance for impairment losses are as follows: 31 Desember/December 2018 2017 Saldo awal Penyisihan selama tahun berjalan Penyesuaian karena penjabaran mata uang asing 309,095 91,107 Beginning balance 7,794 219,366 Provison during the year Foreign exchange translation adjustments Saldo akhir 318,137 1,248 Manajemen berpendapat bahwa jumlah cadangan kerugian penurunan nilai di atas telah memadai. (1,378) 309,095 Ending balance Management believes that the allowance for impairment losses is adequate. 107 922 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  923. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 8. EFEK-EFEK (lanjutan) g. 8. Tingkat suku bunga per tahun g. Suku Bunga Kontrak: 2018 2017 0.08 - 10.25 5.80 - 10.55 0.50 - 7.75 1.46 - 7.75 Contractual Rate: 2018 2017 Suku Bunga Efektif: 2018 2017 5.06 - 9.35 5.80 - 10.35 2.61 - 10.10 0.86 - 10.10 Effective Interest Rate: 2018 2017 WESEL EKSPOR DAN TAGIHAN LAINNYA a. Annual interest rates Dolar Amerika Serikat/ United States Dollar % Rupiah % 9. MARKETABLE SECURITIES (continued) 9. Berdasarkan jenis dan mata uang BILLS AND OTHER RECEIVABLES a. By type and currency 31 Desember/December 2018 2017 Rupiah Surat Keterangan Berdokumen Dalam Negeri (SKBDN) Wesel Ekspor Tagihan lainnya: - Open account financing dan Supply chain financing Mata uang asing Wesel Ekspor Surat Keterangan Berdokumen Dalam Negeri (SKBDN) Tagihan lainnya: - Open account financing - Tagihan transaksi L/C Sight 2,966,740 1,990,794 534,264 1,861,929 10,400,242 8,417,238 15,357,776 10,813,431 8,404,532 4,295,076 20,278 - 579,321 383,299 132,249 558,414 9,387,430 4,985,739 Total Cadangan kerugian penurunan nilai 24,745,206 15,799,170 Neto 24,586,862 (158,344) (98,245) 15,700,925 Rupiah Domestic Documentary Letters of Credit Export Bills Other receivables: Open account financing and Supply chain financing Foreign currencies Export Bills Domestic Documentary Letters of Credit Other receivables: Open account financing L/C Sight receivables Total Allowance for impairment losses Net 108 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 923
  924. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 9. WESEL EKSPOR DAN TAGIHAN LAINNYA (lanjutan) a. 9. Berdasarkan jenis dan mata uang (lanjutan) BILLS AND OTHER RECEIVABLES (continued) a. Perincian wesel ekspor dan tagihan lainnya berdasarkan mata uang adalah sebagai berikut: By type and currency (continued) Bills and other receivables currencies are as follows: based on 31 Desember/December 2018 2017 Rupiah Mata uang asing Dolar Amerika Serikat Yuan Cina Euro Yen Jepang b. 15,357,776 10,813,431 Rupiah 9,153,568 227,324 3,750 2,788 3,300,774 1,662,533 20,284 2,148 Foreign currencies United States Dollar Chinese Yuan Euro Japanese Yen 9,387,430 4,985,739 Total Cadangan kerugian penurunan nilai 24,745,206 15,799,170 Neto 24,586,862 (158,344) Berdasarkan hubungan Total Allowance for impairment losses (98,245) 15,700,925 b. Net By relationship 31 Desember/December 2018 2017 c. Pihak berelasi Rupiah Mata uang asing 10,989,239 718,546 8,455,928 54,623 Related parties Rupiah Foreign currencies Total pihak berelasi 11,707,785 8,510,551 Total related parties Pihak ketiga Rupiah Mata uang asing 4,368,537 8,668,884 2,357,503 4,931,116 Third parties Rupiah Foreign currencies Total pihak ketiga 13,037,421 7,288,619 Total third parties Total Cadangan kerugian penurunan nilai 24,745,206 15,799,170 Total Allowance for impairment losses Neto 24,586,862 (158,344) Berdasarkan kolektibilitas Bank Indonesia (98,245) 15,700,925 c. Net By Bank Indonesia collectibility 31 Desember/December 2018 Pokok/ Principal Lancar 24,745,206 Cadangan kerugian penurunan nilai/ Allowance for impairment losses (158,344) 2017 Pokok/ Principal 15,799,170 Cadangan kerugian penurunan nilai/ Allowance for impairment losses (98,245) Current 109 924 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  925. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 9. WESEL EKSPOR DAN TAGIHAN LAINNYA (lanjutan) d. 9. Cadangan kerugian penurunan nilai BILLS AND OTHER RECEIVABLES (continued) d. Perubahan cadangan kerugian penurunan nilai adalah sebagai berikut: Allowance for impairment losses Movements in the allowance for impairment losses are as follows: 31 Desember/December 2018 2017 Saldo awal Penyisihan selama tahun berjalan Penyesuaian karena penjabaran mata uang asing Saldo akhir 98,245 31,268 Beginning balance 75,664 15,485 (15,565) 51,492 Provision during the year Foreign exchange translation adjustment 158,344 98,245 Ending balance Manajemen berpendapat bahwa jumlah cadangan kerugian penurunan nilai yang dibentuk tersebut telah memadai. e. Management believes that the above allowance for impairment losses is adequate. Tingkat suku bunga per tahun Rupiah % 2018 2017 7.00 - 9.18 7.98 - 8.98 e. Dolar Amerika Serikat/ United States Dollar % Euro % 1.50 - 7.89 1.00 - 5.19 10. TAGIHAN AKSEPTASI a. Annual interest rates 1.50 - 3.15 1.00 - 3.01 2018 2017 10. ACCEPTANCES RECEIVABLES Berdasarkan pihak dan mata uang a. By party and currency 31 Desember/December 2018 2017 Rupiah Debitur non-bank Bank Mata uang asing Debitur non-bank Bank 11,928,168 26,089 9,783,946 26,769 11,954,257 9,810,715 6,944,536 1,576,226 6,441,950 2,018,358 8,520,762 8,460,308 Total Cadangan kerugian penurunan nilai 20,475,019 18,271,023 Neto 20,295,277 (179,742) (164,611) 18,106,412 Rupiah Non-bank debtors Banks Foreign currencies Non-bank debtors Banks Total Allowance for impairment losses Net 110 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 925
  926. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 10. TAGIHAN AKSEPTASI (lanjutan) a. Berdasarkan (lanjutan) pihak dan 10. ACCEPTANCES RECEIVABLES (continued) mata uang a. Perincian tagihan akseptasi berdasarkan mata uang adalah sebagai berikut: By party and currency (continued) Acceptances receivables based on currencies are as follows: 31 Desember/December 2018 2017 Rupiah 11,954,257 9,810,715 Rupiah 7,747,966 432,363 151,207 71,965 49,280 44,279 23,702 - 7,836,023 248,112 219,070 82,006 57,227 3,964 1,997 11,909 Foreign currencies United States Dollar Euro Singapore Dollar Japanese Yen Chinese Yuan Australian Dollar Great Britain Pound Sterling Franc Swiss 8,520,762 8,460,308 Total Penyisihan kerugian penurunan nilai 20,475,019 18,271,023 Neto 20,295,277 Mata uang asing Dolar Amerika Serikat Euro Dolar Singapura Yen Jepang Yuan Cina Dolar Australia Pound Sterling Inggris Franc Swiss b. (179,742) Berdasarkan hubungan b. (164,611) Total Allowance for impairment losses 18,106,412 Net By relationship 31 Desember/December 2018 2017 c. Pihak berelasi Rupiah Mata uang asing 4,876,636 671,415 4,949,978 818,258 Related parties Rupiah Foreign currencies Total pihak berelasi 5,548,051 5,768,236 Total related parties Pihak ketiga Rupiah Mata uang asing 7,077,621 7,849,347 4,860,737 7,642,050 Third parties Rupiah Foreign currencies Total pihak ketiga 14,926,968 12,502,787 Total third parties Total Cadangan kerugian penurunan nilai 20,475,019 18,271,023 Total Allowance for impairment losses Neto 20,295,277 (179,742) Berdasarkan kolektibilitas Bank Indonesia (164,611) 18,106,412 c. Net By Bank Indonesia collectibility 31 Desember/December 2018 Pokok/ Principal Lancar Dalam perhatian khusus Cadangan kerugian penurunan nilai/ Allowance for impairment losses 2017 Pokok/ Principal Cadangan kerugian penurunan nilai/ Allowance for impairment losses 20,475,019 - (179,742) - 18,266,177 4,846 (163,606) (1,005) 20,475,019 (179,742) 18,271,023 (164,611) Current Special mention 111 926 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  927. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 10. TAGIHAN AKSEPTASI (lanjutan) d. 10. ACCEPTANCES RECEIVABLES (continued) Cadangan kerugian penurunan nilai d. Perubahan cadangan kerugian penurunan nilai adalah sebagai berikut: Allowance for impairment losses The movements in the allowance impairment losses are as follows: for 31 Desember/December 2018 2017 Saldo awal Penyisihan (pembalikan) selama tahun berjalan Penyesuaian karena penjabaran mata uang asing 164,611 84,834 15,631 (27,797) Saldo akhir 179,742 164,611 (500) Beginning balance Provison (reversal) during the year Foreign exchange translation adjustment 107,574 Manajemen berpendapat bahwa jumlah cadangan kerugian penurunan nilai yang dibentuk tersebut telah memadai. Ending balance Management believes that the above allowance for impairment losses is adequate. 11. TAGIHAN DAN LIABILITAS DERIVATIF 11. DERIVATIVE RECEIVABLES AND PAYABLES Dalam melakukan usaha bisnis, BNI melakukan transaksi instrumen keuangan derivatif seperti kontrak berjangka mata uang asing, swap mata uang asing, swap atas suku bunga dan transaksi spot untuk keperluan pembiayaan, perdagangan dan lindung nilai. In the normal course of business, BNI enters into transactions involving derivative financial instruments such as foreign currency forward contracts, currency swaps, interest rate swaps and spot transactions for financing, trading and hedging purposes. a. a. Berdasarkan jenis dan mata uang By type and currency 31 Desember/December 2018 Instrumen Terkait Nilai Tukar Kontrak berjangka - beli USD Kontrak berjangka - jual USD CNY Swap mata uang asing - beli EUR JPY USD GBP Swap mata uang asing - jual AUD EUR GBP CNY JPY HKD USD Spot mata uang asing - beli USD EUR Jumlah nosional mata uang asing (jumlah penuh)/ Notional amount foreign currency (full amount) Nilai wajar/Fair values Tagihan derivatif/ Derivative receivables Liabilitas derivatif/ Derivative payables 239,031,000 2,565 (26,092) 466,832,415 12,100,000 84,598 312 (2,594) - 59,068,329 600,492,755 734,914,068 500,000 2,699 5,752 8,415 - (12,776) (220,572) (36) 4,700,000 2,900,000 3,500,000 20,688,068 1,050,862,321 423,790,330 683,686,726 165 1,259 36 33 1,512 298,097 (44) (336) (29) (531) (15,686) 119,225,000 2,300,000 - (16,305) (40) Instruments Exchange Rate Related Forward contract - buy USD Forward contract - sell USD CNY Foreign currency swaps - buy EUR JPY USD GBP Foreign currency swaps - sell AUD EUR GBP CNY JPY HKD USD Foreign currency spots - buy USD EUR 112 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 927
  928. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 11. TAGIHAN (lanjutan) a. DAN LIABILITAS DERIVATIF 11. DERIVATIVE RECEIVABLES AND PAYABLES (continued) Berdasarkan jenis dan mata uang (lanjutan) a. By type and currency (continued) 31 Desember/December 2018 Instrumen Spot mata uang asing - jual EUR JPY SGD USD Option mata uang asing - beli USD Option mata uang asing - jual USD Terkait Suku Bunga Swap atas suku bunga USD Terkait Nilai Tukar dan Suku Bunga Swap mata uang asing dan suku bunga USD Jumlah nosional mata uang asing (jumlah penuh)/ Notional amount foreign currency (full amount) Nilai wajar/Fair values Tagihan derivatif/ Derivative receivables Liabilitas derivatif/ Derivative payables Instruments 2,800,000 6,600,000 100,000 108,691,079 79 3 6 14,956 8,550,000 5 (3,834) 23,550,000 3,605 (1,355) 1,862,000,000 - Foreign currency option - buy USD Foreign currency option - sell USD (1,303) Interest Rate Related Interest rate swaps USD 24,964 (20,495) Exchange and Interest Rate Related Cross currency swaps and interest rate USD 605,248 (322,028) 156,187 120,028,426 Foreign currency spots - sell EUR JPY SGD USD 31 Desember/December 2017 Instrumen Terkait Nilai Tukar Kontrak berjangka - beli USD Kontrak berjangka - jual JPY USD Swap mata uang asing - beli EUR USD Swap mata uang asing - jual AUD CNY EUR GBP USD HKD Spot mata uang asing - beli EUR USD Jumlah nosional mata uang asing (jumlah penuh)/ Notional amount foreign currency (full amount) Nilai wajar/Fair values Tagihan derivatif/ Derivative receivables Liabilitas derivatif/ Derivative payables Instruments 62,957,000 547 (1,339) 7,796,500 199,540,743 856 (1) (1,731) 22,786,049 677,118,232 3,468 7,815 (850) (45,827) 4,400,000 26,045,766 6,967,492 9,000,000 1,473,201,692 9,500,000 326 847 72,995 - (570) (743) (1,406) (9,860) (177) 220,000 33,500,000 11 232 - Exchange Rate Related Forward contract - buy USD Forward contract - sell JPY USD Foreign currency swaps - buy EUR USD Foreign currency swaps - sell AUD CNY EUR GBP USD HKD Foreign currency spots - buy EUR USD 113 928 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  929. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 11. TAGIHAN (lanjutan) a. DAN LIABILITAS DERIVATIF 11. DERIVATIVE RECEIVABLES AND PAYABLES (continued) Berdasarkan jenis dan mata uang (lanjutan) a. By type and currency (continued) 31 Desember/December 2017 Instrumen Spot mata uang asing - jual USD Option mata uang asing - beli USD Option mata uang asing - jual USD Terkait Nilai Tukar dan Suku Bunga Swap mata uang asing dan suku bunga USD Swap atas suku bunga USD Jumlah nosional mata uang asing (jumlah penuh)/ Notional amount foreign currency (full amount) Nilai wajar/Fair values Liabilitas derivatif/ Derivative payables Tagihan derivatif/ Derivative receivables 5,000,000 - 110,000,000 29,015 110,000,000 - Instruments (105) - (29,015) 110,403,244 23,092 (17,708) 1,775,000,000 77,680 (4,488) 216,884 (113,820) b. Berdasarkan hubungan b. Foreign currency spots - sell USD Foreign currency option - buy USD Foreign currency option - sell USD Exchange and Interest Rate Related Cross currency swaps and interest rate USD Interest rate swaps USD By relationship 31 Desember/December 2018 2017 Tagihan derivatif Derivatives receivables Pihak berelasi Mata uang asing 56,317 27,361 Related parties Foreign currencies Pihak ketiga Mata uang asing 548,931 189,523 Third parties Foreign currencies Total 605,248 216,884 Total Liabilitas derivatif Derivatives payable s Pihak berelasi Mata uang asing 41,234 30,630 Related parties Foreign currencies Pihak ketiga Mata uang asing 280,794 83,190 Third parties Foreign currencies Total 322,028 113,820 Total Berdasarkan hasil penelaahan dan evaluasi manajemen Bank, seluruh tagihan derivatif pada tanggal 31 Desember 2018 dan 2017 digolongkan lancar. Based on the Bank’s management review and evaluation, all derivatives receivable as of 31 December 2018 and 2017, are classified as current. 114 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 929
  930. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 12. PINJAMAN YANG DIBERIKAN 12. LOANS Informasi mengenai pinjaman yang diberikan kepada pihak-pihak berelasi diungkapkan pada Catatan 47i. Loans to related parties are disclosed in Note 47i. a. a. Berdasarkan jenis dan mata uang By type and currency 31 Desember/December 2018 2017 Rupiah Modal kerja Investasi Konsumen Sindikasi Karyawan Program pemerintah 200,861,551 94,933,675 90,346,035 38,242,652 3,881,001 500,275 166,903,782 80,791,157 80,840,866 41,546,968 3,795,666 613,289 428,765,189 374,491,728 52,064,095 19,305,058 12,491,467 149,554 3,134 39,780,349 16,482,229 10,365,068 190,518 3,674 84,013,308 66,821,838 Total Cadangan kerugian penurunan nilai 512,778,497 441,313,566 (14,891,609) (14,523,585) Neto 497,886,888 426,789,981 Mata uang asing Modal kerja Investasi Sindikasi Konsumen Karyawan Perincian pinjaman yang diberikan berdasarkan mata uang adalah sebagai berikut: Rupiah Working capital Investment Consumer Syndicated Employee Government programs Foreign currencies Working capital Investment Syndicated Consumer Employee Total Allowance for impairment losses Net Loans based on currencies are as follows: 31 Desember/December 2018 2017 Rupiah Mata uang asing Dolar Amerika Serikat Yuan China Yen Jepang Euro Dolar Hong Kong Dolar Singapura Pound Sterling Inggris Won Korea Selatan Dolar Australia 428,765,189 374,491,728 Rupiah 80,593,610 1,292,564 1,135,551 551,468 186,948 85,891 59,784 90,472 17,020 64,134,866 1,510,464 578,175 235,448 69,576 247,439 45,870 - Foreign currencies United States Dollar Chinese Yuan Japanese Yen Euro Hong Kong Dollar Singapore Dollar Great Britain Pound Sterling South Korean Won Australian Dollar 84,013,308 66,821,838 Total Penyisihan kerugian penurunan nilai 512,778,497 441,313,566 (14,891,609) (14,523,585) Neto 497,886,888 426,789,981 Total Allowance for impairment losses 115 930 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk Net
  931. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 12. PINJAMAN YANG DIBERIKAN (lanjutan) b. 12. LOANS (continued) Berdasarkan hubungan b. By relationship 31 Desember/December 2018 2017 Pihak berelasi Rupiah Sindikasi Modal kerja Investasi Karyawan Konsumen Mata uang asing Modal kerja Investasi Sindikasi Total pihak berelasi Related parties 29,667,497 51,326,597 8,653,413 111,057 121,004 33,666,390 34,948,985 6,547,993 34,803 79,919 89,879,568 75,278,090 14,301,831 2,541,167 682,366 7,728,185 2,957,345 451,878 17,525,364 11,137,408 107,404,932 86,415,498 Pihak ketiga Rupiah Modal kerja Konsumen Investasi Sindikasi Karyawan Program pemerintah Rupiah Syndicated Working capital Investment Employee Consumer Foreign currencies Working capital Investment Syndicated Total related parties Third parties 149,534,954 90,225,031 86,280,262 8,575,155 3,769,944 500,275 131,954,797 80,760,947 74,243,164 7,880,578 3,760,863 613,289 Rupiah Working capital Consumer Investment Syndicated Employee Government programs 338,885,621 299,213,638 Mata uang asing Modal kerja Investasi Sindikasi Konsumen Karyawan 37,762,264 16,763,891 11,809,101 149,554 3,134 32,052,164 13,524,884 9,913,190 190,518 3,674 66,487,944 55,684,430 Total pihak ketiga 405,373,565 354,898,068 Total third parties Total Cadangan kerugian penurunan nilai 512,778,497 441,313,566 (14,891,609) (14,523,585) Total Allowance for impairment losses Neto 497,886,888 426,789,981 Foreign currencies Working capital Investment Syndicated Consumer Employee Net 116 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 931
  932. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 12. PINJAMAN YANG DIBERIKAN (lanjutan) c. 12. LOANS (continued) Berdasarkan sektor ekonomi c. By economic sector 31 Desember/December 2018 2017 Rupiah Perdagangan, restoran dan hotel Perindustrian Pertanian Jasa dunia usaha Konstruksi Pengangkutan, pergudangan dan komunikasi Listrik, gas dan air Jasa pelayanan sosial Pertambangan Lain-lain 81,170,924 70,283,716 46,713,831 44,030,393 33,411,040 69,006,446 61,482,580 43,734,138 33,817,932 27,176,926 26,978,325 15,346,098 13,901,702 3,167,703 93,761,457 22,305,039 19,635,329 10,592,072 3,317,470 83,423,796 428,765,189 374,491,728 27,750,005 15,132,942 8,544,915 8,833,267 8,579,946 21,261,646 8,631,055 8,491,137 7,131,453 7,384,470 4,372,833 2,471,195 2,130,814 1,062,597 5,134,794 3,680,746 3,153,510 1,556,711 321,925 5,209,185 84,013,308 66,821,838 Total Cadangan kerugian penurunan nilai 512,778,497 441,313,566 (14,891,609) (14,523,585) Neto 497,886,888 426,789,981 Mata uang asing Perindustrian Pertambangan Jasa dunia usaha Listrik, gas dan air Perdagangan, restoran dan hotel Pengangkutan, pergudangan dan komunikasi Pertanian Jasa pelayanan sosial Konstruksi Lain-lain d. Berdasarkan penilaian secara kolektif dan individual d. Rupiah Trading, restaurants and hotels Manufacturing Agriculture Business services Construction Transportation, warehousing and communications Electricity, gas and water Social services Mining Others Foreign currencies Manufacturing Mining Business services Electricity, gas and water Trading, restaurants and hotels Transportation, warehousing and communications Agriculture Social services Construction Others By assessment individual Total Allowance for impairment losses Net as collective and 31 Desember/December 2018 2017 Pokok Individual Kolektif Cadangan kerugian penurunan nilai Individual Kolektif Neto 24,263,929 488,514,568 17,386,268 423,927,298 512,778,497 441,313,566 (5,633,713) (9,257,896) (4,127,282) (10,396,303) (14,891,609) (14,523,585) 497,886,888 426,789,981 Principal Individual Collective Allowance for impairment losses Individual Collective 117 932 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk Net
  933. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 12. PINJAMAN YANG DIBERIKAN (lanjutan) e. 12. LOANS (continued) Berdasarkan kolektibilitas Bank Indonesia e. By Bank Indonesia collectibility 31 Desember/December 2018 Cadangan kerugian penurunan nilai/ Allowance for impairment losses Pokok/ Principal Lancar Dalam perhatian khusus Kurang lancar Diragukan Macet f. 2017 Cadangan kerugian penurunan nilai/ Allowance for impairment losses Pokok/ Principal 482,491,878 20,248,317 2,028,042 3,009,125 5,001,135 (5,529,803) (3,861,292) (559,763) (1,674,812) (3,265,939) 414,371,396 16,844,595 1,271,410 1,592,039 7,234,126 (5,224,347) (2,487,024) (441,408) (903,295) (5,467,511) 512,778,497 (14,891,609) 441,313,566 (14,523,585) Pinjaman bermasalah dan cadangan kerugian penurunan nilai berdasarkan sektor ekonomi f. Current Special mention Substandard Doubtful Loss Non-performing loans and allowance for impairment losses by economic sector 31 Desember/December 2018 Pokok/ Principal Perindustrian Pengangkutan, pergudangan dan komunikasi Perdagangan, restoran dan hotel Pertambangan Jasa dunia usaha Konstruksi Pertanian Jasa pelayanan sosial Listrik, gas dan air Lain-lain Total Cadangan kerugian penurunan nilai/ Allowance for impairment losses 2017 Pokok/ Principal Cadangan kerugian penurunan nilai/ Allowance for impairment losses 3,146,149 (1,749,203) 3,195,226 (2,485,040) 306,593 (126,133) 159,303 (93,711) 2,054,515 1,373,912 567,553 340,102 85,164 60,633 658 2,103,023 (1,209,169) (767,640) (309,930) (147,766) (50,949) (34,389) (260) (1,105,075) 1,945,244 1,077,020 866,365 396,012 247,900 98,532 3,655 2,108,318 (1,249,841) (744,888) (666,056) (166,709) (183,096) (69,531) (357) (1,152,985) Manufacturing Transportation, warehousing and communications Trading, restaurants and hotels Mining Business services Construction Agriculture Social services Electricity, gas and water Others 10,038,302 (5,500,514) 10,097,575 (6,812,214) Total Rasio kredit bermasalah BNI dan Entitas Anak secara gross (sebelum dikurangi cadangan kerugian penurunan nilai) pada tanggal 31 Desember 2018 dan 2017 masing-masing sebesar 1,96% dan 2,29% (rasio untuk BNI saja 1,90% dan 2,26% masing-masing pada tanggal 31 Desember 2018 dan 2017), sedangkan rasio kredit bermasalah BNI dan Entitas Anak secara neto pada tanggal 31 Desember 2018 dan 2017 masing-masing sebesar 0,88% dan 0,74% (rasio untuk BNI saja 0,85% dan 0,70% masing-masing pada tanggal 31 Desember 2018 dan 2017). The non-performing loans ratio of BNI and Subsidiaries on a gross basis, (before deducting the allowance for impairment losses), as of 31 December 2018 and 2017, were 1.96% and 2.29%, respectively (the ratios for BNI only were 1.90% and 2.26% as of 31 December 2018 and 2017, respectively), while the non-performing loans ratio of BNI and Subsidiaries on a net basis as of 31 December 2018 and 2017, were 0.88% and 0.74%, respectively (the ratios for BNI only were 0.85% and 0.70% as of 31 December 2018 and 2017, respectively). 118 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 933
  934. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 12. PINJAMAN YANG DIBERIKAN (lanjutan) g. Tingkat suku bunga per tahun Rupiah % h. 12. LOANS (continued) g. Dolar Amerika Serikat/ United States Dollar % Annual interest rates Yuan Cina/ Chinese Yuan % Yen Jepang/ Japanese Yen % Bunga kontrak 2018 2017 5.00 - 22.00 4.00 - 26.95 1.43 - 12.50 0.54 - 10.00 7.00 7.00 1.39 - 6.05 0.76 - 2.51 Contractual rates 2018 2017 Bunga efektif 2018 2017 7.08 - 23.90 6.00 - 19.13 3.36 - 21.23 3.04 - 8.00 7.56 - 7.68 7.12 - 7.12 0.50 - 6.05 0.76 - 2.51 Effective interest rate 2018 2017 Pinjaman yang direstrukturisasi h. Berikut ini adalah jenis dan jumlah kredit yang telah direstrukturisasi per 31 Desember 2018 dan 2017: Restructured loans Below is the type and amount of restructured loans as of 31 December 2018 and 2017: 31 Desember/December 2018 2017 Perpanjangan jangka waktu kredit Perpanjangan jangka waktu dan penurunan suku bunga kredit Perpanjangan jangka waktu kredit, penurunan suku bunga kredit, dan program restrukturisasi lain-lain*) 3,520,600 5,577,088 Extension of loan maturity dates 11,583,217 11,871,689 Extension of loan maturity dates and reduction of interest rates 14,094,852 12,977,598 Extension of loan maturity dates, reduction of interest rates and other restructuring programs*) Total 29,198,669 30,426,375 Total *) *) Program restrukturisasi lain-lain terutama terdiri dari penambahan fasilitas kredit, Perjanjian Penyelesaian Hutang (PPH) dan Interest Balloon Payment (IBP). Jumlah kredit yang telah direstrukturisasi dan dalam kategori kredit bermasalah pada tanggal 31 Desember 2018 dan 2017, masing-masing sebesar Rp4.871.572 dan Rp4.212.426. i. Other restructuring scheme mainly includes additions of loan facilities, debt settlement agreements (PPH) and Interest Balloon Payments (IBP). Restructured loans and categorized as nonperforming loan amounted to Rp4,871,572 and Rp4,212,426, as of 31 December 2018 and 2017, respectively. Pinjaman sindikasi i. Syndicated loans Pinjaman sindikasi merupakan pinjaman yang diberikan kepada debitur berdasarkan perjanjian pembiayaan bersama dengan bankbank lain. Syndicated loans represent loans provided to debtors based on syndication agreements with other banks. Keikutsertaan BNI dalam pinjaman sindikasi dengan bank-bank lain adalah sebesar Rp50.734.119 dan Rp51.912.036 masingmasing pada tanggal 31 Desember 2018 dan 2017. BNI’s participation in syndicated loans with other banks amounted to Rp50,734,119 and Rp51,912,036 as of 31 December 2018 and 2017, respectively. 119 934 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  935. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 12. PINJAMAN YANG DIBERIKAN (lanjutan) i. 12. LOANS (continued) Pinjaman sindikasi (lanjutan) i. Persentase bagian BNI dalam pinjaman sindikasi, dimana BNI bertindak sebagai pimpinan sindikasi adalah sebagai berikut (tidak diaudit): Syndicated loans (continued) BNI’s percentage shares in syndicated loans, in which BNI acts as the lead arranger, is as follows (unaudited): 31 Desember/December 2018 2017 % Partisipasi 16.11% - 93.00% 21.15% - 93.00% Keikutsertaan BNI dalam pinjaman sindikasi, dimana BNI bertindak sebagai anggota sindikasi adalah sebagai berikut (tidak diaudit): % Participation BNI’s participation in syndicated loans, in which BNI acts as the syndication member, is as follows (unaudited): 31 Desember/December 2018 2017 % Partisipasi j. 0.23% - 46.00% Cadangan kerugian penurunan nilai 0.00% - 64.43% j. Perubahan cadangan kerugian penurunan nilai adalah sebagai berikut: % Participation Allowance for impairment losses The movements in the allowance impairment losses are as follows: for 31 Desember/December 2018 2017 Saldo awal Penyisihan selama tahun berjalan Penerimaan kembali pinjaman yang telah dihapusbukukan Penghapusan selama tahun berjalan Penyesuaian karena penjabaran mata uang asing 14,523,585 16,680,865 7,067,553 6,604,196 Beginning balance Provision during the year 656,144 555,042 Recovery of written off loans 478,899 79,426 Write-offs during the year Foreign exchange translation adjustment Saldo akhir 14,891,609 14,523,585 Ending balance (7,834,572) (9,395,944) Manajemen berpendapat bahwa jumlah cadangan kerugian penurunan nilai di atas telah memadai. k. Management believes that the allowance for impairment losses above is adequate. Kredit dihapusbukukan k. Kredit yang telah dihapusbukukan oleh BNI dicatat sebagai kredit ekstra-komtabel di dalam rekening administratif. Loans written off The loans written off by BNI are recorded as extra-comptable in the administrative account. 120 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 935
  936. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 12. PINJAMAN YANG DIBERIKAN (lanjutan) l. 12. LOANS (continued) Fasilitas pembiayaan dengan perusahaan pembiayaan l. Financing arrangements with multi-finance companies BNI memiliki perjanjian pembiayaan dengan beberapa lembaga pembiayaan untuk membiayai kepemilikan kendaraan bermotor sebesar Rp2.356.402 dan Rp2.808.674 masing-masing pada tanggal 31 Desember 2018 dan 2017. BNI has financing arrangements with several multi-finance companies with respect to motor vechicles financing amounting to Rp2,356,402 and Rp2,808,674 as of 31 December 2018 and 2017, respectively. Perjanjian pembiayaan hak recourse di atas, dengan perusahaan pembiayaan terkait adalah sebesar 100% masing-masing pada tanggal 31 Desember 2018 dan 2017 dari jumlah kredit yang diberikan berdasarkan perjanjian pembiayaan tersebut. Apabila terjadi wanprestasi atas debitur, BNI memiliki hak recourse terhadap perusahaan pembiayaan yang terkait. As of 31 December 2018 and 2017, the above recourse arrangements with the respective multi-finance companies represent 100% of the total loans under the respective financing arrangements. In case of default by the borrowers, BNI has recourse against the respective multi-finance companies. m. Informasi pokok lainnya sehubungan dengan pinjaman yang diberikan m. Other significant information relating to loans Grup memiliki agunan atas pinjaman yang diberikan dalam bentuk kas, deposito, agunan yang diikat dengan hipotik, garansi serta jaminan dalam bentuk aset lainnya. The Group holds collateral against loans in the form of cash, deposits, registered mortgages, guarantees and other assets held as collaterals. Pinjaman yang diberikan dalam pembiayaan syariah masing-masing sebesar Rp28.386.197 dan Rp23.596.718 pada tanggal 31 Desember 2018 dan 2017. Loans include sharia receivables amounting to Rp28,386,197 and Rp23,596,718 as of 31 December 2018 and 2017, respectively. Pinjaman karyawan adalah pinjaman yang diberikan kepada karyawan dengan tingkat bunga sebesar 3% - 5% per tahun yang ditujukan untuk pembelian rumah dan keperluan lainnya dengan jangka waktu berkisar antara 1 tahun sampai 20 tahun. Pembayaran pokok pinjaman dan bunga dilunasi melalui pemotongan gaji setiap bulan. Loans to employees which carried interest rate of 3% - 5% per annum are intended for purchase of houses and other necessities with 1 year to 20 years time period. The loan principal and interest payments are settled through monthly payroll deductions. Kredit Program Pemerintah terdiri dari Kredit Ketahanan Pangan (KKP), Two Steps Loan (TSL), Kredit Usaha Pembibitan Sapi (KUPS), dan Revitalisasi Perkebunan yang dapat didanai sebagian dan/atau seluruhnya oleh Pemerintah. Government Program Loans consist of Kredit Ketahanan Pangan (KKP), Two Steps Loan (TSL), Kredit Usaha Pembibitan Sapi (KUPS) and Revitalisasi Perkebunan which are partially and/or fully funded by the Government. 121 936 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  937. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 12. PINJAMAN YANG DIBERIKAN (lanjutan) 12. LOANS (continued) m. Informasi pokok lainnya sehubungan dengan pinjaman yang diberikan (lanjutan) m. Other significant information relating to loans (continued) Pada tanggal 31 Desember 2018 dan 2017, tidak terdapat pelanggaran maupun pelampauan Batas Maksimum Pemberian Kredit (BMPK) kepada pihak berelasi dan pihak ketiga sesuai dengan peraturan yang ditetapkan Bank Indonesia. As of 31 December 2018 and 2017, there was not any breach nor violation of Legal Lending Limit (LLL) to related parties and third parties as required by Bank Indonesia regulations. Rasio kredit usaha mikro dan kecil terhadap jumlah kredit yang diberikan BNI per 31 Desember 2018 dan 2017 masing-masing adalah sebesar 9,95% dan 9,07%, sedangkan bila rasio tersebut ditambahkan dengan kredit menengah maka rasionya menjadi sebesar 19,52% dan 18,29% masing-masing untuk tanggal 31 Desember 2018 dan 2017. The micro and small scale loans to total loans ratio for BNI and the small scale loans to total loans ratio for BNI as of 31 December 2018 and 2017 is 9.95% and 9.07%, respectively, whereas if that ratio is added with middle scale loans, the ratio will become 19.52% and 18.29% as of 31 December 2018 and 2017, respectively. 13. OBLIGASI PEMERINTAH 13. GOVERNMENT BONDS Seluruh transaksi Obligasi Pemerintah merupakan pihak berelasi. All Government Bonds transactions are with related parties. a. a. Berdasarkan jenis dan mata uang By type and currency 31 Desember/December 2018 Nilai Nominal/ Nominal Value Nilai wajar melalui laporan laba rugi Rupiah Tingkat bunga tetap Mata uang asing Tingkat bunga tetap Total nilai wajar melalui laporan laba rugi Tersedia untuk dijual Rupiah Tingkat bunga tetap Tingkat bunga mengambang Mata uang asing Tingkat bunga tetap Tingkat bunga mengambang Total tersedia untuk dijual Dimiliki hingga jatuh tempo Rupiah Tingkat bunga tetap, setelah diskonto/premi yang belum diamortisasi, sebesar Rp238.588 per 31 Desember 2018 dan Rp351.839 per 31 Desember 2017 2017 Nilai Tercatat/ Carrying Value Nilai Nominal/ Nominal Value Nilai Tercatat/ Carrying Value 3,291,380 3,257,825 2,917,363 2,931,614 Fair value through profit or loss Rupiah Fixed rate 97,425 92,670 4,749 4,806 Foreign currencies Fixed rate 3,388,805 3,350,495 2,922,112 2,936,420 Total fair value through profit or loss 40,790,537 4,018,659 39,639,434 3,977,751 32,777,125 4,641,870 34,161,597 4,638,545 Available-for-sale Rupiah Fixed rate Floating rate 44,809,196 43,617,185 37,418,995 38,800,142 15,259,754 1,606,279 15,065,157 1,600,558 15,998,760 1,031,130 16,347,662 1,088,973 16,866,033 16,665,715 17,029,890 17,436,635 61,675,229 60,282,900 54,448,885 56,236,777 Foreign currencies Fixed rate Floating rate Total available-for-sale Held-to-maturity Rupiah 12,783,679 12,545,091 14,102,603 13,750,764 Fixed rate, net of unamortized discount/premium of Rp238,588 as of 31 December 2018 and Rp351,839 as of 31 December 2017 122 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 937
  938. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 13. OBLIGASI PEMERINTAH (lanjutan) a. 13. GOVERNMENT BONDS (continued) Berdasarkan jenis dan mata uang (lanjutan) a. By type and currency (continued) 31 Desember/December 2018 Nilai Nominal/ Nominal Value 2017 Nilai Tercatat/ Carrying Value Nilai Nominal/ Nominal Value Nilai Tercatat/ Carrying Value Dimiliki hingga jatuh tempo (lanjutan) Mata uang asing Tingkat bunga tetap, setelah diskonto/premi yang belum diamortisasi sebesar Rp124.346 per 31 Desember 2018 dan Rp182.554 per 31 Desember 2017 Tingkat bunga mengambang Held-to-maturity (continued) Foreign currencies 10,080,015 402,640 10,204,361 408,555 6,424,014 312,053 6,606,568 318,923 Fixed rate, net of unamortized discount/premium of Rp124,346 as of 31 December 2018 and Rp182,554 as of 31 December 2017 Floating rate 10,482,655 10,612,916 6,736,067 6,925,491 Total dimiliki hingga jatuh tempo 23,266,334 23,158,007 20,838,670 20,676,255 Total held-to-maturity Total Obligasi Pemerintah 88,330,368 86,791,402 78,209,667 79,849,452 Total Government Bonds Jumlah nominal Obligasi Pemerintah yang diterima BNI dari program rekapitalisasi masing-masing sebesar Rp2.962.860 dan Rp4.641.870 pada tanggal 31 Desember 2018 dan 2017. The total outstanding nominal amount Government Bonds received by BNI from recapitalization program amounted Rp2,962,860 and Rp4,641,870 as 31 December 2018 and 2017, respectively. Jumlah Obligasi Pemerintah yang dikelompokkan sebagai tersedia untuk dijual yang dijual selama tahun berjalan adalah sebagai berikut: The total available-for-sale Government Bonds sold during the current year are as follows: Total dijual/ Sold Nilai nominal/ Nominal value Tahun yang berakhir pada tanggal 31 Desember 2018 Tahun yang berakhir pada tanggal 31 Desember 2017 Kepada pihak ketiga/ To third parties Nilai nominal/ Nominal value Harga jual/ Selling price 10,183,325 5,805,310 6,443,603 Year ended 31 December 2018 9,368,258 7,470,386 8,426,595 Year ended 31 December 2017 Jumlah Obligasi Pemerintah yang telah jatuh tempo dalam tahun 2018 dan 2017 adalah sebesar masing-masing Rp9.690.696 (nilai nominal) dan Rp7.034.613 (nilai nominal). Total Government Bonds which have matured amounted to Rp9,690,696 (nominal value) and Rp7,034,613 (nominal value) during 2018 and 2017, respectively. Untuk obligasi tingkat bunga mengambang, harga pasar Obligasi Pemerintah berkisar antara 99,55% sampai dengan 99,87% dan antara 99,84% sampai dengan 99,95% masing-masing pada 31 Desember 2018 dan 2017 dari nilai nominal. For floating interest rate bonds, the market price of Government Bonds ranged from 99.55% to 99.87% and from 99.84% to 99.95% as of 31 December 2018 and 2017, respectively, of the nominal amounts. 123 938 of the to of Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  939. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 13. OBLIGASI PEMERINTAH (lanjutan) a. b. 13. GOVERNMENT BONDS (continued) Berdasarkan jenis dan mata uang (lanjutan) a. By type and currency (continued) Untuk tingkat bunga tetap, harga pasar Obligasi Pemerintah berkisar antara 76,01% sampai dengan 122,15% dan antara 96,70% sampai dengan 136,51% masing-masing pada tanggal 31 Desember 2018 dan 2017. For fixed interest rate bonds, the market price of Government Bonds ranged from 76.01% to 122.15% and from 96.70% to 136.51% as of 31 December 2018 and 2017, respectively. BNI mengakui adanya keuntungan atau kerugian yang belum direalisasi atas perubahan nilai pasar Obligasi Pemerintah dalam kelompok tersedia untuk dijual (neto setelah pajak) sebesar Rp2.477.246 (rugi) dan Rp191.656 (untung) masing-masing untuk tahun yang berakhir pada tanggal 31 Desember 2018 dan 2017 yang dicatat pada bagian ekuitas laporan posisi keuangan konsolidasian. BNI recognized the unrealized gains or losses from the changes in the market value of the Government Bonds categorized as availablefor-sale (net of taxes) in the amount of Rp2,477,246 (loss) and Rp191,656 (gain) for the year ended 31 December 2018 and 2017, respectively, both recorded in the equity section of the consolidated statement of financial position. Pada 31 Desember 2018 dan 2017 Obligasi pemerintah dengan tingkat bunga tetap dengan jumlah nominal Rp21.304.918 dan Rp2.674.950 telah dijual dengan janji dibeli kembali hingga jatuh tempo (lihat Catatan 22). As of 31 December 2018 and 2017, the fixed rate government bonds has been sold under agreements to repurchase to maturity with nominal amount of Rp21,304,918 and Rp2,674,950, respectively. (refer to Note 22). Berdasarkan kisaran tanggal jatuh tempo dan jenis bunga b. Based on maturity date and type of interest rate 31 Desember/December 2018 Diperdagangkan Obligasi tingkat bunga tetap 10/03/2019 11/01/2048 04/01/2018 11/01/2048 Trading Fixed rate bonds Tersedia untuk dijual Obligasi tingkat bunga tetap 02/01/2019 17/01/2042 01/02/2018 17/01/2042 Available-for-sale Fixed rate bonds 04/03/2019 15/05/2048 25/01/2018 18/07/2027 15/01/2019 15/04/2043 25/01/2018 15/04/2043 04/03/2019 20/09/2028 21/11/2018 29/03/2026 Obligasi tingkat bunga mengambang Dimiliki hingga jatuh tempo Obligasi tingkat bunga tetap Obligasi tingkat bunga mengambang c. 2017 Tingkat suku bunga tetap tahunan Rupiah % c. Amerika Serikat/ United States Dollar % Floating rate bonds Held-to-maturity Fixed rate bonds Floating rate bonds Annual fixed interest rates Dolar Singapura/ Singapore Dollar % Suku bunga kontrak: 2018 2017 5.11 - 12.03 5.11 - 12.04 1.81 - 7.75 1.50 - 7.75 2.25 - 3.25 2.25 - 3.25 Contractual interest rate: 2018 2017 Suku bunga efektif: 2018 2017 5.11 - 12.02 5.42 - 10.14 0.82 - 4.81 2.80 - 4.51 1.14 - 2.01 1.08 Effective interest rate: 2018 2017 124 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 939
  940. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 13. OBLIGASI PEMERINTAH (lanjutan) d. 13. GOVERNMENT BONDS (continued) Tingkat suku bunga mengambang tahunan d. Annual floating interest rates Tingkat suku bunga per tahun/ Annual interest rates 2018 2017 7.18% - 7.53% 4.93% - 4.96% 14. EFEK-EFEK YANG DIBELI DENGAN JANJI DIJUAL KEMBALI 2018 2017 14. SECURITIES PURCHASED AGREEMENTS TO RESELL Efek-efek yang dibeli dengan janji dijual kembali pada tanggal 31 Desember 2017 terdiri dari: UNDER Securities purchased under agreements to resell as of 31 December 2017 is as follows: 31 Desember/December 2017 Counterparty Jenis Sekuritas/ Type of Securities Pihak ketiga/Third parties Bank Indonesia Bank Indonesia PT Bank BNP Paribas PT Bank Pembangunan Daerah Banten Tbk Bank Indonesia Nilai Nominal/ Nominal Amount Tanggal Dimulai/ Start Date Tanggal Jatuh Tempo/ Maturity Date Nilai Penjualan Kembali/ Resale Amount Pendapatan Bunga yang Belum Direalisasi/ Unrealized Interest Nilai Tercatat/ Carrying Value OBN OBN OBN 250,000 93,750 100,000 06/12/2017 27/12/2017 29/12/2017 03/01/2018 24/01/2018 03/01/2018 268,405 119,909 92,650 103 366 34 268,302 119,543 92,617 OBN SPN-S 100,000 130,233 28/12/2017 12/06/2017 11/01/2018 01/03/2018 68,096 130,233 100 431 67,996 130,664 679,293 1,034 679,122 673,983 Efek-efek yang dibeli dengan janji dijual kembali tersebut di atas diklasifikasikan sebagai lancar. Securities purchased under agreements to resell are classified as current. Tingkat suku bunga tetap tahunan: Annual fixed interest rates: Rupiah % Suku bunga kontrak: 2017 Contractual interest rate: 2017 4.35 - 4.80 15. BEBAN DIBAYAR DIMUKA 15. PREPAID EXPENSES Beban dibayar dimuka terdiri dari : Prepaid expenses consist of: 31 Desember/December 2018 Sewa dibayar dimuka Biaya tangguhan Perbaikan dan pemeliharaan Asuransi Promosi Lainnya 2017 1,235,011 354,396 318,535 215,579 114,586 99,296 1,223,023 351,170 310,229 181,616 95,612 156,866 2,337,403 2,318,516 Prepaid rent Deffered expenses Service and maintenance Insurance Promotion Others 125 940 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  941. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 16. PENYERTAAN SAHAM 16. EQUITY INVESTMENTS Penyertaan jangka panjang Long-term equity investments Nilai Tercatat/ Carrying Value 31 Desember/December 2018 Klasifikasi tersedia untuk dijual Cadangan kerugian penurunan nilai 2017 785,007 785,823 Classified as available-for-sale (181,084) (72,400) Allowance for impairment losses 603,923 713,423 Net Neto *) Termasuk penyertaan sementara Bank pada PT PANN Pembiayaan Maritim (pihak berelasi) sebesar Rp724.338 per 31 Desember 2018 dan 2017. *) Included temporary equity investment of the Bank in PT PANN Pembiayaan Maritim (related party) amounting to Rp724,338, as of 31 December 2018 and 2017. Penyertaan jangka panjang kolektibilitas Bank Indonesia adalah: The classification of long-term equity investments based on Bank Indonesia collectibility are as follows: berdasarkan 31 Desember/December 2018 2017 Lancar Kurang lancar 60,669 724,338 785,823 - Current Substandard Total Cadangan kerugian penurunan nilai 785,007 785,823 (181,084) (72,400) Total Allowance for impairment losses 603,923 713,423 Net Neto Perubahan cadangan kerugian penurunan nilai adalah sebagai berikut: The movements in the allowance for impairment losses are as follows: 31 Desember/December 2018 2017 Saldo awal Pembentukan tahun berjalan 72,400 108,684 72,400 Beginning balance Provison during the year Neto 181,084 72,400 Net Penyertaan pada perusahaan asosiasi adalah sebagai berikut: The long-term equity investments to associated companies are as follows: Persentase Kepemilikan/ Percentage of Ownership Nama Perusahaan Diklasifikasikan sebagai tersedia untuk dijual PT Sarana Bersama Pembiayaan Indonesia PT Swadharma Nusantara Pembiayaan (dahulu PT Swadharma Surya Finance) PT Bursa Efek Indonesia PT Kustodian Sentral Efek Indonesia PT Pemeringkat Efek Indonesia (Persero) PT Bank Mizuho Indonesia PT Bank Sumitomo Mitsui Indonesia PT PANN Pembiayaan Maritim Kegiatan Usaha/ Business Activity 2018 Investasi/Investment Pembiayaan/Financing Bursa efek/Stock exchange Lembaga penyelesaian efek/ Settlement and depository Pemeringkat efek/ Credit rating agency Bank/Banking Bank/Banking Pembiayaan/Financing *) Tidak diaudit 2017 8.00% 8.00% 7.35% 1.20% 7.35% 1.20% 2.50% 2.50% 1.93% 1.00% 0.52% 48.4% 1.93% 1.00% 0.52% 48.4% Company’s Name *) Classified as available-for-sale PT Sarana Bersama Pembiayaan Indonesia PT Swadharma Nusantara Pembiayaan (formerly PT Swadharma Surya Finance) PT Bursa Efek Indonesia PT Kustodian Sentral Efek Indonesia PT Pemeringkat Efek Indonesia (Persero) PT Bank Mizuho Indonesia PT Bank Sumitomo Mitsui Indonesia PT PANN Pembiayaan Maritim *)Unaudited 126 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 941
  942. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 17. ASET LAIN-LAIN - NETO 17. OTHER ASSETS - NET Aset lain-lain - neto terdiri dari : Other assets - net consist of: 31 Desember/December 2018 2017 Piutang bunga Piutang lain-lain Piutang terkait transaksi ATM dan kartu kredit Agunan yang diambil alih setelah dikurangi penyisihan kerugian penurunan nilai sebesar Rp148.581 pada tanggal 31 Desember 2018 dan Rp49.887 pada tanggal 31 Desember 2017 Persediaan kantor Piutang premi asuransi Beban ditangguhkan Lain-lain setelah dikurangi cadangan kerugian penurunan nilai sebesar Rp34.789 pada tanggal 31 Desember 2018 (31 Desember 2017: Rp35.166) Total 4,253,128 3,429,531 3,254,353 2,813,466 2,278,107 2,766,507 Interest receivables Other receivables Receivables from transactions related to ATM and credit card 960,001 236,902 17,723 91,111 385,792 261,592 71,388 97,778 633,581 730,010 Foreclosed collaterals, net of allowance for impairment losses of Rp148,581 as of 31 December 2018 and Rp49,887 as of 31 December 2017 Office supplies Insurance premium receivables Deffered expenses Others, net of allowance for impairment losses of Rp34,789 as of 31 December 2018 (31 December 2017: Rp35,166) 11,900,084 10,380,886 Total Pada tanggal 31 Desember 2018, piutang bunga sebagian besar merupakan bunga yang berasal dari pinjaman yang diberikan dan Obligasi Pemerintah masing-masing sebesar Rp2.544.329 dan Rp964.462 (31 Desember 2017: Rp1.991.848 dan Rp823.987). As of 31 December 2018, interest receivables are mostly comprised of interest from loans and Government Bonds amounting to Rp2,544,329 and Rp964,462, respectively (31 December 2017: Rp1,991,848 and Rp823,987). BNI telah melakukan upaya penyelesaian atas agunan yang diambil alih dengan melakukan upaya penjualan dalam bentuk lelang atau pengambilalihan agunan oleh investor atas agunan yang diambil alih. BNI has made efforts to settle foreclosed collaterals by making an attempt to sell in the form of an auction or take over collateral by investors on foreclosed collaterals. Properti terbengkalai termasuk di dalam pos lainlain sebesar Rp1.930 dan Rp1.890 setelah dikurangi cadangan penurunan nilai sebesar Rp28.746 dan Rp28.786 masing-masing pada tanggal 31 Desember 2018 dan 2017. Abandoned properties are included in “Others” amounting to Rp1,930 and Rp1,890, net of allowance for impairment losses of Rp28,746 and Rp28,746, as of 31 December 2018 and 2017, respectively. BNI telah melakukan upaya penyelesaian atas properti terbengkalai dalam bentuk pemanfaatan untuk kegiatan operasional Bank (kantor, outlet, galeri, rumah dinas dan gudang kearsipan). BNI has made efforts to resolve abandoned properties in the form of utilization for the Bank's operational activities (offices, outlets, gallery, official houses and warehouse). 127 942 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  943. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 17. ASET LAIN-LAIN - NETO (lanjutan) 17. OTHER ASSETS - NET (continued) Manajemen berpendapat bahwa cadangan kerugian penurunan nilai yang dibentuk atas asetaset yang disebutkan di atas telah memadai. Management believes that the allowance for impairment losses on the respective assets outlined above is adequate. 18. ASET TETAP 18. FIXED ASSETS Aset tetap kepemilikan langsung: Direct ownership of fixed assets: 31 Desember/December 2018 Saldo awal/ Beginning balance Biaya perolehan Tanah Bangunan Perlengkapan kantor dan kendaraan bermotor Penambahan/ Additions Kenaikan penilaian kembali aset tetap/ Increase arising on revaluation of properties Pengurangan/ Reklasifikasi/ Disposals Reclassification 13,856,982 4,252,129 79,551 145,920 - 9,136,107 307,217 (286,672) Total biaya perolehan Aset dalam penyelesaian 27,245,218 2,959,984 532,688 1,412,491 (286,672) - Total biaya perolehan 30,205,202 1,945,179 (286,672) 206,533 482,899 - 10,096,336 Cost Land Buildings Office equipment and motor vehicles 2,144,947 - 31,265,297 2,743,359 Total cost Construction in progress 2,144,947 34,008,656 1,413,627 731,320 15,556,693 5,612,268 939,684 1,629,116 (1,629,116) - Saldo akhir/ Ending balance Total cost Akumulasi penyusutan Bangunan Perlengkapan kantor dan kendaraan bermotor 783,226 264,535 - - (634,147) 413,614 6,617,287 936,759 (85,512) - - 7,468,534 Accumulated depreciation Buildings Office equipment and motor vehicles Total akumulasi penyusutan 7,400,513 1,201,294 (85,512) - (634,147) 7,882,148 Total accumulated depreciation 26,126,508 Net book value Nilai buku neto 22,804,689 31 Desember/December 2017 Saldo awal/ Beginning balance Biaya perolehan Tanah Bangunan Perlengkapan kantor dan kendaraan bermotor Penambahan/ Additions Pengurangan/ Disposals Reklasifikasi/ Reclassification Saldo akhir/ Ending balance 8,145,672 888,007 (123,506) 225,934 9,136,107 Cost Land Buildings Office equipment and motor vehicles Total biaya perolehan Aset dalam penyelesaian 25,824,415 2,601,313 1,122,768 824,758 (151,655) (16,397) 449,690 (449,690) 27,245,218 2,959,984 Total cost Construction in progress Total biaya perolehan 28,425,728 1,947,526 (168,052) - 30,205,202 Total cost 545,900 250,808 (13,482) - 783,226 5,907,605 808,983 (99,301) - 6,617,287 Accumulated depreciation Buildings Office equipment and motor vehicles 6,453,505 1,059,791 (112,783) - 7,400,513 Total accumulated depreciation 22,804,689 Net book value Akumulasi penyusutan Bangunan Perlengkapan kantor dan kendaraan bermotor Total akumulasi penyusutan Nilai buku neto 13,828,710 3,850,033 28,596 206,165 (324) (27,825) 223,756 21,972,223 13,856,982 4,252,129 128 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 943
  944. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 18. ASET TETAP (lanjutan) 18. FIXED ASSETS (continued) Rincian keuntungan penjualan aset tetap adalah sebagai berikut: Details of gain on sale of fixed assets are as follows: Tahun yang Berakhir pada tanggal 31 Desember/Year ended 31 December 2018 Harga jual Nilai buku Keuntungan 2017 204,591 (201,160) 3,431 41,997 (38,872) Proceeds Book value 3,125 Gain Jumlah beban penyusutan aset tetap sebesar Rp1.201.294 dan Rp1.059.791 masing-masing pada tanggal 31 Desember 2018 dan 2017. The balances of depreciation amounted to Rp1,201,294 and Rp1,059,791 as of 31 December 2018 and 2017, respectively. Aset tetap yang telah terdepresiasi penuh namun masih digunakan oleh Grup sebesar Rp5.407.460 dan Rp4.802.038 masing-masing pada tanggal 31 Desember 2018 dan 2017, antara lain berupa perlengkapan kantor dan kendaraan bermotor. The fixed assets that have been fully depreciated but still in use by the Group amounting to Rp5,407,460 and Rp4,802,038 as of 31 December 2018 and 2017, respectively, include, among others, office equipment and motor vehicles. Manajemen berkeyakinan bahwa tidak terdapat penurunan nilai aset tetap yang dimiliki Grup selama tahun berjalan karena manajemen berpendapat bahwa nilai tercatat aset tetap tidak melebihi estimasi nilai yang dapat diperoleh kembali. Management believes that there is no impairment in the value of fixed assets owned by the Group during the year because management believes that the carrying amounts of fixed assets do not exceed the estimated recoverable amount. Aset tetap Bank pada tanggal 31 Desember 2018 diasuransikan terhadap risiko kebakaran dan pencurian dengan nilai pertanggungan sebesar Rp12.063.498 (31 Desember 2017: Rp9.641.311) (tidak diaudit). Manajemen berpendapat bahwa nilai pertangungan tersebut cukup untuk menutupi kemungkinan kerugian atas aset tersebut. As of 31 December 2018, the fixed assets of the Bank were insured against risk of fire and theft with sum insured amounting to Rp12,063,498 (31 December 2017: Rp9,641,311) (unaudited). Management believes that the sum insured is adequate to cover possible losses on the assets insured. Aset dalam penyelesaian pada tanggal 31 Desember 2018 dan 2017 adalah sebagai berikut: Construction in progress as of 31 December 2018 and 2017 are as follows: 31 Desember/December 2018 2017 Tanah Bangunan Peralatan kantor dan kendaraan bermotor 40,148 1,362,874 1,340,337 1,306,696 Land Buildings Office equipment and motor vehicles Total 2,743,359 2,959,984 Total Estimasi persentase tingkat penyelesaian aset dalam penyelesaian pada tanggal 31 Desember 2018 adalah berkisar 7% - 34% dan 31 Desember 2017: 5% - 18% (tidak diaudit). 45,774 1,607,514 The estimated percentage of completion of construction in progress as of 31 December 2018 is between 7% - 34% and 31 December 2017: 5% 18% (unaudited). 129 944 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  945. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 18. ASET TETAP (lanjutan) 18. FIXED ASSETS (continued) Nilai wajar tanah dan bangunan yang dimiliki Grup pada tanggal 31 Desember 2018 tidak berbeda jauh dengan nilai tercatat karena Grup melakukan penilaian pada tanah dan bangunan pada tanggal 30 September 2018. There is no significant difference between fair value and carrying value of land and building owned by the Group as of 31 December 2018 because the Group performed revaluation over land and buildings on 30 September 2018. Tidak ada aset tetap yang dijaminkan. There were no fixed assets pledged as collateral. Pada tanggal 30 September 2015, Grup melakukan perubahan kebijakan akuntansi atas tanah dan bangunan dari sebelumnya menggunakan model biaya menjadi model revaluasi. On 30 September 2015, the Group changed their accounting policy of land and buildings from cost model to revaluation model. Berdasarkan keputusan Ketua Badan Pengawas Pasar Modal Dan Lembaga Keuangan No. KEP347/BL/2012 tanggal 25 Juni 2012 tentang Penyajian dan Pengungkapan Laporan Keuangan Emiten atau Perusahaan Publik butir 27.e, dengan mempertimbangkan nilai buku aset tetap (tanah dan bangunan) yang telah dilakukan revaluasi pada tahun 2015, maka per tanggal 30 September 2018 Grup telah menugaskan perusahaan jasa penilai terdaftar untuk melaksanakan penilaian (revaluasi) aset tetap (tanah dan bangunan). Grup melakukan penilaian kembali atas tanah dan bangunan tersebut bukan untuk tujuan perpajakan tetapi hanya untuk pemenuhan ketentuan Bapepam dan LK tersebut. Based on Decision of Chairman of Bapepam and LK No. KEP-347/BL/2012 dated 25 June 2012, about the presentation and disclosure in financial report of issuer or a public company in point 27.e, by considering the book value of fixed assets (land and buildings) that have been conducted revaluation in 2015, therefore on 30 September 2018, the Group assigned registered independent appraisers to appraise (revaluate) its fixed assets (land and buildings). The Group has revalued the value of that land and buildings not for tax purpose rather for the compliance of the aforementioned Bapepam and LK regulation. Penilaian atas tanah dan bangunan dilakukan oleh penilai independen eksternal sebagai berikut: a) KJPP Toha Okky Heru dan Rekan b) KJPP Rengganis Hamid dan Rekan c) KJPP Benedictus Darmapuspita dan Rekan d) KJPP Abdullah Fitriantoro dan Rekan The valuations of land and buildings are perfomed by the following external independent appraisers: a) KJPP Toha Okky Heru dan Rekan b) KJPP Rengganis Hamid dan Rekan c) KJPP Benedictus Darmapuspita dan Rekan d) KJPP Abdullah Fitriantoro dan Rekan 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, metode biaya dan metode pendapatan. Elemen-elemen yang digunakan dalam perbandingan data untuk menentukan nilai wajar aset antara lain: Valuations are performed based on Indonesian Valuation Standards, determined based on reference to recent market transactions done on arm’s length terms and appropriate requirements. The valuation methods used are market value approach, cost approach and income approach. Elements used in data comparison to determine fair value of assets, among others are as follows: a) b) c) d) e) f) a) b) c) d) e) f) Jenis dan hak yang melekat pada properti Kondisi pasar Lokasi Karakteristik fisik Karakteristik dalam menghasilkan pendapatan Karakteristik tanah Types and rights attached to the property Market condition Location Physical characteristics Income producing characteristics Land characteristics 130 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 945
  946. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 18. ASET TETAP (lanjutan) 18. FIXED ASSETS (continued) Informasi mengenai penilaian kembali aset tetap pada tanggal 31 Desember 2018 untuk kelompok aset tanah dan bangunan Grup di Indonesia dan luar negeri adalah sebagai berikut: Nilai Buku sebelum Revaluasi/ Carrying Amount Before Revaluation Information on revaluation of land and buildings of the Group on 31 December 2018 located in Indonesia and overseas are as follows: Nilai Buku Setelah Revaluasi/ Carrying Amount after Revaluation Keuntungan Revaluasi/ Gain Revaluation Tanah Bangunan 14,097,701 3,823,459 15,511,328 5,188,926 1,413,627 1,365,467 Land Buildings Jumlah 17,921,160 20,700,254 2,779,094 Total Penilaian kembali yang dilakukan atas tanah menghasilkan jumlah kenaikan nilai tercatat sebesar Rp1.413.627 yang terdiri dari kenaikan nilai tanah yang dicatat sebagai “Penghasilan Komprehensif Lain” sebesar Rp1.418.055 dan penurunan nilai tanah yang diakui sebagai beban tahun berjalan sebesar Rp4.428. The revaluation of land resulted in an increase in the carrying amount of land amounting to Rp1,413,627 which consists of the increase in the carrying amount of land recognised as “Other Comprehensive Income” amounting to Rp1,418,055 and a decrease in carrying amount recognised in the current year expenses amounting to Rp4,428. Kenaikan nilai tercatat yang timbul dari revaluasi bangunan dicatat sebesar Rp1.365.467. Kenaikan ini terdiri dari kenaikan nilai bangunan yang dicatat sebagai “Penghasilan Komprehensif Lain” sebesar Rp1.397.454 dan penurunan nilai bangunan yang diakui sebagai beban tahun berjalan sebesar Rp31.987. Increase in carrying amount of buildings from the revaluation of building is recorded at Rp1,365,467. The increase consists of the increase in the carrying amount of buildings recognised in “Other Comprehensive Income” amounting to Rp1,397,454 and decrease in the carrying amount of buildings recognised in the curent year expenses amounting to Rp31,987. Secara total kenaikan nilai tercatat yang timbul dari revaluasi tanah dan bangunan dicatat sebagai “Penghasilan Komprehensif Lain” adalah sebesar Rp2.815.509. Penurunan nilai tercatat yang timbul dari revaluasi dicatat sebagai beban pada tahun berjalan adalah sebesar Rp36.415. In total, the increase in the carrying amount from revaluation of land and buildings is recognised in “Other Comprehensive Income” amounting to Rp2,815,509. The decrease of carrying amount from revaluation results recognised in current year expenses amounted to Rp36,415. Jika tanah dan bangunan dicatat sebesar harga perolehan, maka dicatat dalam jumlah sebagai berikut: If land and buildings are recorded using historical cost basis, the amount would be as follows: 31 Desember/December 2018 2017 Tanah Bangunan Harga perolehan Akumulasi penyusutan Nilai buku bangunan Jumlah nilai buku bersih 1,784,880 1,760,337 2,771,897 (2,171,163) 2,749,071 (2,017,491) Land Buildings Cost Accumulated depreciation 600,734 731,580 Net book amount 2,385,614 2,491,917 Total net book value 131 946 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  947. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 18. ASET TETAP (lanjutan) 18. FIXED ASSETS (continued) Perubahan cadangan revaluasi aset neto setelah pajak adalah sebagai berikut: The movements in the asset revaluation reserve net of tax are as follows: Cadangan revaluasi aset, neto setelah pajak/ Asset revaluation reserve, net of tax Saldo per 31 Desember 2017 Laba komprehensif untuk tahun berjalan 12,283,125 2,695,606 Balance as of 31 December 2017 Comprehensive income for the year Saldo per 31 Desember 2018 14,978,731 Balance as of 31 December 2018 Pada tanggal 31 Desember 2017, selain tanah dan bangunan, tidak terdapat perbedaan yang signifikan antara nilai wajar aset tetap dengan nilai tercatatnya. As of 31 December 2017, there is no significant difference between the fair value and carrying value of fixed assets other than land and buildings. Pada tahun 2015, Bank juga melakukan penilaian kembali atas tanah dan bangunan di Indonesia untuk tujuan perpajakan. Penilaian kembali dilakukan atas tanah dan bangunan dengan nilai buku pajak sebelum revaluasi sebesar Rp1.917.157 dan menghasilkan keuntungan revaluasi sebesar Rp6.337.806. Pembayaran pajak final atas keuntungan revaluasi sebesar Rp190.134 dicatat mengurangi “Cadangan Revaluasi Aset”. In 2015, The Bank also performed revaluation for tax purposes over land and buildings located in Indonesia. The revaluation of the land and buildings with fiscal book value before revaluation amounting to Rp1,917,157 resulted in gain on revaluation amounting to Rp6,337,806. The payment of final tax over the gain on revaluation amounting to Rp190,134 was recorded as a deduction of “Asset Revaluation Reserve”. Penilaian kembali tanah dan bangunan untuk tujuan perpajakan dilakukan setelah mendapatkan persetujuan dari Direktorat Jenderal Pajak dengan Surat Keputusan No. KEP-2547/WPJ.19/2015 tanggal 18 Desember 2015. BNI 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. Revaluation of land and bulidings for tax purposes is performed after approval from Directorate General of Tax through its letter No. KEP2547/WPJ.19/2015 dated 18 December 2015. BNI performed revaluation of fixed assets in accordance with the Finance Minister Regulation (PMK) No. 191/PMK.010/2015, dated 15 October 2015, with its amendments (PMK No. 233/PMK.03/2015) dated 21 December 2015. Ketentuan penyusutan fiskal aset tetap setelah penilaian kembali dengan tujuan perpajakan dimulai sejak tanggal 1 Januari 2016. The provision on the fiscal depreciation of fixed assets after revaluation for tax purposes is valid from 1 January 2016. 132 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 947
  948. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 19. LIABILITAS SEGERA 19. OBLIGATIONS DUE IMMEDIATELY 31 Desember/December 2018 Rupiah Kewajiban sebagai issuer bank (ATM) Simpanan sementara yang belum diselesaikan Kerjasama pihak ketiga Setoran pajak sebagai bank persepsi Dana setoran smartpay Dana setoran cek Kiriman uang Dana Trust Transaksi kliring Utang Dividen Transaksi inkaso Lainnya 2017 1,526,144 2,005,480 838,187 784,269 805,800 807,975 268,614 110,958 47,944 24,061 13,857 1,766 637 11 31,151 227,162 76,610 49,884 30,137 4,046 2,551 637 30 62,332 3,647,599 4,072,644 441,270 22,917 362,919 398,798 22,016 17,735 19,416 7,077 - 9,233 5,949 269 512,696 794,903 4,160,295 4,867,547 Mata uang asing Dana Trust Kiriman uang Simpanan sementara yang belum diselesaikan Setoran pajak sebagai bank persepsi Kerjasama pihak ketiga Lainnya Total 20. SIMPANAN NASABAH Rupiah Obligation as issuer bank (ATM) Temporary deposit transactions not yet settled Third party agreements Tax collection received by BNI as collecting bank Fund deposits for smartpay Fund deposits for cheques Money transfers Fund deposits for trust Items for clearing Dividend payable Items for inkaso Others Foreign currencies Fund deposits for trust Money transfers Temporary deposit transactions not yet settled Tax collection received by BNI as collecting Bank Third party agreements Others Total 20. DEPOSITS FROM CUSTOMERS Informasi mengenai simpanan berdasarkan pihak yang berelasi diungkapkan pada Catatan 47k. Information with respect to transactions with related parties are disclosed in Note 47k. a. a. Berdasarkan jenis dan mata uang By type and currency 31 Desember/December 2018 Rupiah Giro Tabungan Deposito berjangka Mata uang asing Giro Tabungan Deposito berjangka Total 2017 125,756,778 181,330,603 154,521,744 107,973,174 160,401,299 150,304,296 461,609,125 418,678,769 42,350,175 14,922,998 33,289,904 34,259,482 13,639,310 26,170,387 90,563,077 74,069,179 552,172,202 492,747,948 Rupiah Current accounts Savings accounts Time deposits Foreign currencies Current accounts Savings accounts Time deposits Total 133 948 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  949. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 20. SIMPANAN NASABAH (lanjutan) a. 20. DEPOSITS FROM CUSTOMERS (continued) Berdasarkan jenis dan mata uang (lanjutan) a. Perincian simpanan nasabah berdasarkan mata uang adalah sebagai berikut: By type and currency (continued) Deposits from customers based on currencies are as follows: 31 Desember/December 2018 Rupiah Mata uang asing Dolar Amerika Serikat Euro Dolar Singapura Yen Jepang Yuan China Pound Sterling Inggris Dolar Hong Kong Dolar Australia Franc Swiss South Korean Won Ringgit Malaysia Real Arab Saudi Total 2017 461,609,125 418,678,769 Rupiah 85,946,948 3,109,510 556,653 515,368 215,094 113,893 47,694 32,014 20,022 2,994 2,120 767 71,367,594 1,613,801 483,395 436,192 30,320 61,289 60,013 15,697 41 814 23 Foreign currencies United States Dollar Euro Singapore Dollar Japanese Yen Chinese Yuan Great Britain Pound Sterling Hong Kong Dollar Australian Dollar Swiss Franc South Korean Won Malaysian Ringgit Saudi Arabian Real 90,563,077 74,069,179 552,172,202 492,747,948 Total Simpanan nasabah berdasarkan prinsip syariah termasuk di dalamnya adalah giro wadiah, tabungan wadiah, tabungan Mudharabah dan deposito Mudharabah. Deposits from customers based on sharia principles include wadiah current accounts, wadiah savings, Mudharabah savings and Mudharabah deposits. Giro wadiah dan tabungan wadiah merupakan simpanan wadiah yad-dhamanah dimana pemilik dana akan memperoleh pendapatan bonus. Jumlah giro wadiah pada tanggaltanggal 31 Desember 2018 dan 2017, masingmasing sebesar Rp2.352.084 dan Rp1.836.895, sedangkan jumlah tabungan wadiah masing-masing sebesar Rp6.482.550 dan Rp4.132.674. Wadiah current accounts and wadiah savings represent a wadiah yad-dhamanah deposit in which the customers are entitled to receive bonus income. The balances of wadiah current accounts as of 31 December 2018 and 2017 were Rp2,352,084 and Rp1,836,895, respectively, while the balances of wadiah savings were Rp6,482,550 and Rp4,132,674, respectively. Berdasarkan Undang-Undang No. 24 tanggal 22 September 2004 yang berlaku efektif sejak tanggal 22 September 2005, sebagaimana diubah dengan Peraturan Pemerintah Pengganti Undang-Undang Republik Indonesia No. 3 tanggal 13 Oktober 2008, Lembaga Penjaminan Simpanan (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 dated 22 September 2004, effective on 22 September 2005, which was amended by the Government Regulation No. 3 dated 13 October 2008, the Indonesia Deposit Insurance Agency (LPS) was formed to guarantee certain liabilities of commercial banks under the applicable guarantee program, which the amount of guarantee can be amended if the situation complies with the valid particular criteria. 134 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 949
  950. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 20. SIMPANAN NASABAH (lanjutan) a. b. 20. DEPOSITS FROM CUSTOMERS (continued) Berdasarkan jenis dan mata uang (lanjutan) a. By type and currency (continued) Berdasarkan Peraturan Pemerintah Republik Indonesia No. 66 Tahun 2008 tanggal 13 Oktober 2008 mengenai Besarnya Nilai Simpanan yang dijamin Lembaga Penjaminan Simpanan, jumlah simpanan yang dijamin LPS adalah simpanan sampai dengan Rp2.000 untuk per nasabah per bank. Based on Government Regulation No. 66 Year 2008 dated 13 October 2008 regarding The Amount of Deposit Guaranteed by Indonesia Deposit Insurance Corporation, the amount of deposits covered by LPS is customer deposits up to Rp2,000 per depositor per bank. Pada tanggal 31 Desember 2018 dan 2017, BNI adalah peserta dari program penjaminan tersebut. As of 31 December 2018 and 2017, BNI was a participant of above guarantee program. Berdasarkan hubungan b. By relationship 31 Desember/December 2018 2017 Pihak berelasi Rupiah Giro Tabungan Deposito berjangka Mata uang asing Giro Tabungan Deposito berjangka Total pihak berelasi Pihak ketiga Rupiah Giro Tabungan Deposito berjangka Mata uang asing Giro Tabungan Deposito berjangka Related parties Rupiah Current accounts Savings accounts Time deposits 33,071,175 1,355,852 24,092,593 28,015,394 416,711 35,889,666 58,519,620 64,321,771 17,760,645 38,330 11,145,279 11,112,418 105,062 12,216,829 28,944,254 23,434,309 87,463,874 87,756,080 Total related parties 92,685,603 179,974,751 130,429,151 79,957,780 159,984,588 114,414,630 Third parties Rupiah Current accounts Savings accounts Time deposits 403,089,505 354,356,998 24,589,530 14,884,668 22,144,625 23,147,064 13,534,248 13,953,558 Foreign currencies Current accounts Savings accounts Time deposits Foreign currencies Current accounts Savings accounts Time deposits 61,618,823 50,634,870 Total pihak ketiga 464,708,328 404,991,868 Total third parties Total 552,172,202 492,747,948 Total 135 950 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  951. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 20. SIMPANAN NASABAH (lanjutan) c. 20. DEPOSITS FROM CUSTOMERS (continued) Tabungan berdasarkan jenis c. Savings accounts by type 31 Desember/December 2018 2017 d. Tabungan BNI Tabungan Syariah Tabungan Haji 189,050,601 4,821,308 2,381,692 169,105,299 2,850,286 2,085,024 BNI savings accounts Sharia savings accounts Hajj savings accounts Total 196,253,601 174,040,609 Total Simpanan jaminan yang diblokir dan dijadikan d. Deposits blocked and pledged as collateral 31 Desember/December 2018 2017 e. Giro Tabungan Deposito berjangka 25,268,697 30,755,886 7,181,151 21,252,227 31,751,511 8,056,585 Current accounts Savings accounts Time deposits Total 63,205,734 61,060,323 Total Tingkat suku bunga dan bagi hasil per tahun Rupiah % 2018 2017 0.00 - 9.50 0.00 - 8.10 e. Dolar Amerika Serikat/ Dolar United States Singapura/ Dollar Singapore Dollar % % 0.00 - 4.00 0.00 - 2.35 Euro % 0.00 - 0.50 0.00 - 0.75 21. SIMPANAN DARI BANK LAIN Annual interest rates and profit sharing 0.00 - 3.68 0.00 - 0.10 Yen Jepang/ Japanese Yen % 0.01 - 0.45 0.00 - 0.40 2018 2017 21. DEPOSITS FROM OTHER BANKS Informasi mengenai simpanan berdasarkan pihak yang berelasi diungkapkan pada Catatan 47l. Information with respect to transactions with related parties are disclosed in Note 47l. a. a. Berdasarkan jenis dan mata uang By type and currency 31 Desember/December 2018 2017 Rupiah Pinjaman pasar uang antar bank Giro Deposito berjangka Negotiable Certificate of Deposit Simpanan lainnya Mata uang asing Pinjaman pasar uang antar bank Giro Deposito berjangka Simpanan lainnya Total 989,135 107,931 938,665 436,681 20,000 1,132,324 105,591 4,247,857 534,399 2,472,412 6,040,171 8,458,845 1,138,965 1,214,741 589,532 3,332,300 1,237,780 407,185 716,771 11,402,083 5,694,036 13,874,495 11,734,207 Rupiah Interbank money market Current accounts Time deposits Negotiable Certificate of Deposits Other deposits Foreign currencies Interbank money market Current accounts Time deposits Other deposits Total 136 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 951
  952. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 21. SIMPANAN DARI BANK LAIN (lanjutan) a. 21. DEPOSITS FROM OTHER BANKS (continued) Berdasarkan jenis dan mata uang (lanjutan) a. By type and currency (continued) Simpanan dari bank lain berdasarkan prinsip syariah termasuk di dalamnya adalah giro wadiah dan deposito Mudharabah. Deposits from other banks based on sharia principles include wadiah current accounts and Mudharabah deposits. Giro wadiah merupakan simpanan wadiah yad-dhamanah dimana pemilik dana akan memperoleh pendapatan bonus. Jumlah giro wadiah pada tanggal-tanggal 31 Desember 2018 dan 2017, masing-masing sebesar Rp16.731 dan Rp47.756. Wadiah current accounts represent a wadiah yad-dhamanah deposit in which the customers are entitled to receive bonus income. The balances of wadiah current accounts as of 31 December 2018 and 2017 were Rp16,731 and Rp47,756, respectively. Perincian simpanan dari bank lain berdasarkan mata uang adalah sebagai berikut: Deposits from other banks currencies are as follows: based on 31 Desember/December 2018 2017 Rupiah 2,472,412 6,040,171 Rupiah Mata uang asing Dolar Amerika Serikat Yen Jepang Dolar Singapura Euro Dolar Hong Kong Pound Sterling Inggris Real Arab Saudi Franc Swiss Dolar Australia Dolar Kanada Won Korea Selatan 7,646,966 2,934,473 705,051 80,581 18,166 13,244 1,100 1,090 724 600 88 3,568,734 1,544,904 534,165 33,715 11,248 1,233 19 5 10 3 - Foreign currencies United States Dollar Japanese Yen Singapore Dollar Euro Hong Kong Dollar Great Britain Pound Sterling Saudi Arabian real Swiss Franc Australian Dollar Canadian Dollar South Korean Won Total b. 11,402,083 5,694,036 13,874,495 11,734,207 Berdasarkan hubungan b. Total By relationship 31 Desember/December 2018 2017 Pihak berelasi Rupiah Negotiable Certificate of Deposit Giro Mata uang asing Pinjaman pasar uang antar bank Giro Total pihak berelasi 144,010 1,690 982,024 21,990 145,700 1,004,014 2,704,878 117,591 1,151,881 90,261 2,822,469 1,242,142 2,968,169 2,246,156 Related parties Rupiah Negotiable Certificate of Deposits Current accounts Foreign currencies Interbank money market Current accounts Total related parties 137 952 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  953. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 21. SIMPANAN DARI BANK LAIN (lanjutan) b. 21. DEPOSITS FROM OTHER BANKS (continued) Berdasarkan hubungan (lanjutan) b. By relationship (continued) 31 Desember/December 2018 2017 Pihak ketiga Rupiah Negotiable Certificate of Deposit Giro Deposito berjangka Simpanan lainnya Pinjaman pasar uang antar bank Mata uang asing Pinjaman pasar uang antar bank Giro Deposito berjangka Simpanan lainnya c. 3,265,833 1,110,334 105,591 534,399 20,000 2,326,712 5,036,157 5,753,967 1,021,374 1,214,741 589,532 2,180,419 1,100,197 407,185 764,093 Foreign currencies Interbank money market Current accounts Time deposits Other deposits 8,579,614 4,451,894 Total pihak ketiga 10,906,326 9,488,051 Total third parties Total 13,874,495 11,734,207 Total Berdasarkan tingkat suku bunga dan bagi hasil per tahun 2018 2017 Simpanan jaminan 0.00 - 8.40 0.00 - 8.40 yang diblokir dan c. Dolar Amerika Serikat/ United States Dollar % Rupiah % d. 794,655 987,445 107,931 436,681 - Third parties Rupiah Negotiable Certificate of Deposits Current accounts Time deposits Other deposits Interbank money market Yen Jepang/ Japanese Yen % 0.00 - 3.39 0.00 - 2.21 dijadikan By annual interest rates and profit sharing Dolar Singapura/ Singapore Dollar % 0.08 - 0.33 0.19 - 0.28 d. 0.00 - 2.11 1.61 - 2.00 2018 2017 Deposits blocked and pledged as collateral 31 Desember/December 2018 2017 Giro Tabungan Deposito berjangka 7,048 31,858 35,752 59,482 61,131 35,210 Current accounts Savings accounts Time deposits Total 74,658 155,823 Total 138 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 953
  954. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 22. EFEK-EFEK YANG DIJUAL DENGAN JANJI DIBELI KEMBALI a. 22. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Berdasarkan jenis a. By type 31 Desember/December 2018 Counterparty Jenis Sekuritas/ Type of Securities Nilai Nominal/ Nominal Amount Tanggal Dimulai/ Start Date Tanggal Jatuh Tempo/ Maturity Date Beban Bunga yang Nilai Belum Pembelian Diamortisasi/ Kembali/ Unamortized Repurchase Interest Amount Expenses Nilai Bersih/ Net Value Pihak berelasi/Related parties Rupiah Bank Mandiri SDBI 100,000 05/12/2018 07/01/2019 87,608 105 87,503 Pihak ketiga/Third parties Rupiah BNP Paribas Jakarta Bank Indonesia Bank Indonesia Bank Indonesia OBN SBI OBN OBN 395,500 2,000,000 6,000,000 10,000,000 09/09/2016 07/12/2018 07/12/2018 19/12/2018 15/11/2020 04/01/2019 04/01/2019 16/01/2019 561,956 1,759,132 5,741,348 9,206,782 126,273 1,019 3,326 26,670 435,683 1,758,113 5,738,022 9,180,112 18,395,500 Mata uang asing/Foreign currencies BNP Paribas Paris Goldman Sachs ING Bank N.V., Amsterdam The Hongkong and Shanghai Banking Corporation Limited OBN OBN OBN OBN 17,269,218 3,830,918 287,600 431,400 28/03/2018 27/11/2018 20/12/2018 28/02/2019 21/11/2019 21/03/2019 359,500 26/09/2018 03/04/2019 3,470,529 219,583 364,803 4,909,418 157,288 17,111,930 15,140 1,675 2,940 3,455,389 217,908 361,863 294,072 4,336 289,736 4,348,987 24,091 4,324,896 Total pihak ketiga/Third parties 22,514,018 21,618,205 181,379 21,436,826 Total 23,404,918 21,705,813 181,484 21,524,329 31 Desember/December 2017 Counterparty Pihak ketiga/Third parties Rupiah PT Bank BNP Paribas PT Bank BNP Paribas Jenis Sekuritas/ Type of Securities OBN OBN Nilai Nominal/ Nominal Amount 395,500 582,500 Tanggal Dimulai/ Start Date Tanggal Jatuh Tempo/ Maturity Date 09/09/2016 09/09/2016 15/11/2020 15/09/2018 978,000 Mata uang asing/Foreign currencies PT Bank BNP Paribas OBN 1,696,950 Total 2,674,950 19/08/2014 15/05/2018 Beban Bunga yang Nilai Belum Pembelian Diamortisasi/ Kembali/ Unamortized Repurchase Interest Amount Expenses Nilai Bersih/ Net Value 561,956 661,904 153,976 47,280 407,980 614,624 1,223,860 201,256 1,022,604 1,407,382 39,920 1,367,462 2,631,242 241,176 2,390,066 139 954 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  955. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 22. EFEK-EFEK YANG DIJUAL DENGAN JANJI DIBELI KEMBALI (lanjutan) 22. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (continued) Tingkat suku bunga tetap tahunan : Annual fixed interest rates : Dolar Amerika Serikat/ United States Dollar % Rupiah % Suku bunga kontrak: 2018 2017 6.99 - 7.55 7.44 - 7.55 23. LIABILITAS AKSEPTASI a. 23. ACCEPTANCES PAYABLES Berdasarkan pihak dan mata uang Rupiah Bank Kreditur non-bank Mata uang asing Bank Kreditur non-bank Total Contractual interest rate: 2018 2017 2.77 - 3.25 2.66 a. By party and currency 31 Desember/December 2018 2017 1,337,288 167,970 773,640 188,022 1,505,258 961,662 2,860,755 50,600 3,325,614 220,055 2,911,355 3,545,669 4,416,613 4,507,331 Perincian liabilitas akseptasi berdasarkan mata uang adalah sebagai berikut: Rupiah Banks Non-bank creditors Foreign currencies Banks Non-bank creditors Total Acceptances payables based on currencies are as follows: 31 Desember/December 2018 2017 Rupiah 1,505,258 961,662 Rupiah Mata uang asing Dolar Amerika Serikat Euro Yen Jepang Dolar Australia Yuan Cina Dolar Singapura Franc Swiss 2,554,941 251,018 54,405 25,470 23,410 2,111 - 3,359,749 143,395 19,246 11,370 11,909 Foreign currencies United States Dollar Euro Japanese Yen Australian Dollar Chinese Yuan Singapore Dollar Swiss Franc 2,911,355 3,545,669 4,416,613 4,507,331 Total Total 140 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 955
  956. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 23. LIABILITAS AKSEPTASI (lanjutan) b. 23. ACCEPTANCES PAYABLE (continued) Berdasarkan hubungan b. By relationship 31 Desember/December 2018 2017 Pihak berelasi Rupiah Mata uang asing 647,390 606,557 461,444 699,537 Related parties Rupiah Foreign currencies Total pihak berelasi 1,253,947 1,160,981 Total related parties Pihak ketiga Rupiah Mata uang asing 857,868 2,304,798 500,218 2,846,132 Third parties Rupiah Foreign currencies Total pihak ketiga 3,162,666 3,346,350 Total third parties Total 4,416,613 4,507,331 Total 24. BEBAN YANG MASIH HARUS DIBAYAR 24. ACCRUED EXPENSES Beban yang masih harus dibayar terdiri dari: Accrued expenses consist of the following: 31 Desember/December 2018 2017 Biaya teknologi dan telekomunikasi Biaya kantor Biaya loyalty Kewajiban sebagai bank penerbit kepada merchant Deposito Mudharabah Biaya promosi Sukuk Mudharabah Lain-lain Total 264,109 307,159 89,411 193,247 383,168 83,974 73,778 46,899 27,786 67,205 166,770 49,305 35,502 4,436 55,077 Technology and telecommunication expenses Office expenses Loyalty expenses Liabilities as issuing bank to merchants Mudharabah time deposits Sales promotion expenses Mudharabah sukuk Others 876,347 971,479 Total 25. PENYISIHAN 25. PROVISIONS 31 Desember/December 2018 2017 Estimasi kerugian atas komitmen dan kontinjensi Penyisihan atas perkara hukum 131,403 46,116 145,918 46,488 Estimated losses from commitments and contingencies Provision for legal cases Total 177,519 192,406 Total a. Perubahan penyisihan atas perkara hukum adalah sebagai berikut: a. The movements of the provision for legal cases are as follows: 31 Desember/December 2018 2017 Saldo awal Pembalikan selama tahun berjalan 46,488 (372) 47,608 (1,120) Beginning balance Reversal during the year Saldo akhir 46,116 46,488 Ending balance 141 956 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  957. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 25. PENYISIHAN (lanjutan) a. b. 25. PROVISION (continued) Perubahan penyisihan atas perkara hukum adalah sebagai berikut: (lanjutan) a. The movements of the provision for legal cases are as follows: (continued) Bank saat ini masih menghadapi permasalahan hukum diantaranya dengan debitur, pemilik dana dan/atau pihak ketiga. Saat ini permasalahan hukum tersebut masih dalam proses/upaya hukum. The Bank has a number of outstanding litigation cases, including lawsuits with debtors, fund owners and/or third parties. Currently, litigation cases are still in the legal process. Jumlah klaim terhadap Bank dan estimasi biaya penyelesaian perkara atas tuntutan hukum yang belum selesai pada tanggal 31 Desember 2018 dan 2017 masing-masing sebesar Rp33.275 dan Rp44.726. Pada tanggal 31 Desember 2018 dan 2017, Bank telah membentuk cadangan masing-masing sebesar Rp46.116 dan Rp46.488. The Bank’s total potential financial exposure and estimation on settlement of legal cases arising from outstanding lawsuits as of 31 December 2018 and 2017 amounted to Rp33,275 and Rp44,726, respectively. As of 31 December 2018 and 2017, the Bank recorded a provision amounting to Rp46,116 and Rp46,488, respectively. Manajemen berpendapat bahwa jumlah cadangan atas perkara hukum di atas telah memadai. Management believes that the provision for legal cases is adequate. Perubahan estimasi kerugian pada komitmen dan kontinjensi adalah sebagai berikut: b. The movements of estimated losses on commitments and contingencies are as follows: 31 Desember/December 2018 2017 Saldo awal (Pembalikan)/penyisihan selama tahun berjalan Penyesuaian karena penjabaran mata uang asing 145,918 108,511 Beginning balance (23,954) 42,940 (Reversal)/provision during the year Foreign exchange translation adjustment Saldo akhir 131,403 9,439 Manajemen berpendapat bahwa estimasi kerugian pada komitmen dan kontinjensi di atas telah memadai. (5,533) 145,918 Ending balance Management believes that the estimated losses on commitments and contingencies are adequate. 26. LIABILITAS LAIN-LAIN 26. OTHER LIABILITIES 31 Desember/December 2018 2017 Utang ke pemegang polis Utang bunga Kewajiban pada pihak ketiga Setoran jaminan Utang nasabah - Entitas anak Rekening dalam penyelesaian Pendapatan yang belum diakui Utang reasuransi dan komisi Lain - lain* 10,963,857 927,446 571,156 444,764 310,216 260,513 164,019 127,812 838,682 10,295,901 610,940 473,475 1,658,972 530,879 199,014 86,919 53,391 821,223 Obligation to policy holders Interest payable Liability to third parties Guarantee deposits Payable to customers - Subsidiary Unsettled account Unearned income Reinsurance payable and commission Others* Total 14,608,465 14,730,714 Total *) Termasuk di dalamnya pencadangan atas akun suspense. *) Including the allowance of suspense account. 142 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 957
  958. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 27. PERPAJAKAN a. 27. TAXATION Pajak dibayar dimuka a. Prepaid taxes 31 Desember/December 2018 2017 b. Pajak penghasilan badan BNI Entitas Anak 1,623,560 858 619,751 2,972 Corporate income tax BNI Subsidiaries Total 1,624,418 622,723 Total Utang pajak b. Taxes payable 31 Desember/December 2018 2017 Pajak penghasilan badan BNI Pasal 29 Entitas Anak Pasal 25 Pasal 29 Total pajak penghasilan badan Pajak lainnya BNI Entitas Anak Total pajak lainnya Total c. 398,615 6,044 Corporate income tax BNI Article 29 859 16,282 7,396 6,607 Subsidiaries Article 25 Article 29 415,756 20,047 Total corporate income tax 35,367 29,941 25,910 34,468 Other taxes BNI Subsidiaries 65,308 60,378 Total other taxes 481,064 80,425 Total Beban pajak c. Tax expense 31 Desember/December 2018 2017 BNI Kini Hasil pemeriksaan pajak tahun lalu Tangguhan Pajak penghasilan - BNI Entitas Anak Kini Tangguhan Pajak penghasilan - Entitas Anak Total 3,986,253 781,881 (188,370) 4,579,764 180,127 (30,939) 138,115 BNI Current Prior year tax examination Deferred 3,281,649 Income tax - BNI 3,143,534 149,845 (36,699) Subsidiaries Current Deferred 149,188 113,146 Income tax - Subsidiaries 4,728,952 3,394,795 Total 143 958 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  959. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 27. PERPAJAKAN (lanjutan) c. 27. TAXATION (continued) Beban pajak (lanjutan) c. Rekonsiliasi antara beban pajak penghasilan dengan hasil perkalian laba akuntansi sebelum pajak penghasilan dan tarif pajak yang berlaku adalah sebagai berikut: Tax expense (continued) The reconciliation between income tax expense and the theoretical tax amount on the profit before income tax is as follows: 31 Desember/December 2018 2017 Laba konsolidasian sebelum pajak penghasilan Laba sebelum pajak penghasilan dari entitas anak Laba sebelum pajak penghasilan - BNI Pajak dihitung dengan tarif pajak yang berlaku Beban yang tidak dapat dikurangkan untuk tujuan pajak - Kenikmatan karyawan - Keuntungan atas reksadana - Lain-lain Beban pajak BNI Koreksi hasil pemeriksaan pajak penghasilan tahun sebelumnya - BNI Beban pajak anak 19,820,715 (778,789) 17,165,387 (837,893) Consolidated income before income tax Income before income tax of subsidiaries 19,041,926 16,327,494 Income before income tax - BNI 3,808,385 3,265,500 Tax calculated at applicable tax rates 35,263 (63,250) 44,136 Expenses not deductible for tax purposes Employees’ fringe benefits Gain on mutual fund Others - 36,310 (69,274) 22,462 3,797,883 3,281,649 781,881 149,188 113,146 4,728,952 3,394,795 Rekonsiliasi antara laba sebelum pajak penghasilan menurut laba rugi BNI dengan estimasi penghasilan kena pajak adalah sebagai berikut: Tax expense - BNI Correction of income tax assesment on previous year - BNI Tax expense - Subsidiaries A reconciliation between the income before tax as shown in BNI’s profit and loss and estimated taxable income is as follows: 31 Desember/December 2018 2017 Grup Laba konsolidasian sebelum pajak penghasilan Laba sebelum pajak penghasilan dari Entitas Anak 19,820,715 Laba sebelum pajak penghasilan - BNI 19,041,926 Beda waktu - Penyusutan aset tetap - Pencadangan (pembalikan) kerugian penurunan nilai aset produktif - pinjaman yang diberikan (778,789) 10,740 919,158 17,165,387 (837,893) 16,327,494 The Group Consolidated income before income tax Income before income tax of Subsidiaries Income before income tax - BNI (34,293) Timing differences Depreciation of fixed assets - (1,133,731) Provision for (reversal of) impairment losses on earning assets - loans 144 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 959
  960. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 27. PERPAJAKAN (lanjutan) c. 27. TAXATION (continued) Beban pajak (lanjutan) - Pembalikan cadangan hukum, kecurangan (fraud) dan lainnya - Laba yang belum direalisasi atas efek yang diperdagangkan dan transaksi derivatif - (Pembalikan) penambahan cadangan imbalan kerja - Penambahan cadangan kerugian penurunan nilai aset produktif selain pinjaman yang diberikan Beda tetap - Kenikmatan karyawan - Keuntungan atas reksadana - Lain-lain c. Tax expense (continued) 31 Desember/December 2018 2017 (2,562) (1,975) (207,859) (304,924) (54,970) 461,835 Unrealized gain on trading securities and derivative transactions (Reversal of ) provision for allowance employee benefits Provison for impairment earning assets - other than loans 277,342 322,510 941,849 (690,578) 181,551 (346,370) 112,307 176,313 (316,250) 220,685 (52,512) Penghasilan kena pajak - BNI Reversal of allowance for legal, fraud and others 19,931,263 Beban pajak penghasilan tahun berjalan dan taksiran utang pajak penghasilan BNI adalah sebagai berikut: Permanent differences Employees’ fringe benefits Gain on mutual funds Others - 80,748 15,717,664 Taxable income - BNI Taxable income for the current year and the estimated corporate income tax payable are as follows: 31 Desember/December 2018 2017 Beban pajak penghasilan sesuai tarif pajak yang berlaku 20% xRp19.931.263 20% x Rp15.717.664 Beban pajak penghasilan Pajak dibayar di muka Utang pajak penghasilan - BNI 3,986,253 - 3,143,534 3,986,253 (3,587,638) 3,143,534 (3,137,490) 398,615 6,044 Income tax based on the applicable tax rates 20% x Rp19,931,263 20% x Rp15,717,664 Corporate income tax expense Prepaid tax Corporate income tax payable - BNI 145 960 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  961. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 27. PERPAJAKAN (lanjutan) c. 27. TAXATION (continued) Beban pajak (lanjutan) c. Tax expense (continued) Berdasarkan Undang-undang No. 36 Tahun 2008 tentang Pajak Penghasilan, Peraturan Pemerintah (PP) No. 81 Tahun 2007 tertanggal 28 Desember 2007, yang kemudian dicabut dan digantikan oleh PP No. 77 Tahun 2013 tertanggal 21 November 2013 tentang Penurunan Tarif Pajak Penghasilan Bagi Wajib Pajak Badan Dalam Negeri yang Berbentuk Perseroan Terbuka dan Peraturan Menteri Keuangan No.238/PMK.03/2008 tanggal 30 Desember 2008 tentang Tata Cara Pelaksanaan dan Pengawasan Pemberian Penurunan Tarif Bagi Wajib Pajak Badan Dalam Negeri yang Berbentuk Perseroan Terbuka mengatur bahwa perseroan terbuka dalam negeri di Indonesia dapat memperoleh fasilitas penurunan tarif pajak penghasilan sebesar 5% lebih rendah dari tarif tertinggi pajak penghasilan yang ada dengan memenuhi beberapa persyaratan tertentu, yaitu paling sedikit 40% (empat puluh persen) dari jumlah keseluruhan saham yang disetor dicatat untuk diperdagangkan di bursa efek di Indonesia dan masuk dalam penitipan kolektif di lembaga penyimpanan dan penyelesaian, saham tersebut harus dimiliki paling sedikit oleh 300 pihak serta masing-masing pihak hanya boleh memiliki saham kurang dari 5% dari keseluruhan saham ditempatkan dan disetor penuh. Based on UU No. 36 Year 2008 regarding Income Tax, Government Regulation (GR) No. 81 Year 2007 dated 28 December 2007 which subsequently has been revoked and replaced by GR No. 77 Year 2013 dated 21 November 2013 regarding Reduction of Tax Rate of Income Tax Resident Corporate Tax Payers and Regulation of the Minister of Finance No. 238/PMK.03/2008 dated 30 December 2008 regarding Procedures for Implementing and Supervising the Granting of Reduction of the Tax Rate of Income Tax Resident Corporate Tax Payers in the Form of Public Listed Company, a public listed company in Indonesia can obtain a reduction of income tax rate by 5% lower from the highest income tax rate by fulfilling several requirements, which include at the minimum 40% of total issued and fully paid in capital shares are traded in Indonesia Stock Exchange and must be recorded in depository and settlement institution and the shares are owned by at least 300 parties and each party can only own less than 5% of the total issued and fully paid shares. Ketentuan sebagaimana dimaksud di atas harus dipenuhi dalam waktu paling singkat 183 (seratus delapan puluh tiga) hari kalender dalam jangka waktu 1 (satu) tahun pajak. The above requirements must be fulfilled at the minimum of 183 (one hundred and eighty three) calendar days in a period of 1 (one) fiscal year. Selanjutnya pada tanggal 3 Agustus 2015, Pemerintah menerbitkan PP No. 56 Tahun 2015 tentang Perubahan atas PP No. 77 Tahun 2013 tentang Penurunan Tarif Pajak Penghasilan Bagi Wajib Pajak Badan Dalam Negeri yang Berbentuk Perseroan Terbuka. PP ini merubah persyaratan untuk mendapatkan fasilitas penurunan tarif pajak penghasilan sebesar 5% lebih rendah dari tarif tertinggi pajak penghasilan yang ada dengan memenuhi beberapa persyaratan tertentu, yaitu paling sedikit 40% (empat puluh persen) dari jumlah keseluruhan saham yang disetor dicatat untuk diperdagangkan di bursa efek di Indonesia, saham tersebut harus dimiliki paling sedikit oleh 300 pihak serta masing-masing pihak hanya boleh memiliki saham kurang dari 5% dari keseluruhan saham ditempatkan dan disetor penuh tahun pajak. Subsequently on 3 August 2015, the Government issued GR No. 56 Year 2015 regarding the Changes on GR No. 77 Year 2013 regarding the Reduction of Tax Rate of Income Tax Resident Corporate Tax Payers. This GR changed the requirements to obtain a reduction of income tax rate by 5% lower from the highest income tax rate by fulfilling several requirements, which include at the minimum 40% of total issued and fully paid in capital shares are traded in Indonesia Stock Exchange and the shares are owned by at least 300 parties and each party can only own less than 5% of the total issued and fully paid shares. 146 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 961
  962. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 27. PERPAJAKAN (lanjutan) c. d. 27. TAXATION (continued) Beban pajak (lanjutan) c. Tax expense (continued) Ketentuan sebagaimana dimaksud di atas harus dipenuhi dalam waktu paling singkat 183 (seratus delapan puluh tiga) hari kalender dalam jangka waktu 1 (satu) The above requirements must be fulfilled at the minimum of 183 (one hundred and eighty three) calendar days in a period of 1 (one) fiscal year. Berdasarkan Laporan Bulanan Kepemilikan Saham No DE/I/2019-0021 dan Formulir No. X.H.I-2 tanggal 3 Januari 2019 dan 3 Januari 2018 dari Biro Administrasi Efek, Datindo Entrycom, atas kepemilikan saham BNI selama tahun 2018 dan 2017, semua kriteria untuk memperoleh fasilitas penurunan tarif pajak tersebut di atas telah terpenuhi. Based on the Monthly Shareholding Report Number DE/I/2019-0021 and Form Number X.H.I-2 dated 3 January 2019 and 3 January 2018 from the Registrar, Datindo Entrycom, regarding BNI’s shares during the years 2018 and 2017, BNI has met all criteria mentioned above to obtain a facility of tax rate reduction. Pajak penghasilan badan BNI untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2018 dan 2017 telah dihitung dengan menggunakan tarif pajak 20%. BNI's corporate income tax for the year ended 31 December 2018 and 2017 are calculated using the tax rate of 20%. Aset pajak tangguhan - neto d. Aset pajak tangguhan pada tanggal-tanggal tanggal 31 Desember 2018 dan 2017 merupakan pengaruh beda pajak dengan rincian sebagai berikut: Deferred tax assets - net The deferred tax assets as 31 Desember 2018 and 2017 represent the tax effects on the following: 31 Desember/December 2018 Saldo awal/ Beginning balance (Laba) rugi yang belum direalisasi atas efek-efek yang tersedia untuk dijual Cadangan kerugian penurunan nilai aset produktif- pinjaman yang diberikan Cadangan imbalan kerja Cadangan kerugian penurunan nilai aset produktif - selain pinjaman yang diberikan Cadangan hukum, kecurangan (fraud) dan lainnya (Laba) rugi yang belum direalisasi atas efek yang diperdagangkan dan transaksi derivatif Penyusutan aset tetap (5,511) Dikreditkan/ (dibebankan) ke laporan laba rugi komprehensif konsolidasian/ Credited/ (charged) to consolidated statement of profit or loss and other comprehensive income - 285,159 405,674 183,832 (10,994) 183,518 55,468 10,770 (512) Dibebankan ke ekuitas/ Charged to equity Saldo akhir/ Ending balance 796,682 791,171 Unrealized (gain) loss on availablefor-sale-securities (125,650) 468,991 269,030 Allowance for impairment losses on earning assets - loans Allowance for employee benefits - (74,331) (40,979) (41,572) 2,148 (108,947) 764,300 188,370 562,085 Allowance for impairment losses on 238,986 earning assets - other than loans Allowance for legal, 10,258 fraud and others (115,903) (147,778) Unrealized (gain) loss on trading securities and derivative transactions Depreciation of fixed assets Aset pajak tangguhan BNI - neto Aset pajak tangguhan Entitas Anak - neto 126,603 161,611 Net deferred tax assets - BNI Net deferred tax assets Subsidiaries Aset pajak tangguhan konsolidasian - neto 890,903 1,676,366 Net consolidated deferred tax assets 1,514,755 147 962 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  963. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 27. PERPAJAKAN (lanjutan) d. 27. TAXATION (continued) Aset pajak tangguhan - neto (lanjutan) d. Deferred tax assets - net (continued) 31 Desember/December 2017 Saldo awal/ Beginning balance (Laba) rugi yang belum direalisasi atas efek-efek yang tersedia untuk dijual Cadangan kerugian penurunan nilai aset produktif- pinjaman yang diberikan Cadangan imbalan kerja Cadangan kerugian penurunan nilai aset produktif - selain pinjaman yang diberikan Cadangan hukum, kecurangan (fraud) dan lainnya (Laba)rugi yang belum direalisasi atas efek yang diperdagangkan dan transaksi derivatif Penyusutan aset tetap Aset pajak tangguhan BNI - neto Aset pajak tangguhan Entitas Anak - neto Aset pajak tangguhan konsolidasian - neto Dikreditkan/ (dibebankan) ke laporan laba rugi komprehensif konsolidasian/ Credited/ (charged) to consolidated statement of profit or loss and other comprehensive income 378,771 511,905 276,083 - 1,249,473 37,224 64,502 11,165 (60,984) (6,859) 285,159 405,674 Unrealized (gain) loss on availablefor-sale-securities Allowance for impairment losses on earning assets - loans Allowance for employee benefits - - Unrealized (gain) loss on trading securities and derivative transactions Depreciation of fixed assets (347,058) (74,331) (40,979) 82,035 126,603 Net deferred tax assets - BNI Net deferred tax assets Subsidiaries 1,331,508 890,903 Net consolidated deferred tax assets Manajemen berpendapat bahwa aset pajak tangguhan dapat dipulihkan seluruhnya. e. (5,511) Allowance for impairment losses on 183,518 earning assets - other than loans Allowance for legal, fraud 10,770 and others - (395) (138,115) Saldo akhir/ Ending balance (384,282) (226,746) 92,367 119,016 (13,347) (34,120) Dibebankan ke ekuitas/ Charged to equity 764,300 Management believes that deferred tax assets are fully realisable. Surat ketetapan pajak e. Pada tanggal 5 Februari 2018, BNI telah menerima Surat Ketetapan Pajak Kurang Bayar (SKPKB) atas PPh pasal 21, PPN dan Surat Tagihan Pajak (“STP”) untuk tahun fiskal 2015 sebesar Rp74.892 (termasuk denda). Pada tanggal 2 Maret 2018, BNI telah melakukan pembayaran penuh atas seluruh SKPKB tersebut dan tidak mengajukan keberatan kepada Direktorat Jenderal Pajak. Tax assessment letters On 5 February 2018, BNI received SKPKB which stated there was an under payment of PPh article 21, PPN and Tax Collection Letter (“STP”) for fiscal year 2015 amounting to Rp74,892 (including penalties). On 2 March 2018, BNI made a full payment for the above SKPKB and no objection was filed to the Directorate General of Tax. 148 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 963
  964. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 27. PERPAJAKAN (lanjutan) e. 27. TAXATION (continued) Surat ketetapan pajak (lanjutan) e. Tax assessment letters (continued) Pada tanggal 5 Februari 2018, BNI telah menerima Surat Ketetapan Pajak Kurang Bayar (SKPKB) atas PPh Badan untuk tahun fiskal 2015 sebesar Rp2.461.364 (termasuk denda) dan disetujui BNI sebesar Rp162.130. Pada tanggal 2 Maret 2018, BNI telah melakukan pembayaran sebagian SKPKB sebesar Rp1.785.691. Pada tanggal 4 Mei 2018, BNI mengajukan surat keberatan atas Surat Ketetapan Pajak Kurang Bayar (SKPKB) ke Direktorat Jenderal Pajak. Sampai dengan tanggal laporan keuangan konsolidasian ini, Direktorat Jenderal Pajak belum menerbitkan keputusan atas surat keberatan yang diajukan oleh BNI tersebut. Bank berkeyakinan bahwa keberatan atau banding yang diajukan dapat dikabulkan sehingga Bank tidak membentuk cadangan atas SKPKB tersebut. On 5 February 2018, BNI received tax assesment for underpayment of tax (SKPKB) which stated there was an under payment of corporate income tax for fiscal year 2015 amounting to Rp2,461,364 (including penalties) which is partially agreed by BNI for amount of Rp162,130. On 2 March 2018, BNI made a partial payment for amount Rp1,785,691. On 4 May 2018, BNI submitted objection letter for these SKPKB to the Directorate General of Tax. Up to the date of this consolidated financial statements, Directorate General of Tax has not yet issued any decision on the objection letter filed by BNI. The Bank believes the tax objection or appeal submitted will be accepted therefore Bank did not provide any provision for the SKPKB. Pada tanggal 15 Juni 2017 BNI telah menerima Surat Ketetapan Pajak Kurang Bayar (SKPKB) atas PPh Badan, PPN, PPh pasal 21, PPh pasal 22, PPh pasal 23, PPh Pasal 26, PPh pasal 4 ayat (2) dan Surat Tagihan Pajak (“STP”) untuk tahun fiskal 2014 sebesar Rp145.330 (termasuk denda). Pada tanggal 14 Juli 2017, BNI telah melakukan pembayaran penuh atas seluruh SKPKB tersebut dan tidak mengajukan keberatan kepada Direktorat Jenderal Pajak. On 15 June 2017, BNI received SKPKB which stated there was an under payment of corporate income tax, PPN, PPh article 21, PPh article 22, PPh article 23, PPh article 26, PPh article 4 paragraph (2) and Tax Collecttion Letter (“STP”) for fiscal year 2014 amounting to Rp145,330 (including penalties). On 14 July 2017, BNI has made a full payment for the above SKPKB and no objection was filed to the Directorate General of Tax. Pada tanggal 16 Desember 2014, BNI menerima SKPKB atas PPh Badan untuk tahun fiskal 2013 sebesar Rp619.751 (termasuk denda). Pada tanggal 30 Desember 2014, BNI telah melakukan pembayaran penuh atas SKPKB tersebut. Pada tanggal 12 Maret 2015, BNI telah mengajukan surat keberatan ke Direktorat Jenderal Pajak terhadap SKPKB PPh tersebut. Pada tanggal 7 Maret 2016, BNI menerima surat dari Direktorat Jenderal Pajak yang menolak keberatan atas SKPKB PPh Badan tersebut. Atas keputusan penolakan keberatan tersebut. Pada tanggal 3 Juni 2016, BNI telah mengajukan permohonan banding atas penolakan keberatan tersebut ke Pengadilan Pajak. Pada bulan Januari 2018, BNI menerima salinan putusan Pengadilan Pajak yang menolak permohonan banding BNI. On 16 December 2014, BNI received SKPKB which stated that there was an underpayment of corporate income tax for fiscal year 2013 amounting to Rp619,751 (including penalties). On 30 December 2014, BNI made a full payment for the above SKPKB. On 12 March 2015, BNI submitted an objection letter to the Directorate General of Tax for the above underpayment. On 7 March 2016, BNI received a letter from Directorate General of Tax which rejected the objection of the above SKPKB corporate income tax. On 3 June 2016, BNI submitted the request for appeal on the rejection of the above objection to the Tax Court. In January 2018, BNI received a copy of the Tax Court Decision which rejected BNI's appeal. Pada tanggal 16 Maret 2018, BNI telah mengajukan Memori Peninjauan Kembali (PK) atas penolakan banding tersebut ke Mahkamah Agung Republik Indonesia (MA-RI) melalui Pengadilan Pajak. On 16 March 2018, BNI filed a Memorandum of Review against the appeal rejection to The Supreme Court through The Tax Court. 149 964 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  965. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 27. PERPAJAKAN (lanjutan) e. 27. TAXATION (continued) Surat ketetapan pajak (lanjutan) e. Tax assessment letters (continued) Berdasarkan informasi website resmi Mahkamah Agung tanggal 25 Oktober 2018, majelis hakim telah menolak permohonan peninjauan kembali dari BNI. Bank telah membebankan estimasi tagihan pajak penghasilan ini di beban pajak kini tahun berjalan. Based on information of The Supreme Court’s official website dated 25 October 2018, the Panel Judges has rejected the application review of BNI. Bank has recognize the expense of estimated claim for tax refund as current tax expense during the current financial year. Pada tanggal 28 November 2012, BNI menerima Surat Ketetapan Pajak Kurang Bayar (“SKPKB”) atas Pajak Penghasilan Badan (“PPh Badan”) untuk tahun fiskal 2010 sebesar Rp1.633.716 (termasuk denda). Pada tanggal 26 Desember 2012, BNI telah melakukan pembayaran sebagian atas SKPKB PPh Badan sebesar Rp9.798. Pada tanggal 19 Februari 2013, BNI telah mengajukan surat keberatan ke Direktorat Jenderal Pajak terhadap sisa SKPKB PPh Badan tersebut. Pada tanggal 26 Februari 2013, BNI telah melakukan pembayaran sebagian atas sisa SKPKB PPh Badan sebesar Rp816.858. Pada tanggal 21 Februari 2014, BNI menerima surat dari Direktorat Jenderal Pajak yang menolak keberatan atas SKPKB PPh Badan tersebut. Pada tanggal 16 Mei 2014, BNI telah mengajukan permohonan banding atas penolakan keberatan tersebut ke Pengadilan Pajak. Pada tanggal 16 Maret 2016, Pengadilan Pajak telah membacakan putusan banding yang mengabulkan permohonan banding BNI. On 28 November 2012, BNI received Tax Assessment Letter (“SKPKB”) which stated that there was an underpayment of corporate income tax for fiscal year 2010 amounting to Rp1,633,716 (including penalties). On 26 December 2012, BNI made a partial payment amounting to Rp9,798. On 19 February 2013, BNI submitted an objection letter to the Directorate General of Tax for the remaining underpayment. On 26 February 2013, BNI has made a partial payment of the remaining underpayment amounting to Rp816,858. On 21 February 2014, BNI received a letter from the Directorate General of Tax which rejected the objection of the above SKPKB. On 16 May 2014, BNI submitted the request for appeal on the rejection of the above objection to the Tax Court. On 16 March 2016, the Tax Court has read out the decision on appeal which granted BNI’s appeal. Pada tanggal 8 April 2016, BNI menerima salinan putusan banding. Terhadap pembayaran sebesar Rp816.858 atas SKPKB telah dikompensasikan ke PPh Pasal 29 PPh Badan tahun pajak 2015, angsuran PPh Pasal 25 bulan April, Mei, dan Juni 2016. On 8 April 2016, BNI received a copy of the appeal decision. The payment of Rp816,858 on the SKPKB has been compensated against the Article 29 of the Corporate income tax year 2015, lnstallment of Income Tax Article 25 of April, May, and June 2016. Direktorat Jenderal Pajak mengajukan Memori Peninjauan Kembali tanggal 28 Juni 2016 kepada Mahkamah Agung melalui Pengadilan Pajak terhadap Putusan Pengadilan Pajak tanggal 16 Maret 2016. Sehubungan dengan diterimanya Memori Peninjauan Kembali tersebut, maka BNI memberikan jawaban dalam bentuk Kontra Memori Peninjauan Kembali kepada Mahkamah Agung melalui surat pada tanggal 9 Mei 2017 yang menyatakan bahwa putusan Pengadilan Pajak tersebut nyata-nyata telah sesuai dengan ketentuan peraturan perundang-undangan yang berlaku. Berdasarkan Surat Keputusan Mahkamah Agung tanggal 30 Agustus 2017, majelis hakim telah menolak permohonan peninjauan kembali Direktorat Jenderal Pajak tersebut. The Directorate General of Tax filed a Memorandum of Review dated 28 June 2016 to the Supreme Court through the Tax Court on Tax Court Decision on 16 March 2016. In relation to the receipt of such a Recognition Memory, BNI provided a response in the form of Counter Memory Review back to the Supreme Court through letter dated 9 May 2017 stating that the decision of the Tax Court is clearly in accordance with the provisions of the prevailing laws and regulations. Based on Supreme Court Decision Letter dated 30 August 2017, the Panel Judges has rejected the application review of the Directorate General of Tax. 150 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 965
  966. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 28. EFEK-EFEK YANG DITERBITKAN a. 28. SECURITIES ISSUED Berdasarkan jenis a. By type 31 Desember/December 2018 Saldo/ Balance Obligasi-BNI, setelah dikurangi biaya penerbitan yang belum diamortisasi masing-masing sebesar Rp956 pada tanggal 31 Desember 2018 dan Rp1.182 pada tanggal 31 Desember 2017. *) 2017 Peringkat/ Rating *) 2,987,464 idAAA*) Pefindo Saldo/ Balance Peringkat/ Rating *) 2,986,279 *) Bonds-BNI, net of unamortized issuance cost amounting to Rp956 as of 31 December 2018 and Rp1,182 as of 31 December 2017, idAAA*) respectively Pefindo Pada tanggal 22 Juni 2017, BNI telah mendapatkan pernyataan efektif dari OJK melalui surat nomor S-349/D.04/2017 untuk menerbitkan Obligasi Berkelanjutan I BNI Rupiah Tahap I Tahun 2017 (“Obligasi”). Nilai obligasi yang diterbitkan sebesar Rp3.000.000, jangka waktu 5 tahun, dengan kupon sebesar 8% per tahun yang akan dibayarkan secara triwulanan. Obligasi BNI diterbitkan pada tanggal 11 Juli 2017 dan listing di Bursa Efek Indonesia pada tanggal 12 Juli 2017. Pembayaran kupon pertama kepada para pemegang obligasi telah dilakukan pada tanggal 11 Oktober 2017. On 22 June 2017, BNI obtained an effective statement from OJK through letter number S349/D.04/2017 to issue Continuous Bonds I BNI Rupiah Phase I Year 2017 ("Bonds"). The value of bonds issued amounted to Rp3,000,000 with term of 5 years and coupon of 8% per annum to be paid quarterly. BNI Bonds was issued on 11 July 2017 and listed on the Indonesia Stock Exchange on 12 July 2017. The first coupon payment to bondholders has been made on 11 October 2017. Bertindak sebagai Penjamin Pelaksana Emisi Efek adalah PT BNI Sekuritas, PT Mandiri Sekuritas, PT Bahana Sekuritas, PT Danareksa Sekuritas, PT Indo Premier Sekuritas dan PT BCA Sekuritas. Bertindak sebagai Wali Amanat adalah PT Bank Rakyat Indonesia (Persero) Tbk. Acting as Underwriters are PT BNI Sekuritas, PT Mandiri Sekuritas, PT Bahana Sekuritas, PT Danareksa Sekuritas, PT Indo Premier Sekuritas and PT BCA Sekuritas. Acting as Trustee is PT Bank Rakyat Indonesia (Persero) Tbk. Sesuai dengan POJK No. 07/2017 dan Peraturan No.IX.C.11, dalam rangka penerbitan Obligasi ini, BNI telah memperoleh hasil pemeringkatan atas surat hutang jangka panjang dari PT Pemeringkat Efek Indonesia (“Pefindo”) untuk periode 25 April 2017 sampai dengan 1 April 2018 sesuai dengan suratnya No. RC-393/PEF-DIR/IV/2017 tanggal 25 April 2017, dengan peringkat idAAA (Triple A). BNI akan melakukan pemeringkatan atas obligasi yang diterbitkan setiap tahun selama kewajiban atas efek tersebut belum lunas. In accordance with POJK No. 07/2017 and Regulation No.IX.C.11, for the issuance of this Bond, BNI obtained the rating of long-term debt from PT Pemeringkat Efek Indonesia ("Pefindo") for the period 25 April 2017 until 1 April 2018, through letter No. RC-393/PEFDIR/IV/2017 dated 25 April 2017, with idAAA rating (Triple A). BNI will obtain a rating of the bonds issued annually as long as the obligations on such securities have not been paid off. 151 966 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  967. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 28. EFEK-EFEK YANG DITERBITKAN (lanjutan) a. b. 28. SECURITIES ISSUED (continued) Berdasarkan jenis (lanjutan) a. By type (continued) Dana obligasi setelah dikurangi biaya-biaya akan digunakan bank untuk ekspansi bisnis terutama penyaluran kredit. Proceeds from the issuance of the bond after deducting expenses was used by the Bank for business expansion, in particular for loan granting. Selama jangka waktu obligasi dan seluruh jumlah pokok obligasi belum seluruhnya dilunasi dan/atau seluruh jumlah bunga obligasi serta kewajiban pembayaran lainnya (bila ada) belum seluruhnya dibayar menurut ketentuan Perjanjian Perwaliamanatan ini, BNI berjanji dan mengikatkan diri bahwa tanpa persetujuan tertulis dari Wali Amanat tidak akan melakukan hal-hal sebagai berikut: - melakukan penggabungan, peleburan dan/atau akuisisi; atau - mengizinkan atau memberikan persetujuan kepada Anak Perusahaan (jika ada) untuk melakukan penggabungan, peleburan dan/atau akuisisi; yang secara material akan mempunyai akibat negatif. During the term of the bonds and the entire principal amount of the bonds has not been fully repaid and/or the full amount of bonds interest and other payment obligations (if any) have not been fully paid under the terms of the Trustee Agreement, BNI promises and binds that without the written approval of the Trust Agent, will not do the following: Berdasarkan mata uang b. - merger, consolidation and/or acquisition; or - permit or give consent to Subsidiaries (if any) for merger, consolidation and/or acquisition; which will materially have negative consequences. By currency 31 Desember/December 2018 Rupiah Obligasi-BNI, setelah dikurangi diskonto yang belum diamortisasi sebesar Rp956 pada tanggal 31 Desember 2018 dan Rp1.182 pada tanggal 31 Desember 2017 c. 2017 2,987,464 Berdasarkan hubungan 2,986,279 c. Rupiah Bonds-BNI, net of unamortized discount cost of Rp956 as of 31 December 2018 and Rp1,182 as of 31 December 2017 By relationship 31 Desember/December 2018 2017 d. Pihak berelasi Rupiah 1,268,596 644,746 Related parties Rupiah Pihak ketiga Rupiah 1,718,868 2,341,533 Third parties Rupiah Total 2,987,464 2,986,279 Total Tingkat suku bunga per tahun d. Annual interest rates Rupiah/ Rupiah % 2018 2017 8.00 8.00 2018 2017 152 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 967
  968. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 29. PINJAMAN YANG DITERIMA a. 29. BORROWINGS Berdasarkan jenis dan mata uang a. By type and currency 31 Desember/December 2017 2018 Rupiah Pinjaman penerusan Kredit likuiditas untuk kredit koperasi primer kepada anggotanya Lain-lain Mata uang asing Pinjaman bilateral Bankers acceptance Pinjaman penerusan Lain-lain Total 10,639 11,694 951 757,596 951 511,291 769,186 523,936 37,009,775 14,181,979 62,188 1,378 36,822,835 7,258,402 63,676 1,892 51,255,320 44,146,805 52,024,506 44,670,741 Rupiah Two step loans Liquidity credit for members of primary cooperatives credit Others Foreign currencies Bilateral loans Bankers acceptance Two step loans Others Total Pinjaman bilateral Bilateral loans BNI memiliki pinjaman bilateral sebagai salah satu strategi pendanaan Bank untuk menjaga komposisi pendanaan jangka pendek dan jangka panjang. Termasuk di dalam pinjaman bilateral adalah fasilitas pinjaman di bawah ini: BNI has bilateral loan which is one of the Bank’s strategy to maintain funding profile between short term and long term funding. Bilateral loans include the following borrowing facilities: a) Pinjaman bilateral dalam negeri dengan Standard Chartered Bank Jakarta sebesar USD200 juta dengan jangka waktu pinjaman selama 5 tahun dan tingkat suku bunga LIBOR 3 bulan ditambah 1,95% dan akan jatuh tempo pada tanggal 19 September 2019. Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman fasilitas tersebut masing-masing sebesar USD200 juta atau ekuivalen Rp2.876.000 dan USD200 juta atau ekuivalen Rp2.713.500. a) Onshore bilateral loan with Standard Chartered Bank Jakarta amounting to USD200 million with tenor of 5 years and with interest of 3 months LIBOR plus 1.95% and will mature on 19 September 2019. As of 31 December 2018 and 2017, the outstanding loan balance under this facility amounted to USD200 million or equivalent Rp2,876,000 and USD200 million or equivalent Rp2,713,500, respectively. b) Pinjaman bilateral luar negeri dengan China Development Bank sebesar USD700 juta dengan jangka waktu pinjaman selama 10 tahun serta tingkat suku bunga LIBOR 6 bulan ditambah 2,85% dan akan jatuh tempo pada tanggal 16 September 2025. Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman setelah dikurangi dengan biaya penerbitan yang belum diamortisasi masing-masing sebesar USD651 juta atau ekuivalen Rp9.355.986 dan USD697 juta atau ekuivalen Rp9.450.311. b) Offshore bilateral loan with China Development Bank amounting to USD700 million with tenor of 10 years and with interest of 6 months LIBOR plus 2.85% and will mature on 16 September 2025. As of 31 December 2018 and 2017, outstanding loan less unamortised is amounted to USD651 million or equivalent Rp9,355,986 and USD697 million or equivalent Rp9,450,311, respectively. 153 968 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  969. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 29. PINJAMAN YANG DITERIMA (lanjutan) a. 29. BORROWINGS (continued) Berdasarkan jenis dan mata uang (lanjutan) a. By type and currency (continued) Pinjaman bilateral (lanjutan) Bilateral loans (continued) c) Pinjaman bilateral luar negeri dengan China Development Bank sebesar CNY1,9 miliar dengan jangka waktu pinjaman selama 10 tahun serta tingkat suku bunga SHIBOR 6 bulan ditambah 3,30% dan akan jatuh tempo pada tanggal 16 September 2025. Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman setelah dikurangi dengan biaya penerbitan yang belum diamortisasi masing-masing sebesar CNY1.776 juta atau ekuivalen Rp3.712.855 dan CNY1.903 juta atau ekuivalen Rp3.964.867 c) Offshore bilateral loan with China Development Bank amounting to CNY1.9 billion with tenor of 10 years and with interest of 6 months SHIBOR plus 3.30% and will mature on 16 September 2025. As of 31 December 2018 and 2017, outstanding loan less unamortised amounted to CNY1,776 million or equivalent Rp3,712,855 and CNY1,903 million or equivalent Rp3,964,867, respectively. d) Pinjaman bilateral luar negeri dengan konsorsium bank yang terdiri dari ANZ, BNP Paribas, BTMU, Citibank, Commerzbank, CTBC, DBS, OCBC, dan UOB sebesar USD250 juta dengan jangka waktu pinjaman selama 3 tahun serta tingkat suku bunga LIBOR 3 bulan ditambah 1% per tahun dan akan jatuh tempo pada tanggal 22 Desember 2019. Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman setelah dikurangi dengan biaya penerbitan yang belum diamortisasi masing-masing sebesar USD248 juta atau ekuivalen Rp3.569.080 dan USD248 juta atau ekuivalen Rp3.358.892. d) Offshore bilateral loan with consortium of banks consisting of ANZ, BNP Paribas, BTMU, Citibank, Commerzbank, CTBC, DBS, OCBC, and UOB amounting to USD250 million with tenor of 3 years and with interest of 3 months LIBOR plus 1% per annum and will mature on 22 December 2019. As of 31 December 2018 and 2017, outstanding loan less unamortised issuance costs amounted to USD248 million or equivalent Rp3,569,080 and USD248 million or equivalent Rp3,358,892, respectively. e) Pinjaman bilateral luar negeri dengan konsorsium bank yang terdiri dari ANZ, BNP Paribas, BTMU, Citibank, Commerzbank, CTBC, DBS, OCBC, dan UOB sebesar USD500 juta dengan jangka waktu pinjaman selama 5 tahun serta tingkat suku bunga LIBOR 3 bulan ditambah 1,21% per tahun dan akan jatuh tempo pada tanggal 22 Desember 2021. Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman setelah dikurangi dengan biaya penerbitan yang belum diamortisasi masing-masing sebesar USD497 juta atau ekuivalen Rp7.142.254 dan USD495 juta atau ekuivalen Rp6.719.773. e) Offshore bilateral loan with consortium of banks consisting of ANZ, BNP Paribas, BTMU, Citibank, Commerzbank, CTBC, DBS, OCBC, and UOB amounting to USD500 million with tenor of 5 years and with interest of 3 months LIBOR plus 1.21% per annum and will mature on 22 December 2021. As of 31 December 2018 and 2017, outstanding loan less unamortised issuance costs amounted to USD497 million or equivalent Rp7,142,254 and USD495 million or equivalent Rp6,719,773, respectively. 154 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 969
  970. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 29. PINJAMAN YANG DITERIMA (lanjutan) a. 29. BORROWINGS (continued) Berdasarkan jenis dan mata uang (lanjutan) a. By type and currency (continued) Pinjaman bilateral (lanjutan) Bilateral loans (continued) f) BNI, melalui BNI cabang London memiliki pinjaman bilateral luar negeri dengan konsorsium bank yang terdiri dari Bank of Tokyo Mitsubishi UFJ Ltd, BNP Paribas, Hong Kong & Shanghai Banking Corporation Ltd, Overseas-Chinese Banking Corporation Ltd, United Overseas Bank Ltd, dan Westpack Banking Co sebesar USD500 juta dengan jangka waktu pinjaman selama 5 tahun dan tingkat suku bunga LIBOR 3 bulan ditambah marjin 1,2% per tahun dan akan jatuh tempo pada tanggal 30 Agustus 2022. Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman fasilitas tersebut masing-masing sebesar USD500 juta atau ekuivalen Rp7.190.000 dan USD500 juta atau ekuivalen Rp6.783.750. f) BNI, through its London branch, has offshore bilateral loan with consortium of banks consisting of Bank of Tokyo Mitsubishi UFJ Ltd, BNP Paribas, Hong Kong & Shanghai Banking Corporation Ltd, Overseas-Chinese Banking Corporation Ltd, United Overseas Bank Ltd, and Westpack Banking Co amounting to USD500 million with tenor of 5 years and with interest of 3 months LIBOR plus margin 1.2% per annum and will mature on 30 August 2022. As of 31 December 2018 and 2017, the outstanding loan balance under this facility amounted to USD500 million or equivalent Rp7,190,000 and USD500 million or equivalent Rp6,783,750, respectively. g) BNI, melalui BNI cabang New York memiliki pinjaman bilateral luar negeri dengan Bank of America N.A sebesar USD40 juta dengan jangka waktu pinjaman selama 335 hari dan tingkat suku bunga LIBOR 3 bulan ditambah 0,8% sehingga menjadi 3,57% dan akan jatuh tempo pada tanggal 12 Agustus 2019. Pada tanggal 31 Desember 2018, saldo pinjaman fasilitas tersebut sebesar USD40 juta atau ekuivalen Rp575.200. g) BNI, through its New York branch, has offshore bilateral loan with Bank of America amounting to USD40 million with tenor of 335 days and with interest of 3 months LIBOR plus spread 0.8% with all in rate 3.57% and will mature on 12 August 2019. As of 31 December 2018, the outstanding loan balance under this facility amounted to USD40 million or equivalent Rp575,200. h) BNI, melalui BNI cabang New York memiliki empat pinjaman bilateral luar negeri dengan CoBank Greenwood Village Colorado US sebesar USD80 juta dengan jangka waktu pinjaman selama 357 - 359 hari dan tingkat suku bunga 2,88% - 3,55% dan akan jatuh tempo pada tanggal 11 Januari 2019, 29 Maret 2019, 10 Mei 2019 dan 4 Desember 2019. Pada tanggal 31 Desember 2018, saldo pinjaman fasilitas tersebut sebesar USD80 juta atau ekuivalen Rp1.150.400. h) BNI, through its New York branch, has four offshore bilateral loan with CoBank Greenwood Village Colorado US amounting to USD80 million with tenor of 357 - 359 days and with all in interest rate of 2.88% to 3.55% and will mature on 11 January 2019, 29 March 2019, 10 May 2019 and 4 December 2019. As of 31 December 2018, the outstanding loan balance under this facility amounted to USD80 million or equivalent Rp1,150,400. i) BNI, melalui BNI cabang Tokyo memiliki pinjaman bilateral luar negeri dengan Sumitomo Mitsui Banking Corporation sebesar USD100 juta dengan jangka waktu pinjaman selama 3 - 6 Bulan dan tingkat suku bunga 2,94% - 3,14% dan akan jatuh tempo pada tanggal 20 Maret 2019 dan 25 Maret 2019. Pada tanggal 31 Desember 2018, saldo pinjaman fasilitas tersebut sebesar USD100 juta atau ekuivalen Rp1.438.000. i) BNI, through its Tokyo branch, has offshore bilateral loan with Sumitomo Mitsui Banking Corporation amounting to USD100 million with tenor of 3 - 6 months and with interest of 2.94% to 3.14% and will mature on 20 March 2019 and 25 March 2019. As of 31 December 2018, the outstanding loan balance under this facility amounted to USD100 million or equivalent Rp1,438,000. 155 970 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  971. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 29. PINJAMAN YANG DITERIMA (lanjutan) a. 29. BORROWINGS (continued) Berdasarkan jenis dan mata uang (lanjutan) a. By type and currency (continued) Pinjaman bilateral (lanjutan) Bilateral loans (continued) j) j) Pinjaman bilateral luar negeri dengan Societe Generale Paris sebesar USD50 juta dengan jangka waktu pinjaman selama 4 tahun dan tingkat suku bunga LIBOR 3 bulan ditambah 2,30% dan jatuh tempo pada tanggal 17 Desember 2018. Pada tanggal 31 Desember 2017, saldo pinjaman fasilitas tersebut sebesar USD50 juta atau ekuivalen Rp678.375. Offshore bilateral loan with Societe Generale Paris amounting to USD50 million with tenor of 4 years and with interest of 3 months LIBOR plus 2.30% and matured on 17 December 2018. As of 31 December 2017, the outstanding loan balance under this facility amounted to USD50 million or equivalent Rp678,375. Persyaratan-persyaratan penting (financial covenants) dalam perjanjian pinjaman Bank antara lain: • Rasio Non-Performing Loan (NPL) maksimum 5% • Nilai Capital Adequacy Ratio (CAR) minimum 9%. • Nilai Rasio Modal Inti (Tier 1 Ratio) minimum 6%. • Nilai Rasio Modal Inti Utama (Core Tier 1 Ratio) minimum 5%. • Rasio Giro Wajib Minimum (GWM) minimum 8%. • Rasio Return on Average Assets minimum 0,6%, dengan ketentuan bahwa nilai Capital Adequacy Ratio (CAR) sama dengan atau lebih besar dari 12,5%. The significant requirements (financial covenants) in the Bank’s loan agreement include the following: • Non-Performing Loan (NPL) ratio maximum of 5%. • Capital Adequacy Ratio (CAR) minimum 9%. • Tier 1 Ratio minimum of 6%. Pada tahun yang berakhir pada 31 Desember 2018 dan 2017, Bank telah memenuhi persyaratan penting yang dipersyaratkan dalam perjanjian ini. During the years ended 31 December 2018 and 2017, the Bank has fulfilled the terms required set forth in the agreements. • Core Tier 1 Ratio minimum of 5%. • Minimum Statutory Reserve minimum of 8%. Return on Average Assets ratio minimum of 0.6%, provided that Capital Adequacy Ratio (CAR) is equal to or greater than 12.5%. • 156 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 971
  972. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 29. PINJAMAN YANG DITERIMA (lanjutan) a. 29. BORROWINGS (continued) Berdasarkan jenis dan mata uang (lanjutan) a. By type and currency (continued) Pinjaman penerusan Two step loans Pinjaman penerusan pada tanggal-tanggal tanggal 31 Desember 2018 dan 2017 mencakup pinjaman penerusan dari Kreditanstalt fur Wiederaufbau untuk pembiayaan Industrial Efficiency and Pollution Control Phase I dan II yang diterima pada tahun 2001 dan 2004. Two step loans as of 31 December 2018 and 2017 are step loans from Kreditanstalt fur Wiederaufbau to finance Industrial Efficiency and Pollution Control Phase I and II that was received in 2001 and 2004. Berdasarkan Perjanjian Penerusan Pinjaman antara BNI dan Departemen Keuangan No. SLA-1145/DP3/2001 tertanggal 30 Maret 2001 dan SLA-1174/DP3/2004 tertanggal 25 Agustus 2004, Pemerintah telah menyetujui BNI sebagai bank pelaksana dengan jumlah fasilitas masing-masing tidak melebihi DM11.700.000 dan EUR9 juta. Tanggal terakhir penarikan pinjaman adalah masingmasing pada tanggal 30 Juni 2001 dan 30 Desember 2007. Jangka waktu pinjaman penerusan ini adalah masing-masing selama 12 tahun termasuk masa tenggang 2 tahun dan 40 tahun termasuk masa tenggang 10 tahun. Based on the two step loans agreements between BNI and the Ministry of Finance No. SLA-1145/DP3/2001 dated 30 March 2001 and SLA-1174/DP3/2004 dated 25 August 2004, the Government appointed BNI as an executor bank with total facilities for each not exceeding DM11,700,000 and EUR9 million. Latest withdrawal date were on 30 June 2001 and 30 December 2007, respectively. The terms of the two step loans are 12 years including 2 years grace period and 40 years including 10 years grace period, respectively. Pada tanggal 31 Desember 2018, saldo pinjaman penerusan masing-masing adalah sebesar Rp5.230 dan EUR3,8 juta. As of 31 December 2018, two step loans amounted to Rp5,230 and EUR3.8 million, respectively. Pada tanggal 31 Desember 2017, saldo pinjaman penerusan masing-masing adalah sebesar Rp5.807 dan EUR4 juta. As of 31 December 2017, two step loans amounted to Rp5,807 and EUR4 million, respectively. Kredit likuiditas untuk kredit primer kepada anggotanya koperasi Liquidity credit for members of primary cooperatives credit Merupakan fasilitas kredit yang diperoleh dari Bank Indonesia terutama ditujukan untuk debitur BNI sehubungan dengan program kredit Pemerintah untuk pinjaman investasi usaha kecil, pinjaman modal kerja dan pinjaman pengusaha kecil. Sesuai dengan Peraturan Pemerintah, manajemen program kredit likuiditas telah dialihkan ke PT Permodalan Nasional Madani (Persero), Badan Usaha Milik Negara, yang akan jatuh tempo dalam beberapa tanggal, berdasarkan penyelesaian dari program-program tersebut. This is a credit facility provided by Bank Indonesia specifically for BNI's debtors in relation to the Government's loan program for small investment loans, working capital loans and small business loans. In accordance with the Government Regulation, the management of this liquidity loan program was transferred to PT Permodalan Nasional Madani (Persero), a state-owned enterprise. The loan will mature on various dates based on the completion of such programs. 157 972 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  973. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 29. PINJAMAN YANG DITERIMA (lanjutan) a. 29. BORROWINGS (continued) Berdasarkan jenis dan mata uang (lanjutan) a. By type and currency (continued) Kredit likuiditas untuk kredit koperasi primer kepada anggotanya (lanjutan) Liquidity credit for members of primary cooperatives credit (continued) Tingkat bunga atas fasilitas ini berkisar antara 3,00% sampai dengan 7,00% per tahun. Interest rates on the facility range from 3.00% to 7.00% per annum. Bankers acceptance Bankers acceptance Bankers acceptance merupakan pinjaman antarbank yang diperoleh BNI dari bank-bank luar negeri yang ditujukan untuk meningkatkan likuiditas dengan jangka waktu pinjaman 3 sampai dengan 6 bulan. Bankers acceptance represents interbank borrowings for liquidity purposes obtained by BNI from various foreign banks with borrowing period from 3 to 6 months. 31 Desember/December 2018 2017 CoBank Standard Chartered Bank, Hongkong Oversea Chinese Banking Corp. Limited, Singapura Mitsubishi UFJ Trust and Banking Corporation, Singapura United Overseas Bank Limited, Singapura Sumitomo Mitsui Banking Corporation, Singapura Citibank N.A., Singapura DBS Bank Ltd, Singapura CTBC Bank Co., Ltd., Singapura Bank of Montreal Deutsche Bank AG, Singapura Standard Chartered Bank, Singapura Standard Chartered Bank, London PT Bank Central Asia Tbk Citibank N.A., Hong Kong Bank of America National Trust and Savings Association, Hong Kong PT Bank Mandiri (Persero) Tbk PT Bank Rakyat Indonesia (Persero) Tbk Bank of America N.A. Total 2,516,500 1,179,160 1,899,450 203,513 1,438,000 1,492,425 1,438,000 - 1,366,100 1,065,049 1,186,350 1,078,500 834,040 738,413 719,000 719,000 672,984 295,932 - 271,350 678,375 542,700 407,025 - 325,620 135,675 - 135,675 101,545 CoBank Standard Chartered Bank, Hongkong Oversea Chinese Banking Corp. Limited, Singapore Mitsubishi UFJ Trust and Banking Corporation, Singapore United Overseas Bank Limited, Singapore Sumitomo Mitsui Banking Corporation, Singapura Citibank N.A., Singapore DBS Bank Ltd, Singapura CTBC Bank Co., Ltd., Singapura Bank of Montreal Deutsche Bank AG, Singapura Standard Chartered Bank, Singapore Standard Chartered Bank, London PT Bank Central Asia Tbk Citibank N.A., Hong Kong Bank of America National Trust and Savings Association, Hong Kong PT Bank Mandiri (Persero) Tbk PT Bank Rakyat Indonesia (Persero) Tbk Bank of America N.A. 14,181,979 7,258,402 Total 158 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 973
  974. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 29. PINJAMAN YANG DITERIMA (lanjutan) a. 29. BORROWINGS (continued) Berdasarkan jenis dan mata uang (lanjutan) a. By type and currency (continued) Lain-lain Others PT BNI Multifinance (BNIMF) PT BNI Multifinance (BNIMF) PT Bank Pembangunan Daerah Banten Tbk (dahulu PT Bank Pundi Indonesia Tbk) PT Bank Pembangunan Daerah Banten Tbk (formerly PT Bank Pundi Indonesia Tbk) Pada tanggal 21 Maret 2017, PT BNI Mulfinance (BNIMF) memperoleh fasilitas pinjaman berjangka revolving (fasilitas modal kerja) dengan PT Bank Pembangunan Daerah Banten Tbk dengan maksimum fasilitas sebesar Rp40.000 dan Rp10.000 dengan jangka waktu pinjaman selama 3 tahun dan akan jatuh tempo pada tanggal 21 Maret 2020. On 21 March 2017, PT BNI Mulfinance (BNIMF) obtained a revolving loan facility (working capital facility) from PT Bank Pembangunan Daerah Banten Tbk with maximum facility amounting to Rp40,000 and Rp10,000 with terms of 3 years and will mature on 21 March 2020. Pada tanggal 20 Agustus 2018, PT BNI Mulfinance (BNIMF) telah melunasi salah satu fasilitas pinjaman berjangka revolving (fasilitas modal kerja) dengan maksimum fasilitas Rp40.000. On 20 August 2018, PT BNI Mulfinance (BNIMF) paid off one of the revolving loan facility (working capital facility) with maximum facility amounting to Rp40,000. Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman fasilitas tersebut masingmasing sebesar Rp4.833 dan Rp48.041. As of 31 December 2018 and 2017, the outstanding loan balance under this facility amounted to Rp4,833 and Rp48,041, respectively. PT Bank Capital Indonesia Tbk PT Bank Capital Indonesia Tbk Pada tanggal 29 Maret 2017, berdasarkan Perjanjian Kredit No. 87, PT Bank Capital Indonesia Tbk setuju untuk memberikan fasilitas pinjaman modal kerja dengan jumlah maksimum dana yang disediakan adalah sebesar Rp100.000 yang digunakan sebagai tambahan modal kerja yang berlaku sampai 30 Maret 2018. On 29 March 2017, based on the Credit Agreement No. 87, PT Bank Capital Indonesia Tbk agreed to provide a working capital loan facility with a maximum available fund amounting to Rp100,000, which was used as an additional working capital that matured on 30 March 2018. Perjanjian ini telah diperpanjang pada tanggal 28 Maret 2018 dan akan jatuh tempo pada tanggal 30 Maret 2019. This agreement has been extended dated 28 March 2018 and will mature on 30 March 2019. Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman fasilitas tersebut adalah sebesar Rp100.000. As of 31 December 2018 and 2017, the outstanding loan balance under this facility amounted to Rp100,000. 159 974 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  975. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 29. PINJAMAN YANG DITERIMA (lanjutan) a. 29. BORROWINGS (continued) Berdasarkan jenis dan mata uang (lanjutan) a. By type and currency (continued) Lain-lain (lanjutan) Others (continued) PT BNI Multifinance (BNIMF) (lanjutan) PT BNI Multifinance (BNIMF) (continued) PT Bank Pembangunan Daerah Daerah Istimewa Yogyakarta PT Bank Pembangunan Daerah Daerah Istimewa Yogyakarta Pada tanggal 14 Juni 2017, BNIMF memperoleh fasilitas pinjaman modal kerja dengan PT Bank Pembangunan Daerah Daerah Istimewa Yogyakarta, dengan maksimum fasilitas sebesar Rp50.000 dan jangka waktu pinjaman selama 42 bulan dan akan jatuh tempo pada tanggal 14 Desember 2020. On 14 June 2017, BNIMF obtained working capital loan facility from PT Bank Pembangunan Daerah Daerah Istimewa Yogyakarta with maximum facility amounting to Rp50,000 and tenor of 42 months and will mature on 14 December 2020. Pada tanggal 15 Agustus 2018, BNIMF memperoleh tambahan fasilitas pinjaman kredit modal kerja dengan maksimum fasilitas sebesar Rp50.000 dengan jangka waktu pinjaman 36 bulan sejak tanggal penarikan tiap fasilitas kredit. On 15 August 2018, BNIMF obtained additional working capital facility loan with maximum facility amounting to Rp50,000 and tenor of 36 months from the date of withdrawal of each credit facility. Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman fasilitas tersebut masingmasing sebesar Rp69.839 dan Rp42.167. As of 31 December 2018 and 2017, the outstanding loan balance under this facility amounted to Rp69,839 and Rp42,167, respectively. PT Bank Mandiri (Persero) Tbk PT Bank Mandiri (Persero) Tbk Pada tanggal 28 Agustus 2018, BNIMF memperoleh fasilitas pinjaman kredit modal kerja dengan PT Bank Mandiri (Persero) Tbk dengan maksimum fasilitas sebesar Rp250.000 dengan jangka waktu pinjaman 60 bulan dan akan jatuh tempo pada tanggal 28 Agustus 2023. On 28 August 2018, BNIMF obtain working capital facility loan from PT Bank Mandiri (Persero) Tbk with maximum facility amounting to Rp250,000 and tenor of 60 months and will mature on 28 August 2023. Pada tanggal 31 Desember 2018, saldo pinjaman fasilitas tersebut adalah sebesar Rp117.110. As of 31 December 2018, the outstanding loan balance under this facility amounted to Rp117,110. 160 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 975
  976. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 29. PINJAMAN YANG DITERIMA (lanjutan) a. 29. BORROWINGS (continued) Berdasarkan jenis dan mata uang (lanjutan) a. By type and currency (continued) Lain-lain (lanjutan) Others (continued) PT BNI Multifinance (BNIMF) (lanjutan) PT BNI Multifinance (BNIMF) (continued) PT Bank Victoria International Tbk PT Bank Victoria International Tbk Pada tanggal 20 September 2017, BNIMF memperoleh fasilitas pinjaman fixed loan line limit - non revolving dengan PT Bank Victoria International Tbk dengan maksimum fasilitas sebesar Rp200.000 dan jangka waktu pinjaman selama 4 tahun dan akan jatuh tempo pada tanggal 20 September 2021. On 20 September 2017, BNIMF obtained fixed loan line limit - non revolving loan with PT Bank Victoria International Tbk from maximum facility amounting to Rp200,000 and tenor of 4 years and will mature on 20 September 2021. Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman fasilitas tersebut masingmasing sebesar Rp105.208 dan Rp138.542. As of 31 December 2018 and 2017, the outstanding loan balance under this facility amounted to Rp105,208 and Rp138,542, respectively. PT Bank Central Asia Tbk PT Bank Central Asia Tbk Pada tanggal 28 November 2017, BNIMF memperoleh fasilitas pinjaman kredit modal kerja dengan PT Bank Central Asia Tbk dengan maksimum fasilitas sebesar Rp200.000 dengan jangka waktu pinjaman selama 3 tahun dan akan jatuh tempo pada tanggal 29 November 2020. On 28 November 2017, BNIMF obtained working capital loan facility from PT Bank Central Asia Tbk with maximum facility amounting to Rp200,000 and tenor of 3 years and will mature on 29 November 2020. Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman fasilitas tersebut masingmasing sebesar Rp148.889 dan Rp25.000. As of 31 December 2018 and 2017, the outstanding loan balance under this facility amounted to Rp148,889 and Rp25,000, respectively. PT Bank DKI PT Bank DKI Pada tanggal 21 Desember 2017, BNIMF memperoleh fasilitas pinjaman kredit modal kerja dengan PT Bank DKI dengan maksimum fasilitas sebesar Rp50.000 dan jangka waktu pinjaman selama 30 bulan dan akan jatuh tempo pada tanggal 21 Juni 2020. On 21 December 2017, BNIMF obtained working capital facility loan from PT Bank DKI with maximum facility amounting to Rp50,000 and tenor of 30 months and will mature on 21 June 2020. Pada tanggal 2 Oktober 2018, BNIMF memperoleh tambahan fasilitas pinjaman kredit modal kerja dengan PT Bank DKI dengan maksimum fasilitas sebesar Rp50.000 dengan jangka waktu pinjaman 30 bulan dan akan jatuh tempo pada tanggal 21 Juni 2020. On 2 October 2018, BNIMF obtained working capital facility loan with PT Bank DKI with maximum facility amounting to Rp50,000 and tenor of 30 months and will mature on 21 June 2020. Pada tanggal 31 Desember 2018 dan 2017, saldo pinjaman fasilitas tersebut masingmasing sebesar Rp73.738 dan Rp15.000. As of 31 December 2018 and 2017, the outstanding loan balance under this facility amounted to Rp73,738 and Rp15,000, respectively. 161 976 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  977. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 29. PINJAMAN YANG DITERIMA (lanjutan) a. 29. BORROWINGS (continued) Berdasarkan jenis dan mata uang (lanjutan) a. By type and currency (continued) Lain-lain (lanjutan) Others (continued) PT BNI Multifinance (BNIMF) (lanjutan) PT BNI Multifinance (BNIMF) (continued) Lembaga Pembiayaan Ekspor Indonesia Lembaga Pembiayaan Ekspor Indonesia Pada tanggal 11 Januari 2018, BNIMF memperoleh fasilitas pinjaman kredit modal kerja dengan Lembaga Pembiayaan Ekspor Indonesia dengan maksimum fasilitas sebesar Rp50.000 dan jangka waktu pinjaman selama 42 bulan dan akan jatuh tempo pada tanggal 11 Juli 2021. On 11 January 2018, BNIMF obtained working capital facility loan from Lembaga Pembiayaan Ekspor Indonesia with maximum facility amounting to Rp50,000 and tenor of 42 months and will mature on 11 July 2021. Pada tanggal 31 Desember 2018, saldo pinjaman fasilitas tersebut adalah sebesar Rp37.804. As of 31 December 2018, the outstanding loan balance under this facility amounted to Rp37,804. PT Bank Rakyat Indonesia (Persero) Tbk PT Bank Rakyat Indonesia (Persero) Tbk Pada tanggal 25 Oktober 2018, BNIMF memperoleh fasilitas pinjaman kredit modal kerja dengan PT Bank Rakyat Indonesia (Persero) Tbk dengan maksimum fasilitas sebesar Rp300.000 dengan jangka waktu pinjaman 12 bulan dan akan jatuh tempo pada tanggal 25 Oktober 2019. On 25 October 2018, BNIMF obtained working capital loan facility with PT Bank Rakyat Indonesia (Persero) Tbk with maximum facility amounting to Rp300,000 and tenor of 12 months and will mature on 25 October 2019. Pada tanggal 31 Desember 2018, saldo pinjaman fasilitas tersebut adalah sebesar Rp100.000. As of 31 December 2018, the outstanding loan balance under this facility amounted to Rp100,000. Pada tahun yang berakhir pada tanggal 31 Desember 2018 dan 2017, BNIMF telah memenuhi persyaratan penting yang dipersyaratkan dalam perjanjian tersebut. During the years ended 31 December 2018 and 2017, BNIMF has fulfilled the terms required set forth in the agreements. 162 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 977
  978. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 29. PINJAMAN YANG DITERIMA (lanjutan) a. 29. BORROWINGS (continued) Berdasarkan jenis dan mata uang (lanjutan) a. By type and currency (continued) Lain-lain (lanjutan) Others (continued) PT BNI Sekuritas (BNIS) PT BNI Sekuritas (BNIS) PT Bank Central Asia Tbk (BCA) PT Bank Central Asia Tbk (BCA) PT BNI Sekuritas (BNIS) memperoleh fasilitas Pinjaman Berjangka Money Market (PBMM) dan Bank Garansi (BG) dari BCA yang perjanjiannya telah diperpanjang beberapa kali dengan perpanjangan terakhir dengan surat No. 40646/GBK/2017 tanggal 16 November 2017 dengan total limit fasilitas sebesar Rp100.000 dan jangka waktu penarikan sampai dengan 18 Februari 2018. Tingkat suku bunga akan ditentukan pada saat penarikan, berdasarkan suku bunga pasar. Tidak ada jaminan untuk fasilitas pinjaman ini. PT BNI Sekuritas (BNIS) obtained Term Credit Money Market (TCMM) and Bank Guarantee (BG) facilities from BCA which agreement has been extended several time with the latest extension letter No. 40646/GBK/2017 dated 16 November 2017 with total limit facitliy amounting to Rp100,000 and the period of facility withdrawal maturing on 18 February 2018. Interest rate will be determined at the time of withdrawal, based on money market rate. The loan is unsecured. Selama periode pinjaman, BNIS memiliki kewajiban untuk memenuhi ketentuan dalam perjanjian pinjaman diantaranya: During the loan period, BNIS has to comply with the terms of the loan agreement which includes the following: a. Mempertahankan kepemilikan saham PT Bank Negara Indonesia (Persero) Tbk pada BNIS dan minimum 51%. b. BNIS tidak diperbolehkan memberikan agunan untuk fasilitas pasar uang yang sudah dan akan diterima dari Bank/Lembaga keuangan lainnya dan BNIS harus membuat surat pernyataan bahwa BNIS tidak akan menjaminkan asetnya (Negative Pledge of All Assets). c. BNIS harus menjaga outstanding pinjaman dari masing-masing Bank maksimal 25% dari modal BNIS dan total outstanding pinjaman dari seluruh bank tidak boleh melebihi modal BNIS. a. Maintain PT Bank Negara Indonesia (Persero) Tbk shares ownership at BNIS and minimum 51%. b. BNIS is not allowed to provide collateral for money market which already and will be received from Bank/other financial institution and BNIS must make a statement letter which stated that BNIS will not collateralized its assets (Negative Pledge of All Assets). c. BNIS should maintain outstanding bank loan from each bank maximum 25% from BNIS’s total capital and total outstanding loan from all banks should no exceed BNIS’s total capital. Pada tanggal 31 Desember 2017 saldo pinjaman fasilitas tersebut adalah sebesar Rp50.000. As of 31 December 2017 the outstanding loan balance under this facility amounted to Rp50,000. 163 978 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  979. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 29. PINJAMAN YANG DITERIMA (lanjutan) a. 29. BORROWINGS (continued) Berdasarkan jenis dan mata uang (lanjutan) a. By type and currency (continued) Lain-lain (lanjutan) Others (continued) PT BNI Sekuritas (BNIS) (lanjutan) PT BNI Sekuritas (BNIS) (continued) PT Bank KEB Hana Indonesia (Hana) PT Bank KEB Hana Indonesia (Hana) BNIS memperoleh fasilitas Money Market Line dari Hana yang perjanjiannya telah diperpanjang beberapa kali dengan perpanjangan dan penambahan limit fasilitas terakhir dengan surat No. 2017/011/SPPK/CB tanggal 28 April 2017 dengan limit fasilitas menjadi sebesar Rp100.000 dari sebelumnya Rp50.000, dan jangka waktu penarikan sampai dengan 30 Mei 2018. Tingkat suku bunga akan ditentukan pada saat penarikan, berdasarkan suku bunga pasar. Tidak ada jaminan untuk fasilitas pinjaman ini. BNIS obtained Money Market Line Facility from Hana which agreement has been extended several time with the latest extension and additional letter limit facility No. 2017/011/SPPK/CB dated 28 April 2017 with limit facitliy amounting to Rp100,000 from previously Rp50,000, and the period of facility drawdown date maturing on 30 May 2018. Interest rate will be determined at the drawdown date, based on money market rate. The loan is unsecured. Pada tanggal 31 Desember 2017 saldo pinjaman fasilitas tersebut adalah sebesar Rp40.000. As of 31 December 2017 the outstanding loan balance under this facility amounted to Rp40,000. PT Bank Pembangunan Daerah Sumatera Utara (PT Bank Sumut) PT Bank Pembangunan Daerah Sumatera Utara (PT Bank Sumut) Berdasarkan akta perjanjian kredit No 002/KC19-LAK/LK/PK/2017 tanggal 28 Desember 2017, BNIS memperoleh fasilitas Revolving Credit Facility (RCF)Uncommitted Line dengan limit fasilitas Rp50.000 dengan jangka waktu pinjaman maksimal 12 bulan atau sampai dengan tanggal 27 Desember 2017. Tidak ada jaminan untuk fasilitas pinjaman ini. Based on Loan agreement No. 002/KC19LAK/LK/PK/2017 dated 28 December 2017, BNIS obtained Revolving Credit Facility (RCF)-Uncommitted Line with facility limit amounted to Rp50,000. The maximum period of facility is 12 months or until 27 December 2017. The loan is unsecured. Selama periode pinjaman, BNIS memiliki kewajiban untuk memenuhi ketentuan dalam perjanjian pinjaman diantaranya: During the loan period, BNIS has to comply with the terms of the loan agreement which includes the following: a. a. b. Mempertahankan kecukupan Modal Kerja Bersih Disesuaikan (MKBD) sesuai peraturan yang berlaku. Menjaga Current Ratio (CR) minimum sebesar 100% b. Maintain adequate of Net Adjusted Working Capital (MKBD) as required by applicable regulation. Maintain Current Ratio (CR) minimum 100% Pada tanggal 31 Desember 2017, saldo pinjaman fasilitas tersebut adalah sebesar Rp50.000. As of 31 December 2017, the outstanding loan balance under this facility amounted to Rp50,000. Pada tahun yang berakhir pada 31 Desember 2017, BNIS telah memenuhi persyaratan penting yang dipersyaratkan dalam perjanjian ini. During the year ended 31 December 2017, BNIS has fulfilled the terms required set forth in the agreements. 164 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 979
  980. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 29. PINJAMAN YANG DITERIMA (lanjutan) b. 29. BORROWINGS (continued) Berdasarkan hubungan b. By relationship 31 Desember/December 2018 2017 c. Pihak berelasi Rupiah Mata uang asing 254,914 - 407,025 Related parties Rupiah Foreign currencies Pihak ketiga Rupiah Mata uang asing 514,272 51,255,320 523,936 43,739,780 Third parties Rupiah Foreign currencies Total pihak ketiga 51,769,592 44,263,716 Total third parties Total 52,024,506 44,670,741 Total Tingkat suku bunga per tahun Rupiah % 2018 2017 c. Dolar Amerika Serikat/ United States Dollar % 6.99 - 11.50 5.70 - 10.50 a. Yuan Cina/ Chinese Yuan % Euro % 0.00 - 5.35 0.00 - 4.40 30. EFEK-EFEK SUBORDINASI Annual interest rates 0.09 - 0.47 0.09 - 0.10 3.22 3.30 2018 2017 30. SUBORDINATED SECURITIES Berdasarkan jenis a. By type 31 Desember/December 2018 Saldo/ Peringkat/ Balance Rating *) MTN Subordinasi, setelah dikurangi biaya penerbitan yang belum diamortisasi sebesar Rp47 pada tanggal 31 Desember 2018 *) 99,953 Pefindo idAA*) *) Pada tanggal 8 Juni 2018, BNI telah mendapatkan pernyataan efektif dari OJK melalui surat nomor S-73/PB.31/2018 untuk menerbitkan Medium Term Notes Subordinasi I BNI Tahun 2018 (“MTN Subordinasi”). Nilai MTN Subordinasi yang diterbitkan sebesar Rp100.000, jangka waktu 5 tahun, dengan kupon sebesar 8% per tahun yang akan dibayarkan secara triwulanan. MTN Subordinasi BNI diterbitkan dengan penawaran terbatas. Pembayaran kupon pertama kepada para pemegang MTN Subordinasi telah dilakukan pada tanggal 10 November 2018. Subordinated MTN net of unamortized issuance cost amounting Rp47 as of 31 December 2018 Pefindo On 8 June 2018, BNI obtained an effective statement from OJK through letter number S73/PB.31/2018 to issue Continuous Subordinated Medium Term Notes I BNI Year 2018 ("Subordinated MTN"). The value of subordinated MTN issued amounted to Rp100,000 with the term of 5 years and coupon of 8% per annum to be paid quarterly. BNI Subordinated MTN was issued with limited offering. The first coupon payment to Subordinated MTN holders was made on 10 November 2018. 165 980 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  981. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 30. EFEK-EFEK SUBORDINASI (lanjutan) a. b. 30. SUBORDINATED SECURITIES (continued) Berdasarkan jenis (lanjutan) a. By type (continued) Penggunaan dana hasil penerbitan MTN Subordinasi digunakan oleh BNI untuk memperkuat modal pelengkap (tier 2) dan modal kerja dalam rangka pengembangan usaha terutama pemberian kredit serta peningkatan komposisi struktur dana jangka panjang, sesuai dengan sesuai dengan Peraturan OJK No. 11/POJK.03/2016 tentang Kewajiban Penyediaan Modal Minimum Bank Umum sebagaimana telah diubah dengan Peraturan OJK No. 34/POJK.03/2016 dan selanjutnya akan digunakan oleh BNI untuk mendukung peningkatan aset produktif. The proceeds from Subordinated MTN issuance used by BNI to strengthen tier 2 capital and working capital in the context of business development, especially loan granting and increase in the composition of the long-term fund structure, in accordance with OJK Regulation No.11/POJK.03/2016 concerning the Minimum Capital Requirement for Commercial Banks as amended by OJK Regulation No.34/POJK.03/2016 and will then be used by BNI to support increased in productive assets. Berdasarkan surat PT Pemeringkat Efek Indonesia No.RC-728/PEF-DIR/VII/2018 tanggal 6 Juli 2018 BNI telah memperoleh hasil pemeringkatan nasional idAA untuk MTN Subordinasi. Based on PT Pemeringkat Efek Indonesia letter No.RC-728/PEF-DIR/VII/2018 dated 6 July 2018, BNI has obtained national idAA ratings for Subordinated MTN. MTN Subordinasi ini dapat mengalami write down dan ditangguhkan pembayaran pokok dan bunganya apabila OJK menetapkan bahwa BNI berpotensi terganggu kelangsungan usahanya (point of non-viability) sesuai dengan peraturan OJK no. 11/POJK.03/2016 yang diubah dengan peraturan OJK no. 34/POJK.03/2016. Point of non-viability terjadi akibat bank mencapai trigger level pada indikator permodalan yang ditetapkan OJK, sesuai SEOJK no. 20/SEOJK.03/2016 Fitur Konversi Menjadi Saham Biasa atau Write Down terhadap Instrumen Modal Inti Tambahan dan Modal Pelengkap. This Subordinated MTN can experience write down and the payment of principal and interest will be postponed if the OJK stipulates that BNI has the potential to be subject to business continuity issues (point of non-viability) in accordance with OJK regulations No.11/POJK.03/2016 amended by OJK regulation No.34/POJK.03/ 2016. Point of nonviability occurs due to a bank achieving a trigger level in the capital indicator set by OJK, according to SEOJK No.20/SEOJK.03/2016 Conversion Features into Common Shares or Write Down of Additional Core Capital Instruments and Supplementary Capital. Berdasarkan mata uang b. By currency 31 Desember/December 2018 Rupiah MTN Subordinasi, setelah dikurangi biaya penerbitan yang belum diamortisasi sebesar Rp47 pada tanggal 31 Desember 2018 c. Rupiah 99,953 Berdasarkan hubungan Pihak berelasi Rupiah Subordinated MTN net of unamortized issuance cost amounting Rp47 as of 31 December 2018 c. 31 Desember/December 2018 By relationship 24,988 Related parties Rupiah Pihak ketiga Rupiah 74,965 Third parties Rupiah Total 99,953 Total 166 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 981
  982. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 30. EFEK-EFEK SUBORDINASI (lanjutan) d. 30. SUBORDINATED SECURITIES (continued) Tingkat suku bunga per tahun d. Annual interest rates Rupiah/ Rupiah % 2018 8.00 31. DANA SYIRKAH TEMPORER - GIRO MUDHARABAH a. 2018 31. TEMPORARY SYIRKAH FUNDS - MUDHARABAH CURRENT ACCOUNTS Berdasarkan jenis produk a. By product 31 Desember/December 2017 2018 Bukan Bank Giro iB Hasanah (Mudharabah) 929,163 Non-Bank iB Hasanah (Mudharabah) current accounts 24,314 21,739 Bank iB Hasanah (Mudharabah) current accounts 1,191,053 950,902 1,166,739 Bank Giro iB Hasanah (Mudharabah) b. Berdasarkan hubungan b. By relationship 31 Desember/December 2017 2018 Bukan Bank Pihak berelasi Pihak ketiga Bank Pihak ketiga 209,056 957,683 319,334 609,829 1,166,739 929,163 24,314 21,739 1,191,053 950,902 Nisbah dan tingkat bagi hasil rata-rata untuk giro Mudharabah untuk tahun yang berakhir pada 31 Desember 2018 dan 2017 adalah sebagai berikut: Nisbah (%)/ Ratio (%) 3 : 97 Tingkat bagi hasil (%)/ Profit sharing rate (%) 0.08 - 0.28 2017 Nisbah (%)/ Ratio (%) Giro Mudharabah Bank Third parties The average rate of ratio and profit sharing for Mudharabah current accounts for the years ended 31 December 2018 and 2017 are as follows: 2018 Giro Mudharabah Non-Bank Related parties Third parties 3 : 97 Mudharabah current accounts Tingkat bagi hasil (%)/ Profit sharing rate (%) 0.30 Mudharabah current accounts 167 982 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  983. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 32. DANA SYIRKAH MUDHARABAH a. TEMPORER - TABUNGAN 32. TEMPORARY SYIRKAH FUNDS - MUDHARABAH SAVINGS DEPOSITS Berdasarkan jenis produk a. By product 31 Desember/December 2017 2018 Bukan Bank Tabungan iB Syariahplus Perorangan Tabungan iB Bisnis Tabungan iB Baitullah Hasanah Rupiah Tabungan iB Bisnis Non Perorangan Tabungan Prima iB Hasanah Tapenas iB Hasanah Tabungan iB Syariahplus Non Perorangan Tapma iB Hasanah Tabungan iB Tunas Hasanah Tabungan iB Hasanah Card Bank Tabungan iB Bisnis Tabungan iB Syariahplus 5,256,696 1,566,067 1,192,919 663,397 560,059 203,424 4,616,291 1,371,753 958,877 484,960 383,786 162,769 283,198 48,016 26,325 2,766 216,445 53,254 3,622 2,639 9,802,867 8,254,396 92,136 17,581 118,288 25,646 109,717 143,934 9,912,584 8,398,330 Non-Bank iB Savings Shariaplus individual iB Savings Business iB Savings Baitullah Hasanah Rupiah iB Savings Business non individual iB Prima Savings Hasanah iB Tapenas Hasanah iB Savings Shariaplus nonindividual iB Tapma Hasanah iB Savings Tunas Hasanah Tabungan iB Hasanah Card Bank iB Savings Business iB Savings Shariaplus 31 Desember/December 2018 2017 Bukan Bank Pihak berelasi Pihak ketiga Bank Pihak ketiga 16,574 9,786,293 9,522 8,244,874 9,802,867 8,254,396 109,717 143,934 9,912,584 8,398,330 Non-Bank Related parties Third parties Bank Third parties Tabungan Mudharabah merupakan simpanan dana pihak lain yang mendapatkan imbalan bagi hasil dari pendapatan Bank atas penggunaan dana tersebut dengan nisbah yang ditetapkan dan disetujui sebelumnya. Mudharabah savings deposits represent deposits from third parties who receive a share in the revenue derived by the Bank from the use of such funds based on a pre-determined and pre-agreed ratio. Nisbah dan tingkat bagi hasil rata-rata untuk tabungan Mudharabah untuk tahun yang berakhir pada 31 Desember 2018 dan 2017 adalah sebagai berikut: The average rate of ratio and profit sharing for Mudharabah savings deposits for the years ended 31 December 2018 and 2017 are as follows: 2018 Tabungan iB Hasanah Nisbah (%)/ Ratio (%) 1 : 99 - 40:60 Tingkat bagi hasil (%)/ Profit sharing rate (%) 0.09 - 3.68 iB Hasanah Savings Deposit 168 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 983
  984. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 32. DANA SYIRKAH TEMPORER MUDHARABAH (lanjutan) b. - TABUNGAN 32. TEMPORARY SYIRKAH FUNDS - MUDHARABAH SAVINGS DEPOSITS (continued) Berdasarkan hubungan b. 2017 Nisbah (%)/ Ratio (%) 1 : 99 - 40:60 Tabungan iB Hasanah 33. DANA SYIRKAH MUDHARABAH a. TEMPORER - DEPOSITO By relationship Tingkat bagi hasil (%)/ Profit sharing rate (%) 0.10 - 3.96 iB Hasanah Savings Deposit 33. TEMPORARY SYIRKAH FUNDS - MUDHARABAH TIME DEPOSITS Berdasarkan hubungan a. By relationship 31 Desember/December 2017 2018 Bukan Bank Pihak berelasi Pihak ketiga Bank Pihak ketiga b. 370,527 15,262,439 7,843,403 6,323,072 15,632,966 14,166,475 224,073 328,255 15,857,039 14,494,730 Berdasarkan jangka waktu kontrak b. Non-Bank Related parties Third parties Bank Third parties By contractual period 31 Desember/December 2017 2018 Bukan Bank <1 bulan 1 - <3 bulan 3 - <6 bulan 6 - 12 bulan Bank <1 bulan 1 - <3 bulan 3 - <6 bulan 6 - 12 bulan 9,238,340 822,535 385,913 5,186,178 8,783,780 742,221 457,723 4,182,751 15,632,966 14,166,475 18,100 124,052 82 81,839 60,100 126,152 32 141,971 224,073 328,255 15,857,039 14,494,730 Non-Bank <1 month 1 - <3 months 3 - <6 months 6 - 12 months Bank <1 month 1 - <3 months 3 - <6 months 6 - 12 months 169 984 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  985. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 33. DANA SYIRKAH TEMPORER MUDHARABAH (lanjutan) c. - DEPOSITO 33. TEMPORARY SYIRKAH FUNDS - MUDHARABAH TIME DEPOSITS (continued) Berdasarkan sisa umur jatuh tempo c. By remaining period to maturity 31 Desember/December 2018 2017 Bukan Bank < 1 bulan 1 - <3 bulan 3 - <6 bulan 6 - 12 bulan >12 bulan Bank < 1 bulan 1 - <3 bulan 3 - <12 bulan 6 - 12 bulan >12 bulan d. 7,675,378 3,669,972 1,220,739 2,930,484 136,393 8,396,909 2,235,830 1,021,062 2,407,142 105,532 15,632,966 14,166,475 78,702 123,841 5,061 16,469 - 144,002 148,750 3,932 31,571 - 224,073 328,255 15,857,039 14,494,730 Deposito mudharabah merupakan investasi pihak lain yang mendapatkan imbalan bagi hasil dari pendapatan Entitas Anak atas penggunaan dana tersebut dengan nisbah yang ditetapkan dan disetujui sebelumnya. d. Nisbah dan tingkat bagi hasil rata-rata untuk deposito mudharabah untuk tahun yang berakhir pada tanggal 31 Desember 2018 dan 2017 adalah sebagai berikut: Non-Bank < 1 month 1 - <3 months 3 - <6 months 6 - <12 months >12 months Bank < 1 month 1 - <3 months 3 - <12 months 6 - <12 months >12 months Mudharabah time deposits represent investments from other parties who receive share in the income derived by a Subsidiary from the use of such funds based on a predetermined and pre-agreed ratio. The average rate of ratio and profit sharing for Mudharabah time deposits for the years ended 31 December 2018 and 2017, are as follows: 31 Desember/December 2018 Nisbah (%)/ Ratio (%) 1 Bulan 3 Bulan 6 Bulan 12 Bulan e. 46 : 54 47 : 53 49 : 51 50 : 50 Tingkat bagi hasil (%)/ Profit sharing rate (%) 4.23 4.33 4.51 4.60 Deposito mudharabah yang dijadikan jaminan atas piutang dan pembiayaan yang diberikan oleh Bank untuk tahun yang berakhir pada tanggal 31 Desember 2018 dan 2017 masingmasing sebesar Rp286.827 dan Rp186.739 (tidak diaudit). 2017 Nisbah (%)/ Ratio (%) 46 : 54 47 : 53 49 : 51 50 : 50 e. Tingkat bagi hasil (%)/ Profit sharing rate (%) 4.70 4.80 5.00 5.11 1 month 3 months 6 months 12 months Mudharabah deposits that were used as collateral for the Bank’s receivables and financing for the year ended 31 December 2018 and 2017 amounting to Rp286,827 and Rp186,739, respectively (unaudited). 170 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 985
  986. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 34. SUKUK MUDHARABAH YANG DITERBITKAN 34. MUDHARABAH SUKUK ISSUED Pada tanggal 26 Mei 2015, Entitas Anak menerbitkan sukuk Mudharabah yang tercatat di Bursa Efek Indonesia dengan jumlah nilai nominal Rp500 milliar yang akan jatuh tempo pada tanggal 26 Mei 2018. Tingkat bagi hasil sukuk Mudharabah adalah sebesar 9,25% per tahun. Pendapatan bagi hasil dibayarkan setiap triwulanan, sesuai dengan tanggal pembayaran pendapatan bagi hasil sukuk Mudharabah. Pembayaran pendapatan bagi hasil sukuk Mudharabah pertama dilakukan pada tanggal 26 Agustus 2015, sedangkan pembayaran pendapatan bagi hasil sukuk Mudharabah terakhir sekaligus jatuh tempo sukuk Mudharabah adalah tanggal 26 Mei 2018. Tanggal 26 Mei 2018 juga merupakan Tanggal Pembayaran Kembali Dana Sukuk Mudharabah. Seluruh dana yang diperoleh dari Penawaran Umum Sukuk Mudharabah ini, setelah dikurangi dengan biaya-biaya emisi, akan digunakan untuk mengembangkan kegiatan pembiayaan syariah meliputi pembiayaan konsumtif, pembiayaan produktif, dan pembiayaan mikro yang merupakan bagian dari kegiatan usaha Entitas Anak. On 26 May 2015, a Subsidiary issued Mudharabah sukuk, listed on the Indonesian Stock Exchange, with a nominal value of Rp500 billion that will mature on 26 May 2018. The indicative level of the sukuk’s yield is 9.25% per annum. The revenue from profit-sharing is paid on quarterly basis, in accordance with the payment date of Sukuk Mudharabah’s profit-sharing. The first payment Mudharabah Sukuk revenue profit-sharing was distributed on 26 August 2015, while the last payment of the revenue will be distributed on 26 May 2018. 26 May 2018 will also be the date of the repayment of Mudharabah sukuk fund. All of the funds generated from the issuance of the Mudharabah sukuk, after being deducted by all of the emission costs, will be used entirely to support the sharia financing activities, such as consumer financing, productive financing, and micro financing, as a part of the Subsidiary’s business activities. Sukuk Mudharabah yang diterbitkan diakui sebesar nilai nominal. Biaya-biaya yang terjadi sehubungan dengan penerbitan sukuk dicatat secara terpisah sebagai biaya yang ditangguhkan dan diamortisasi secara garis lurus selama jangka waktu sukuk Mudharabah. Jumlah biaya yang diamortisasi pada tanggal 31 Desember 2017 Rp1.014. The value of Mudharabah sukuk issued is recognized at its nominal value. All costs related to the issuance process of the Sukuk is separately recorded as accrued expenses and will be amortized using straight line method during the period of Mudharabah sukuk. Total amortized expense amounted to Rp1,014 as of 31 December 2017. Prinsip pembagian hasil usaha menggunakan prinsip revenue sharing, dimana pendapatan yang diperoleh dari pendapatan kas seluruh portofolio dihitung berdasarkan alokasi Portofolio sebesar 5 (lima) kali Dana Sukuk Mudharabah dalam mata uang rupiah yang dimiliki Entitas Anak. The profit-sharing uses revenue-sharing principle, where revenue generated from cash-revenue of all portfolios is calculated based on portfolio allocation as many as 5 (five) times of Sukuk Mudharabah funds owned by the Subsidiary in Rupiah currency. Perhitungan bagi hasil berdasarkan perkalian antara nisbah pemegang sukuk Mudharabah dengan pendapatan yang dibagihasilkan yang perhitungannya didasarkan pada informasi dari Entitas Anak kepada Wali Amanat tentang uraian dari perhitungan Pendapatan Bagi Hasil berdasarkan 3 (tiga) periode posisi keuangan bulanan (tidak diaudit). Nisbah untuk pemegang sukuk Mudharabah adalah sebesar 15,35%. The method used for the revenue sharing calculation is based on the multiplication of the revenue-sharing portion of the Mudharabah sukuk holders with the revenue that can be shared. The calculation is based on the information provided by the Subsidiary to the Trustee about the explanation of the calculation of the Revenue Sharing calculation-method using three (3) (unaudited) financial positions period. The Nisbah of the Sukuk Mudharabah holders is 15.35%. PT Bank Rakyat Indonesia (Persero) Tbk (“BRI”) ditunjuk sebagai Wali Amanat dalam penerbitan Sukuk Mudharabah ini. BRI adalah pihak yang terafiliasi secara tidak langsung dengan BNI Syariah melalui kepemilikan saham oleh Negara Republik Indonesia . PT Bank Rakyat Indonesia (Persero) Tbk (“BRI”) was appointed as the Trustee of the Mudharabah Sukuk issuance. BRI is an indirectly-affiliated party of BNI Syariah through the share ownership by the Republic of Indonesia. 171 986 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  987. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 34. SUKUK MUDHARABAH YANG DITERBITKAN (lanjutan) 34. MUDHARABAH SUKUK ISSUED (continued) Pada tanggal 26 Mei 2018 Sukuk Mudharabah yang diterbitkan telah jatuh tempo dan dilunasi. As of 26 May 2018 Mudharbah Sukuk Issued has matured and paid off. a. a. Berdasarkan jenis, mata uang dan jangka waktu kontrak By type, currency and contractual period 31 Desember/December 2017 Saldo/ Balance Sukuk Mudharabah b. 496,000 Peringkat/ Rating id AA+(Sy) Berdasarkan hubungan Pemeringkat/ Rating Agencies Pefindo b. Jangka waktu/ Period 3 tahun/year Mudharabah Sukuk By relationship 31 Desember 2017/ 31 December 2017 Bukan Bank Pihak berelasi Pihak ketiga Non-Bank Related parties Third parties 259,500 236,500 496,000 Selama periode Sukuk Mudharabah, kecuali mendapatkan persetujuan tertulis dari Wali Amanat, Entitas Anak tidak diperkenankan melakukan hal-hal berikut, diantaranya: During the Sukuk Mudharabah period, unless prior written consent of Trustee is obtained, the Subsidiary is not allowed to carry-out the following, among others: a. Menggunakan sebagian besar maupun seluruh pendapatan atau harta kekayaan Entitas Anak yang ada pada saat ini maupun di masa yang akan datang di luar kegiatan usaha Entitas Anak . a. Use a portion or all of the Subsidiary’s current and future income or assets for other than the Subsidiary’s main business activities. b. Melaksanakan utama. usaha b. Change its nature of business. c. Mengurangi modal dasar dan modal disetor kecuali jika pengurangan tersebut dilakukan atas dasar permintaan/perintah dari Pemerintah Republik Indonesia dan/atau otoritas yang berwenang (termasuk tetapi tidak terbatas pada Bank Indonesia, Otoritas Jasa Keuangan, Menteri Keuangan Negara Republik Indonesia dan/atau otoritas moneter di bidang perbankan sesuai dengan ketentuan yang berlaku di Negara Republik Indonesia). c. Reduce its authorized and paid-up share capital, unless the reduction is done based on a request/command from the government of the Republic of Indonesia and/or other authorized institutions (including, but not limited to, Bank of Indonesia, Financial Services Authority, the Minister of Finance of the Republic of Indonesia and/or monetary authority in accordance with the applicable regulations in the Republic of Indonesia). perubahan bidang 172 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 987
  988. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 34. SUKUK MUDHARABAH YANG DITERBITKAN (lanjutan) d. e. 34. MUDHARABAH SUKUK ISSUED (continued) Mengadakan penggabungan, konsolidasi, akuisisi dengan Entitas Anak lain yang menyebabkan bubarnya Entitas Anak, atau yang akan mempunyai akibat negatif terhadap usaha Entitas Anak kecuali sepanjang dilakukan sesuai dengan ketentuan sebagai berikut: i. Semua syarat dan kondisi Sukuk Mudharabah dalam Perjanjian Perwaliamanatan Sukuk Mudharabah dan dokumen lain yang berkaitan tetap berlaku dan mengikat sepenuhnya perusahaan penerus (surviving company), dan dalam hal Entitas Anak bukan merupakan perusahaan penerus, dan perusahaan penerus tersebut memiliki aktiva dan kemampuan yang memadai untuk menjamin pembayaran Sukuk Mudharabah; ii. Perusahaan penerus tersebut salah satu bidang usahanya adalah bergerak dalam bidang perbankan maka Entitas Anak cukup menyampaikan pemberitahuan kepada wali amanat. d. Mempertahankan tingkat kesehatan Bank minimal berada dalam peringkat komposit 3 (tiga) yang tergolong “Cukup Baik” sesuai penilaian internal berdasarkan peraturan perbankan yang berlaku. e. Pada tanggal 31 Desember 2017, Entitas Anak telah mematuhi seluruh persyaratan penting sehubungan dengan penerbitan Sukuk Mudharabah. 35. MODAL SAHAM DISETOR DAN TAMBAHAN Merge, consolidate or to be acquired by another Subsidiary which results in the dissolution of the Subsidiary or might affect the Subsidiary’s operation negatively, unless the following conditions are met: i. All Mudharabah Sukuk’s terms and conditions as stipulated in the agreement and any other related documents are still valid and completely bind the surviving company, in case the Subsidiary is not the surviving company, the surviving company has to have enough assets and adequate ability to guarantee the payment of the Mudharabah Sukuk; ii. One of the surviving company’s businesses has to operate in the banking sector, therefore it is enough for the Subsidiary to inform the trustee of the changes. Maintain the overall condition and soundness of the bank to be at composite 3 rating, at the minimum, which is categorized as “Good Enough”, according to the internal assessment based on the prevailing banking regulations. As of 31 December 2017, the Subsidiary has complied with all important covenants as required in the terms of issuance of Sukuk Mudharabah. MODAL 35. SHARE CAPITAL AND ADDITIONAL PAID-IN CAPITAL Modal Saham Share Capital Pada tanggal-tanggal 31 Desember 2018 dan 2017, kepemilikan modal saham BNI adalah sebagai berikut: As of 31 December 2018 and 2017, BNI’s share capital ownership are as follows: 31 Desember/December 2018 Pemegang saham Saham Seri A Dwiwarna Negara Republik Indonesia Saham Seri B Negara Republik Indonesia Karyawan Masyarakat (kepemilikan masing-masing dibawah 5% untuk setiap pihak) Total saham Seri B Jumlah lembar saham ditempatkan dan disetor penuh/ Number of shares issued and fully paid Persentase kepemilikan (%)/ Percentage of ownership (%) Jumlah/ Amount Shareholders 1 - - Class A Dwiwarna share Republic of Indonesia 217,006,399 6,500,267 1.16 0.03 1,627,548 48,752 Class B shares Republic of Indonesia Employees 65,835,200 0.35 493,764 289,341,866 1.54 2,170,064 Public (ownership less than 5% each) Total Class B shares 173 988 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  989. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 35. MODAL SAHAM DAN TAMBAHAN DISETOR (lanjutan) MODAL 35. SHARE CAPITAL AND ADDITIONAL PAID-IN CAPITAL (continued) Modal Saham (lanjutan) Share Capital (continued) 31 Desember/December 2018 Pemegang saham Saham Seri C Negara Republik Indonesia Perseroan terbatas (kepemilikan masing-masing dibawah 5% untuk setiap pihak) Badan usaha asing (kepemilikan masing-masing dibawah 5% untuk setiap pihak) Anggoro Eko Cahyo (Direktur) Putrama Wahju Setyawan (Direktur) Bob Tyasika Ananta (Direktur) Endang Hidayatullah (Direktur) Tambok P.S Simanjuntak (Direktur) Adi Sulistyowati (Direktur) Masyarakat (kepemilikan masing-masing dibawah 5% untuk setiap pihak) Jumlah lembar saham ditempatkan dan disetor penuh/ Number of shares issued and fully paid Persentase kepemilikan (%)/ Percentage of ownership (%) Jumlah/ Amount Shareholders Class C shares Republic of Indonesia 10,972,187,475 58.85 4,114,570 1,599,966,692 8.58 599,988 5,375,741,388 153,526 138,442 82,891 51,368 24,880 324 28.83 0.00 0.00 0.00 0.00 0.00 0.00 2,015,903 58 52 31 19 9 - Limitedliability (ownership less than 5% each) Foreign investment entities (ownership less than 5% each) Anggoro Eko Cahyo (Director) Putrama Wahju Setyawan (Director) Bob Tyasika Ananta (Director) Endang Hidayatullah (Director) Tambok P.S Simanjuntak (Director) Adi Sulistyowati (Director) 410,967,605 2.20 154,113 Public (ownership less than 5% each) Total saham Seri C 18,359,314,591 98.46 6,884,743 Total Class C shares Total 18,648,656,458 100.00 9,054,807 Total 31 Desember/December 2017 Pemegang saham Saham Seri A Dwiwarna Negara Republik Indonesia Saham Seri B Negara Republik Indonesia Karyawan Masyarakat (kepemilikan masing-masing dibawah 5% untuk setiap pihak) Total saham Seri B Saham Seri C Negara Republik Indonesia Perseroan terbatas (kepemilikan masing-masing dibawah 5% untuk setiap pihak) Badan usaha asing (kepemilikan masing-masing dibawah 5% untuk setiap pihak) Anggoro Eko Cahyo (Direktur) Putrama Wahju Setyawan (Direktur) Imam Budi Sarjito (Direktur) Bob Tyasika Ananta (Direktur) Adi Sulistyowati (Direktur) Masyarakat (kepemilikan masing-masing dibawah 5% untuk setiap pihak) Jumlah lembar saham ditempatkan dan disetor penuh/ Number of shares issued and fully paid Persentase kepemilikan (%)/ Percentage of ownership (%) Jumlah/ Amount Shareholders 1 - - Class A Dwiwarna share Republic of Indonesia 217,006,399 6,500,267 1.16 0.03 1,627,548 48,752 Class B shares Republic of Indonesia Employees 65,835,200 0.35 493,764 289,341,866 1.54 2,170,064 Total Class B shares 10,972,187,475 58.84 4,114,570 Class C shares Republic of Indonesia 986,699,395 5.29 370,012 6,125,210,143 153,526 138,442 117,074 82,891 324 32.86 0.00 0.00 0.00 0.00 0.00 2,296,954 58 52 44 31 - Limitedliability (ownership less than 5% each) Foreign investment entities (ownership less than 5% each) Anggoro Eko Cahyo (Director) Putrama Wahju Setyawan (Director) Imam Budi Sarjito (Director) Bob Tyasika Ananta (Director) Adi Sulistyowati (Director) 274,725,321 1.47 103,022 Public (ownership less than 5% each) Public (ownership less than 5% each) Total saham Seri C 18,359,314,591 98.46 6,884,743 Total Class C shares Total 18,648,656,458 100.00 9,054,807 Total 174 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 989
  990. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 35. MODAL SAHAM DAN TAMBAHAN DISETOR (lanjutan) MODAL 35. SHARE CAPITAL AND ADDITIONAL PAID-IN CAPITAL (continued) Modal Saham (lanjutan) Share Capital (continued) Saham Seri A Dwiwarna adalah saham yang memberikan hak-hak preferen kepada pemegangnya untuk menyetujui pengangkatan dan pemberhentian Komisaris dan Direksi, perubahan Anggaran Dasar, menyetujui pembubaran dan likuidasi, penggabungan, dan pengambil alihan BNI dan semua hak-hak lainnya yang dimiliki saham Seri B dan saham Seri C. Saham Seri A Dwiwarna tidak dapat dialihkan kepada pihak lain. The Class A Dwiwarna share is a share that gives the holder preferred rights to approve the appointment and dismissal of Commissioners and Directors, amend the Articles of Association, approve the dissolution and liquidation, merger, and takeover of BNI and all other rights of Class B and Class C shares. The Class A Dwiwarna share may not be transferred to other parties. Saham Seri B dan Saham Seri C adalah saham biasa atas nama yang memiliki hak yang sama. Class B and Class C shares are ordinary shares that have the same rights. Pada tanggal 13 Agustus 2007, Pemerintah Republik Indonesia, melakukan divestasi sebesar 3.475.231.980 saham Seri C, mewakili 22,54% dari kepemilikan di BNI melalui Penawaran Umum Saham Kedua. On 13 August 2007, the Government of the Republic of Indonesia divested 3,475,231,980 Class C shares, representing 22.54% of shareholding in BNI through a Second Initial Public Offering (IPO). Sesuai Keterbukaan Informasi dalam rangka Program Kepemilikan Saham bagi Manajemen dan/atau Pegawai dalam bentuk program Bonus Saham yang diterbitkan Bank pada tanggal 30 Oktober 2015, Bank melakukan pembelian kembali saham Bank yang telah dikeluarkan dan tercatat di Bursa Efek Indonesia (“BEI”). Program ini sesuai dengan Peraturan Otoritas Jasa Keuangan (“OJK”) No.02/POJK.04/2013 tanggal 23 Agustus 2013 tentang Pembelian Kembali Saham Yang Dikeluarkan oleh Emiten atau Perusahaan Publik dalam Kondisi Pasar yang Berfluktuasi secara Signifikan (“POJK No.02/POJK.04/2013”) dan Surat Edaran OJK No. 22/SEOJK.04/2015 tanggal 21 Agustus 2015 tentang Kondisi Lain Sebagai Kondisi Pasar yang Berfluktuasi Secara Signifikan. In accordance to the Disclosure of Information in relation to the Management and/or Employees Stock Ownership Plan in the form of Bonus Shares Program issued by the Bank on 30 October 2015, the Bank repurchased shares issued by the Bank and listed in the Indonesia Stock Exchange ("IDX"). This program is consistent with Regulation of Financial Services Authority ("FSA") No.02/ POJK.04/2013 dated 23 August 2013 on the Repurchase of Shares Issued by the Issuer or Public Company in market conditions which fluctuate significantly ("POJK No.02/POJK.04/ 2013") and FSA Circular Letter No.22/SEOJK.04/2015 dated 21 August 2015 on Another Condition As Market Conditions that Fluctuate Significantly. Pembelian kembali saham Bank telah dilaksanakan pada tanggal 2 November 2015 sampai dengan 28 Desember 2015, sesuai dengan tanggal Keterbukaan Informasi. Bank melakukan pembelian kembali Saham Seri C sejumlah 1.505.375 lot atau sebanyak 150.537.500 lembar saham dengan rata-rata biaya perolehan rata-rata sebesar Rp4.982 (nilai penuh) per lembar saham. Namun demikian sehubungan dengan adanya proses pencatatan transaksi saham di bursa yang dilakukan pada T+3 maka jumlah saham pada saham treasuri yang dicatat per tanggal 30 Desember 2015 sebanyak 150.100.000. Dengan demikian pada tanggal 31 Desember 2015, Bank mencatatkan total saham treasuri senilai Rp749.979. The repurchase of shares was executed on 2 November 2015 to 28 December 2015, consistent with the date of Disclosure of Information. The Bank repurchased 1,505,375 lots of Class C Shares, or 150,537,500 shares with an average acquisition cost amounting to Rp4,982 (full amount) per share. However, in relation to the recording process of share transactions in stock exchange which is done on T+3, the number of shares recorded as treasury shares as of 30 December 2015 is 150,100,000. Therefore, as of 31 December 2015, the Bank recorded total of treasury shares amounting to Rp749,979. 175 990 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  991. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 35. MODAL SAHAM DAN TAMBAHAN DISETOR (lanjutan) MODAL 35. SHARE CAPITAL AND ADDITIONAL PAID-IN CAPITAL (continued) Modal Saham (lanjutan) Share Capital (continued) Pada tahun 2016, Bank melakukan alokasi saham treasuri senilai Rp749.979 sebagai Program Kepemilikan Saham bagi Manajemen dan Pegawai Perseroan dalam bentuk Saham Bonus. In 2016, the Bank allocated treasury shares amounted to Rp749,979 as Share Ownership Program for Management and Company’s Employees in the form of Share Bonus. Tambahan Modal Disetor Additional Paid in Capital Perubahan tambahan sebagai berikut: modal disetor adalah Saldo pada tanggal 1 Januari 2010 Tambahan modal disetor akibat Penawaran Umum Saham Terbatas I pada tahun 2000 (lihat Catatan 1c) The movements in additional paid in capital are as follows: 591,156 Balance as of 1 January 2010 56,883,826 Additional paid in capital due to Right Issue I in 2000 (refer to Note 1c) 57,474,982 Pengurangan tambahan modal disetor akibat pengembalian dana rekapitalisasi kepada Pemerintah Indonesia (lihat Catatan 1d) Reduction of paid in capital due to refund of excess recapitalization funds to the Government of Indonesia (refer to Note 1d) (581,474) 56,893,508 Dieliminasi dengan akumulasi kerugian dalam rangka kuasi-reorganisasi per tanggal 30 Juni 2003 (lihat Catatan 1e) Elimination against accumulated losses in relation to the quasi-reorganization as of 30 June 2003 (refer to Note 1e) (54,367,847) 2,525,661 Tambahan modal disetor akibat Penawaran Umum Saham Terbatas II pada tahun 2007 (lihat Catatan 1f) Biaya emisi penerbitan saham Additional paid in capital due to Right Issue II in 2007 (refer to Note 1f) Shares issuance cost 3,287,218 (195,280) 5,617,599 Tambahan modal disetor akibat Penawaran Umum Saham Terbatas III pada tahun 2010 (lihat Catatan 1g) Biaya emisi penerbitan saham Additional paid in capital due to Right Issue III in 2010 (refer to Note 1g) Shares issuance cost 9,196,100 (245,231) 14,568,468 36. PENGGUNAAN LABA NETO 36. APPROPRIATION OF NET INCOME Berdasarkan keputusan Rapat Umum Pemegang Saham Tahunan tanggal 20 Maret 2018 dan 16 Maret 2017, pengalokasian laba neto masingmasing untuk tahun yang berakhir pada tanggaltanggal 31 Desember 2017 dan 2016 adalah sebagai berikut: In accordance with the resolutions of the Annual General Shareholders’ Meetings held on 20 March 2018 and 16 March 2017, the allocation of the net income for the years ended 31 December 2017 and 2016, respectively, are as follows: 2017 Pembagian dividen Saldo laba Total 2016 4,765,767 8,850,709 3,968,562 7,370,186 Distribution of dividends Retained earnings 13,616,476 11,338,748 Total Rapat Umum Pemegang Saham telah menyetujui pembagian dividen dari laba neto tahun 2017 dan 2016, masing-masing sebesar Rp4.765.767 dan Rp3.968.562. General Shareholders’ Meeting has approved the dividend distribution of Rp4,765,767 and Rp3,968,562 from the 2017 and 2016 net income, respectively. 176 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 991
  992. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 37. GENERAL AND LEGAL RESERVES 37. CADANGAN UMUM DAN WAJIB Cadangan umum dan wajib pada awalnya dibentuk dalam rangka memenuhi ketentuan Pasal 61 ayat (1) Undang-undang No. 1/1995 mengenai Perseroan Terbatas (kemudian diganti dengan Undang-undang Perseroan Terbatas No. 40/2007 pasal 70), yang mengharuskan perusahaan Indonesia untuk membuat penyisihan cadangan umum dan wajib sebesar sekurang-kurangnya 20% dari jumlah modal yang ditempatkan dan disetor penuh. Undang-undang tersebut tidak mengatur jangka waktu untuk pembentukan penyisihan tersebut. The general and legal reserves were originally provided in accordance with Indonesian Limited Liability Company Law No. 1/1995 article 61 paragraph (1) (later superseded by Limited Liability Company Law No. 40/2007 article 70), which requires Indonesian companies to set up a general and legal reserve amounting to at least 20% of the issued and paid-up share capital. This particular law does not regulate the period of time in relation to the provision of such reserves. 38. CADANGAN KHUSUS 38. SPECIFIC RESERVES Sehubungan dengan adanya penerapan Peraturan Otoritas Jasa Keuangan (POJK) No. 34/POJK.03/2016 tanggal 22 September 2016 tentang Perubahan atas POJK No. 11/POJK.03/2016 tentang "Kewajiban Penyediaan Modal Minimum" yang mulai berlaku pada tanggal 26 September 2016 ("tanggal diundangkan"), untuk menjaga struktur permodalannya, Bank telah melakukan reklasifikasi atas saldo laba yang sudah ditentukan penggunaannya (Cadangan Khusus) menjadi laba di tahan yang tidak ditentukan penggunaanya yaitu cadangan khusus sebesar Rp5.613.100 dan cadangan wajib cabang luar negeri sebesar Rp92.276 per 31 Desember 2016. Reklasifikasi atas saldo laba tersebut telah mendapatkan persetujuan melalui berita acara Rapat Umum Pemegang Saham Tahunan No.42 tanggal 16 Maret 2017. 39. PENDAPATAN SYARIAH BUNGA DAN In relation with implementation of Regulation of the Financial Services Regulatory Authority (“POJK”) No. 34/POJK.03/2016 dated September 22, 2016 on Amendments to POJK No. 11/POJK.03/2016 concerning "Minimum Capital Requirement for Commercial Bank" which came into force on 26 September 2016 ("date of enactment"), to maintain its capital structure, the Bank has reclassified retained earnings that has been appropriated (specific reserve) into the unappropriated retained earnings amounting Rp5,613,100 and legal reserve of overseas branch amounting Rp92,276 as of 31 December 2016. The reclassification of retained earnings has been approved through Annual General Shareholders Meeting No. 42 dated 16 March 2017. PENDAPATAN 39. INTEREST INCOME AND SHARIA INCOME Tahun yang Berakhir pada tanggal 31 Desember/Year ended 31 December 2018 2017 Pinjaman yang diberikan Obligasi Pemerintah Marjin, pendapatan bagi hasil dan bonus syariah Efek-efek Penempatan pada bank lain dan Bank Indonesia Wesel ekspor dan tagihan lainnya Lain-lain 42,918,932 4,171,593 39,184,406 3,401,046 3,567,329 1,024,505 3,174,648 901,791 873,753 666,898 915,603 629,419 427,728 458,811 Loans Government Bonds Margin, profit-sharing revenue and sharia bonus Marketable securities Placements with other banks and Bank Indonesia Bills and other receivables Others Jumlah 54,138,613 48,177,849 Total 177 992 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  993. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 39. PENDAPATAN BUNGA SYARIAH (lanjutan) DAN PENDAPATAN 39. INTEREST INCOME AND SHARIA INCOME (continued) Termasuk dalam pendapatan bunga dari pinjaman yang diberikan adalah pendapatan bunga dari pinjaman yang diberikan yang mengalami penurunan nilai secara individual untuk tahun yang berakhir 31 Desember 2018 dan 2017 masingmasing sebesar Rp289.353 dan Rp211.695. Included in interest income from loans is interest income from individually impaired loans for the years ended 31 December 2018 and 2017 amounting to Rp289,353 and Rp211,695, respectively. 40. BEBAN BUNGA DAN BEBAN SYARIAH 40. INTEREST EXPENSE AND SHARIA EXPENSE Tahun yang Berakhir pada tanggal 31 Desember/Year ended 31 December 2018 2017 Simpanan nasabah dan bank lain Pinjaman yang diterima Bagi hasil Mudharabah Efek-efek yang diterbitkan Lain-lain 13,951,682 3,487,781 987,442 242,896 22,497 13,171,815 1,875,364 918,643 215,822 58,442 Deposits from customers and other banks Borrowings Mudharabah profit-sharing expense Securities issued Others Total 18,692,298 16,240,086 Total 41. BEBAN GAJI DAN TUNJANGAN 41. SALARIES EXPENSE AND EMPLOYEE BENEFITS Tahun yang Berakhir pada tanggal 31 Desember/Year ended 31 December 2018 2017 Gaji, upah dan tunjangan pajak Tunjangan hari raya, kesehatan, kesejahteraan dan lainnya Bonus, insentif dan tantiem Pendidikan dan pelatihan Lainnya 4,253,185 3,899,338 2,346,779 1,828,209 418,239 672,326 2,767,645 1,815,008 404,097 391,108 Salaries, wages and tax allowance Yearly allowance, medical, welfare and others Bonus, incentives and tantiem Training and development Others Total 9,518,738 9,277,196 Total Jumlah gaji dan tunjangan, bonus/tantiem, imbalan kerja jangka panjang yang dibayarkan kepada Dewan Komisaris, Direksi, Komite Audit serta Senior Executive Vice President (SEVP), Executive Vice President (EVP), dan Senior Vice President (SVP) masing-masing untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2018 dan 2017 adalah sebagai berikut: Total gross salaries and allowances, bonus/tantiem, long-term employment benefits paid to the Boards of Commissioners and Directors, Audit Committee and Senior Executive Vice President (SEVP), Executive Vice President (EVP), and Senior Vice President (SVP) for the year ended 31 December 2018 and 2017 are as follows: 31 Desember/December 2018 Gaji dan tunjangan/ Salaries and allowances Dewan Komisaris Direksi Komite Audit SEVP, EVP dan SVP 17,592 47,837 840 Bonus/tantiem/ Bonus/tantiem 45,143 128,478 - 101,022 18,835 167,291 192,456 Imbalan kerja jangka panjang/ Long-term employment benefits 3,422 8,848 12,270 Jumlah/ Total 66,157 185,163 840 119,857 Board of Commissioners Board of Directors Audit Committee SEVP, EVP and SVP 372,017 178 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 993
  994. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 41. BEBAN GAJI DAN TUNJANGAN (lanjutan) 41. SALARIES AND EMPLOYEE EXPENSE (continued) BENEFITS 31 Desember/December 2017 Gaji dan tunjangan/ Salaries and allowances Dewan Komisaris Direksi Komite Audit SEVP, EVP dan SVP Bonus/tantiem/ Bonus/tantiem 13,639 37,951 600 53,923 134,573 - Imbalan kerja jangka panjang/ Long-term employment benefits Jumlah/ Total 3,634 7,951 - 71,196 180,475 600 95,671 18,598 - 114,269 147,861 207,094 11,585 366,540 Sesuai dengan kebijakan Bank, selain gaji, pegawai juga mendapatkan fasilitas dan tunjangan berupa Tunjangan Hari Raya (THR), fasilitas kesehatan, sumbangan kematian, tunjangan cuti, fasilitas jabatan untuk jabatan tertentu, program pensiun untuk pegawai tetap, insentif sesuai dengan kinerja Bank dan pegawai, dan manfaat untuk pegawai yang berhenti bekerja sesuai dengan Undang-Undang Ketenagakerjaan yang berlaku. Board of Commissioners Board of Directors Audit Committee SEVP, EVP and SVP Under the Bank’s policy, in addition to salaries, employees are entitled to allowances and benefits, such as yearly allowance (THR), medical reimbursements, death allowance, leave allowance, functional allowance for certain levels, pension plan for permanent employees, incentives based on the Bank and employees’ performance, and post-employment benefits in accordance with prevailing Labor Law. 42. BEBAN OPERASIONAL LAINNYA - LAIN-LAIN 42. OTHER OPERATING EXPENSES – OTHERS Akun ini terdiri dari beban kerjasama dengan pihak ketiga terkait transaksi ATM dan kartu kredit, beban pungutan tahunan OJK dan lain-lain. This account represents partnership expenses with third parties related to ATM and credit card transactions, annual fees to OJK and others. 43. BEBAN UMUM DAN ADMINISTRASI 43. GENERAL AND ADMINISTRATIVE EXPENSES Tahun yang Berakhir pada tanggal 31 Desember/Year ended 31 December 2018 2017 Beban tenaga alih daya Biaya sewa Penyusutan (Catatan 18) Komunikasi Perlengkapan kantor Perbaikan dan pemeliharaan Listrik dan air Transportasi Penelitian dan pengembangan Jasa profesional Teknologi informasi Beban lain-lain 1,771,819 1,249,442 1,201,294 1,129,315 684,939 582,837 374,259 302,222 95,454 62,364 23,374 189,746 1,458,402 1,244,116 1,059,791 1,028,867 655,669 527,272 366,920 265,473 62,399 50,868 23,422 179,373 Outsourcing expenses Rental expenses Depreciation (Notes 18) Communications Office supplies Repairs and maintenance Electricity and water Transportation Research and development Professional services Information technology Other expenses Total 7,667,065 6,922,572 Total 179 994 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  995. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 44. IMBALAN KERJA 44. EMPLOYEE BENEFITS 2018 Imbalan kerja jangka pendek Imbalan pasca kerja dan imbalan jangka panjang lainnya BNI Entitas Anak Liabilitas yang diakui pada laporan posisi keuangan konsolidasian 2017 1,558,288 1,732,867 Short-term employee benefits 1,345,125 608,853 2,028,372 332,616 Post-employments and Other long-term employee benefits BNI Subsidiaries 1,953,978 2,360,988 3,512,266 4,093,855 Liability recognized in the consolidated statement of financial position Program ini dikelola oleh Dana Pensiun PT Bank Negara Indonesia (Persero) Tbk (“Dana Pensiun”). Kontribusi pegawai adalah sebesar 7,5% dari penghasilan dasar pensiun karyawan dan sisa jumlah yang diperlukan untuk mendanai program tersebut ditanggung oleh BNI. This plan is managed by Dana Pensiun PT Bank Negara Indonesia (Persero) Tbk (“Dana Pensiun”). The employees’ contributions are 7.5% of the employee’s pension salary-based and the remaining amounts required to fund the program/pension plan are contributed by BNI. Program pensiun manfaat pasti Defined benefit pension plan Penilaian aktuaria atas manfaat pensiun pada tahun yang berakhir tanggal 31 Desember 2018 dan 2017, dilakukan oleh perusahaan konsultan aktuaria terdaftar, PT Towers Watson Purbajaga, dengan menggunakan metode “Projected Unit Credit”. The actuarial calculations of pension benefits for the years ended 31 December 2018 and 2017 are prepared by a registered actuarial consulting firm, PT Towers Watson Purbajaga, using the “Projected Unit Credit” method. Rekonsiliasi status pembiayaan atas program pensiun berdasarkan laporan aktuaria PT Towers Watson Purbajaga tanggal 5 Januari 2019 dan 12 Januari 2018 disajikan sebagai berikut: A reconciliation of the funding status of the pension plan based on the actuarial reports of PT Towers Watson Purbajaga dated 5 January 2019 and dated 12 January 2018 are as follows: 2018 Nilai wajar aset dana pensiun (tidak diaudit) Nilai kini liabilitas manfaat pasti yang didanai Selisih lebih (kurang) pendanaan Selisih lebih pendanaan yang tidak diakui 2017 6,771,120 6,666,701 (6,448,951) (7,186,720) Fair value of pension plan assets (unaudited) Present value of funded defined benefit obligation (520,019) Funding surplus (deficit) 322,169 (322,169) Kewajiban - neto - (520,019) Asset adjustment Liabilities - net Per tanggal 31 Desember 2018, tidak ada aset yang diakui di laporan posisi keuangan konsolidasian karena ketentuan untuk pengakuan aset dari selisih lebih pendanaan yang disyaratkan dalam standar akuntansi tidak terpenuhi. As of 31 December 2018, there were no recognition of assets in the consolidated statement of financial position as the funding surplus did not meet the recognition criteria of assets under the accounting standards. Mutasi nilai kini liabilitas manfaat pasti yang didanai selama tahun berjalan adalah sebagai berikut: The movements in the present value of funded defined benefit obligations of the year are as follows: 180 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 995
  996. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 44. IMBALAN KERJA (lanjutan) 44. EMPLOYEE BENEFITS (continued) Program pensiun manfaat pasti (lanjutan) Defined benefit pension plan (continued) 2018 Pada awal tahun Biaya jasa kini Biaya bunga Pengukuran kembali: (Keuntungan)/kerugian aktuarial yang timbul dari perubahan asumsi keuangan Kerugian aktuarial yang timbul karena penyesuaian atas pengalaman Pembayaran dari program: Iuran peserta Imbalan yang dibayar Pada akhir tahun 2017 7,186,720 142,808 495,178 6,001,564 398,697 465,273 7,824,706 6,865,534 Remeasurements: (868,382) 537,050 Actuarial (gains) losses from changes in financial assumption 22,160 317,909 Actuarial losses from changes in experience (846,222) 854,959 24,347 (553,880) 24,464 (558,237) 6,448,951 Rekonsiliasi atas perubahan aset neto selama tahun yang berakhir 31 Desember 2018 dan 2017 yang diakui di laporan posisi keuangan konsolidasian dana pensiun adalah sebagai berikut: 7,186,720 Payments from plan: Employees’ contributions Benefits paid At end of the year The reconciliation of the movements of the net assets during the year ended 31 December 2018 and 2017 recognized in the pension fund’s consolidated statement of financial position is as follows: 2018 Kewajiban neto pada awal tahun Beban tahun berjalan Kontribusi pemberi kerja Jumlah yang diakui pada pendapatan komprehensif lain At beginning of the year Current service cost Interest cost 2017 520,019 142,808 (82,578) 398,697 (86,167) (580,250) 207,489 Net liabilities at beginning of year Current year expenses Employer’s contributions Total amount recognized in other comprehensive income 520,019 Net liabilities at end of year Kewajiban neto pada akhir tahun - Mutasi nilai wajar aset program selama tahun berjalan adalah sebagai berikut: (tidak diaudit) The movements in the fair value of plan assets of the years are as follows: (unaudited) 2018 2017 Pada awal tahun Hasil dari aset program Kerugian aktuarial Kontribusi pemberi kerja Kontribusi pekerja Imbalan yang dibayar dan beban administrasi 6,666,701 495,178 56,196 82,578 24,347 Pada akhir tahun 6,771,120 (553,880) 6,383,827 476,077 254,403 86,167 24,464 (558,237) 6,666,701 At beginning of the year Return on plan assets Actuarial losses Employer’s contributions Employees’ contributions Benefits paid and administrative expenses paid At end of the year 181 996 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  997. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 44. IMBALAN KERJA (lanjutan) 44. EMPLOYEE BENEFITS (continued) Program pensiun manfaat pasti (lanjutan) Defined benefit pension plan (continued) Biaya imbalan pensiun yang dibebankan pada laporan laba rugi adalah sebagai berikut: Pension expenses recognized in profit or loss, are as follows: 2018 2017 Biaya jasa kini Biaya jasa lalu Bunga bersih 142,057 751 142,707 253,258 2,732 Current service cost Past service cost Net interest Biaya yang dibebankan pada laporan laba rugi 142,808 398,697 Expense recognized in profit or loss 142,808 398,697 Biaya yang dilaporkan pada Laporan Laba rugi Pengukuran kembali yang diakui pada penghasilan komprehensif lain (580,250) 207,489 Expense recognized in profit or loss Remeasurement effect recognized in other comprehensive income Biaya imbalan pasti (437,442) 606,186 Defeined benefit cost Asumsi-asumsi utama yang digunakan dalam perhitungan di atas adalah: The key assumptions used in the above calculation are: 2018 Asumsi ekonomi: Tingkat diskonto per tahun sebelum usia pensiun normal Tingkat diskonto per tahun setelah usia pensiun normal: Pembayaran bulanan 20% sekaligus Tingkat kenaikan gaji Pendapatan dari dana pensiun iuran pasti Tingkat kenaikan manfaat pensiun Manfaat lain 2017 8.25% 7.00% 8.25% 10.00% 7.00% 7.00% 10.50% 7.00% 7.00% 7.50% 3% per tahun 3% per tahun berkala dan 4% per berkala dan 4% per tahun untuk tahun untuk tahun 2017-2019/3% tahun 2017-2019/3% annual periodically annual periodically and 4% annually for and 4% annually for year 2017-2019 year 2017-2019 2,500,000 2,500,000 Tunjangan Peningkatan Tunjangan Peningkatan Kesejahteraan sebesar Kesejahteraan sebesar manfaat pensiun bulanan manfaat pensiun bulanan yang dibayarkan yang dibayarkan dua kali setahun selama dua kali setahun selama tahun 2017-2019/ tahun 2017-2019/ Welfare Allowance Welfare Allowance for pensioner for pensioner amounted to monthly amounted to monthly pension benefit pension benefit that will be paid that will be paid twice a year during twice a year during year 2017-2019 year 2017-2019 Economic assumptions: Annual discount rate before normal retirement age Annual salary growth rate after normal retirement age: Monthly payment 20% lumpsum Rate of salary increases Interest credited to refined contribution fund Pension increase rate Other benefits 182 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 997
  998. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 44. IMBALAN KERJA (lanjutan) 44. EMPLOYEE BENEFITS (continued) Program pensiun manfaat pasti (lanjutan) Defined benefit pension plan (continued) 2018 Asumsi lainnya: Usia pensiun normal 2017 Other assumptions: Normal retirement age 55 tahun/years 55 tahun/years Tingkat kematian Modifikasi Tabel Mortalita/ Adjusted Mortality Table Indonesia 2011 (TMI2011) Modifikasi Tabel Mortalita/ Adjusted Mortality Table Indonesia 2011 (TMI2011) Mortality rate Tingkat cacat 10% dari tingkat/ kematian/10% from mortality rate 10% dari tingkat/ kematian/10% from mortality rate Disability rate 4.2% 2.8% 3.0% 1.7% 1.3% 0% 4% 2% 1.2% 0.8% 0.4% 0% Tingkat pengunduran diri Umur 20-29 Umur 30-34 Umur 35-39 Umur 40-50 Umur 51-52 Umur >52 Sensitivitas dari kewajiban manfaat pasti terhadap perubahan asumsi aktuaria adalah sebagai berikut: Turnover rate Age 20-29 Age 30-34 Age 35-39 Age 40-50 Age 51-52 Age >52 The sensivity of defined benefit obligation to changes in the weighted assumptions is as follow: Dampak terhadap kewajiban manfaat pasti/ Impact on defined benefit obligation Nilai kini kewajiban manfaat pasti/ Present value of benefit obligation 2018 Perubahan Asumsi/ Change in Assumption Biaya jasa kini/ Current service cost Tingkat diskonto Kenaikan/increase 1% Penurunan/decrease 1% (570,106) 678,582 (1,780) 6,927 Discount rate Tingkat kenaikan gaji Kenaikan/increase 1% Penurunan/decrease 1% 148,970 (137,261) 2,068 (1,893) Salary increase rate 2018 Dampak terhadap kewajiban manfaat pasti/ Impact on defined benefit obligation Nilai kini kewajiban manfaat pasti/ Present value of benefit obligation 2017 Perubahan Asumsi/ Change in Assumption Biaya jasa kini/ Current service cost Tingkat diskonto Kenaikan/increase 1% Penurunan/decrease 1% (706,695) 854,568 (20,429) 25,737 Discount rate Tingkat kenaikan gaji Kenaikan/increase 1% Penurunan/decrease 1% 204,082 (186,153) 12,075 (10,728) Salary increase rate 2016 183 998 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  999. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 44. IMBALAN KERJA (lanjutan) 44. EMPLOYEE BENEFITS (continued) Program pensiun manfaat pasti (lanjutan) Defined benefit pension plan (continued) 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 are based on a change in an 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 consolidated statement of financial position. Aset program terdiri dari: (tidak diaudit) Plan assets comprise the following: (unaudited) 2018 Dikutip/ Quoted Instrumen Ekuitas Saham Keuangan Reksadana 2017 Dikutip/ Quoted Tidak dikutip/ Unquoted Jumlah/ Total Equity instruments Stocks Financial - 1,009,856 1,008,150 - 1,008,150 167,904 - 167,904 147,285 - 147,285 Mutual Funds - 1,279,294 1,279,294 - 1,170,950 1,170,950 Direct Placement Trade, Services, and Investment - 1,883,930 1,644,562 1,883,930 1,644,562 - 1,889,721 1,644,426 1,889,721 1,644,426 188,102 116,447 304,549 165,474 97,231 262,705 Property Instrumen Utang Obligasi Surat Berharga Pemerintah Kas dan setara Kas Deposito on call Deposito Jumlah Jumlah/ Total 1,009,856 Penempatan Langsung Perdagangan, Jasa, dan Investasi Properti Tidak dikutip/ Unquoted Debt Instruments Bonds Government bonds - 19,931 461,094 19,931 461,094 - 35,482 507,982 35,482 507,982 Cash and cash equivalents Deposit on call Deposit 1,365,862 5,405,258 6,771,120 1,320,909 5,345,792 6,666,701 Total 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 utang. Diyakini bahwa instrumen utang memberikan imbal hasil yang paling baik dalam jangka panjang pada tingkatan risiko yang dapat diterima. Untuk program manfaat pasti sebagian besar instrumen surat utang merupakan portofolio obligasi Pemerintah Republik Indonesia dan obligasi korporasi di Indonesia. 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 debt instruments. Debt instruments are expected to contribute best yields in the long term at an acceptable risk level. For defined benefit program, most of the debt instruments are Government of Indonesia bonds and corporate bonds. 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. 184 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 999
  1000. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 44. IMBALAN KERJA (lanjutan) 44. EMPLOYEE BENEFITS (continued) Program pensiun manfaat pasti (lanjutan) Defined benefit pension plan (continued) Kontribusi yang diharapkan untuk program imbalanpasca kerja untuk tahun 2019 adalah Rp106.408 (tidak diaudit). Expected contributions to post-employment benefit plans for the year 2019 is amounted Rp106,408 (unaudited). Bank tereskpos beberapa risiko atas program imbalan kerja antara lain: The Bank is exposed to a number of risks through its employee benefit plans as follows: Risiko yang terekspos pada program manfaat pasti adalah adanya tingkat hasil investasi dibawah asumsi discount rate 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 increase in the actual salary is higher than its assumption. These will cause an increase in benefit paid to Pension Fund. Untuk memastikan bahwa posisi investasi yang telah diatur dalam kerangka Asset Liability Matching (ALMA), Bank melakukan pemantauan terhadap investasi atas program pensiun (baik iuran pasti maupun manfaat pasti) dan memastikan tingkat investasi dimaksud mencapai tingkat diskonto yang digunakan. Selain itu, dilakukan implementasi kebijakan penyesuaian gaji sesuai dengan asumsi yang telah digunakan dalam perhitungan aktuaria untuk mengurangi selisih hasil perhitungan atas proyeksi imbalan kerja pasca kerja dengan realisasinya. To ensure that the result of investments is consistent with the Asset Liability Management (ALMA) framework, the Bank performs monitoring over the investment for the pension program (for both defined benefit and contribution plans) and performs action to ensure the return of investments will meet the applicable discount rate. Apart from that, implementation of salary adjustment policy has been performed in accordance to the assumptions used by actuarial calculation to reduce the gap on the calculation of projected postemployment benefits with its realization. Rata-rata durasi kewajiban manfaat pasti adalah 9,67 tahun. The average duration of the defined benefit obligation is 9.67 years. Analisis jatuh tempo yang diharapkan dari manfaat pensiun yang tidak terdiskonto untuk Entitas Induk adalah sebagai berikut: Expected maturity analysis of undiscounted pension benefit for Parent Only is as follows: Kurang dari 1 tahun/ Less than a year 2 sampai 5 tahun/ Between 2 to 5 years Lebih dari 5 tahun/ Over 5 years Jumlah/ Total 2018 Pensiun Cuti besar Penghargaan masa kerja 572,020 80,971 31,063 2,313,512 500,794 229,640 24,009,000 2,572,473 2,337,623 26,894,532 3,154,238 2,598,326 2018 Pension Long leave Gratuity Jumlah 684,054 3,043,946 28,919,096 32,647,096 Total 2 sampai 5 tahun/ Between 2 to 5 years Lebih dari 5 tahun/ Over 5 years Kurang dari 1 tahun/ Less than a year Jumlah/ Total 2017 Pensiun Cuti besar Penghargaan masa kerja 514,069 13,463 120,373 1,990,169 109,631 665,430 24,080,689 1,674,321 3,524,357 26,584,927 1,797,415 4,310,160 2017 Pension Long leave Gratuity Jumlah 647,905 2,765,230 29,279,367 32,692,502 Total 185 1000 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1001. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 44. IMBALAN KERJA (lanjutan) 44. EMPLOYEE BENEFITS (continued) Program pensiun iuran pasti Defined contribution pension plan Bank juga memiliki program pensiun iuran pasti, untuk karyawannya yang dikelola oleh Dana Pensiun Lembaga Keuangan PT Bank Negara Indonesia (Persero) Tbk, dimana kontribusi iuran bank adalah sebesar 1,5% sampai dengan 6,5% dari gaji karyawan sesuai jabatan karyawan, sedangkan kontribusi iuran karyawan adalah sebesar 0,5% dari upah yang ditetapkan oleh Bank untuk karyawan tetap yang dipekerjakan sebelum tanggal 1 September 2005. Untuk karyawan tetap yang dipekerjakan mulai tanggal 1 September 2005, kontribusi Bank dan karyawan adalah masing-masing sebesar iuran 11,5% dan 3,5% dari gaji karyawan. The Bank also has a defined contribution pension plan for its employees which is managed by Dana Pensiun Lembaga Keuangan PT Bank Negara Indonesia (Persero) Tbk, whereby the contribution of the Bank are 1.5% to 6.5% of the employees’ salaries according to the position of each employee, while the contribution of employees is 0.5% of the employees’ salaries, determined by the Bank for employees hired before 1 September 2005. For employees hired after 1 September 2005, the Bank and its employees contribute 11.5% and 3.5%, respectively, of the employees’ salaries. Karyawan tetap yang bergabung dengan Bank sebelum bulan September 2005, memiliki hak atas program pensiun manfaat pasti ditambah dengan program pensiun iuran pasti, atau imbalan kerja yang disediakan sesuai dengan Undang-undang Tenaga Kerja No. 13/2003, mana yang lebih tinggi. Permanent employees who joined the Bank prior to September 2005 are entitled to defined benefits pension plan plus defined contribution pension plan, or the benefits provided for under the Labor Law No. 13/2003, whichever is higher. 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 Undang-Undang 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 the accumulated actual contribution to be lower than its assumption, increase the difference in the amount of contribution based on Labor Law, and will also increase the amount of the related expenses and liabilities. Beban pensiun iuran pasti yang telah dibebankan pada laporan laba rugi adalah sebesar Rp110.738 dan Rp73.258 masing-masing untuk tahun yang berakhir pada tanggal 31 Desember 2018 dan 2017. Defined contribution pension expense that was charged to profit or loss amounted to Rp110,738 and Rp73,258 for the years ended 31 December 2018 and 2017, respectively. Imbalan pasca kerja lainnya dan imbalan kerja jangka panjang lainnya Post employment benefits and other long-term employee benefits Liabilitas atas imbalan pasca kerja lainnya meliputi uang jasa, uang pisah dan pesangon sesuai dengan Undang-undang Tenaga Kerja No. 13/2003 dan kompensasi lainnya. The liability for post employment benefits consisted of service payments, severance and termination benefits based on Labor Law No. 13/2003 and other compensations. Imbalan jangka panjang lainnya seperti cuti berimbalan jangka panjang, imbalan cacat permanen dan penghargaan jubilee dihitung dengan menggunakan metode projected unit credit dan didiskontokan ke nilai kini. Other long-term employee benefits such as long service leave, permanent disability benefit and jubilee awards are calculated using the projected unit credit method and discounted to present value. 186 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1001
  1002. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 44. IMBALAN KERJA (lanjutan) 44. EMPLOYEE BENEFITS (continued) Imbalan pasca kerja lainnya dan imbalan kerja jangka panjang lainnya (lanjutan) Post employment benefits and other long-term employee benefits (continued) Penilaian aktuarial atas imbalan kerja jangka panjang lainnya untuk tahun yang berakhir tanggal 31 Desember 2018 dan 2017 dilakukan oleh perusahaan konsultan aktuaria terdaftar PT Towers Watson Purbajaga, dengan menggunakan metode “Projected Unit Credit” sebagaimana yang tercantum dalam laporan masing-masing pada tanggal 5 Januari 2019 dan 12 Januari 2018. The actuarial valuation of other long-term employee benefits for the years ended 31 December 2018 and 2017 were prepared by a registered actuarial consulting firm, PT Towers Watson Purbajaga, using the “Projected Unit Credit” method as stated in its reports dated 5 January 2019 and 12 January 2018 Perubahan liabilitas imbalan kerja yang diakui Bank pada laporan posisi keuangan konsolidasian adalah sebagai berikut: The movements of the employee benefits liability recognized by the Bank in the consolidated statement of financial position are as follows: 2018 Liabilitas neto pada awal tahun Biaya selama tahun berjalan Jumlah yang diakui pada laba komprehensif lain Pembayaran imbalan Liabilitas yang diakui oleh Bank 2017 1,508,353 1,380,419 9,495 284,282 (48,006) (124,717) 1,345,125 Biaya imbalan kerja yang dibebankan Bank pada laporan laba rugi: 1,508,353 Liability recognized by the Bank Employee benefits expense recognized by Bank in profit or loss: 2018 Biaya jasa kini Biaya bunga (Keuntungan)/kerugian aktuaria tahun berjalan - neto (21,371) (134,977) Net liability at the beginning of the year Expense recognized during the current year Total amount recognized in other comprehensive income Actual benefit payments 2017 54,955 103,427 129,032 102,189 (148,887) 53,061 Current service cost Interest cost Net actuarial (gains)/losses recognized in current year Biaya yang dibebankan pada laporan laba rugi 9,495 284,282 Expense recognized in profit or loss Biaya yang dibebankan pada laporan laba rugi 9,495 284,282 Expense reconized in profit or loss Pengukuran kembali yang diakui pada penghasilan komprehensif lainnya (48,006) (21,371) Biaya imbalan pasti (38,511) 262,911 Remeasurement effect recognized in other comprehensive income Defined benefit cost 187 1002 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1003. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 44. IMBALAN KERJA (lanjutan) 44. EMPLOYEE BENEFITS (continued) Imbalan pasca kerja lainnya dan imbalan kerja jangka panjang lainnya (lanjutan) Post employment benefits and other long-term employee benefits (continued) Asumsi-asumsi utama yang digunakan dalam perhitungan di atas adalah: The key assumptions used in the above calculation are: 2018 2017 Asumsi ekonomi: Tingkat diskonto per tahun: Kewajiban imbalan pasti Beban manfaat pasti 8.25% 7.00% 7.00% 8.00% Economic assumptions: Annual discount rate: Define benefit obligation Net benefit cost Tingkat kenaikan gaji 7.00% 7.00% Rate of salary increases Pendapatan dari dana pensiun iuran pasti 7.00% 7.50% Interest credited to refined contribution fund 55 tahun/years 55 tahun/years Other assumptions: Normal retirement age Tingkat kematian Tabel Mortalita yang disesuaikan/ Adjusted Mortality Table Indonesia 2011 (TMI2011) Tabel Mortalita yang disesuaikan/ Adjusted Mortality Table Indonesia 2011 (TMI2011) Mortality rate Tingkat cacat 10% dari tingkat/ kematian/10% from mortality rate 10% dari tingkat/ kematian/10% from mortality rate Disability rate 4.2% 2.8% 3.0% 1.7% 1.3% 0% 4% 2% 1.2% 0.8% 0.4% 0% Asumsi lainnya: Usia pensiun normal Tingkat pengunduran diri Umur 20-29 Umur 30-34 Umur 35-39 Umur 40-50 Umur 51-52 Umur >52 Sensitivitas dari kewajiban imbalan pasti terhadap perubahan asumsi aktuaria adalah sebagai berikut: Turnover rate Age 20-29 Age 30-34 Age 35-39 Age 40-50 Age 51-52 Age >52 The sensivity of defined benefit obligation to changes in the actuarial assumptions is as follows: Dampak program pensiun manfaat pasti dan imbalan kerja jangka panjang lainnya/ Impact on defined benefit pension plan and other long-term employee benefits Nilai kini kewajiban imbalan kerja/ Present value of benefit obligation 2018 Perubahan Asumsi/ Change in Assumption Tingkat diskonto Kenaikan/increase 1% Penurunan/decrease 1% (98,323) 61,802 Tingkat kenaikan gaji Kenaikan/increase 1% Penurunan/decrease 1% 170,341 (199,993) Biaya jasa kini/ Current service cost (3,676) 2,715 4,820 (5,301) 2018 Discount rate Salary increase rate 188 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1003
  1004. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 44. IMBALAN KERJA (lanjutan) 44. EMPLOYEE BENEFITS (continued) Imbalan pasca kerja lainnya dan imbalan kerja jangka panjang lainnya (lanjutan) Post employment benefits and other long-term employee benefits (continued) Dampak program pensiun manfaat pasti dan imbalan kerja jangka panjang lainnya/ Impact on defined benefit pension plan and other long-term employee benefits Nilai kini kewajiban imbalan kerja/ Present value of benefit obligation 2017 Perubahan Asumsi/ Change in Assumption Biaya jasa kini/ Current service cost Tingkat diskonto Kenaikan/increase 1% Penurunan/decrease 1% (14,173) 31,034 (4,703) 6,216 Tingkat kenaikan gaji Kenaikan/increase 1% Penurunan/decrease 1% 145,023 (115,840) 16,318 (12,114) 2017 Discount rate 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 are based on a change in an 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 consolidated statement of financial position. 45. LABA PER SAHAM DASAR DAN DILUSIAN DIATRIBUSIKAN KEPADA PEMILIK ENTITAS INDUK 45. BASIC AND DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT ENTITY Laba tahun berjalan per saham dasar dihitung dengan membagi laba tahun berjalan diatribusikan kepada pemilik entitas induk dengan rata-rata tertimbang jumlah lembar saham biasa yang beredar pada tahun bersangkutan. Basic earnings per share is computed by dividing income for the year attributable to owners of the parent entity by the weighted average number of shares of outstanding common shares during the related year. Tahun yang Berakhir pada tanggal 31 Desember/Year ended December 2018 2017 Laba tahun berjalan yang dapat diatribusikan kepada pemilik entitas induk Rata-rata tertimbang jumlah lembar saham biasa yang beredar Laba per saham dasar diatribusikan kepada pemilik entitas induk (dalam Rupiah penuh) 15,015,118 13,616,476 Income for the year attributable to owners of the parent entity 18,648,656,458 18,648,656,458 Weighted average number of ordinary shares outstanding 805 Basic earnings per share attributable to equity holders of the parent entity 730 (in full Rupiah amount) 189 1004 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1005. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 46. KOMITMEN DAN KONTINJENSI 46. COMMITMENTS AND CONTINGENCIES 31 Desember/December 2018 2017 Tagihan komitmen Pembelian berjangka mata uang asing yang belum diselesaikan Lain-lain 68,881,070 510,266 66,057,248 462,358 Commitment receivables Unsettled purchased of foreign currency futures Others Total 69,391,336 66,519,606 Total Liabilitas komitmen Fasilitas kredit kepada debitur yang belum digunakan Irrevocable letters of credit yang masih berjalan Penjualan berjangka mata uang asing yang belum diselesaikan Total Tagihan kontinjensi Garansi bank yang diterima Pendapatan bunga dalam penyelesaian Lainnya Total Commitment payables 54,227,735 49,963,012 12,455,507 11,630,453 68,772,241 66,017,293 Unused loan facilities Outstanding irrevocable letters of credit Sales of foreign currency futures unresolved 135,455,483 127,610,758 Total 17,433,672 18,032,492 4,063,886 194,046 4,705,325 163,123 Contingent receivables Bank guarantees received Interest receivable on non performing assets Others 21,691,604 22,900,940 Total Liabilitas kontinjensi Garansi yang diterbitkan dalam bentuk: Performance bonds Advance payment bonds Standby letters of credit Garansi bank lainnya Bid bonds Shipping guarantee Risk sharing 29,754,657 10,678,899 9,215,238 7,940,361 4,174,201 4,112 - 29,759,951 10,832,142 8,268,777 7,124,287 3,481,480 1,731 28 Contingent payables Guarantees issued in the form of: Performance bonds Advance payment bonds Standby letters of credit Other bank guarantees Bid bonds Shipping guarantee Risk sharing Total 61,767,468 59,468,396 Total Transaksi komitmen dan kontinjensi yang terjadi dalam kegiatan normal Bank yang mempunyai risiko kredit adalah sebagai berikut: Commitments and contingent transactions in the normal course of the Bank’s activities that have credit risk are as follows: 31 Desember/December 2018 2017 Garansi bank yang diterbitkan Pihak yang berelasi (Catatan 47w) Pihak ketiga Irrevocable letters of credit Pihak yang berelasi (Catatan 47x) Pihak ketiga 26,924,576 34,842,892 23,743,394 35,725,002 8,169,836 4,285,671 6,659,731 4,970,722 74,222,975 71,098,849 Bank guarantees issued Related parties (Note 47w) Third parties Irrevocable letters of credit Related parties (Note 47x) Third parties 190 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1005
  1006. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 46. KOMITMEN DAN KONTINJENSI (lanjutan) 46. COMMITMENTS (continued) Transaksi komitmen dan kontinjensi yang mempunyai risiko kredit berdasarkan kolektibilitas adalah sebagai berikut: AND CONTINGENCIES Commitments and contingent transactions that have credit risk by collectibility are as follows: 31 Desember/December 2018 2017 Lancar Dalam perhatian khusus Kurang lancar Diragukan Macet 73,854,670 293,988 73,967 350 68,946,524 2,140,019 5 12,301 Current Special mention Substandard Doubtful Loss Total 74,222,975 71,098,849 Total 47. TRANSAKSI DENGAN PIHAK BERELASI 47. RELATED PARTY TRANSACTIONS Dalam kegiatan normal usaha, Bank melakukan transaksi dengan pihak berelasi karena hubungan kepemilikan dan/atau kepengurusan. Semua transaksi dengan pihak-pihak berelasi telah dilakukan dengan kebijakan dan syarat yang telah disepakati bersama. In the normal course of business, the Bank enters into certain transactions with parties which are related to the management and/or owned by the same ultimate shareholder. All transactions with related parties have met the agreed terms and conditions. a. a. Jenis hubungan Type of relationships Hubungan pihak berelasi sebagai pemegang saham utama Related party relationship as the controlling shareholder Pemerintah Republik Indonesia melalui Kementerian Keuangan The Government of Republic of Indonesia through the Ministry of Finance Pengendalian melalui Pemerintah Republik Indonesia Control through The Government of The Republic of Indonesia Adhi Karya dan Entitas Anak Amarta Karya Adhi Karya and subsidiaries Amarta Karya Aneka Tambang dan Entitas Anak Aneka Tambang and subsidiaries Angkasa Pura I dan Entitas Anak Angkasa Pura I and subsidiaries Angkasa Pura II dan Entitas Anak Angkasa Pura II and subsidiaries ASABRI ASDP Ferry Indonesia ASABRI ASDP Ferry Indonesia Asuransi Jasa Indonesia Asuransi Jasa Indonesia Asuransi Jasa Raharja dan Entitas Anak Asuransi Jasa Raharja and subsidiaries Asuransi Jiwasraya Asuransi Jiwasraya Asuransi Kredit Indonesia dan Entitas Anak Asuransi Kredit Indonesia and subsidiaries Bahana Pembinaan Usaha Indonesia dan Entitas Anak Balai Pustaka Bahana Pembinaan Usaha Indonesia and subsidiaries Balai Pustaka Bank Mandiri dan Entitas Anak Bank Mandiri and subsidiaries Bank Rakyat Indonesia Bank Rakyat Indonesia Bank Tabungan Negara Bank Tabungan Negara Barata Indonesia Berdikari dan Entitas Anak Barata Indonesia Berdikari and subsidiaries 191 1006 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1007. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 47. TRANSAKSI (lanjutan) a. DENGAN PIHAK BERELASI 47. RELATED PARTY TRANSACTIONS (continued) Jenis hubungan (lanjutan) a. Type of relationships (continued) Pengendalian melalui Pemerintah Republik Indonesia Control through The Government of The Republic of Indonesia Bhanda Ghara Reksa dan Entitas Anak Bhanda Ghara Reksa and subsidiaries Bina Karya Bina Karya Biofarma Biofarma Biro Klasifikasi Indonesia Biro Klasifikasi Indonesia Boma Bisma Indra Boma Bisma Indra BPJS Kesehatan BPJS Kesehatan BPJS Ketenagakerjaan BPJS Ketenagakerjaan Brantas Abipraya Brantas Abipraya Bulog dan Entitas Anak Bulog and subsidiaries Dahana Dahana Damri Damri Danareksa dan Entitas Anak Danareksa and subsidiaries Dirgantara Indonesia dan Entitas Anak Dirgantara Indonesia and subsidiaries Djakarta Lloyd dan Entitas Anak Djakarta Lloyd and subsidiaries Dok & Perkapalan Kodja Bahari Dok & Perkapalan Kodja Bahari Dok dan Perkapalan Surabaya Dok dan Perkapalan Surabaya Garam Garam Garuda Indonesia dan Entitas Anak Garuda Indonesia and subsidiaries Hotel Indonesia Natour Hotel Indonesia Natour Hutama Karya dan Entitas Anak Hutama Karya and subsidiaries IGLAS Indah Karya IGLAS Indah Karya Indofarma dan Entitas Anak Indofarma and subsidiaries Indonesia Asahan Aluminium Indra Karya Industri Kapal Indonesia Indonesia Asahan Aluminium Indra Karya Industri Kapal Indonesia Industri Kereta Api dan Entitas Anak Industri Kereta Api and subsidiaries Industri Sandang Nusantara Industri Sandang Nusantara Industri Telekomunikasi Indonesia Industri Telekomunikasi Indonesia Istaka Karya Istaka Karya Jaminan Kredit Indonesia Jaminan Kredit Indonesia Jasa Marga dan Entitas Anak Jasa Marga and subsidiaries Jasa Tirta I Jasa Tirta I Jasa Tirta II Jasa Tirta II Kawasan Berikat Nusantara Kawasan Industri Makassar Kawasan Berikat Nusantara Kawasan Industri Makassar 192 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1007
  1008. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 47. TRANSAKSI (lanjutan) a. DENGAN PIHAK BERELASI 47. RELATED PARTY TRANSACTIONS (continued) Jenis hubungan (lanjutan) a. Type of relationships (continued) Pengendalian melalui Pemerintah Republik Indonesia Control through The Government of The Republic of Indonesia Kawasan Industri Medan Kawasan Industri Medan Kawasan Industri Wijayakusuma Kawasan Industri Wijayakusuma Kementerian Keuangan Kementerian Keuangan Kereta Api Indonesia dan Entitas Anak Kereta Api Indonesia and subsidiaries Kertas Kraft Aceh Kertas Kraft Aceh Kertas Leces Kertas Leces Kimia Farma dan Entitas Anak Kimia Farma and subsidiaries Kliring Berjangka Indonesia Kliring Berjangka Indonesia Krakatau Steel dan Entitas Anak Krakatau Steel and subsidiaries Lembaga Pembiayaan Ekspor Indonesia (LPEI) Lembaga Pembiayaan Ekspor Indonesia (LPEI) LEN Industri dan Entitas Anak LEN Industri and subsidiaries LKBN Antara LKBN Antara Merpati Nusantara Airlines Merpati Nusantara Airlines PAL Indonesia dan Entitas Anak PAL Indonesia and subsidiaries PANN dan Entitas Anak PANN and subsidiaries Pegadaian dan Entitas Anak Pegadaian and subsidiaries Pelabuhan Indonesia I dan Entitas Anak Pelabuhan Indonesia I and subsidiaries Pelabuhan Indonesia II dan Entitas Anak Pelabuhan Indonesia II and subsidiaries Pelabuhan Indonesia III dan Entitas Anak Pelabuhan Indonesia III and subsidiaries Pelabuhan Indonesia IV dan Entitas Anak Pelabuhan Indonesia IV and subsidiaries Pelayaran Nasional Indonesia dan Entitas Anak Pelayaran Nasional Indonesia and subsidiaries Pembangunan Perumahan dan Entitas Anak Pembangunan Perumahan and subsidiaries Percetakan Negara Republik Indonesia Percetakan Negara Republik Indonesia Percetakan Uang Republik Indonesia dan Entitas Anak Percetakan Uang Republik Indonesia and subsidiaries Perhutani dan Entitas Anak Perhutani and subsidiaries Perikanan Indonesia Perikanan Indonesia Perikanan Nusantara Perikanan Nusantara Perkebunan Nusantara III dan Entitas Anak Perkebunan Nusantara III and subsidiaries Permodalan Nasional Madani dan Entitas Anak Permodalan Nasional Madani and subsidiaries Pertamina dan Entitas Anak Pertamina and subsidiaries Pertani Pertani Perumnas Perusahaan Gas Negara dan Entitas Anak Perumnas Perusahaan Gas Negara and subsidiaries Perusahaan Listrik Negara dan Entitas Anak Perusahaan Listrik Negara and subsidiaries Perusahaan Pengelola Aset dan Entitas Anak Perusahaan Pengelola Aset and subsidiaries Perusahaan Perdagangan Indonesia Perusahaan Perdagangan Indonesia Pindad dan Entitas Anak Pindad and subsidiaries 193 1008 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1009. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 47. TRANSAKSI (lanjutan) a. DENGAN PIHAK BERELASI 47. RELATED PARTY TRANSACTIONS (continued) Jenis hubungan (lanjutan) a. Type of relationships (continued) Pengendalian melalui Pemerintah Republik Indonesia Control through The Government of The Republic of Indonesia Pos Indonesia dan Entitas Anak Pos Indonesia and subsidiaries Primissima Primissima Pupuk Indonesia Holding Company dan Entitas Anak Rajawali Nusantara Indonesia dan Entitas Anak Pupuk Indonesia Holding Company and subsidiaries Rajawali Nusantara Indonesia and subsidiaries Reasuransi Indonesia Utama dan Entitas Anak Reasuransi Indonesia Utama and subsidiaries Sang Hyang Seri Sang Hyang Seri Sarana Karya Sarana Karya Sarana Multigriya Finansial Sarana Multigriya Finansial Sarinah dan Entitas Anak Sarinah and subsidiaries Semen Baturaja Semen Baturaja Semen Indonesia dan Entitas Anak Semen Indonesia and subsidiaries Sucofindo dan Entitas Anak Sucofindo and subsidiaries Surveyor Indonesia Surveyor Indonesia Tambang Batubara Bukit Asam dan Entitas Anak Tambang Batubara Bukit Asam and subsidiaries Taspen dan Entitas Anak Taspen and subsidiaries Telekomunikasi Indonesia dan Entitas Anak Telekomunikasi Indonesia and subsidiaries Timah dan Entitas Anak Timah and subsidiaries Varuna Tirta Prakasya Varuna Tirta Prakasya Virama Karya Virama Karya Waskita Karya dan Entitas Anak Waskita Karya and subsidiaries Wijaya Karya dan Entitas Anak Wijaya Karya and subsidiaries Yodya Karya Yodya Karya Pengendalian Kegiatan Perusahaan Control on Company’s Activities Manajemen Kunci Key Management Berdasarkan Kepemilikan dan/atau Kepengurusan By Ownership and/or Management Dana Pensiun BNI Dana Pensiun BNI Asuransi Tripakarta Asuransi Tripakarta 194 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1009
  1010. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 47. TRANSAKSI (lanjutan) b. DENGAN PIHAK BERELASI 47. RELATED PARTY TRANSACTIONS (continued) Giro pada bank lain b. 2018 c. 2017 Bank Mandiri Bank Rakyat Indonesia 78,796 112 1,407,206 228 Bank Mandiri Bank Rakyat Indonesia Total 78,908 1,407,434 Total Penempatan pada bank lain dan Bank Indonesia c. 2018 d. Bank Mandiri Bank Tabungan Negara Bank Rakyat Indonesia LPEI 1,103,975 538,387 35,222 - 261,052 292,534 138,016 607,025 Bank Mandiri Bank Tabungan Negara Bank Rakyat Indonesia LPEI Total 1,677,584 1,298,627 Total Efek-efek d. Marketable securities 2017 Bank Rakyat Indonesia Danareksa Bahana Pembinaan Usaha Indonesia Bank Tabungan Negara LPEI Bank Mandiri Hutama Karya Permodalan Nasional Madani PLN Pegadaian Pelabuhan Indonesia II Waskita Karya Telekomunikasi Indonesia Lain-lain 1,316,320 930,484 906,213 852,752 827,413 740,081 690,400 505,971 392,070 302,999 285,548 280,484 171,412 388,082 485,542 948,009 1,279,920 163,629 1,784,242 247,592 300,964 40,579 1,000 269,225 141,672 1,892 389,579 Bank Rakyat Indonesia Danareksa Bahana Pembinaan Usaha Indonesia Bank Tabungan Negara LPEI Bank Mandiri Hutama Karya Permodalan Nasional Madani PLN Pegadaian Pelabuhan Indonesia II Waskita Karya Telekomunikasi Indonesia Others Total 8,590,229 6,053,845 Total Obligasi Pemerintah e. 2018 Pemerintah Republik Indonesia f. Placements with other banks and Bank Indonesia 2017 2018 e. Current accounts with other banks 2017 86,791,402 Wesel ekspor dan tagihan lainnya Total 79,849,452 f. 2018 Waskita Karya Adhi Karya Brantas Abipraya Wijaya Karya Bank Mandiri Hutama Karya Garuda Indonesia Bank Rakyat Indonesia Krakatau Steel Lain-lain Government Bonds The Government of The Republic of Indonesia Bills and other receivables 2017 2,773,748 2,729,825 1,511,881 1,118,976 941,616 817,363 667,532 402,678 235,672 508,494 2,372,248 2,263,439 1,240,420 1,033,111 133,191 728,665 142,442 597,035 Waskita Karya Adhi Karya Brantas Abipraya Wijaya Karya Bank Mandiri Hutama Karya Garuda Indonesia Bank Rakyat Indonesia Krakatau Steel Other 11,707,785 8,510,551 Total 195 1010 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1011. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 47. TRANSAKSI (lanjutan) g. DENGAN PIHAK BERELASI 47. RELATED PARTY TRANSACTIONS (continued) Tagihan akseptasi g. 2018 h. 2017 PLN Garuda Indonesia Adhi Karya Pembangunan Perumahan Hutama Karya Pindad Waskita Karya Wijaya Karya Dahana Krakatau Steel LPEI Petrokimia Gresik Nindya Karya Perum Percetakan Negara RI LEN Industri Barata Indonesia Dirgantara Indonesia Lain-lain 1,121,858 1,078,895 811,520 793,789 530,997 249,080 199,077 151,949 145,812 103,992 64,858 63,476 44,448 41,170 40,854 38,662 33,989 33,625 1,632,474 1,530,945 824,332 432,663 141,396 302,617 61,863 73,498 15,984 40,485 76,772 15,912 42,645 16,315 40,401 519,934 PLN Garuda Indonesia Adhi Karya Pembangunan Perumahan Hutama Karya Pindad Waskita Karya Wijaya Karya Dahana Krakatau Steel LPEI Petrokimia Gresik Nindya Karya Perum Percetakan Negara RI LEN Industri Barata Indonesia Dirgantara Indonesia Others Total 5,548,051 5,768,236 Total Tagihan derivatif h. 2018 i. Acceptances receivables Derivative receivables 2017 Pertamina Krakatau Steel Garuda Indonesia PLN Lain-lain 46,137 8,122 2,058 335 440 13,327 11,660 1,599 Pertamina Krakatau Steel Garuda Indonesia PLN Others Total 56,317 27,361 Total Pinjaman yang diberikan i. 2018 PLN Perum Bulog Pertamina Jasa Marga Waskita Karya Telkom Krakatau Steel Pegadaian Semen Gresik Petrokimia Gresik Kementerian Keuangan Perkebunan Nusantara III Perkebunan Nusantara VII Bukit Asam Kereta Api Indonesia Hutama Karya Pupuk Indonesia Wijaya Karya Pupuk Iskandar Muda Rajawali Nusindo Antam Infrastruktur Telekomunikasi Indonesia Pelabuhan Indonesia I Perkebunan Nusantara XI PAL Indonesia Garuda Indonesia Loans 2017 14,414,539 12,599,313 8,888,804 7,825,356 6,641,236 6,191,700 4,583,740 4,563,915 4,300,618 4,108,777 3,257,073 2,634,126 2,222,540 1,822,209 1,738,875 1,469,190 1,056,335 1,046,434 1,011,972 1,108,824 977,840 18,626,608 3,815,351 2,251,796 5,129,498 5,835,011 6,228,509 4,131,607 5,095,844 84,912 4,360,190 2,665,106 2,737,673 2,165,434 2,106,006 1,820,071 553,459 459,153 1,508,178 1,014,000 1,094,772 - 974,873 944,584 924,818 915,692 904,015 752,338 461,717 465,949 888,561 1,249,914 PLN Perum Bulog Pertamina Jasa Marga Waskita Karya Telkom Krakatau Steel Pegadaian Semen Gresik Petrokimia Gresik Kementerian Keuangan Perkebunan Nusantara III Perkebunan Nusantara VII Bukit Asam Kereta Api Indonesia Hutama Karya Pupuk Indonesia Wijaya Karya Pupuk Iskandar Muda Rajawali Nusindo Antam Infrastruktur Telekomunikasi Indonesia Pelabuhan Indonesia I Perkebunan Nusantara XI PAL Indonesia Garuda Indonesia 196 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1011
  1012. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 47. TRANSAKSI (lanjutan) i. DENGAN PIHAK BERELASI 47. RELATED PARTY TRANSACTIONS (continued) Pinjaman yang diberikan (lanjutan) i. 2018 Semen Baturaja Angkasa Pura II Permodalan Nasional Madani LEN Industri Pindad Dirgantara Indonesia Pupuk Sriwijaya Perum Peruri Perkebunan Nusantara IV Adhi Karya Perkebunan Nusantara V Pos Indonesia Lain-lain Total j. 2017 863,904 700,000 679,972 638,896 624,403 589,750 561,008 541,512 471,189 430,000 416,318 331,861 3,428,721 863,904 185,985 503,328 90,267 660,387 633,703 1,066,948 227,765 471,189 249,950 513,975 364,000 5,082,440 Semen Baturaja Angkasa Pura II Permodalan Nasional Madani LEN Industri Pindad Dirgantara Indonesia Pupuk Sriwijaya Perum Peruri Perkebunan Nusantara IV Adhi Karya Perkebunan Nusantara V Pos Indonesia Others 107,404,932 86,415,499 Total Penyertaan saham j. 2018 2017 Simpanan nasabah 724,338 k. 2018 Entitas dikendalikan melalui Pemerintah Republik Indonesia Manajemen Kunci l. PT PANN Pembiayaan Maritim Deposits from customers 2017 87,220,328 243,546 Entities controlled through The 87,581,384 Government of Republic of Indonesia 174,696 Key Management 87,463,874 87,756,080 Simpanan dari bank lain l. 2018 Entitas dikendalikan melalui Pemerintah Republik Indonesia Equity investments 724,338 PT PANN Pembiayaan Maritim k. Loans (continued) Deposits from other banks 2017 Entities controlled through The 2,246,156 Government of Republic of Indonesia 2,968,169 m. Efek-efek yang dijual dengan janji dibeli kembali m. Securities sold repurchase under agreements to 2018 Bank Mandiri n. 87,503 Efek-efek yang diterbitkan n. 2018 Bank Rakyat Indonesia Taspen Dana Pensiun BNI Bank Mandiri Lain-lain Total Bank Mandiri Securities issued 2017 456,854 419,866 229,927 148,952 12,997 265,896 229,909 148,941 - Bank Rakyat Indonesia Taspen Dana Pensiun BNI Bank Mandiri Others 1,268,595 644,746 Total 197 1012 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1013. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 47. TRANSAKSI (lanjutan) o. DENGAN PIHAK BERELASI 47. RELATED PARTY TRANSACTIONS (continued) Pinjaman yang diterima o. 2018 p. Borrowings 2017 Bank Mandiri Bank Rakyat Indonesia LPEI 117,110 100,000 37,804 271,350 135,675 - Bank Mandiri Bank Rakyat Indonesia Total 254,914 407,025 Total Efek-efek subordinasi p. Subordinated securities 2018 Asuransi Tripakarta q. 24,988 Liabilitas derivatif q. 2018 r. Derivative payables 2017 Bank Mandiri Bank Rakyat Indonesia PLN Lain- lain 33,390 6,913 931 11,591 17,474 1,565 Bank Mandiri Bank Rakyat Indonesia PLN Lain- lain Total 41,234 30,630 Total Liabilitas akseptasi r. 2018 Pembangunan Perumahan Hutama Karya Pindad Dahana Garuda Indonesia Petrokimia Gresik Perum Percetakan Negara RI Wijaya Karya Nindya Karya Krakatau Steel Semen Indonesia Barata Indonesia Cambrics Primissima Boma Bisma Indra LEN Industri Waskita Karya Pertamina Lain-lain Total s. Asuransi Tripakarta 2017 306,422 280,584 241,525 144,327 71,483 63,476 41,170 28,459 14,746 12,234 9,821 8,921 5,760 5,620 5,573 5,424 8,402 184,761 41,963 296,189 76,283 125,801 40,485 15,912 26,769 44,350 60,433 14,808 16,315 14,757 12,290 118,455 71,410 Pembangunan Perumahan Hutama Karya Pindad Dahana Garuda Indonesia Petrokimia Gresik Perum Percetakan Negara RI Wijaya Karya Nindya Karya Krakatau Steel Semen Indonesia Barata Indonesia Cambrics Primissima Boma Bisma Indra LEN Industri Waskita Karya Pertamina Others 1,253,947 1,160,981 Total Dana Syirkah Temporer - Giro Mudharabah s. 2018 Entitas dikendalikan melalui Pemerintah Republik Indonesia Acceptances payables Temporary Syirkah Funds - Mudharabah Current Accounts 2017 209,056 Entities controlled through The 319,334 Government of Republic of Indonesia 198 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1013
  1014. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 47. TRANSAKSI (lanjutan) t. DENGAN Dana Syirkah Mudharabah PIHAK BERELASI Temporer - 47. RELATED PARTY TRANSACTIONS (continued) Deposito t. 2018 u. 2017 Entitas dikendalikan melalui Pemerintah Republik Indonesia Manajemen kunci 357,052 13,475 Entities controlled through The 7,824,499 Government of Republic of Indonesia 18,904 Key Management Total 370,527 7,843,403 Dana Syirkah Mudharabah Temporer - Tabungan u. 2018 v. Temporary Syirkah Funds - Mudharabah Deposit Accounts Total Temporary Syirkah Funds - Mudharabah Saving Accounts 2017 Manajemen kunci Entitas dikendalikan melalui Pemerintah Republik Indonesia 16,545 Total 16,574 9,499 Key Management Entities controlled through The 23 Government of Republic of Indonesia 29 Sukuk Mudharabah yang diterbitkan 9,522 v. Total Sukuk Mudharabah Issued 2017 Bank Syariah Mandiri Dana Pensiun BNI Bank Rakyat Indonesia Syariah Danareksa Penjaminan Infrastruktur Indonesia Asuransi Tripakarta 100,000 45,000 68,500 25,000 20,000 1,000 Bank Syariah Mandiri Dana Pensiun BNI Bank Rakyat Indonesia Syariah Danareksa Penjaminan Infrastruktur Indonesia Asuransi Tripakarta Total 259,500 Total w. Garansi bank yang diterbitkan w. Bank guarantees issued 2018 Hutama Karya Wijaya Karya Adhi Karya Pembangunan Perumahan Pertamina Rekayasa Industri Nindya Karya PLN Waskita Karya Garuda Indonesia Telkom Brantas Abipraya Bank Mandiri Petrokimia Gresik Industri Kereta Api LPEI Dirgantara Indonesia Kereta Api Indonesia Perum Peruri Perusahaan Gas Negara Barata Indonesia PAL Indonesia LEN Industri Pindad Infrastruktur Telekomunikasi Indonesia Rajawali Nusindo Semen Indonesia Lain-lain Total 2017 3,205,967 2,742,572 2,403,442 1,932,559 1,606,975 1,599,659 1,598,651 1,457,433 1,448,595 1,372,821 1,350,365 1,007,708 891,354 857,687 613,723 404,415 280,164 265,759 255,046 246,313 234,627 173,127 141,693 122,465 3,039,526 2,243,749 1,276,520 1,882,482 1,352,499 1,570,803 1,726,262 806,742 1,989,558 80,295 1,477,346 810,321 937,064 272,932 1,532,547 337,725 1,571 6,580 231,016 34,087 280,742 195,886 14,184 102,274 98,466 91,834 418,882 195,928 80,724 90,865 1,275,440 Hutama Karya Wijaya Karya Adhi Karya Pembangunan Perumahan Pertamina Rekayasa Industri Nindya Karya PLN Waskita Karya Garuda Indonesia Telkom Brantas Abipraya Bank Mandiri Petrokimia Gresik Industri Kereta Api LPEI Dirgantara Indonesia Kereta Api Indonesia Perum Peruri Perusahaan Gas Negara Barata Indonesia PAL Indonesia LEN Industri Pindad Infrastruktur Telekomunikasi Indonesia Rajawali Nusindo Semen Indonesia Others 26,924,576 23,743,394 Total 199 1014 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1015. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 47. TRANSAKSI (lanjutan) x. DENGAN PIHAK BERELASI 47. RELATED PARTY TRANSACTIONS (continued) Letters of Credit x. 2018 y. Letters of Credit 2017 PLN Kereta Api Indonesia Pembangunan Perumahan Industri Kereta Api Krakatau Steel Hutama Karya Pertamina Pindad Pelabuhan Indonesia I Barata Indonesia LEN Industri Semen Gresik Dahana Garuda Indonesia Nindya Karya Perkebunan Nusantara V Dirgantara Indonesia Pupuk Iskandar Muda Petrokimia Gresik Semen Indonesia Adhi Karya Wijaya Karya Lain-lain 1,328,363 1,038,299 850,133 766,065 688,541 633,118 614,719 544,579 287,648 241,207 146,001 139,734 127,152 120,095 119,760 79,848 69,782 62,154 50,334 49,340 46,480 34,528 131,956 975,941 678,194 611,572 339,279 65,275 635,584 315,440 532,690 36,595 420,885 86,825 148,850 26,073 87,740 73,746 365,684 28,686 239,582 25,909 965,181 PLN Kereta Api Indonesia Pembangunan Perumahan Industri Kereta Api Krakatau Steel Hutama Karya Pertamina Pindad Pelabuhan Indonesia I Barata Indonesia LEN Industri Semen Gresik Dahana Garuda Indonesia Nindya Karya Perkebunan Nusantara V Dirgantara Indonesia Pupuk Iskandar Muda Petrokimia Gresik Semen Indonesia Adhi Karya Wijaya Karya Others Total 8,169,836 6,659,731 Total Gaji dan tunjangan y. Salaries and benefits 2018 Dewan Komisaris Direksi Komite Audit SEVP, EVP dan SVP Imbalan kerja jangka pendek/ short-term benefit Imbalan kerja jangka panjang lainnya/ other longterm benefit 17,592 47,837 840 45,143 128,478 - Pesangon pemutusan kontrak kerja/ termination benefit Total 3,422 8,848 - 66,157 185,163 840 119,857 - - 119,857 186,126 173,621 12,270 372,017 Imbalan kerja jangka pendek/ short-term benefit Imbalan kerja jangka panjang lainnya/ other longterm benefit 14,712 40,376 600 52,850 132,148 - Board of Commissioners Board of Directors Audit Committee SEVP, EVP and SVP 2017 Dewan Komisaris Direksi Komite Audit SEVP, EVP dan SVP Pesangon pemutusan kontrak kerja/ termination benefit Total 3,634 7,951 - 71,196 180,475 600 114,269 - - 114,269 169,957 184,998 11,585 366,540 Board of Commissioners Board of Directors Audit Committee SEVP, EVP and SVP 200 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1015
  1016. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 47. TRANSAKSI (lanjutan) DENGAN PIHAK BERELASI 47. RELATED PARTY TRANSACTIONS (continued) Rincian saldo transaksi dengan pihak-pihak berelasi pada tanggal 31 Desember 2018 dan 2017 adalah sebagai berikut: The details balances of transactions with related parties as of 31 December 2018 and 2017 are as follows: 2018 2017 Aset Giro pada bank lain Penempatan pada bank lain Efek-efek Obligasi Pemerintah Wesel ekspor dan tagihan lainnya Tagihan akseptasi Tagihan derivatif Pinjaman yang diberikan Penyertaan saham 78,908 1,677,584 8,590,229 86,791,402 11,707,785 5,548,051 56,317 107,404,932 724,338 1,407,434 1,298,627 6,053,845 79,849,452 8,510,551 5,768,236 27,361 86,415,498 724,338 Assets Current accounts with other bank Placements with other banks Marketable securities Government bonds Bills and other receivables Acceptances receivables Derivative receivables Loans Equity investments Jumlah aset kepada pihak-pihak berelasi 222,579,546 190,055,342 Total assets with related parties Jumlah aset konsolidasian 808,572,011 709,330,084 Total consolidation assets 27.5% 26.8% Percentage of total assets with related parties to total consolidated assets 87,463,874 2,968,169 1,268,596 24,988 87,756,080 2,246,156 644,746 - 739,103 254,914 41,234 1,253,947 407,025 30,630 1,160,981 Liabilities Deposits from customers Deposit from other banks Securities issued Subordinated securities Securities sold under agreements to repurchase Borrowings Derivative payables Acceptances payables 94,014,825 92,245,618 Total liabilities with related parties 671,237,546 584,086,818 Total consolidation liabilities 14.0% 15.8% Percentage of total liabilities with related parties to total consolidated liabilities Dana Syirkah Temporer Simpanan Mudharabah Sukuk Mudharabah 596,157 - 8,172,259 259,500 Temporary Syirkah Funds Mudharabah Saving Mudharabah Sukuk Jumlah Dana Syirkah Temporer Pihak-pihak berelasi 596,157 8,431,759 Total Temporary Syirkah Funds with related parties Jumlah Dana Syirkah Temporer 26,960,676 24,339,962 Total Temporary Syirkah Funds 34.6% Percentage of total temporary syirkah funds with related partiesto total consolidated Temporary syirkah funds Persentase jumlah aset kepada pihak-pihak berelasi terhadap jumlah aset konsolidasian Liabilitas Simpanan nasabah Simpanan dari bank lain Efek-efek yang diterbitkan Efek-efek subordinasi Efek-efek yang dijual dengan janji dibeli kembali Pinjaman yang diterima Liabilitas derivatif Liabilitas akseptasi Jumlah liabilitas kepada pihak-pihak berelasi Jumlah liabilitas konsolidasian Persentase jumlah liabilitas kepada pihak-pihak berelasi terhadap jumlah aset konsolidasian Persentase jumlah Dana Syirkah Temporer kepada pihak-pihak Berelasi terhadap jumlah Dana Syirkah Temporer konsolidasian 2.2% 201 1016 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1017. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 48. INFORMASI SEGMEN 48. SEGMENT INFORMATION Segmen operasi Grup dibagi berdasarkan kelompok nasabah utama dan produk, sebagai berikut: Korporasi, Komersial dan Kecil, Konsumer dan Ritel, Tresuri dan Institusi Keuangan, Kantor Pusat dan Entitas Anak. Dalam menentukan hasil segmen, beberapa akun aset dan liabilitas dan pendapatan dan biaya yang terkait diatribusikan ke masing-masing segmen berdasarkan kebijakan pelaporan internal manajemen. Transaksi antar segmen usaha diperlakukan seperti transaksi pihak ketiga yang dicatat ke dalam masing-masing segmen dan dieliminasi di tingkat Bank. The Group’s operating segments represent the key customers and product groups, as follows: Corporate, Commercial and Small, Consumer and Retail, Treasury and Financial Institution, Head Office and Subsidiaries. In determining the segment results, certain assets and liabilities items and related revenues and expenses are attributed to each segment based on internal management reporting policies. Transactions between business segments are recorded within the segment as if they are third party transactions and are eliminated at the Bank level. Ringkasan berikut menjelaskan operasi masingmasing segmen dalam pelaporan segmen Bank: The following summary describes the operations in each of the Bank's reportable segments: - Korporasi: termasuk kredit yang diberikan, simpanan nasabah dan transaksi-transaksi lainnya atas nasabah korporasi. - Komersial dan Kecil: termasuk kredit yang diberikan, simpanan nasabah dan transaksitransaksi lainnya atas nasabah dengan skala kecil hingga menengah. - Konsumer dan Ritel: termasuk kredit pembiayaan konsumsi antara lain kredit kepemilikan rumah, kartu kredit dan transaksitransaksi lain atas nasabah konsumer, serta termasuk kredit yang diberikan kepada individu dengan skala ritel. - Tresuri dan Institusi Keuangan: terkait dengan kegiatan tresuri Bank termasuk transaksi valuta asing, money market, capital market dan fixed income, termasuk antara lain bisnis perbankan internasional dan cabang luar negeri. - Kantor Pusat: merupakan penyediaan jasa secara sentralisasi kepada segmen lainnya. - Entitas Anak: seluruh transaksi yang dilakukan oleh Entitas Anak yang bergerak di bidang perbankan syariah, asuransi, pembiayaan konsumen dan sekuritas. - Corporate: includes loans, deposits and other transactions and balances with corporate customers. - Commercial and Small: includes loans, deposits and other transactions and balances with small to middle size customers. - Consumer and Retail: includes consumer loan such as housing loans, credit cards and other transactions with consumer loans, and including loans to retail customers. - Treasury and Financial Institution: treasury activities including foreign exchange, money market, capital market and fixed income, also including international banking and overseas branch. - Head Office: represent centralized services for other segments. - Subsidiaries: all transactions from Subsidiaries in sharia banking, insurance, consumer financing and securities. Kinerja diukur berdasarkan laba segmen sebelum pajak penghasilan, sebagaimana dilaporkan dalam laporan internal manajemen yang direview oleh Manajemen Bank. Keuntungan segmen digunakan untuk mengukur kinerja dimana manajemen berkeyakinan bahwa informasi tersebut paling relevan dalam mengevaluasi hasil segmen tersebut relatif terhadap entitas lain yang beroperasi dalam industri tersebut. Performance is measured based on segment profit before income tax, as included in the internal management reports that are reviewed by the Bank's Management. Segment profit is used to measure performance of that business segment as management believes that such information is the most relevant in evaluating the results of those segments relative to other entities that operate within these industries. Informasi yang berkaitan dengan segmen usaha yang utama dari Grup disajikan dalam tabel di bawah ini: Information concerning the operating segments of the Group are set out in the tables below: 202 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1017
  1018. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 48. INFORMASI SEGMEN (lanjutan) 48. SEGMENT INFORMATION (continued) 2018 Komersial dan Kecil/ Commercial and Small Korporasi/ Corporate Pendapatan bunga dan pendapatan syariah - neto *) Pendapatan premi neto Pendapatan operasional lainnya Pembentukan cadangan kerugian penurunan nilai Beban operasional lainnya 12,813,111 Tresuri dan Insitusi Keuangan/ Treasury and Financial Institution Konsumer dan Ritel/ Consumer and Retail 8,571,831 10,775,890 Penyesuaian dan eliminasi/ Adjustment Entitas Anak/ and Subsidiaries elimination**) Kantor Pusat/ Head Office 2,086,897 - 2,694,534 - - - - - 1,711,857 3,376,656 1,306,501 6,580,492 2,950,936 - 518,529 (1,431,145) (3,787,622) (1,285,949) (145,055) (5,541,492) (2,547,390) (8,941,323) (1,947,361) 9,217,130 3,543,320 7,129,110 2,945,417 21 184 14,074 9,217,151 3,543,504 Total aset 258,869,706 Total liabilitas 270,621,130 Laba operasional Pendapatan/(beban) bukan operasional neto Laba sebelum beban pajak (1,495,948) (3,120,515) Konsolidasi/ Consolidation 35,446,315 Interest income and sharia income - net *) 1,711,857 Premium income - net 11,612,599 Other operating income (21,782,961) Allowance for impairment losses Other operating expenses (148,812) 875,512 (3,962,278) 19,599,399 Operating income 2,697 294,131 (78,287) (11,504) 221,316 Non operating income/ (expenses) - net 7,143,184 2,948,114 145,319 797,225 (3,973,782) 19,820,715 Income before tax expense 135,308,561 78,206,547 275,552,690 50,593,543 60,520,749 (50,479,785) 808,572,011 Total assets 14,658,291 259,917,921 103,149,183 5,291,501 50,249,007 (32,649,487) 671,237,546 Total liabilities Konsumer dan Ritel/ Consumer and Retail Tresuri dan Insitusi Keuangan/ Treasury and Financial Institution (148,812) - (589,828) (3,459,580) - (7,388,411) 654,185 2017 Komersial dan Kecil/ Commercial and Small Korporasi/ Corporate Pendapatan bunga dan pendapatan syariah - neto *) Pendapatan premi neto Pendapatan operasional lainnya Pembentukan cadangan kerugian penurunan nilai Beban operasional lainnya 12,428,601 6,807,866 9,558,035 Kantor Pusat/ Head Office***) Entitas Anak/ Subsidiaries 1,860,111 - 2,324,741 Penyesuaian dan eliminasi/ Adjustment and elimination **/***) Konsolidasi/ Consolidation (1,041,591) - - - - - 1,767,568 2,803,803 1,159,012 5,875,743 3,213,069 - 474,071 (2,107,854) (2,306,273) (1,538,979) (73,992) (4,166,494) (2,702,085) (8,961,270) (2,035,563) 8,958,056 2,958,520 4,933,529 2,963,625 (476,065) 878,596 (2,993,598) (7) 22 16,352 (1,356) (27,696) (42,514) 8,958,049 2,958,542 4,949,881 2,962,269 (503,761) Total aset 215,887,752 121,160,933 69,216,585 246,499,835 Total liabilitas 248,980,052 121,311 237,864,259 74,321,428 Laba operasional Pendapatan/(beban) bukan operasional neto Laba sebelum beban pajak *) **) termasuk komponen internal transfer pricing antar segmen operasi termasuk eliminasi internal transfer pricing atau reklaisifikasi antar segmen operasi dan eliminasi terhadap entitas anak ***) format penyajian 2017 disesuaikan dengan 2018 (2,485,639) 31,937,763 Interest income and sharia income - net *) 1,767,568 Premium income - net 11,040,059 Other operating income - (7,126,335) 533,632 (20,396,392) Allowance for impairment losses Other operating expenses 17,222,663 Operating income (2,077) (57,276) Non operating income/ (expenses) - net 836,082 (2,995,675) 17,165,387 Income before tax expense 43,033,752 53,252,719 (39,721,492) 709,330,084 Total assets 10,372,129 43,303,477 (30,875,838) 584,086,818 Total liabilities (476,065) - (623,172) (3,064,612) *) Includes componen of internal transfer pricing between operating segment **) Includes elimination of internal transfer pricing or reclassification beetween operating segment and elimination of subsidiaries ***)The 2017 presentation format is reclassified to align with 2018 203 1018 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1019. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 48. INFORMASI SEGMEN (lanjutan) 48. SEGMENT INFORMATION (continued) Informasi yang berkaitan dengan segmen geografis BNI dan Entitas Anak disajikan dalam tabel di bawah ini: Information concerning the geographical segments of BNI and Subsidiaries are set out in the tables below: 2018 Indonesia Pendapatan bunga dan pendapatan syariah - neto Pendapatan premi - neto Pendapatan operasional lainnya Pembentukan cadangan kerugian penurunan nilai Beban operasional lainnya Eropa/ Europe New York Penyesuaian dan eliminasi/ Adjustment and elimination Asia 34,942,070 155,115 176,445 182,385 1,711,857 - - - 12,264,695 78,624 123,630 213,694 (7,321,672) (21,183,932) (15,678) (128,255) (646) (105,163) (50,415) (365,611) - Laba operasional Pendapatan/(beban) bukan operasional - neto 20,413,018 89,806 194,266 (19,947) (1,077,744) Laba sebelum beban pajak Beban pajak 20,628,743 215,725 (11) 89,795 (550) 193,716 2,870 (17,077) (9,700) (1,068,044) 3,282 (1,074,462) Laba bersih Konsolidasi/ Consolidated 35,446,315 1,711,857 11,612,599 (7,388,411) (21,782,961) 19,599,399 221,316 Interest income and sharia income - net Premium income - net Other operating income Allowance for impairment losses Other operating expenses Operating income Non operating income/ (expenses) - net 19,820,715 Income before tax expense (4,728,952) Tax expense 15,091,763 Net income Total aset 743,710,818 13,441,559 9,532,597 52,510,321 (10,623,284) 808,572,011 Total assets Total liabilitas 598,014,810 13,509,917 9,566,788 52,538,384 (2,392,353) 671,237,546 Total liabilities 2017 Indonesia Pendapatan bunga dan pendapatan syariah - neto Pendapatan premi - neto Pendapatan operasional lainnya Pembentukan cadangan kerugian penurunan nilai Beban operasional lainnya 31,142,962 1,767,568 New York 130,948 - Eropa/ Europe Penyesuaian dan eliminasi/ Adjustment and elimination Asia 158,442 - 507,488 - Konsolidasi/ Consolidated (2,077) 31,937,763 - 1,767,568 11,774,879 63,987 43,698 193,404 (7,049,506) (20,339,348) (2,828) (103,366) (78,994) (74,001) (341,648) 466,964 (7,126,335) (20,396,392) Laba operasional Pendapatan/(beban) bukan operasional - neto 17,296,555 88,741 123,146 285,243 (571,022) 17,222,663 Laba sebelum beban pajak Beban pajak 17,242,909 (53,646) (4,581) 84,160 (1,035) 122,111 (91) 285,152 (1,035,909) 2,077 (568,945) Laba bersih 11,040,059 (57,276) Interest income and sharia income - net Premium income - net Other operating income Allowance for impairment losses Other operating expenses Operating income Non operating income/ (expenses) - net 17,165,387 Income before tax expense (3,394,795) Tax expense 13,770,592 Net income Total aset 660,944,862 11,616,832 6,592,212 39,964,454 (9,788,276) 709,330,084 Total assets Total liabilitas 528,128,961 11,629,742 6,573,922 39,726,016 (1,971,823) 584,086,818 Total liabilities 204 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1019
  1020. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 49. MANAJEMEN RISIKO 49. RISK MANAGEMENT Risiko dalam konteks perbankan merupakan suatu potensi kejadian, baik yang diperkirakan (expected) maupun yang tidak diperkirakan (unexpected) yang berdampak negatif terhadap pendapatan dan permodalan bank. Risks in the context of banking is a potential event, which is either estimated (expected) and not estimated (unexpected) that can give negative impact to the Bank’s earnings and capital. Manajemen risiko adalah serangkaian metodologi dan prosedur yang digunakan untuk mengidentifikasi, mengukur, memantau, dan mengendalikan risiko yang timbul dari seluruh kegiatan usaha Bank, termasuk upaya untuk memitigasi dan/atau meminimalkan kerugian finansial maupun non-finansial yang mungkin timbul dari produk atau aktivitas bank, hubungan antara bank dengan nasabah maupun dalam internal bank. Risk management is a set of methodologies and procedures used to identify, measure, monitor, or control the risks arising from the entire Bank's business activities, including the efforts to mitigate and/or minimize financial or non-financial losses that may arise from products or activities of the Bank, the relationship between the Bank and its customer and also within the internal Bank. Penerapan manajemen risiko di BNI berpedoman pada Peraturan Otoritas Jasa Keuangan (POJK) No. 18/POJK.03/2016 tanggal 16 Maret 2016, Surat Edaran Otoritas Jasa Keuangan (SEOJK) No. 34/SEOJK.03/2016 tanggal 7 September 2016 tentang Penerapan Manajemen Risiko bagi Bank Umum, dan pada Peraturan OJK (POJK) No. 17/POJK.03/2014 tanggal 18 November 2014, serta Surat Edaran Otoritas Jasa Keuangan (SEOJK) No. 14/SEOJK.03/2015 tanggal 25 Mei 2015 tentang Penerapan Manajemen Risiko Terintegrasi bagi Konglomerasi Keuangan, mengingat Bank merupakan bagian dari sektor jasa keuangan yang memiliki beberapa perusahaan anak yang tergabung dalam suatu konglomerasi keuangan, serta secara internasional berpedoman pada dokumen dari Basel Committee on Banking Supervision (BCBS). The implementation of risk management in BNI is based on the Financial Services Authority Regulation (POJK) No. 18/POJK.03/2016 dated 16 March 2016, Financial Services Authority regulation (SEOJK) No. 34/SEOJK.03/2016 dated 7 September 2016 about the implementation of Risk Management for Commercial Bank, and the Financial Services Authority regulations POJK No. 17/POJK.03/2014 dated November 18 2014 also SEOJK No. 14/SEOJK.03/2015 dated May 25 2015 about the implementation of integrated Risk Management for Financial Conglomeration, considering that the Bank is part of the financial services sector that has several subsidiary companies incorporated in a financial conglomerate, and also internationally uses the Basel Committee on Banking Supervision (BCBS) documents as guidelines. Penerapan Manajemen Risiko didasari oleh kebutuhan akan keseimbangan fungsi bisnis dengan pengelolaan risiko, dimana Manajemen Risiko menjadi strategic partner dari Unit Bisnis untuk mengoptimalkan pendapatan dari Unit Bisnis secara keseluruhan. The Risk Management implementation is based on the need to maintain balance between the business functions with the risk management, where Risk Management becoming a strategic partner for the Business Units to optimize the revenue from the Business Unit as a whole. 205 1020 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1021. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 49. MANAJEMEN RISIKO (lanjutan) 49. RISK MANAGEMENT (continued) Implementasi manajemen risiko dilakukan melalui 4 (empat) pilar penerapan manajemen risiko yaitu: (i) Pengawasan aktif direksi dan dewan komisaris; (ii) Kecukupan kebijakan, dan prosedur manajemen risiko serta penetapan limit risiko; (iii) Kecukupan proses identifikasi, pengukuran, pemantauan, dan pengendalian risiko serta Sistem Informasi Manajemen Risiko, dan (iv) Sistem pengendalian internal yang menyeluruh. Penerapan manajemen risiko di BNI secara umum terangkum dalam kerangka (framework) manajemen risiko. Kerangka manajemen risiko ini dituangkan dalam kebijakan, prosedur, limit-limit transaksi, kewenangan dan ketentuan lain serta diaplikasikan dalam perangkat manajemen risiko, yang berlaku di seluruh lingkup aktivitas usaha. Risk management ie. implemented through the 4 (four) pillars of risk management: (i) Active control from board of directors and board of Commissioners; (ii) The adequacy of policies and risk management procedures and, ie. risk limit determination; (iii) The adequacy of identification, measurement, monitoring, and risk control and Risk Management Information Systems, and (iv) Internal control systems. Implementation of risk management in BNI is undertaken within the risk management framework. This risk management framework is outlined in the policies, procedures, transaction limits, authorities and other regulations as well as being applied in the risk management tools, which is applicable in the whole scope of business activities. Secara berkala dilakukan evaluasi terhadap kebijakan dan prosedur manajemen risiko agar sesuai dengan perkembangan bisnis dan perubahan regulasi. Periodic evaluation is applied to Risk Management Policies and Procedures to ensure it reflects the Bank’s current business and regulations. Agar penerapan manajemen risiko dapat berjalan secara efektif, BNI menyusun Risk Governance sebagai bagian dari sistem Tata Kelola Perusahaan (Corporate Governance) yang fokus pada struktur, proses dan pendekatan pengelolaan risiko dalam upaya pencapaian tujuan bisnis. Risk Governance is formed to enforce the effectiveness of Risk Management Implementation, and as a part of Corporate Governance system, which focuses on structure, process and approach to risk management in achieving the business goals. Inisiatif dan langkah-langkah penyempurnaan telah dilakukan untuk meletakkan landasan yang kuat dalam manajemen risiko di BNI yang mencakup aspek-aspek organisasi, strategi, sistem informasi dan operasi, serta pengembangan sumber daya manusia. BNI juga telah melakukan langkahlangkah antisipatif yang menyentuh aspek humanis dan personal setiap individu BNI, yaitu dengan membangun budaya risiko yang kuat yang merupakan bagian dari budaya perusahaan BNI. BNI terus berupaya untuk meningkatkan budaya risiko segenap insan BNI agar tercipta budaya risiko yang kuat. Initiatives and corrective actions have been taken to build a solid foundation for BNI’s risk management, covering aspect of organization, strategies, information system and operations, and human capital. BNI has taken some anticipatory actions related to humanity and personal aspects of each individual of BNI by implementing risk culture enhanchement to build a strong risk culture that is part of the BNI’s company culture. BNI constantly strive to improve employee’s risk culture in order to create a strong risk culture. Terkait dengan produk atau aktivitas baru yang akan diterbitkan, penilaian (assessment) yang komprehensif dilakukan terhadap risiko yang melekat pada produk atau aktivitas baru untuk memastikan bahwa potensi risiko yang mungkin timbul telah dimitigasi dengan baik. Related to new product or activity, a comprehensive assessment for each of inherent risk in those new product or activity is done to ensure the potential risk that may occur is mitigated. 206 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1021
  1022. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 49. MANAJEMEN RISIKO (lanjutan) 49. RISK MANAGEMENT (continued) Pengelolaan risiko kredit, risiko likuiditas, risiko pasar dan operasional BNI sebagaimana diuraikan pada Catatan 50 sampai dengan Catatan 53 adalah sesuai dengan definisi dari Regulator. The management of BNI’s credit, liquidity, market and operational risks, as described in Notes 50 to 53 are consistent with Regulator’s definition. BNI juga melakukan pengelolaan terhadap risiko lainnya sesuai aturan Regulator, yaitu (i) risiko hukum untuk mengurangi kemungkinan kerugian dari tuntutan hukum atau kelemahan aspek yuridis seperti ketiadaan peraturan perundang-undangan yang mendukung atau kelemahan perikatan seperti tidak dipenuhinya syarat sahnya kontrak atau pengikatan agunan yang tidak sempurna.; (ii) risiko reputasi untuk mengurangi kemungkinan kerugian akibat menurunnya tingkat kepercayaan pemangku kepentingan (stakeholder) yang bersumber dari persepsi negatif terhadap Bank; (iii) risiko stratejik untuk mengurangi kemungkinan kerugian akibat ketidaktepatan dalam pengambilan dan/ atau pelaksanaan suatu keputusan stratejik serta kegagalan dalam mengantisipasi perubahan lingkungan bisnis; dan (iv) risiko kepatuhan untuk mengurangi kemungkinan kerugian karena Bank tidak mematuhi atau tidak melaksanakan peraturan perundang-undangan dan ketentuan. BNI also has risk management for other risks as regulated by Regulator, as follows (i) legal risk to minimize possible losses from lawsuits or weakness in juridical aspects such as the absence of laws and regulations, or weaknesses such as noncompliance with the terms of the engagements validity of contracts or binding of imperfect collaterals; (ii) reputation risk to minimize possible losses due to stakeholder’s declining levels of trust which comes from the negative perception of the Bank; (iii) strategic risk to minimize possible losses arising from inappropriate or improper implementation of Bank’s strategy and business decisions, or strategy that is not responsive to external changes; and (iv) compliance risk to minimize possible losses of the Bank from noncompliance or failure to implement the prevailing laws and regulations. Upaya-upaya yang dilakukan untuk mengelola risiko hukum, risiko reputasi, risiko stratejik dan risiko kepatuhan seperti tersebut di atas diantaranya adalah: The initiatives taken to manage legal risk, reputation risk, strategic risk and compliance risk as described above, among others, are as follows: • • • • • • • • Mengelola Pedoman Perusahaan untuk manajemen risiko hukum, risiko reputasi, risiko stratejik, dan risiko kepatuhan; Melakukan analisis aspek risiko hukum dan uji kepatuhan terhadap produk atau aktivitas existing dan baru; Melakukan supervisi dan review secara berkala terhadap perjanjian atau kontrak yang telah dibuat dan dilaksanakan oleh unit-unit bisnis; Mengelola dan mengoptimalkan fungsi sarana Online Customer Complaint (OCC) serta pelaporannya, selanjutnya menyelesaikan permasalahan tersebut sesuai ketentuan yang berlaku; Mengelola jumlah pemberitaan negatif yang ada di media, baik media cetak maupun media elektronik dan menindaklanjuti pemberitaan tersebut sesuai dengan ketentuan yang berlaku. Melakukan perencanaan strategis melalui serangkaian proses untuk penyelarasan strategi perusahaan dengan strategi unit; Melakukan sertifikasi kepatuhan terhadap kebijakan dan prosedur sesuai dengan ketentuan yang berlaku. • Manage Operational Guidance Manual for legal risk, reputation risk, strategic risk, and compliance risk; Analysis of the legal aspects and compliance test for existing and new product or activities; • Conduct assessment and analysis of the agreements or contracts entered into and executed by the business units; • Manage and optimize Online Customer Complaint (OCC), including its reporting, in order to solve such problems based on prevailing policies; • Managing the amounts of negative news on media, whether printed or electronic media, and follow up the proclamation in accordance with the prevailing policies. • The strategic planning done through a series of strategic planning process to align the corporate strategy and strategy unit; Compliance certification to all policies and procedures in accordance with applicable regulations. • 207 1022 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1023. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 49. MANAJEMEN RISIKO (lanjutan) 49. RISK MANAGEMENT (continued) Sesuai dengan Surat Edaran OJK No.14/SEOJK.03/2015, BNI selaku Entitas Utama Konglomerasi Keuangan wajib menerapkan Manajemen Risiko Terintegrasi secara komprehensif dan efektif. Tujuan penerapan manajemen risiko terintegrasi tersebut yaitu untuk mengelola seluruh risiko yang melekat pada aktivitas/kegiatan usaha konglomerasi keuangan BNI serta menciptakan keunggulan kompetitif dan memelihara pertumbuhan yang berkesinambungan sehingga dapat meningkatkan nilai (shareholder value) konglomerasi keuangan BNI secara keseluruhan. In accordance with the Circular Letter of Financial Services Authority regulations (SEOJK) No. 14/SEOJK.03/2015, BNI as parent entity financial conglomeration have to implement the integrated risk management comprehensively and effectively. The purpose of the implementation of integrated risk management implementation is to manage the whole inherent risks in financial conglomeration business activity, also to create competitive advantages and maintain sustainable growth, so that it can increase the financial conglomeration shareholder value of BNI as a whole. Secara umum seluruh Lembaga Jasa Keuangan (LJK) anggota Konglomerasi Keuangan BNI, baik BNI sebagai LJK Induk (Entitas Utama) dan masing-masing LJK Anak telah menerapkan manajemen risiko, antara lain dengan membentuk unit risiko pada masing-masing LJK. Manajemen risiko pada masing-masing LJK Anak secara operasional dilakukan terpisah dari unit bisnis dan menjalankan fungsinya secara independen. Untuk mendukung penerapan manajemen risiko, pada organisasi LJK Anak juga dibentuk unit/ fungsi intern yang melakukan pemantauan kepatuhan terhadap kontrol internal secara rutin dan berkala. Generally, all of the Financial Services Institutions (FSI) as part of the BNI Financial Conglomeration, where BNI as the Parent FSI (Main Entity) and each Subsidiaries FSI have implemented risk management, among others by establishing a risk unit in each FSI. Risk management in each FSI is operating separately from the business unit and conducts its function independently. To support the implementation of risk management, the FSI have established internal control units/function in their organizational structure, which monitor the compliance with internal controls regularly and periodically on a regular basis. Disamping itu, Dewan Komisaris dan Direksi pada masing-masing LJK Anak secara aktif juga melakukan pemantauan, dan evaluasi melalui laporan-laporan yang disampaikan oleh setiap LJK Anak untuk selanjutnya digunakan sebagai salah satu bahan pertimbangan dalam menetapkan kebijakan pada LJK Anak. In addition, the Boards of Commissioners and Directors of the respective Subsidiaries actively monitor and evaluate the internal controls of the Subsidiaries, through the reports submitted by the respective Subsidiaries, as a basis in formulating and developing appropriate policies for the Subsidiaries. BNI selaku Entitas Utama telah melakukan koordinasi dengan LJK Anak untuk menerapkan manajemen risiko sesuai ketentuan Otoritas Jasa Keuangan, antara lain dengan melakukan pemantauan dan pengukuran risiko yang dituangkan dalam bentuk penilaian Kecukupan Penyediaan Modal Minimum (KPMM) Konsolidasi, KPMM Terintegrasi, penilaian Tingkat Kesehatan Bank (TKB) konsolidasi, serta penilaian Profil Risiko Konsolidasi dan penilaian Profil Risiko Terintegrasi Konglomerasi Keuangan BNI. As the Parent Entity, BNI coordinates with its FSI Subsidiaries regarding the implementation of risk management policies as defined by Indonesia Financial Services Authority, among others by implementing risk monitoring and measurement in the form of consolidated Capital Adequacy Ratio (CAR) assessment, integrated Capital Adequacy Ratio (CAR) assessment, Bank’s consolidated soundness rating consolidated assessment, and also integrated risk profile assessment on BNI Financial Conglomeration. Penilaian profil risiko BNI menggambarkan risiko yang melekat dalam kegiatan bisnis Bank (inherent risk) termasuk kualitas penerapan Manajemen Risiko yang mencerminkan sistem pengendalian risiko (risk control system) untuk masing-masing jenis risiko. Penilaian Profil Risiko BNI telah dilakukan sesuai dengan lampiran SEOJK No. 14/SEOJK.03/2017 tentang Penilaian Tingkat Kesehatan Bank Umum. The risk profile assessment of BNI reflects the inherent risk of the Bank’s business, including the risk control system for each type of risk. The risk profile of BNI has been performed based on attachement of SEOJK No. 14/SEOJK.03/2017 about the Bank’s soundness rating assessment. 208 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1023
  1024. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 49. MANAJEMEN RISIKO (lanjutan) 49. RISK MANAGEMENT (continued) Penilaian Profil Risiko Terintegrasi merupakan penilaian terhadap 10 (sepuluh) jenis Risiko berdasarkan Risiko Inheren dan Kualitas Penerapan Manajemen Risiko (KPMR) terintegrasi. Kesepuluh jenis Risiko tersebut adalah Risiko Kredit, Risiko Pasar, Risiko Likuiditas, Risiko Operasional, Risiko Hukum, Risiko Reputasi, Risiko Stratejik, Risiko Kepatuhan, Risiko Transaksi IntraGrup dan Risiko Asuransi. Penilaian Profil Risiko BNI Terintegrasi tersebut telah dilakukan sesuai dengan lampiran SE OJK No. 14/SEOJK.03/2015 tanggal 25 Mei 2015 tentang Penerapan Manajemen Risiko Terintegrasi bagi Konglomerasi Keuangan. Integrated Risk Profile assessment is the assessment of the 10 (ten) types of risks based on on Inherent Risks and the integrated Implementation of Risk Management Quality (KPMR). The ten types of risks being assessed are Credit Risk, Market Risk, Liquidity Risk, Operational Risk, Legal Risk, Reputation Risk, Strategic Risk, Compliance Risk, Intra Group Transactions Risk and Risk Insurance. Assessment of the Integrated Risk Profile has complied with the SE OJK No. 14/SEOJK.03/2015 dated 25 May 2015 about Integrated Risk Management Implementation for Financial Conglomerate. Penilaian Profil Risiko Terintegrasi dilakukan Semesteran. Berdasarkan hasil laporan terakhir secara penilaian sendiri (self assessment), peringkat risiko inheren posisi 31 Desember 2018 adalah low to moderate dengan peringkat kualitas penerapan manajemen risiko yang memadai (satisfactory) sehingga peringkat komposit Profil Risiko Konglomerasi Keuangan BNI adalah 2 (low to moderate) (tidak diaudit). Integrated risk profile assessment is conducted semi annually. Based on the results of the last selfassessment, the inherent risk rank of BNI as of as of 31 December 2018 is low to moderate with the quality of the risk management implementation rank is satisfactory, therefore the composite rank of BNI’s Risk Profile as financial conglomeration is 2 (low to moderate) (unaudited). 50. RISIKO KREDIT 50. CREDIT RISK Pengelolaan kredit Bank diarahkan untuk melakukan ekspansi kredit dan mengelola kualitas setiap kredit sejak saat diberikan sampai dengan dilunasi untuk mencegah kredit tersebut menjadi kredit bermasalah (Non-Performing Loan/NPL). Pengelolaan kredit yang efektif dapat meminimalkan kerugian dan mengoptimalkan penggunaan modal yang dialokasikan untuk risiko kredit. The Bank’s loan management is aimed to support the loan expansion and to manage the quality of each loan from the time the loan was granted until the loan is fully repaid by the debtors, to prevent the loan becoming a Non-Performing Loan (NPL). Effective loan management is intended to minimize the risk of losses and optimize the use of capital allocated for credit risk. Tujuan pengelolaan risiko kredit BNI selain untuk memenuhi persyaratan-persyaratan yang telah ditetapkan oleh peraturan Bank Indonesia dan peraturan Otoritas Jasa Keuangan adalah untuk mengelola kemungkinan kerugian yang timbul akibat debitur gagal bayar atas pinjaman atau fasilitas kredit yang diberikan dan kontrak keuangan lainnya seminimal mungkin, baik pada tingkat individu maupun portofolio kredit secara keseluruhan. The purpose of BNI’s credit risk management other than to comply with Bank Indonesia and Financial Services Authority regulations is to manage the possible losses resulting from the debtors failure to pay loans or credit facility and other financial contracts at the minimum level, both on the individual and loan portfolio level. 209 1024 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1025. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 50. RISIKO KREDIT (lanjutan) 50. CREDIT RISK (continued) BNI telah memiliki kebijakan dan prosedur perkreditan serta manajemen risiko kredit, yang diputuskan melalui forum Komite Kebijakan Perkreditan (KKP), Komite Prosedur Perkreditan (KPP), Komite Risiko dan Kapital sub Komite Manajemen Risiko (KRK-RMC) yang beranggotakan Direksi dan beberapa anggota manajemen senior serta Rapat Direksi (Radisi) dan disetujui oleh Dewan Komisaris, juga secara tertulis dituangkan dalam Pedoman Perusahaan (PP) Perkreditan dan Pedoman Perusahaan Manajemen Risiko Kredit. BNI already has loan policies, credit and credit risk management procedures that was decided in the Credit Policy Committee (KKP) and Credit Procedures Committee (KPP), Risks and Capital Committee sub division of Risk Management (KRKRMC) consisting of Board of Directors and several members of senior management, and also Board of Directors meetings, also as written in the Credit Company Guidelines (PP) and Credit Risk Management Company Guidelines. Pedoman Perusahaan (PP) Perkreditan tersebut memberikan pedoman secara lengkap dan terperinci atas kegiatan manajemen kredit dari saat pengajuan kredit, proses analisis, persetujuan, pemantauan, pendokumentasian, pengendalian penyelamatan/ restrukturisasi dan penyelesaian kredit bermasalah, sehingga kualitas kredit dapat terjaga dengan tetap memperhatikan target bisnis yang ditetapkan. These Credit Company Guidelines (PP) provide complete and detailed guidance on loan management activities from loan proposal, analysis process, approval, monitoring, documentation, controls, restructuring and the settlements of nonperforming loans, so that credit quality can be maintained by taking into account the business targets set. Dalam rangka mendukung proses pemberian kredit yang lebih hati-hati, BNI melakukan penelaahan dan penyempurnaan kebijakan perkreditan dan kebijakan manajemen risiko kredit secara periodik sesuai dengan perkembangan bisnis terkini. To support a prudent loan granting process, BNI conducts periodic reviews and enhances its loan and credit risk management policies in line with current business developments. Pengelolaan risiko kredit diterapkan pada tingkat individu dan tingkat portofolio. Pada tingkat individu pinjaman untuk kredit produktif, setiap usulan pemberian kredit dilakukan melalui proses analisis kredit oleh Unit Bisnis dan direview oleh unit risiko kredit. Mekanisme persetujuan kredit dilakukan melalui rapat Komite Kredit. Komite Kredit merupakan lembaga pemutus kredit yang Beranggotakan pemutus dari Unit Bisnis dan Unit Risiko Bisnis, dengan demikian proses pemberian kredit menjadi lebih komprehensif dan hati-hati. Credit risk management is implemented both at the individual and portfolio level. At the individual level, for productive loans, each loan proposal is made through a process of analysis by the Business Unit and being review by the credit risk unit. The credit approval process mechanism is through a credit committee meeting. The credit committee constitutes the decision maker for credit approval, which consists of representatives from Business Units and representatives from the Credit Risk Unit, so then the loan granting process become more comprehensive and cautious. Untuk mempercepat proses ekspansi bisnis segmen Kecil, fungsi pemasaran dan proses analisa kredit dilakukan oleh Relationship Manager yang berada di bawah unit bisnis yaitu dengan melakukan analisa bisnis dan analisa Risiko serta memberikan mitigasi Risiko yang diperlukan terhadap calon debitur yang diusulkan. To accelerate the process of business expansion in a small segment, the marketing and credit function is performed by the Relationship Manager under the business unit by conducting business analysis and risk analysis as well as providing risk mitigation against the proposed debtor candidate. Adapun untuk segmen Menengah dan Korporasi dilakukan oleh Senior Relationship Manager dan Relationship Manager yang berada di unit bisnis dengan tugas memproses usulan dari calon debitur, sementara analisis dan review risiko calon debitur di segmen Korporasi dan Menengah dilakukan oleh fungsi Credit Risk Manager yang berada di bawah Unit Risiko. As for the Middle and Corporate segment are performed by Senior Relationship Managers and Relationship Managers who are in the business unit have the task of processing the proposals from perspective debtors, while the analysis and risk review of prospective debtors in the Corporate and Middle segment are performed by Credit Risk Manager who is under the Risk Unit. 210 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1025
  1026. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 50. RISIKO KREDIT (lanjutan) 50. CREDIT RISK (continued) Penerapan four eyes principles dalam proses perkreditan di BNI diimplementasikan dalam proses persetujuan kredit yang dilakukan melalui Komite Kredit, yaitu forum bersama pejabat pemutus kredit yang mempunyai wewenang memutus kredit yang diusulkan sesuai dengan limit yang ditetapkan. Anggota Komite Kredit terdiri dari pejabat unit bisnis dan unit risiko bisnis. Dengan demikian proses pemberian kredit menjadi lebih komprehensif dan hati-hati The application of four eyes principles in the lending process at BNI is implemented in the credit approval process through credit committees, which joint forum of credit decision makers who have the authority to decide the credit in accordance with the specified limit. The members of the credit committee consist of business unit officers and business risk unit officers. Thus the process of granting credit becomes more comprehensive and cautious. Unit bisnis dan unit risiko bisnis berperan sebagai first line of defense (risk owner) yang bertugas mengelola dan mengendalikan risiko kredit pada kegiatan operasional harian unit tersebut. Business units and business risk units act as first line of defense (risk owner) in charge of managing and controlling credit risk in daily operations of the unit. Proses analisis dan persetujuan kredit dilakukan melalui serangkaian proses penilaian tingkat risiko kredit calon debitur, yang diantaranya dengan menggunakan internal rating system (untuk kredit produktif) dan scoring system (untuk kredit konsumtif dan kredit produktif segmen ritel), sekaligus juga strategi mitigasi risikonya. Hasil proses analisis dan penilaian tingkat risiko kredit kemudian diajukan kepada Komite Kredit untuk mendapatkan persetujuan. Loan analysis and approval process is conducted through several assessment processes of the applicant’s credit risks, i.e. through internal rating system (for productive loans) and scoring system (for consumer and retail loans), followed by the related risk mitigation strategy. The results of the credit analysis and risk assessment process will be forwarded to the Credit Committee for approval. Kredit yang bermasalah dikelola oleh Divisi Penyelamatan dan Penyelesaian Kredit Korporasi untuk segmen Korporasi dan Divisi Penyelamatan dan Penyelesaian Kredit Komersial dan Usaha Kecil untuk segmen menengah dan kecil, agar penyelamatan/ penyelesaian kredit dapat dilakukan secara lebih baik dan memampukan Unit Usaha untuk dapat fokus pada pengelolaan debitur lancar dan melakukan ekspansi kredit. Non-performing loan is managed by a Corporate Remedial and Recovery Division for corporate segment and Commercial Remedial and Recovery Division for middle and small segment, to ensure better credit recovery and settlement, and to enable the Business Unit to focus on the management of performing debtors and loan expansion. Untuk menjaga agar portofolio bank tidak terkonsentrasi pada debitur dan sektor ekonomi tertentu, maka telah ditetapkan pembatasan kredit sesuai risk appetite, sedangkan untuk mengantisipasi pelampauan BMPK BNI telah menetapkan limit BMPK yang disebut house limit dengan batas yang lebih prudent dibandingkan limit BMPK sesuai ketentuan regulator. To prevent the Bank portfolio from being concentrated to certain debtors and economic sectors, credit restrictions have been set according to the risk appetite, while to anticipate exceeding the Legal Lending Limit, BNI has set limits on the Maximum Limit of Credit License called House Limit with a more prudent limit than the limit of Maximum Credit Granting in accordance with the provisions of the regulator. 211 1026 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1027. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 50. RISIKO KREDIT (lanjutan) 50. CREDIT RISK (continued) Untuk mengatur komposisi portofolio pinjaman BNI, setiap tahun sekali ditetapkan batas maksimum pinjaman (Loan Exposure Limit) yang bertujuan untuk mendiversifikasi portofolio pinjaman berdasarkan sektor industri untuk mengoptimalkan pendapatan dengan mempertimbangkan risiko di masing-masing sektor industri serta mengurangi risiko konsentrasi. Dalam penentuan konsentrasi tiap sektor industri yang optimal, Bank mengembangkan metode Credit Portofolio Optimisation (CPO) dengan memperhitungkan korelasi risk-return dari tiap sektor industri. Selanjutnya Bank memonitor status kelonggaran ekspansi pinjaman (space available) secara periodik berdasar Loan Exposure Limit (LEL). To manage the composition of BNI portfolio, the loan exposure limit is determined annually to diversify loan portfolio among different industry sectors in order to optimize return regarding risk in each sector and to reduce concentration risk. In the determination of optimal concentration in industry sectors, the Bank has developed a method of Credit Portfolio Optimisation by calculating the correlation of risk return from each industry sectors. Furthermore, the Bank monitors the status of the space available based on Loan Exposure Limit (LEL) periodically. Pengembangan manajemen risiko kredit dilakukan secara bertahap sesuai dengan kerangka kerja yang ditetapkan Bank Indonesia/Otoritas Jasa Keuangan. Khusus untuk pengukuran risiko kredit, BNI menggunakan metode standar. Selanjutnya, BNI juga mempersiapkan dan mengembangkan metodologi rating internal. Saat ini BNI sedang mempersiapkan parameter risiko yang akan digunakan dalam perhitungan risiko kredit seperti Probability of Default, Loss Given Default dan Exposure at Default. The development of credit risk management is conducted in stages, and inline with the framework set by Bank Indonesia/Financial Services Authority. Specifically for measuring credit risk, BNI utilizes the standardized approach methodology. Furthermore, BNI also prepares and develops internal ratings-based methodology. Currently BNI prepares risk parameters, which will be used in the calculation of credit risk such as Probability of Default, Loss Given Default and Exposure at Default. Sebagai bagian dari pengukuran risiko kredit dan untuk mengantisipasi terjadinya perubahan faktor makro yang berpengaruh pada bank, BNI secara berkala melakukan stress testing risiko kredit untuk menilai perubahan portofolio kredit dan pengaruhnya bagi bank serta kemampuan bank menghadapi kondisi tersebut As part of the measurement of credit risk and to anticipate the occurrence of macro-factor changes affecting the Bank, BNI periodically performs stress testing of credit risk to assess changes in loan portfolio and its impact to the bank and the Bank’s ability to face the condition. (i) (i) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya Maximum exposure of the credit risk before collateral held and other credit enhancements 212 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1027
  1028. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 50. RISIKO KREDIT (lanjutan) (i) 50. CREDIT RISK (continued) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) (i) Maximum exposure of the credit risk before collateral held and other credit enhancements (continued) Eksposur risiko kredit terhadap aset-neto sesudah cadangan kerugian penurunan nilai pada laporan posisi keuangan konsolidasian pada tanggal-tanggal 31 Desember 2018 dan 2017 adalah sebagai berikut: Credit risk exposures relating to the assets-net of allowance for possible losses on the consolidated statement of financial position as of 31 December 2018 and 2017 are as follows: Eksposur maksimum/ Maximum exposure Keterangan Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek - Nilai wajar melalui laporan laba rugi - Tersedia untuk dijual - Dimiliki hingga jatuh tempo Efek-efek yang dibeli dengan janji dijual kembali Wesel ekspor dan tagihan lainnya Tagihan akseptasi Tagihan derivatif Pinjaman yang diberikan Obligasi Pemerintah - Nilai wajar melalui laporan laba rugi - Tersedia untuk dijual - Dimiliki hingga jatuh tempo Penyertaan saham Aset lain-lain - neto*) Neto *) 2018 2017 Description 35,591,243 13,133,828 32,700,717 21,335,150 39,324,445 28,592,738 7,249,384 23,736,028 1,058,858 8,429,705 26,788,760 831,434 24,586,862 20,295,277 605,248 497,886,888 679,122 15,700,925 18,106,412 216,884 426,789,981 3,350,496 60,282,900 23,158,006 603,923 9,978,489 2,936,420 56,236,777 20,676,255 713,423 8,905,714 Current accounts with Bank Indonesia Current accounts with other banks Placements with other banks and Bank Indonesia Marketable securities Fair value through profit or loss Available-for-sale Held-to-maturity Securities purchased under agreements to resell Bills and other receivables Acceptances receivables Derivative receivables Loans Government Bonds Fair value through profit or loss Available-for-sale Held-to-maturity Equity investments Other assets - net*) 760,841,875 669,640,417 Net Aset lain-lain - neto terdiri dari piutang bunga, piutang terkait transaksi ATM dan kartu kredit, piutang lain-lain dan piutang premi asuransi. *) Eksposur risiko kredit terhadap rekening administratif konsolidasian pada tanggaltanggal 31 Desember 2018 dan 2017 adalah sebagai berikut: Other assets - net consist of interest receivables, receivables from transactions related to ATM and credit card, other receivables and insurance premium receivables. Credit risk exposures relating to consolidated administrative accounts ítems as of 31 December 2018 and 2017, are as follows: Eksposur maksimum/ Maximum exposure Keterangan 2018 2017 Description Fasilitas kredit kepada debitur yang belum digunakan (commited) Irrevocable letters of credit yang masih berjalan Garansi bank yang diterima Garansi yang diterbitkan 689,594 1,085,328 12,455,507 17,433,672 61,767,468 11,630,453 18,032,492 59,468,396 Unused loan facilities (commited) Outstanding irrevocable letters of credit Bank guarantees received Guarantees issued Total 92,346,241 90,216,669 Total 213 1028 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1029. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 50. RISIKO KREDIT (lanjutan) (i) 50. CREDIT RISK (continued) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) (i) Maximum exposure of the credit risk before collateral held and other credit enhancements (continued) Tabel di atas menggambarkan eksposur maksimum atas risiko kredit bagi Grup pada tanggal 31 Desember 2018 dan 2017, tanpa memperhitungkan agunan atau pendukung kredit lainnya. Untuk aset laporan posisi keuangan konsolidasian, eksposur di atas ditentukan berdasarkan nilai tercatat neto seperti yang diungkapkan pada laporan posisi keuangan konsolidasian. The table above represents credit risk exposures of the Group as of 31 December 2018 and 2017, without taking into account any collaterals held or other credit enhancements. For assets on the consolidated statement of financial position, the exposures set out above are based on net carrying value as reported in the consolidated statement of financial position. Pada tanggal 31 Desember 2018 dan 2017, masing-masing sebesar 65,44% dan 63,73% adalah jumlah eksposur risiko kredit maksimum terhadap aset pada laporan posisi keuangan konsolidasian yang berasal dari pinjaman yang diberikan. As of 31 December 2018 and 2017, maximum credit risk exposure consolidated statement of financial from loans is 65,44% and respectively. Manajemen yakin akan kemampuan Bank 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 control and sustain exposure of credit risk to the Bank resulting from its loans based on the following: • • • • • Proses peningkatan pengelolaan kredit secara berkelanjutan melalui penyempurnaan proses kredit, pengembangan produk penyempurnaan organisasi perkreditan, peningkatan kemampuan SDM di bidang perkreditan dan pengembangan perangkat kredit berbasis teknologi. BNI 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. BNI telah menetapkan risk appetite dan risk tolerance yang selaras dengan sasaran strategis Bank, yang digunakan sebagai acuan tingkat risiko yang akan diambil Bank dalam pencapaian sasaran bisnis. BNI telah melakukan stress test risiko kredit untuk menilai kemampuan Bank bertahan dalam kondisi tidak normal serta sebagai alat untuk pengambilan keputusan Bank. • the total in the position 63.73%, The process of improving credit management in a sustainable manner by improving credit processes, product development credit organization improvement, credit capability improvement of human resources and development of technology based for credit application. BNI has documented credit policies and manual procedures that cover all aspects of the Bank’s lending activities. Each loan transaction must adhere to the requirements of the Bank’s policy. • BNI has set risk appetite and risk tolerance in accordance with the Bank’s strategic objectives, which are used as a reference level of risk to be taken by the Bank in achieving business goals. • BNI has performed stress test on credit risk to assess the ability of Bank to stay in the non-normal condition and as an instrument for decision making for the Bank. 214 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1029
  1030. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 50. RISIKO KREDIT (lanjutan) (i) 50. CREDIT RISK (continued) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) • • (i) BNI 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 loans dan fasilitas antar bank. Maximum exposure of the credit risk before collateral held and other credit enhancements (continued) • • BNI has an early problem detection system through “early warning system” and disciplined monitoring. All loans are secured by collaterals, except for certain loans such as credit cards, personal loans and interbank loans. (ii) Analisa eksposur maksimum terhadap risiko kredit setelah memperhitungkan dampak agunan dan mitigasi risiko kredit lainnya (ii) Analysis of maximum exposure to credit risk after taking into account the impact of collateral and other credit risk mitigation. BNI menentukan struktur kredit termasuk penentuan covenant yang tepat sesuai kebutuhan dan kondisi debitur, sehingga kredit yang diberikan benar-benar efektif dan menguntungkan bagi debitur maupun Bank. Jenis agunan yang yang dimiliki oleh Bank adalah kas, deposito, agunan yang diikat dengan hipotik dan hak tanggungan, garansi/ penjaminan pihak ketiga (termasuk penjaminan kredit oleh perusahaan asuransi) serta jaminan dalam bentuk aset lainnya. Perkiraan nilai wajar dari agunan yang digunakan oleh Bank didasarkan pada nilai agunan yang dinilai oleh penilai internal maupun eksternal BNI sets loan structure for every debtor through appropriate covenants that aligns with debtor needs and condition. This is to ensure the debtor uses the loan according to original purpose so that the Bank and the debtor's interest are fulfilled. Collateral types held by the Bank are cash, deposits, registered mortgages, guarantees and other registered securities over assets. Estimates of fair value of collaterals held by the Bank is based on the value of collaterals assessed internally or externally by the independent appraisers Ketentuan coverage atau kecukupan agunan untuk tiap segmen ditentukan sebagai berikut: The collateral coverage criteria for each segment is divided as follows: Segmen/Segment Korporasi/ Wholesale Menengah/ Middle Kecil/Retail Jenis Agunan/Collateral Aset tetap/Fixed Asset Kas/Cash SBLC Tanah dan Bangunan/Land and Building Piutang/Receivable Kendaraan/Vehicle Agunan lain yang diterima oleh Bank/Other collaterals held by the Bank Aset tetap/Fixed Asset Kas/Cash SBLC Tanah dan Bangunan/Land and Building Piutang/Receivable Kendaraan/Vehicle Agunan lain yang diterima oleh Bank/Other collaterals held by the Bank Aset tetap/Fixed Asset Kas/Cash SBLC Jumlah Coverage Minimal* / Minimum Coverage Amount 100% dari limit kredit/from credit limit 125% dari limit kredit/from credit limit 110% dari limit kredit/from credit limit 215 1030 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1031. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 50. RISIKO KREDIT (lanjutan) 50. CREDIT RISK (continued) (ii) Eksposur maksimum risiko kredit tanpa memperhitungkan agunan dan pendukung kredit lainnya (lanjutan) (ii) Maximum exposure of the credit risk before collateral held and other credit enhancements (continued) Nilai tercatat dari aset keuangan bank selain kredit yang diberikan dan efek-efek yang dibeli dengan janji dijual kembali pada umumnya menggambarkan eksposur maksimum atas risiko kredit. The carrying amounts of financial assets other than bank loans and securities purchased under agreements to resell is generally equal to the maximum exposure of credit risk. Tabel dibawah ini menunjukkan eksposur maksimum neto atas risiko kredit untuk efekefek yang dibeli dengan janji dijual kembali pada tanggal-tanggal 31 Desember 2017. The table below shows the net maximum exposure to credit risk on securities purchased under agreements to resell on 31 December 2017: 31 Desember/December 2017 Eksposur maksimum/ Maximum exposure Keterangan Efek-efek yang dibeli dengan janji dijual kembali Agunan/ Collateral 679,122 Eksposur Neto/ Net Exposure 703,735 (iii) Informasi kualitas kredit atas aset keuangan per tanggal 31 Desember 2018 dan 2017 sebagai berikut: Description - Securities purchased under agreements to resell (iii) The information on the credit quality of financial assets as of 31 December 2018 and 2017 are as follows: 31 Desember/December 2018 Belum jatuh tempo atau tidak mengalami penurunan nilai/ Neither past due nor impaired (tidak diaudit/unaudited) Grup 1/ Group 1 Giro pada Bank Indonesia Grup 2/ Group 2 Grup 3/ Group 3 Grup 4/ Group 4 Jatuh tempo dan tidak mengalami penurunan nilai/ Mengalami penurunan Past-due nilai/ but not impaired Impaired Grup 5/ Group 5 Total - 35,591,243 - - - - - 35,591,243 Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia 5,214,444 Efek-efek 7,596,796 Wesel ekspor dan tagihan lainnya 9,310,463 Tagihan akseptasi 8,945,731 Tagihan derivatif Pinjaman yang diberikan Modal kerja 101,485,273 Investasi 36,489,595 Konsumen 17,863,082 Sindikasi 15,125,638 Karyawan 1,300,933 Program Pemerintah Obligasi Pemerintah 9,816,075 Penyertaan saham Aset lain-lain - neto*) - 13,137,099 - - - - - 13,137,099 34,110,016 24,200,400 - - - - 565,211 39,324,460 32,362,407 15,434,743 11,440,549 605,248 45,875 - - 42,864 - - - 24,745,206 20,475,019 605,248 122,868,710 64,597,341 53,575,962 30,307,560 1,240,897 418,242 76,975,327 9,978,490 5,562,138 4,354,341 11,270,844 4,906 1,151,321 82,033 - 157,079 260,746 196,815 3,348 - 6,088,566 2,590,674 2,315,530 3,064,759 115,545 - 10,949,461 4,162,661 3,212,325 1,894,897 28,973 - 5,814,419 1,783,375 2,061,031 336,359 43,118 785,007 - 252,925,646 114,238,733 90,495,589 50,734,119 3,884,135 500,275 86,791,402 785,007 9,978,490 Total 494,481,827 22,471,458 617,988 14,217,938 20,248,317 11,388,520 776,574,078 213,148,030 Cadangan kerugian penurunan nilai (15,732,202) Neto 760,841,876 Current accounts with Bank Indonesia Current accounts with other banks Placements with other banks and Bank Indonesia Marketable securities Bills and other receivables Acceptances receivables Derivative receivables Loans Working capital Investment Consumer Syndicated Employee Government programs Government Bonds Equity investments Other assets - net*) Allowance for impairment losses Net 216 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1031
  1032. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 50. RISIKO KREDIT (lanjutan) 50. CREDIT RISK (continued) (iii) Informasi kualitas kredit atas aset keuangan per tanggal 31 Desember 2018 dan 2017 sebagai berikut: (lanjutan) (iii) The information on the credit quality of financial assets as of 31 December 2018 and 2017 are as follows: (continued) 31 Desember/December 2017 Belum jatuh tempo atau tidak mengalami penurunan nilai/ Neither past due nor impaired (tidak diaudit/unaudited) Grup 2/ Group 2 Grup 1/ Group 1 Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Efek-efek yang dibeli dengan janji dijual kembali Wesel ekspor dan tagihan lainnya Tagihan akseptasi Tagihan derivatif Pinjaman yang diberikan Modal kerja Investasi Konsumen Sindikasi Karyawan Program Pemerintah Obligasi Pemerintah Penyertaan saham Aset lain-lain - neto*) Total Grup 3/ Group 3 Grup 4/ Group 4 Jatuh tempo dan tidak mengalami penurunan nilai/ Mengalami penurunan Past-due nilai/ but not impaired Impaired Grup 5/ Group 5 Total - 32,700,717 - - - - - 32,700,717 - 21,338,437 - - - - - 21,338,437 23,604,109 19,761,264 4,989,139 16,285,107 - - - - 312,623 28,593,248 36,358,994 679,122 - - - - - - 679,122 5,141,343 2,703,959 - 10,657,827 15,101,101 216,884 431,989 - - 33,974 - - - 15,799,170 18,271,023 216,884 16,381,711 7,024,293 9,981,104 691,241 123,556 22,977,057 - 152,811,106 73,273,020 52,143,126 44,478,120 3,226,261 286,327 56,872,395 8,905,714 13,954,087 4,947,252 10,652,639 3,706,967 360,013 162,286 - 139,478 53,716 226,370 5,218 - 8,214,476 6,049,676 2,587,166 2,703,671 24,986 163,530 - 8,431,086 4,769,624 3,369,491 243,500 30,348 546 - 6,752,187 1,155,805 2,071,488 88,537 28,958 600 785,823 - 206,684,131 97,273,386 81,031,384 51,912,036 3,799,340 613,289 79,849,452 785,823 8,905,714 109,068,759 493,285,281 34,215,233 424,782 19,777,479 16,844,595 11,196,021 684,812,150 - Cadangan kerugian penurunan nilai (15,171,733) Neto 669,640,417 *) Aset lain-lain - neto terdiri dari piutang bunga, piutang terkait transaksi ATM dan kartu kredit, piutang lain-lain dan piutang premi asuransi. *) Current accounts with Bank Indonesia Current accounts with other banks Placements with other banks and Bank Indonesia Marketable securities Securities purchased under agreements to resell Bills and other receivables Acceptances receivables Derivatives receivables Loans Working capital Investment Consumer Syndicated Employee Government programs Government Bonds Equity investments Other assets - net*) Allowance for impairment losses Other assets - net consist of interest receivables, receivables from transactions related to ATM and credit card, other receivables and insurance premium receivables. - Grup 1 : Debitur baru (kurang dari 6 bulan). - Group 1 : New customers (less than 6 months). - Grup 2 : Nasabah lama yang tidak memiliki historis pernah menunggak dalam 3 tahun terakhir. - Group 2 : Existing customers with history of overdue for the past 3 years. - Grup 3 : Nasabah lama yang memiliki historis pernah menunggak (dibawah 90 hari) dalam 3 tahun terakhir. - Group 3 : Existing customers with history of overdue below 90 days in the past 3 years. - Grup 4 : Nasabah lama yang memiliki historis pernah menunggak diatas 90 hari dalam 3 tahun terakhir. - Group 4 : Existing customers with history of default more than 90 days in the past 3 years. - Grup 5 : Nasabah lama yang pinjamannya pernah/telah direstrukturisasi. - Group 5 : Existing customers with loans that was/has been restructured. 217 1032 Net Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk no
  1033. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 50. RISIKO KREDIT (lanjutan) 50. CREDIT RISK (continued) (iv) Analisis umur pinjaman yang jatuh tempo tetapi tidak mengalami penurunan nilai pada tanggal 31 Desember 2018 dan 2017: Kurang dari 30 hari/ Less than 30 days Modal kerja Investasi Konsumen Sindikasi Karyawan Program pemerintah 1,831,848 2,668 650,301 112 - Total Cadangan kerugian penurunan nilai 2,484,929 Neto 1,859,553 (625,376) Kurang dari 30 hari/ Less than 30 days (iv) The aging analysis of past due but not impaired loans as of 31 December 2018 and 2017: 31 Desember/December 2018 Lebih dari 31 sampai 60 hari/ 60 hari/ More than 31 to 60 days 60 days Total 556,173 35,565 552 1 - 8,561,440 4,124,428 2,561,472 1,894,897 28,860 - 10,949,461 4,162,661 3,212,325 1,894,897 28,973 - Working capital Investment Consumer Syndication Employee Government programs Total Allowance for impairment losses 592,291 17,171,097 20,248,317 (149,436) (3,086,480) (3,861,292) 442,855 14,084,617 16,387,025 31 Desember/December 2017 Lebih dari 31 sampai 60 hari/ 60 hari/ More than 31 to 60 days 60 days Net Total Modal kerja Investasi Konsumen Sindikasi Karyawan Program pemerintah 1,190,806 7,398 703,944 139 - 879,875 12,870 5,826 243,500 7 - 6,360,405 4,749,356 2,659,721 30,202 546 8,431,086 4,769,624 3,369,491 243,500 30,348 546 Working capital Investment Consumer Syndication Employee Government programs Total Cadangan kerugian penurunan nilai 1,902,287 1,142,078 13,800,230 16,844,595 (1,969,691) (2,487,024) Total Allowance for impairment losses Neto 1,514,738 11,830,539 14,357,571 (387,549) (129,784) 1,012,294 Net (v) Konsentrasi risiko aset keuangan konsolidasian dengan eksposur risiko kredit (v) Concentration of risks of consolidated financial assets with credit risk exposure Tabel berikut menggambarkan rincian eksposur kredit Grup pada nilai tercatat (tanpa memperhitungkan agunan atau pendukung kredit lainnya), yang dikategorikan berdasarkan area geografis pada tanggaltanggal 31 Desember 2018 dan 2017. Untuk tabel ini, Grup telah mengalokasikan eksposur area berdasarkan wilayah geografis tempat mereka beroperasi. The following table provides details of the Group’s credit exposures at their carrying amounts (without taking into account any collateral held or other credit support), as categorized by geographical region as of 31 December 2018 and 2017. For this table, the Group has allocated exposures to the regions based on the geographical area where activities are undertaken. 218 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1033
  1034. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 50. RISIKO KREDIT (lanjutan) 50. CREDIT RISK (continued) 31 Desember/December 2018 Jawa & Bali Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Nilai wajar melalui laporan laba rugi Tersedia untuk dijual Dimiliki hingga jatuh tempo Efek-efek yang dibeli dengan janji dijual kembali Wesel ekspor dan tagihan lainnya Tagihan akseptasi Tagihan derivatif Pinjaman yang diberikan Obligasi pemerintah Nilai wajar melalui laporan laba rugi Tersedia untuk dijual Dimiliki hingga jatuh tempo Penyertaan saham Aset lain-lain - neto**) Total Sumatera Kalimantan Indonesia Timur/ East Indonesia Sulawesi Lain-lain *)/ Others *) Total 33,867,589 - - - - 1,723,654 35,591,243 Current accounts with Bank Indonesia Current accounts with other banks Placements with other banks and Bank Indonesia Marketable securities Fair value through profit or loss Available-for-sale 8,110,569 5 719 121 24 5,025,661 13,137,099 34,606,363 - - - - 4,718,097 39,324,460 7,249,383 19,407,205 - - - - 4,361,079 7,249,383 23,768,284 1,344,740 - - - - - 1,344,740 - - - - Held-to-maturity Securities purchased under agreements to resell 17,867,992 14,492,999 595,402 350,990,894 35,835 135,872 45,397,054 12,117 157 20,658,318 4,115 56,879 22,054,283 4,398,558 6,825,147 5,789,112 9,846 69,279,390 24,745,206 20,475,019 605,248 512,778,497 2,558,283 43,098,498 - - - - 792,212 17,184,404 3,350,495 60,282,902 Bill and other receivables Acceptances receivables Derivative receivables Loans Government Bonds Fair value through profit or loss Available-for-sale 11,372,894 785,007 9,268,605 236,665 25,150 27,260 5,688 11,873,299 415,123 23,246,193 785,007 9,978,491 Held-to-maturity Equity Investment Other assets - net**) 555,616,423 45,805,431 20,696,461 22,142,658 4,404,270 127,997,024 776,662,267 Cadangan kerugian penurunan nilai (15,732,202) Neto 760,930,065 Total Allowance for impairment losses Net 31 Desember/December 2017 Jawa & Bali Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek Nilai wajar melalui laporan laba rugi Tersedia untuk dijual Dimiliki hingga jatuh tempo Efek-efek yang dibeli dengan janji dijual kembali Wesel ekspor dan tagihan lainnya Tagihan akseptasi Tagihan derivatif Pinjaman yang diberikan Obligasi pemerintah Nilai wajar melalui laporan laba rugi Tersedia untuk dijual Dimiliki hingga jatuh tempo Penyertaan saham Aset lain-lain - neto**) Total Sumatera Kalimantan Indonesia Timur/ East Indonesia Sulawesi Lain-lain *)/ Others *) Total 30,611,107 - - - - 2,089,610 32,700,717 15,534,594 98 766 5,014 28,092 5,769,873 21,338,437 22,694,782 - - - - 5,898,466 28,593,248 24,603,450 - - - - 8,429,705 2,202,219 8,429,705 26,805,669 542,750 - - - - 580,870 1,123,620 548,458 - - - - 130,664 679,122 13,476,665 13,014,611 216,542 300,291,863 2,246 110,341 43,235,866 2,312 18,803,322 1,163 190,231 20,334,370 2,330 3,746,979 2,314,454 4,955,840 342 54,901,166 15,799,170 18,271,023 216,884 441,313,566 2,498,201 40,392,463 - - - - 438,219 15,844,314 2,936,420 56,236,777 Bill and other receivables Acceptances receivables Derivative receivables Loans Government Bonds Fair value through profit or loss Available-for-sale 12,518,208 785,823 8,274,654 95,691 24,512 27,167 5,203 8,158,047 478,487 20,676,255 785,823 8,905,714 Held-to-maturity Equity Investment Other assets - net**) 486,004,171 43,444,242 18,830,912 20,557,945 3,782,604 112,192,276 684,812,150 Total Cadangan kerugian penurunan nilai (15,171,733) Neto 669,640,417 *) **) Current accounts with Bank Indonesia Current accounts with other banks Placements with other banks and Bank Indonesia Marketable securities Fair value through profit or loss Available-for-sale *) **) Termasuk kantor cabang luar negeri dan Entitas Anak Aset lain-lain - neto terdiri dari piutang bunga, piutang terkait transaksi ATM dan kartu kredit, piutang lain-lain dan piutang premi asuransi. Held-to-maturity Securities purchased under agreements to resell Allowance for impairment losses Includes overseas branches and Subsidiaries Other assets - net consist of interest receivables, receivables from transactions related to ATM and credit card, other receivables and insurance premium receivables.. 219 1034 Adapting Quickly to Face Change Net PT Bank Negara Indonesia (Persero) Tbk
  1035. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 51. RISIKO LIKUIDITAS 51. LIQUIDITY RISK Risiko likuiditas berhubungan dengan adanya kemungkinan bank tidak mampu untuk memenuhi kewajiban jangka pendek terhadap deposan, investor dan kreditur, serta pemenuhan giro wajib minimum (GWM) yang diantaranya disebabkan keterbatasan akses pendanaan atau ketidakmampuan untuk melikuidasi aset yang dimiliki dengan harga yang wajar. Liquidity risk relates to the possibility that the Bank will be unable to meet short-term obligations to depositors, investors and creditors, as well as fulfill Statutory Reserve Requirements due to, among others, limited access to financing or the inability to liquidate assets at reasonable prices. Manajemen Risiko Likuiditas dilakukan oleh Divisi Manajemen Risiko Bank (ERM), Divisi Tresuri (TRS), dan Kantor Cabang Luar Negeri. Kebijakan dan Prosedur Risiko Likuiditas disusun oleh Divisi ERM, selanjutnya dilaksanakan oleh Divisi TRS dan segenap Kantor Cabang Luar Negeri, yang diwujudkan dalam manajemen strategi likuiditas. Liquidity Risk Management is carried out by the Bank's Risk Management Division (ERM), Treasury Division (TRS), and Branch Offices of Foreign Affairs. Liquidity Risk Policies and Procedures was prepared by the Division ERM, subsequently implemented by the Division of TRS and all Branch Offices of Foreign Affairs, which is manifested in the liquidity management strategy. Divisi ERM juga melakukan monitoring terhadap pelaksanaan manajemen likuiditas yang dilakukan oleh Divisi TRS tersebut. ERM Division also monitors the implementation of the liquidity management performed by the Tresury Division. Divisi ERM menyusun Kebijakan Risiko Likuiditas berupa Pedoman Penerapan Manajemen Risiko Likuiditas, yang lebih lanjut dijabarkan ke dalam Prosedur Manajemen Risiko Likuiditas yang berisi panduan pelaksanaan manajemen risiko likuiditas, antara lain berupa : a. Ketersediaan Alat Likuid: Kas, GWM, Secondary Reserve, Indikator Peringatan Dini, Liquidity Contingency Plan Head Office maupun Kantor Cabang Luar Negeri, dll ERM Division prepares Liquidity Risk Policy Guidelines in Liquidity Risk Management Implementation Guidelines, which is further elaborated into the Liquidity Risk Management Procedures which contains guidelines for liquidity risk management practices, which include: a. Availability Liquidity Tools: Cash, Statutory Reserve Requirement, Secondary Reserve, Early Warning Indicators, Liquidity Contingency Plan Head Office or Branch Office of Foreign Affairs, etc. b. Measurement of Liquidity Risk: Liquidity Ratio, Cash Flow Projection, Maturity Profile, Liquidity Adequacy Ratio, Stress testing, etc. c. Liquidity Risk Monitoring d. Liquidity Risk Management e. Determination of Liquidity Limit: Cash Ceiling for Regional Area, Cash Ceiling Bank Wide, Ideal SR, Maturity Profile Limit, Credit in Foreign Currency Limit based on the availability of liquidity. b. Pengukuran Risiko Likuiditas : Rasio Likuiditas, Proyeksi Arus Kas, Profil Maturitas, Rasio Kecukupan Likuiditas, Stress testing, dll c. Pemantauan Risiko Likuiditas d. Pengendalian Risiko Likuiditas e. Penetapan Limit Likuiditas: Pagu Kas Wilayah, Pagu Kas Bank Wide, SR Ideal, Limit Profil Maturitas, Limit Kredit Valas berdasarkan ketersediaan likuiditas. Divisi ERM juga menyusun risk appetite dan risk tolerance Risiko Likuiditas yang selaras dengan sasaran strategis Bank, yang digunakan sebagai acuan tingkat risiko yang akan diambil Bank dalam pencapaian sasaran bisnis. ERM Division also prepares risk appetite and risk tolerance for Liquidity Risk in accordance with the Bank’s strategic objectives, which are used as a reference level of risk to be taken by the Bank in achieving business goals Dalam mengelola likuiditas, selain mengelola primary reserve (kas dan GWM), BNI menjaga dan mempertahankan secondary reserve untuk memastikan likuiditas berada pada level yang aman. Sebagai antisipasi pemenuhan secondary reserve yang ideal, BNI menjaga dan mempertahankan tertiary reserve. In managing liquidity, beside addition to managing primary reserve (cash and statutory reserve requirement), BNI keeps and maintains secondary reserve to ensure liquidity is at a safe level. In anticipation of fulfilling the ideal secondary reserve, BNI preserves and maintains a tertiary reserve. 220 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1035
  1036. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 51. RISIKO LIKUIDITAS (lanjutan) 51. LIQUIDITY RISK (continued) Penetapan dan pemantauan limit, yaitu Secondary Reserve Ideal (SR Ideal) dan limit ketersediaan kredit valas dilakukan secara berkala oleh Divisi ERM. Sedangkan ketersediaan atas keseluruhan reserve dipantau secara harian, mingguan, dan bulanan oleh Divisi TRS dan Divisi ERM. The setting and monitoring of limits, i.e. Ideal Secondary Reserve (Ideal SR) and credit availability in foreign currency limit is conducted periodically by the ERM Division. While the availability of the whole reserve is monitored daily, weekly, and monthly by the Tresury Division and the ERM Division. Tabel di bawah ini menunjukkan sisa jatuh tempo kontraktual dari liabilitas keuangan berdasarkan pada undiscounted cash flows. The table below shows the remaining contractual maturities of the financial liabilities based on undiscounted cashflows. 31 Desember/December 2018 Kurang dari 1 Bulan/ Less than 1 Month LIABILITAS Liabilitas segera Simpanan nasabah Simpanan dari bank lain Liabilitas derivatif Liabilitas akseptasi Efek-efek yang diterbitkan Efek-efek yang dijual dengan janji dibeli kembali Pinjaman yang diterima Liabilitas lain-lain*) 4,160,295 468,179,465 9,968,627 322,028 1,008,073 Lebih dari 12 Bulan/ More than 12 Months 1-3 Bulan/ Months 3-6 Bulan/ Months 6 - 12 Bulan/ Months 59,581,249 1,909,864 1,766,766 19,261,180 1,209,802 1,351,618 4,598,241 784,975 224,561 1,983,860 1,227 65,595 Total 4,160,295 553,603,995 13,874,495 322,028 4,416,613 LIABILITIES Obligations due immediately Deposits from customers Deposits from other banks Derivative payables Acceptances payables 60,000 2,000 62,000 124,000 3,730,000 3,978,000 18,000,000 2,046,202 14,608,465 3,930,428 5,788,133 - 4,938,366 - 13,388,740 - 561,867 26,538,796 - 22,492,295 52,700,237 14,608,465 Securities issued Securities sold under agreements to repurchase Borrowings Other liabilities*) Total 518,353,155 72,978,440 26,822,966 19,120,517 32,881,345 670,156,423 Total Total aset lancar **) 113,692,582 896,686 1,674,151 3,062,284 69,562,346 188,888,048 Total liquid assets**) KOMITMEN DAN KONTINJENSI Fasilitas kredit kepada debitur yang belum digunakan Irrevocable letter of credit yang masih berjalan Garansi yang diterbitkan Total COMMITMENT AND CONTINGENCIES 54,227,735 - - - - 54,227,735 3,263,367 12,650,000 2,134,394 10,508,330 2,075,538 7,011,326 2,559,084 9,188,479 2,423,124 22,409,333 12,455,507 61,767,468 Unused loan facilities Outstanding irrevocable letters of credit Guarantees issued 70,141,102 12,642,724 9,086,864 11,747,563 24,832,457 128,450,710 Total 31 Desember/December 2017 Kurang dari 1 Bulan/ Less than 1 Month LIABILITAS Liabilitas segera Simpanan nasabah Simpanan dari bank lain Liabilitas derivatif Liabilitas akseptasi Efek-efek yang diterbitkan Efek-efek yang dijual dengan janji dibeli kembali Pinjaman yang diterima Liabilitas lain-lain*) Total Total aset lancar **) *) **) Lebih dari 12 Bulan/ More than 12 Months 1-3 Bulan/ Months 3-6 Bulan/ Months 6 - 12 Bulan/ Months 5,465,750 417,493,240 7,476,685 113,820 1,255,337 57,385,700 247,762 1,400,288 14,124,979 2,594,971 1,487,832 7,299,527 815,102 336,403 24,965 29,871,210 878,121 27,470 5,490,715 526,174,656 12,012,641 113,820 4,507,330 61,333 - 560,000 122,000 3,912,667 4,656,000 1,483,192 14,739,160 3,760,918 4,607 1,407,382 2,043,624 - 561,956 3,953,671 - 661,904 37,427,188 9,201 2,631,242 48,668,593 14,752,968 448,088,517 62,799,275 22,218,788 13,088,659 72,812,726 619,007,965 Total 95,808,076 743,096 2,127,482 1,498,203 73,882,661 174,059,518 Total liquid assets**) Liabilitas lain-lain terdiri dari utang ke pemegang polis, setoran jaminan, nota kredit dalam penyelesaian, utang reasuransi dan komisi, serta utang nasabah - Entitas Anak. Aset lancar terdiri dari kas, giro pada Bank Indonesia, giro pada bank lain, penempatan pada bank lain dan Bank Indonesia dan obligasi pemerintah *) **) Total LIABILITIES Obligations due immediately Deposits from customers Deposits from other banks Derivative payables Acceptances payables Securities issued Securities sold under agreements to repurchase Borrowings Other liabilities*) Other liabilities consist of obligation to policy holders, guarantee deposits, credit memo in process, reinsurance payable and commission, and payable to customer - Subsidiary. Liquid assets consist of cash, current accounts with Bank Indonesia, current accounts with other banks, placement with other banks and Bank Indonesia and government bonds. 221 1036 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1037. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 51. RISIKO LIKUIDITAS (lanjutan) 51. LIQUIDITY RISK (continued) 31 Desember/December 2017 Kurang dari 1 Bulan/ Less than 1 Month KOMITMEN DAN KONTINJENSI Fasilitas kredit kepada debitur yang belum digunakan Irrevocable letter of credit yang masih berjalan Garansi yang diterbitkan Total 1-3 Bulan/ Months 3-6 Bulan/ Months Lebih dari 12 Bulan/ More than 12 Months 6 - 12 Bulan/ Months Total COMMITMENT AND CONTINGENCIES 49,963,012 - - - 49,963,012 3,957,847 17,104,830 1,297,508 5,407,118 - 1,435,477 5,853,274 2,197,475 10,496,402 2,742,146 20,606,772 11,630,453 59,468,396 Unused loan facilities Outstanding irrevocable letters of credit Guarantees issued 71,025,689 6,704,626 7,288,751 12,693,877 23,348,918 121,061,861 Total Dalam rangka meningkatkan ketahanan likuiditas, BNI menerapkan perhitungan rasio kecukupan likuiditas yaitu Liquidity Coverage Ratio (LCR) dan Net Stable Funding Ratio (NSFR) dan mengelola rasio Kecukupan Likuiditas tersebut sesuai ketentuan regulator, baik secara individu (bank only) maupun konsolidasi dengan perusahaan anak. In order to increase liquidity resilience, BNI implements Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) calculations and manages the Liquidity Adequacy Ratio subject to regulators, either individually (bank only) or consolidated with subsidiaries. LCR bertujuan untuk meningkatkan ketahanan likuiditas jangka pendek dengan memelihara High Quality Liquid Assets (HQLA) yang memadai untuk memenuhi kebutuhan likuiditas BNI selama periode 30 hari ke depan dalam kondisi stress, sedangkan NSFR bertujuan untuk mengurangi risiko likuiditas terkait sumber pendanaan untuk jangka waktu yang lebih panjang dengan mensyaratkan BNI mendanai aktivitas dengan sumber dana stabil yang memadai dalam rangka memitigasi risiko kesulitan pendanaan pada masa depan. LCR aims to improve the Bank’s short-term liquidity resilience by maintaining High Quality Liquid Assets (HQLA) to meet liquidity needs over the next 30 days under stress conditions, while NSFR aims to reduce liquidity risk related to longer term funding sources requiring BNI to fund activities with sufficient stable funding sources in order to mitigate future financial hardship risks. Laporan rasio Kecukupan Likuiditas BNI tersebut dilaporkan secara bulanan dan triwulanan kepada Otoritas Jasa Keuangan (OJK). BNI Liquidity Adequacy Ratio are reported monthly and quarterly to the Otoritas Jasa Keuangan (OJK). 52. RISIKO PASAR 52. MARKET RISK Risiko pasar adalah risiko kerugian yang timbul akibat perubahan faktor pasar yang tidak sesuai dengan posisi yang diambil oleh BNI baik pada posisi aset dan liabilitas keuangan dan rekening administratif. Risiko Pasar melekat pada hampir seluruh aktivitas Bank, baik trading book maupun banking book yang mencakup Risiko Suku Bunga dan Risiko Nilai Tukar. Market risk is the risk of loss due to the adverse volatility of market price movements against BNI’s financial assets and liabilities (on balance sheet) including administrative accounts (off balance sheet). Market risk is embedded in the Bank’s business activities, both in trading and banking books, which cover Interest Rate risks and Foreign Exchange risks. 222 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1037
  1038. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 52. RISIKO PASAR (lanjutan) 52. MARKET RISK (continued) Pengelolaan Risiko Pasar BNI dilakukan melalui koordinasi beberapa Divisi terkait, yaitu Divisi Manajemen Risiko Bank (Divisi ERM) yang bertanggung jawab kepada Direktur Manajemen Risiko (Dir. MR), Divisi Tata Kelola Perusahaan (Divisi PGV) yang bertanggung jawab kepada Wakil Direktur Utama (Wadiu), Divisi Tresuri (Divisi TRS) dan Kantor Cabang Luar Negeri dalam pengawasan Divisi Internasional (Divisi INT) yang bertanggung jawab kepada Direktur Tresuri dan Internasional (Dir. TS). Dalam mengelola Risiko Pasar, Direksi didukung oleh Risk Management Committee (RMC) dan Komite Aset dan Liabilitas (ALCO) serta dalam pengawasannya didukung oleh Komisaris melalui Komite Pemantau Risiko. Market Risk Management is done through coordination with BNI’s several related divisions such as: Enterprise Risk Management Division (ERM) and Policy Governance Division (PGV) which report to the Director of Risk Management; and Treasury Division (TRS) as well as Overseas branches supervised by the International Division (INT) which report to the Director of Treasury and International. The Market Risk Management is also supported by Risk Management Committee (RMC) and Assets and Liabilities Committee (ALCO) and supervised by the Board of Commissioners through the Risk Monitoring Committee. BNI telah memiliki Aplikasi Manajemen Risiko Pasar untuk mendukung proses pengelolaan Risiko Pasar. Pengukuran potensi Risiko Pasar untuk pengendalian internal BNI dilakukan secara harian menggunakan Model Internal - Value at Risk (VaR) Methodology, sedangkan pengukuran Risiko Pasar dalam rangka perhitungan Kewajiban Penyediaan Modal Minimum dilakukan secara bulanan menggunakan Metode Standar. BNI juga melakukan pengukuran Risiko Suku Bunga pada banking book secara bulanan menggunakan Assets & Liabilities Gap Report serta pengukuran Risiko Nilai Tukar pada banking book melalui perhitungan Posisi Devisa Neto (PDN) secara harian dan bulanan sesuai ketentuan Regulator. BNI has market risk tools to support the implementation of the Market Risk Process. The measurement of potential market risk, for internal control purposes, is conducted on a daily basis using an Internal Model - Value at Risk (VaR) Methodology. On the other hand, the market risk measurement for Capital Adequacy Ratio purposes, is conducted on a monthly basis using the Standard Method. BNI also conducts on a monthly basis the measurement of interest rate risk on banking book using Assets & Liabilities Gap Report (A/L Gap Report) and the measurement for foreign exchange risk on banking book by calculating the Net Open Position (NOP) both daily and monthly in accordance with Regulator regulation. Sehubungan dengan penggunaan Model Internal (VaR) dalam pengukuran Risiko Pasar, BNI telah melakukan proses validasi melalui Back Testing secara periodik untuk menilai akurasi pengukuran VaR yang digunakan. Selain itu, BNI telah melakukan proses Stress Testing terhadap instrumen keuangan yang terekspos Risiko Nilai Tukar dan Risiko Suku Bunga (portofolio obligasi) untuk menilai ketahanan Bank dalam menghadapi perubahan faktor pasar yang ekstrim pada saat kondisi pasar abnormal. Stress Testing dilakukan setiap 6 (enam) bulan sekali atau periode yang lebih pendek jika terjadi kondisi abnormal. In line with the use of the Internal Model (VaR) in measuring market risk, BNI conducts Back Testing periodically to assess the accuracy of the VaR methodologies used. Stress Testing has also been conducted for the financial instuments that are exposed to foreign exchange risk and interest rate risk (limited to bond positions) in order to assess the Bank’s resilience in encountering extreme change of risk factors in abnormal market conditions. Stress Testing is done every 6 (six) months or whichever is earlier in case there is an abnormal condition. 223 1038 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1039. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 52. RISIKO PASAR (lanjutan) 52. MARKET RISK (continued) Limit Risiko Pasar BNI sebagai bagian dari proses pengendalian Risiko Pasar ditetapkan dan dikaji ulang secara periodik oleh Divisi ERM dan Divisi PGV yang independen terhadap risk taking units (Divisi TRS dan kantor cabangluar negeri). Limitlimit Risiko Pasar adalah sebagai berikut: BNI Market Risk limit as a part of the risk controlling process is set and reviewed periodically by ERM and PGV which are independent from risk taking units (TRS and overseas branches). The Market Risk limits are as follows: a. Limit Risiko Pasar pada trading book: (i) Limit Value at Risk (VaR) dan limit Stressed Value at Risk (SVaR) (ii) Limit nominal transaksi (iii) Limit nominal open position (iv) Limit kerugian a. Market Risk limits on trading book: (i) Value at Risk (VaR) limit and Stressed Value at Risk (SVaR) limit (ii) Transaction nominal limit (iii) Open position limit (iv) Loss limit Limit ditetapkan pada masing-masing desk (Currencies Trading, Rates Trading, Banking Management - Surat Berharga Available-ForSale, Funding and Gapping - Surat Berharga Likuiditas). These limits are performed for each trading desk (Currencies Trading, Rates Trading, Banking Management - Available-For-Sale Bonds, Funding and Gapping – Liquidity Bonds). b. Limit Risiko Pasar pada banking book: (i) Limit Gap Aset & Liabilitas - Rupiah (ii) Limit Gap Aset & Liabilitas - Valuta Asing (iii) Limit Posisi Devisa Neto internal BNI. b. Market Risk limits on banking book: (i) Gap Asset & Liability Limit - Indonesian Rupiah (ii) Gap Asset & Liability Limit - Foreign Currency (iii) Internal BNI Net Open Position Limit. Divisi ERM juga menyusun risk appetite dan risk tolerance Risiko Pasar yang selaras dengan sasaran strategis Bank, yang digunakan sebagai acuan tingkat risiko yang akan diambil Bank dalam pencapaian sasaran bisnis. ERM Division also prepares risk appetite and risk tolerance for Liquidity Risk in accordance with the Bank’s strategic objectives, which are used as a reference level of risk to be taken by the Bank in achieving business goals. Pemantauan Risiko Pasar dilakukan melalui laporan yang memberikan informasi mengenai eksposur risiko pasar dan kepatuhan terhadap limit-limit. Laporan VaR diberikan kepada manajemen BNI secara berkala (harian, mingguan dan bulanan) melalui laporan sirkulasi atau forum RMC. Khusus terkait dengan laporan perkembangan Risiko Suku Bunga pada banking book disampaikan kepada manajemen setiap bulan melalui forum Asset & Liabilities Committee (ALCO). Market Risk monitoring is conducted through reports which give information about the market risk exposures and the limit compliance. The VaR reports are submitted to BNI management on a periodic basis (daily, weekly, and monthly) through circular reports or RMC forum. Specifically the report for interest rate risk on banking book is submitted to management on a monthly basis through the ALCO forum. BNI menggunakan model Value at Risk (VaR) untuk menghitung potensi risiko pasar yang timbul akibat perubahan faktor pasar yang dapat mempengaruhi nilai pasar pada portofolio produk Bank. Cakupan Risiko Pasar adalah sebagai berikut: BNI uses Value at Risk model (VaR) to measure potential market risk arising from possible changes of market factors which can affect the market value of the Bank portfolio. The scope of Market Risk are as follows: a. Risiko Nilai Tukar pada trading book dan banking book. b. Risiko Suku Bunga pada trading book dan banking book (tidak termasuk asetaset/investasi yang dimiliki hingga jatuh tempo). a. Foreign exchange risk on trading book and banking book. b. Interest rate risk on trading book and banking book (excluding held-to-maturity assets/ investments). 224 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1039
  1040. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 52. RISIKO PASAR (lanjutan) 52. MARKET RISK (continued) Metode untuk menghitung VaR yang digunakan BNI adalah Variance Covariance/Risk Metrics. Metode ini menggunakan formula dengan memasukkan parameter-parameter seperti volatilitas dan korelasi. Metode ini mengasumsikan bahwa segala perubahan dalam faktor risiko yang mempengaruhi kondisi pasar normal akan mengikuti distribusi normal. Sedangkan untuk kondisi pasar harian yang tidak normal, dilakukan perhitungan Stressed VaR. The VaR method used in BNI is Variance Covariance/Risk Metrics. This method uses formulas with some parameters such as volatility and correlation. It assumes that any changes that occurs in the risk factors affecting the normal market conditions will follow normal distribution. For abnormal market condition, Stressed VaR calculation is applied. VaR tidak menyediakan informasi potensi laba atau rugi pada kondisi pasar yang ekstrim atau stress. BNI melakukan stress testing untuk kondisi pasar yang ekstrim tersebut. VaR does not provide information for potential gain or loss in the extreme or stress market condition. BNI performs stress testing in the extreme market condition. Pengukuran VaR adalah estimasi maksimum potensi kerugian Risiko Pasar untuk 1 (satu) hari ke depan dengan tingkat keyakinan 99% dengan posisi portofolio yang dimiliki tidak berubah. Penggunaan tingkat keyakinan 99% berarti dalam rentang waktu satu hari, kerugian harian yang melebihi VaR dalam kondisi pasar normal tidak akan terjadi lebih dari 1 (satu) kali dalam 100 hari. The VaR calculation is an estimate using a 99% confidence level of the potential loss that is not expected to be exceeded if the current market risk positions were to be held unchanged for one day. The use of a 99% confidence level means that, within a one day horizon, losses exceeding the VaR figure should occur, on average under normal market conditions, not more than once every hundred days. Karena VaR adalah bagian dari pengelolaan Risiko Pasar Bank, limit-limit VaR telah dibentuk untuk seluruh trading operation dan eksposur perlu direview oleh manajemen secara harian terhadap limit-limit. Since VaR is an integral part of the Bank’s market risk management, VaR limits have been established for all trading operations and exposures are required to be reviewed daily against the limits by management. Tabel dibawah ini menunjukkan VaR agregat pada portofolio trading book dan banking book milik Bank: The table below presents the aggregate VaR on the Bank’s trading book and banking book portfolio: 31 Desember 2018 dan tahun yang berakhir pada tanggal tersebut/ 31 December 2018 and the year then ended Risiko mata uang asing/ Foreign exchange risk 2018 - 31 Desember 2018 - Rata-rata harian 2018 - Tertinggi 2018 - Terendah Risiko nilai wajar suku bunga/ Fair value interest rate risk Trading book 9,112 9,708 20,602 5,109 Banking book 2,498 4,558 8,535 1,653 293,529 270,637 381,031 230,845 2018 - 31 December 2018 - Average daily 2018 - Highest 2018- Lowest 31 Desember 2017 dan tahun yang berakhir pada tanggal tersebut/ 31 December 2017 and the year then ended Risiko mata uang asing/ Foreign exchange risk 2017 - 31 Desember 2017 - Rata-rata harian 2017 - Tertinggi 2017 - Terendah Risiko nilai wajar suku bunga/ Fair value interest rate risk Trading book 6,603 12,554 23,679 4,846 5,555 2,939 7,457 476 Banking book 240,388 211,806 266,083 151,511 2017 - 31 December 2017 - Average daily 2017 - Highest 2017- Lowest 225 1040 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1041. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 52. RISIKO PASAR (lanjutan) (i) 52. MARKET RISK (continued) Risiko tingkat suku bunga (i) Interest rate risk Risiko tingkat suku bunga timbul pada instrumen keuangan yang mempunyai kemungkinan kerugian akibat perubahan tingkat suku bunga yang akan berdampak pada arus kas masa depan atau nilai wajar instrumen keuangan. Interest rate risks arise from financial instruments which have the loss possibilities from changes in interest rates that will affect future cash flows or fair value of the financial instruments. Komite Risiko dan Kapital Sub Komite Manajemen Risiko (KRK-RMC) BNI, bertanggung jawab untuk menetapkan, melaksanakan serta menjaga kebijakan pengelolaan risiko tingkat suku bunga sesuai dengan pedoman umum BNI. Tujuan utama Komite Risiko dan Kapital Sub Komite Manajemen Risiko (KRK-RMC) BNI adalah memaksimalkan hasil usaha BNI dengan tetap memperhatikan limit risiko yang ditetapkan. BNI’s Risk and Capital Committee sub Committee Risk Management (KRK-RMC) which consists of members of the Board of Directors and selected members of senior management held responsible for determining, executing and overseeing the interest rate risk management policy in accordance with the overall guidelines of BNI. The main objective of the Risk and Capital Committee sub Committee Risk Management (KRK-RMC) is to maximize BNI’s returns within the predetermined risk limits. Tabel di bawah ini merupakan kisaran tingkat suku bunga kontraktual per tahun untuk aset dan liabilitas konsolidasian yang signifikan pada tanggal 31 Desember 2018 dan 2017: The tables below summarize the range of contractual interest rates per annum for significant consolidated assets and liabilities as of 31 December 2018 and 2017: 31 Desember/December 2018 Rupiah % ASET Penempatan pada bank lain dan Bank Indonesia Efek-efek Efek-efek yang dibeli dengan janji dijual kembali Wesel ekspor dan tagihan lainnya Pinjaman yang diberikan Obligasi Pemerintah - Tingkat bunga tetap - Tingkat bunga mengambang LIABILITAS Simpanan nasabah Simpanan dari bank lain Efek-efek yang dijual dengan janji dibeli kembali Efek-efek yang diterbitkan Pinjaman yang diterima Dolar Amerika Serikat/ United States Dollar % Dolar Singapura/ Singapore Dollar Yen Jepang Japanese Yen Euro % % Won Korea Selatan/ South Korean Won % Yuan China/ Chinese Yuan % % 0.00-10.00 0.08-10.25 0.00-4.20 0.50-7.75 0.00-1.78 0.86-1.16 4.63-5.25 0.20-2.15 - 2.00 0.00-6.00 7.00-9.18 5.00-22.00 1.50 -7.89 1.43-5.00 1.50 -3.15 1.84 -6.50 1.39-6.05 4.00-7.00 2.50-3.75 7.00 5.11-12.03 7.18-7.53 1.81-7.75 - 1.78 - 0.86-2.90 - 2.25-3.25 - - - 0.00-9.50 0.00-8.40 0.00-4.00 0.00-3.39 0.00-3.68 - 0.01-0.45 0.08-0.33 0.00-0.50 0.00-2.11 - - 6.99-7.55 8.00 6.99-11.50 2.77-3.25 0.00-5.35 0.09-0.47 - - - 3.22 ASSETS Placements with other banks and Bank Indonesia Marketable securities Securities purchased under agreements to resell Bills and other receivables Loans Government Bonds Fixed interest rate Floating interest rate LIABILITIES Deposits from customers Deposits from other banks Securities sold under agreements to repurchase Securities issued Borrowings 226 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1041
  1042. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 52. RISIKO PASAR (lanjutan) (i) 52. MARKET RISK (continued) Risiko tingkat suku bunga (lanjutan) (i) Interest rate risk (continued) 31 Desember/December 2017 Rupiah % ASET Penempatan pada bank lain dan Bank Indonesia 0.00-8.40 Efek-efek 5.80-10.55 Efek-efek yang dibeli dengan janji dijual kembali 4.35-4.80 Wesel ekspor dan tagihan lainnya 7.98-8.98 Pinjaman yang diberikan 4.00-26.95 Obligasi Pemerintah - Tingkat bunga tetap 5.11-12.04 - Tingkat bunga mengambang 4.93-4.96 LIABILITAS Simpanan nasabah Simpanan dari bank lain Efek-efek yang dijual dengan janji dibeli kembali Efek-efek yang diterbitkan Pinjaman yang diterima Dolar Amerika Serikat/ United States Dollar % Dolar Singapura/ Singapore Dollar Yen Jepang Japanese Yen Euro % % Won Korea Selatan/ South Korean Won % Yuan China/ Chinese Yuan % % 0.01-2.97 1.46-7.75 - - - 1.43-1.79 - 2.50 - 1.00 -5.19 0.54-10.00 1.00 -3.01 0.75 -4.33 4.20 0.76-2.51 2.75 2.09 - 6.25 - 7.00 - 0.51-1.16 - 2.25-3.25 - - - 1.50-7.75 - - 0.00-8.10 0.00-8.40 0.00-2.35 0.00-2.21 0.00-0.10 - 0.00-0.40 0.19-0.28 0.00-0.75 1.61-2.00 - - 7.44-7.55 8.00 5.70-10.50 2.66 0.00-4.40 0.09-0.10 - 1.20-1.25 - 3.30 Tabel berikut menunjukkan sensitivitas terhadap kemungkinan perubahan suku bunga dalam Rupiah yang wajar, dengan semua variabel lainnya tetap konstan, dalam laporan laba rugi Bank. Sensitivitas laporan laba rugi adalah dampak dari perubahan asumsi suku bunga pada laporan laba rugi pada periode tersebut. Sensitivitas total laba atau rugi didasarkan pada asumsi bahwa ada pergeseran paralel kurva hasil. ASSETS Placements with other banks and Bank Indonesia Marketable securities Securities purchased under agreements to resell Bills and other receivables Loans Government Bonds Fixed interest rate Floating interest rate LIABILITIES Deposits from customers Deposits from other banks Securities sold under agreements to repurchase Securities issued Borrowings The following tables demonstrate the sensitivity to a reasonable possible change in IDR interest rates, with all other variables held constant, in the Bank’s profit or loss. The sensitivity of profit or loss is the effect of the changes in interest rates assumptions on the profit or loss for the period. The total sensitivity of profit or loss is based on the assumption that there are parallel shifts in the yield curve. 31 Desember/December 2018 Perubahan presentase/ Percentage Change Pengaruh terhadap laporan laba rugi/ Impact to profit or loss ±25 ±50 151,857 ± 303,713 ± 31 Desember/December 2017 Perubahan presentase/ Percentage Change Pengaruh terhadap laporan laba rugi/ Impact to profit or loss ±25 ±50 BNI memiliki eksposur terhadap risiko tingkat suku bunga dalam mata uang Dolar Singapura, Dolar Amerika Serikat, Euro dan lainnya. BNI telah melakukan penilaian atas dampak dari risiko tingkat suku bunga tersebut dan hasilnya tidak signifikan. 142,237 ± 284,474 ± BNI has other exposure to interest rate risks in Singapore Dollar, United States Dollar, Euro and others. BNI assessed that the impact of those interest rate risks is not significant. 227 1042 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1043. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 52. RISIKO PASAR (lanjutan) 52. MARKET RISK (continued) (ii) Risiko mata uang (ii) Currency risk Risiko valuta asing timbul sebagai akibat adanya aset dan liabilitas keuangan dalam valuta asing dan rekening administratif konsolidasian baik pada sisi aset konsolidasian maupun liabilitas konsolidasian. Posisi valuta asing BNI dapat dikelompokkan dalam dua aktivitas yaitu: trading book, yang dilakukan dalam rangka memperoleh keuntungan transaksi valuta asing, dan banking book, yang dilakukan dalam rangka mengendalikan Posisi Devisa Neto BNI secara keseluruhan. Foreign currency risks arise from consolidated financial assets and liabilities and administrative accounts in foreign currency positions, both on the consolidated assets and liabilities. BNI’s foreign currency position is divided into two activities: the trading book, which is prepared to generate profit from the exchange rate, and the banking book, which is prepared to control BNI’s overall Net Open Position. BNI memiliki kebijakan untuk menjaga eksposur mata uang asing dalam batas yang wajar dan berdasarkan peraturan yang berlaku. Manajemen berkeyakinan bahwa saat ini eksposur mata uang asing atas aset dan liabilitas masih dalam batas yang konservatif. BNI’s policy is to maintain foreign currency exposure within acceptable limits and within existing regulatory guidelines. The Management believes that its current profile of foreign currency exposure on its assets and liabilities is within conservative limits. Berikut adalah Posisi Devisa Neto (PDN), dalam nilai absolut, BNI pada tanggal 31 Desember 2018 per mata uang, sesuai dengan peraturan Bank Indonesia: Presented below is the Net Open Position (NOP), in absolute amounts, of BNI as of 31 December 2018 by currency, based on Bank Indonesia regulations: 31 Desember 2018/31 December 2018 Mata Uang KESELURUHAN (LAPORAN POSISI KEUANGAN DAN REKENING ADMINISTRATIF) Yuan China Dolar Amerika Serikat Euro Yen Jepang Dolar Singapura Poundsterling Inggris Dolar Hongkong Lain-lain Aset/ Assets 4,389,802 318,797,036 9,909,085 5,435,493 2,799,501 664,213 914,169 1,470,565 Liabilitas/ Liabilities Posisi Devisa Neto/ Net Open Position 4,370,232 319,516,200 10,460,790 5,488,347 2,760,675 723,265 770,044 984,598 Total 19,570 719,164 551,705 52,854 38,826 59,052 144,125 485,967 *) 2,071,263 LAPORAN POSISI KEUANGAN Dolar Amerika Serikat Euro Yen Jepang Dolar Singapura Poundsterling Inggris Dolar Hongkong Yuan China Lain-lain 189,588,890 3,034,302 4,185,630 2,246,743 218,409 527,306 4,312,696 1,220,789 186,444,056 4,501,231 3,806,994 1,826,478 185,904 215,621 4,174,084 581,974 Total Total Modal Tier I dan Tier II dikurangi penyertaan pada Entitas Anak (Catatan 55) Rasio PDN (Keseluruhan) Rasio PDN (Laporan Posisi Keuangan) *) 3,144,834 1,466,929 378,636 420,265 32,505 311,685 138,612 638,815 *) STATEMENT OF FINANCIAL POSITION United States Dollar Euro Japanese Yen Singapore Dollar British Pound Sterling Hong Kong Dollar Chinese Yuan Others Total 104,254,095 Total Tier I and II Capital less investment in Subsidiaries (Note 55) 6.27% *) Total 6,532,281 1.99% Merupakan penjumlahan absolut dari selisih antara aset dan liabilitas dari beberapa mata uang asing lainnya Currencies AGGREGATE (STATEMENT OF FINANCIAL POSITION AND ADMINISTRATIVE ACCOUNTS) Chinese Yuan United States Dollar Euro Japanese Yen Singapore Dollar British Pound Sterling Hong Kong Dollar Others NOP Ratio (Aggregate) NOP Ratio (Statement of Financial Position) Sum of the absolute values of the difference between assets and liabilities of some foreign currencies 228 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1043
  1044. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 52. RISIKO PASAR (lanjutan) (ii) 52. MARKET RISK (continued) Risiko mata uang (lanjutan) (ii) Currency risk (continued) Berikut adalah Posisi Devisa Neto (PDN), dalam nilai absolut, BNI pada tanggal 31 Desember 2017 per mata uang, sesuai dengan peraturan Bank Indonesia: Presented below is the Net Open Position, in absolute amounts, of BNI as of 31 December 2017 by currency, based on Bank Indonesia regulations: 31 Desember 2017/31 December 2017 Mata Uang KESELURUHAN (LAPORAN POSISI KEUANGAN DAN REKENING ADMINISTRATIF) Yuan China Dolar Amerika Serikat Euro Yen Jepang Dolar Singapura Poundsterling Inggris Dolar Hongkong Lain-lain Aset/ Assets 4,373,864 241,453,607 8,004,223 2,776,974 1,836,797 554,616 590,072 993,296 Liabilitas/ Liabilities Posisi Devisa Neto/ Net Open Position 4,331,700 242,662,820 8,148,384 2,886,915 1,954,677 578,001 433,169 406,002 Total 42,164 1,209,213 144,161 109,941 117,880 23,385 156,903 587,294 *) 2,390,941 LAPORAN POSISI KEUANGAN Dolar Amerika Serikat Euro Yen Jepang Dolar Singapura Poundsterling Inggris Dolar Hongkong Yuan China Lain-lain Currencies AGGREGATE (STATEMENT OF FINANCIAL POSITION AND ADMINISTRATIVE ACCOUNTS) Chinese Yuan United States Dollar Euro Japanese Yen Singapore Dollar British Pound Sterling Hong Kong Dollar Others 132,733,735 1,642,442 1,966,989 1,520,211 244,178 351,671 4,197,758 677,537 121,798,305 2,047,673 2,016,513 1,561,870 84,299 86,737 4,043,782 43,339 10,935,430 405,231 49,524 41,659 159,879 264,934 153,976 634,198 *) Total STATEMENT OF FINANCIAL POSITION United States Dollar Euro Japanese Yen Singapore Dollar British Pound Sterling Hong Kong Dollar Chinese Yuan Others Total 12,644,831 Total Total Modal Tier I dan Tier II dikurangi penyertaan pada Entitas Anak (Catatan 55) 95,306,890 Total Tier I and II Capital less investment in Subsidiaries (Note 55) Rasio PDN (Keseluruhan) Rasio PDN (Laporan Posisi Keuangan) *) 2.51% 13.27% *) Merupakan penjumlahan absolut dari selisih antara aset dan liabilitas beberapa mata uang asing lainnya NOP Ratio (Aggregate) NOP Ratio (Statement of Financial Position) Sum of the absolute values of the difference between assets and liabilities of some foreign currencies 229 1044 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1045. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 53. RISIKO OPERASIONAL 53. OPERATIONAL RISK Dalam rangka menerapkan manajemen risiko operasional, BNI mengacu kepada ketentuan Bank Indonesia/ Otoritas Jasa Keuangan serta International Best Practices. Pengelolaan risiko operasional meliputi proses identifikasi, pengukuran, pemantauan dan pengendalian risiko operasional. In order to implement operational risk management, BNI made reference to Bank Indonesia or Financial Authority Regulations, also International Best Practices. Operational risk management encompasses the identification, measurement, monitoring and operational control processes. 1. Identifikasi Risiko Mekanisme identifikasi risiko operasional dilakukan dengan menerapkan Macro Process Mapping Assessment atas proses kerja/ aktivitas masing-masing unit untuk menangkap potensi risiko operasional yang dilakukan dengan metode interview (one on one meeting). 1. Risk Identification The operational risk identification mechanism is carried out by applying a macro process mapping assessment of the work processes/ activities of each unit to capture the potential operational risks conducted by interview method (one-on-one meeting). 2. Penilaian Risiko Dilakukan oleh masing-masing unit pemilik risiko melalui metode operational risk self assessment, mencakup penilaian atas dampak, frekuensi dan penyebab risiko serta solusinya. 2. Risk Assessment Performed by individual risk owner unit through the operational risk self assessment method, including assessment of the impact, frequency, and causes of risk and their solutions. 3. Pengukuran Risiko Pengukuran risiko operasional saat ini menggunakan metode Pendekatan Indikator Dasar (Basic Indicator Approach). 4. Pemantauan Risiko Dilakukan oleh seluruh Satuan Kerja sebagai first line of defense pada saat aktivitas operasional berlangsung. Divisi Manajemen Risiko Bank melakukan evaluasi dan laporan/ feedback atas penilaian risiko berdasarkan hasil self assessment serta realisasi atas kerugian risiko operasional yang terjadi, meliputi: § Feedback report untuk seluruh divisi/ satuan/ unit/ wilayah/ cabang § Laporan bulanan Pemantauan Beban Risiko Operasional kepada Direksi § Laporan Profil Risiko Operasional 3. Risk Measurement Current operational risk measurement uses the Basic Indicator Approach method. 4. Risk Monitoring Performed by all units as the first line of defense at the time of operational activity on the main risks in ongoing activities. Enterprise Risk Management Division evaluates and report/feedback on risk assessment based on self assessment result and realization of loss of operational risk that happened, consisting of : § Feedback report for all divisions/units/ regions/branches. § Operational Risk Expenses monthly reports to the Board of Directors. § Operational Risk Profile report. 5. Pengendalian Risiko Mekanisme mitigasi risiko operasional tergambar pada proses pengendalian internal dengan menerapkan 4 (empat) strategi mitigasi, yaitu hindari, kurangi, transfer dan terima. Keempat strategi mitigasi tersebut tertuang dalam prosedur mitigasi risiko operasional yang meliputi prosedur pengendalian, prosedur penyelesaian transaksi, prosedur akuntansi, prosedur penyimpanan aset dan kustodian, prosedur penyediaan produk dan prosedur pencegahan fraud. 5. Risk Control Operational risk mitigation mechanism are reflected in the internal control process by implementing 4 (four) mitigation strategies, ie.avoid, mitigate, transfer, and accept. The four mitigation strategies are carried out in operational risk mitigation procedures that include control procedures, transaction settlement procedures, accounting procedures, asset storage procedures and custodians, product supply procedures and fraud prevention procedures. 230 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1045
  1046. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 53. RISIKO OPERASIONAL (lanjutan) 53. OPERATIONAL RISK (continued) Salah satu perangkat yang digunakan untuk melakukan pengelolaan risiko operasional di BNI adalah PERISKOP (Perangkat Risiko Operasional). PERISKOP terdiri dari tiga (3) modul utama, yaitu: One of the tools used to perform risk management at BNI is PERISKOP (Perangkat Risiko Operasional). Periskop consists of three (3) main modules: • Modul Self Assessment, merupakan salah satu metode yang digunakan untuk mendeteksi kemungkinan terjadinya risiko operasional di suatu unit. Metode ini terdiri dari serangkaian kegiatan penilaian yang dilakukan sendiri (self assessment) oleh setiap unit pemilik risiko (risk owner) secara independen dalam mengidentifikasi, menilai, mengontrol dan memantau risiko operasional yang terjadi di unitnya. Modul self assessment wajib diisi oleh segenap unit setiap tiga bulan sekali, dengan melakukan pengukuran terhadap frekuensi dan dampak setiap risk issue di unitnya serta mencari penyebab risiko tersebut timbul. • Self Assessment Module, is a methodology to detect the possibility that an operational risk has occurred. This method is a selfassessment process conducted by every risk owner independently in identifying, assessing, controlling and monitoring operational risk in each unit. Self Assessment module should be filed by all units, once every three-month; by conducting an assessment of the existing risk issue frequency and impacts; and finding solutions to mitigate emerging operational risks. • Loss Event Database, merupakan sarana yang digunakan untuk mencatat setiap peristiwa risiko operasional yang menimbulkan dampak finansial yang meliputi actual loss dan near miss secara langsung. Setiap kali unit pemilik risiko (risk owner) mengalami kerugian risiko operasional, maka unit tersebut harus melakukan input dalam modul Loss Event Database tersebut. Dari modul ini akan diketahui tipe risiko yang terjadi, penyebab kejadian tersebut, lokasi (lini bisnis) tempat terjadinya risiko serta besarnya (amount) risiko yang terjadi atau liabilitas hukum yang terjadi serta pengembalian kerugian (recovery). Sarana ini sangat penting untuk memonitor profil risiko operasional secara teratur. Data yang diperoleh dari Loss Event Database (LED) merupakan input data utama bila Bank akan mengaplikasikan metode Advanced Measurement Approach (AMA) dalam pengukuran kecukupan modal minimum risiko operasional. • The Loss Event Database is a system to identify and record every operational risk that causes direct financial impact. Each time the risk owner unit experience financial loss from operational risk, the unit should record it in the Lost Event Database module. The module will generate information such as type of risk, cause of risk, location where the risk emerge and the amount of risk or legal obligation and the recovery (if any). This system is very important to monitor operational risk exposure and profile in an orderly manner. The data gathered from the Loss Event Database will become the main input when the Bank applies advance approaches to measure its minimum operational risk capital adequacy ratio. • Key Risk Indicator, merupakan serangkaian parameter yang ditetapkan untuk mengidentifikasi potensi kerugian risiko operasional yang utama/ dominan, yang berpotensi mengganggu pencapaian Key Performance Indicator (KPI) unit kerja, sebelum peristiwa risiko operasional tersebut terjadi. Perangkat tersebut akan memberikan warning/alert jika nilainya sudah di luar range/ threshold yang ditetapkan sebelumnya (early warning signal) yang menuntut adanya tindak lanjut manajemen unit untuk mengatasi permasalahan tersebut. • Key Risk Indicators, is a series of parameters established to identify main potential loss from operational risk, that potentially interfere the achievement of Key Performance Indicator (KPI) before it happens. The module will give a warning/alert when the exposure exceeds a predetermined range/threshold that has been set and requires follow up from unit’s management to overcome the problems. 231 1046 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1047. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 53. RISIKO OPERASIONAL (lanjutan) 53. OPERATIONAL RISK (continued) Selain PERISKOP, BNI saat ini telah memiliki rekening Beban Risiko Operasional (BRO) serta Recovery BRO, yang digunakan untuk membukukan kerugian atau recovery yang disebabkan oleh risiko operasional. Setiap bulan dilakukan monitoring terhadap rekening BRO dan Recovery BRO ini guna mitigasi risiko operasional. Besides PERISKOP, BNI has Operational Risk Expense (Beban Risiko Operasional (BRO)) and BRO Recovery accounts, which will be used to record losses or recoveries caused by operational risks. To mitigate the operational risk, BRO account and recovery will be monitored monthly. Terkait dengan kelangsungan usaha bila terjadi kondisi disaster (bencana), BNI juga sudah mempunyai kebijakan Business Continuity Management (BCM), yaitu suatu mekanisme formal yang merupakan kombinasi antara strategi, kebijakan, prosedur, dan organisasi yang dikembangkan untuk memastikan kelangsungan operasional dari fungsi-fungsi usaha yang kritikal pada tingkat layanan tertentu pada saat terjadi gangguan atau bencana. Kebijakan ini mencakup semua unit usaha yang ada di BNI, baik di dalam negeri maupun diluar negeri. Regarding the business resilience when disaster occurs, BNI has Business Continuity Management (BCM) policies, which is a formal mechanism which combined strategies, policies, procedures and organizations developed to ensure operational continuity of critical functions under certain levels of services when a disturbance or disaster is encountered. This policy is applied for all business units in BNI for both domestic and overseas. BNI memiliki infrastruktur yang dibutuhkan dalam implementasi BCM seperti Disaster Recovery Center (DRC), Dual Data Center (DDC), Lokasi Alternatif Gedung BCM dan Command Center. Secara rutin BNI melakukan pengujian sistem dan aplikasi pada divisi/unit kritikal setiap 6 (enam) bulan sekali, melakukan site visit dan simulasi pada cabang dan wilayah guna memastikan kesiapan menghadapi bencana. BNI has the infrastucture needed to implement BCM such as Disaster Recovery Center (DRC), Dual Data Center (DDC), BCM alternative building and Command Center. Regularly BNI perform a system and application testing on critical Division/Unit every 6 (six) months, do a site visit and simulation to the branch and region to ensure the disaster readiness. 54. NILAI WAJAR KEUANGAN ASET DAN LIABILITAS 54. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES Tabel berikut menyajikan perbandingan antara nilai tercatat dan nilai wajar dari semua aset dan liabilitas keuangan disajikan per kategori dari instrumen keuangan. Nilai wajar yang diungkapkan adalah berdasarkan informasi relevan yang tersedia pada tanggal 31 Desember 2018 dan 2017, dan tidak diperbaharui untuk mencerminkan perubahan dalam kondisi pasar yang telah terjadi setelah tanggal ini. The next table summarises the comparison between the carrying amounts and fair values of all financial assets and liabilities presented per category of financial instruments. The fair values disclosed are based on relevant information available as of 31 December 2018 and 2017, and not updated to reflect changes in market conditions which have occurred after this date. 31 Desember/December 2018 Nilai Tercatat/ Carrying Value 2017 Nilai wajar/ Fair value Nilai Tercatat/ Carrying Value Nilai wajar/ Fair value Aset Keuangan Kas Nilai wajar melalui laporan laba rugi Efek-efek Obligasi Pemerintah Tagihan derivatif Financial Assets 14,043,846 14,043,846 11,577,664 11,577,664 7,249,383 3,350,495 605,248 7,249,383 3,350,495 605,248 8,429,705 2,936,420 216,884 8,429,705 2,936,420 216,884 11,205,126 11,205,126 11,583,009 11,583,009 Cash Fair value through profit or loss Marketable securities Government Bonds Derivative receivables 232 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1047
  1048. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 54. NILAI WAJAR ASET KEUANGAN (lanjutan) DAN LIABILITAS 54. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (continued) 31 Desember/December 2018 Nilai Tercatat/ Carrying Value Tersedia untuk dijual Efek-efek Obligasi Pemerintah Penyertaan saham Dimiliki hingga jatuh tempo Efek-efek Obligasi Pemerintah Total Pinjaman dan piutang Pinjaman yang diberikan Tagihan akseptasi Wesel ekspor dan tagihan lainnya Giro pada Bank Indonesia Giro pada bank lain Penempatan pada bank lain dan Bank Indonesia Efek-efek yang dibeli dengan janji dijual kembali Penyertaan saham Aset lain-lain - neto*) Total Liabilitas keuangan Nilai wajar melalui laporan laba rugi Liabilitas derivatif Liabilitas keuangan lainnya Liabilitas segera Simpanan nasabah Giro Tabungan Deposito berjangka Simpanan dari bank lain Pinjaman pasar uang antar bank Giro Deposito berjangka Negotiable Certificate of Deposit Simpanan lainnya Efek-efek yang dijual dengan janji dibeli kembali Liabilitas akseptasi Efek-efek yang diterbitkan Pinjaman yang diterima Efek-efek subordinasi Liabilitas lain-lain**) Total 2017 Nilai wajar/ Fair value Nilai Tercatat/ Carrying Value Nilai wajar/ Fair value 23,736,028 60,282,900 651,938 23,736,028 60,282,900 651,938 26,788,760 56,236,777 651,938 26,788,760 56,236,777 651,938 84,670,866 84,670,866 83,677,475 83,677,475 1,058,858 23,158,006 1,069,212 23,263,187 831,434 20,676,255 839,051 22,177,162 24,216,864 24,332,399 21,507,689 23,016,213 134,136,702 134,252,237 128,345,837 129,854,361 497,886,888 20,295,277 497,886,888 20,295,277 426,789,981 18,106,412 426,789,981 18,106,412 24,586,862 24,586,862 15,700,925 15,700,925 35,591,243 35,591,243 32,700,717 32,700,717 13,133,828 13,133,828 21,335,150 21,335,150 39,324,445 39,324,445 28,592,738 28,592,738 603,923 9,978,489 603,923 9,978,489 679,122 713,423 8,905,714 679,122 713,423 8,905,714 Available-for-sale Marketable securities Government Bonds Equity investments Held-to-maturity Marketable securities Government Bonds Total Loans and receivables Loans Acceptances receivables Bills and other receivables Current accounts with Bank Indonesia Current accounts with other banks Placements with other banks and Bank Indonesia Securities purchased under agreements to resell Equity investments Other assets - net*) 641,400,955 641,400,955 553,524,182 553,524,182 775,537,657 775,653,192 681,870,019 683,378,543 Total Financial liabilities Fair value through profit or loss Derivative payables 322,028 322,028 113,820 113,820 4,160,295 4,160,295 4,867,547 4,867,547 168,106,953 196,253,601 187,811,648 168,106,953 196,253,601 187,811,648 142,232,656 174,040,609 176,474,683 142,232,656 174,040,609 176,474,683 8,458,845 2,128,100 1,322,672 8,458,845 2,128,100 1,322,672 3,352,300 2,370,104 512,776 3,352,300 2,370,104 512,776 938,665 1,026,213 938,665 1,026,213 4,247,857 1,251,170 4,247,857 1,251,170 21,524,329 4,416,613 2,987,464 52,024,506 99,953 12,107,162 21,524,329 4,416,613 2,937,060 52,024,506 99,953 12,107,162 2,390,066 4,507,331 2,986,279 44,670,741 12,738,157 2,390,066 4,507,331 3,059,340 44,670,741 12,738,157 663,367,019 663,316,615 576,642,276 576,715,337 663,689,047 663,638,643 576,756,096 576,829,157 Other financial liabilities Obligation due immediately Deposits from customers Current accounts Savings account Time deposits Deposits from other banks Inter-bank call money Current accounts Time deposit Negotiable Certificate of Deposit Other deposits Securities sold under agreements to repurchase Acceptances payables Securities issued Borrowings Subordinated securities Other liabilities**) Total *) Aset lain-lain - neto terdiri dari piutang bunga, piutang terkait transaksi ATM dan kartu kredit, piutang lain-lain dan piutang premi asuransi. *) Other assets - net consist of interest receivables, receivables from transactions related to ATM and credit card, other receivables and insurance premium receivables. **) Liabilitas lain-lain terdiri dari utang ke pemegang polis, setoran jaminan, nota kredit dalam penyelesaian, utang reasuransi dan komisi, serta utang nasabah - Entitas Anak. **) Other liabilities consist of obligation to policy holders, guarantee deposits, credit memo in process, reinsurance payable and commission, and payable to customers - Subsidiary. 233 1048 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1049. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 54. NILAI WAJAR ASET KEUANGAN (lanjutan) DAN LIABILITAS 54. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (continued) Bank menggunakan hirarki berikut untuk menentukan dan mengungkapkan nilai wajar dari instrumen keuangan: The Bank adopts the following hierarchy for determining and disclosing the fair value of financial instruments: (i) Tingkat 1: Harga dikutip (tidak disesuaikan) dari pasar yang aktif untuk aset atau liabilitas keuangan yang identik; (ii) Tingkat 2: Input selain harga yang dikutip dari pasar yang disertakan pada Tingkat 1 yang dapat diobservasi untuk aset dan liabilitas keuangan, baik secara langsung (yaitu sebagai sebuah harga) atau secara tidak langsung (yaitu sebagai turunan dari harga); (iii) Tingkat 3: input untuk aset atau liabilitas keuangan yang tidak didasarkan pada data pasar yang dapat diobservasi (informasi yang tidak dapat diobservasi). (i) Level 1: Quoted prices in active market for the same/identical financial asset or liability; (ii) Level 2: Inputs other than quoted market prices included in Level 1 that are observable for the financial asset or liability, either directly (as a price) or indirectly (as derived from price); (iii) Level 3: Inputs for the financial assets or liability that are not based on observable market data (unobservable information). Tabel di bawah ini menunjukkan instrumen keuangan yang diukur pada nilai wajar yang dikelompokkan berdasarkan hirarki nilai wajar: The table below show the financial instruments measured at fair value grouped according to the fair value hierarchy: 31 Desember/December 2018 Nilai wajar/Fair value Nilai tercatat/ Carrying value Tingkat/ Level 1 Tingkat/ Level 2 Tingkat/ Level 3 Aset Keuangan Financial Assets Nilai wajar melalui laporan laba rugi Efek-efek Obligasi Pemerintah Tagihan derivatif Fair value through profit or loss Marketable securities Government Bonds Derivative receivables 7,249,383 3,350,495 605,248 3,350,495 - 7,249,383 605,248 - 11,205,126 3,350,495 7,854,631 - 23,736,028 60,282,900 651,938 17,203,144 51,440,068 - 6,532,884 8,842,832 - 651,938 84,670,866 68,643,212 15,375,716 651,938 1,058,858 23,158,006 1,069,212 23,263,187 - - 24,216,864 24,332,399 - - Pinjaman yang diberikan Aset tetap 497,886,888 20,755,347 - 479,256,672 20,755,347 18,630,216 - Loans Fixed Assets Total 638,735,091 96,326,106 523,242,366 19,282,154 Total Tersedia untuk dijual Efek-efek Obligasi Pemerintah Penyertaan saham Dimiliki hingga jatuh tempo Efek-efek Obligasi Pemerintah Available-for-sale Marketable securities Government Bonds Equity investments Hold to maturity Marketable securities Government Bonds Liabilitas Keuangan Financial Liabilities Nilai wajar melalui laporan laba rugi Liabilitas derivatif 322,028 - 322,028 - Fair value through profit or loss Derivative payables Total 322,028 - 322,028 - Total 234 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1049
  1050. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 54. NILAI WAJAR ASET KEUANGAN (lanjutan) DAN LIABILITAS 54. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (continued) Tabel di bawah ini menunjukkan instrumen keuangan yang diukur pada nilai wajar yang dikelompokkan berdasarkan hirarki nilai wajar: (lanjutan) The table below show the financial instruments measured at fair value grouped according to the fair value hierarchy: (continued) 31 Desember/December 2017 Nilai wajar/Fair value Nilai tercatat/ Carrying value Tingkat/ Level 1 Tingkat/ Level 2 Tingkat/ Level 3 Aset Keuangan Nilai wajar melalui laporan laba rugi Efek-efek Obligasi Pemerintah Tagihan derivatif Financial Assets Fair value through profit or loss Marketable securities Government Bonds Derivative receivables 8,429,705 2,936,420 216,884 2,936,420 - 8,429,705 216,884 - 11,583,009 2,936,420 8,646,589 - 26,788,760 56,236,777 651,938 26,776,137 43,952,760 - 12,623 12,284,017 - 651,938 83,677,475 70,728,897 12,296,640 651,938 831,434 20,676,255 839,051 22,177,162 - - 21,507,689 23,016,213 - - Pinjaman yang diberikan Aset tetap 426,789,981 17,325,885 - 413,530,995 17,325,885 13,258,986 - Loans Fixed Assets Total 560,884,039 96,681,530 451,800,109 13,910,924 Total Tersedia untuk dijual Efek-efek Obligasi Pemerintah Penyertaan saham Dimiliki hingga jatuh tempo Efek-efek Obligasi Pemerintah Available-for-sale Marketable securities Government Bonds Equity investments Hold to maturity Marketable securities Government Bonds Liabilitas Keuangan Financial Liabilities Nilai wajar melalui laporan laba rugi Liabilitas derivatif 113,820 - 113,820 - Fair value through profit or loss Derivative payables Total 113,820 - 113,820 - Total 235 1050 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1051. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 54. NILAI WAJAR ASET KEUANGAN (lanjutan) DAN LIABILITAS 54. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (continued) Tidak terdapat perpindahan antara tingkat 1 dan tingkat 2 hirarki nilai wajar. There is no transfer between level 1 and level 2 of the fair value hierarchy. Nilai wajar instrumen keuangan yang diperdagangkankan dalam pasar aktif (contohnya surat berharga yang diperdagangkan dan tersedia untuk dijual), ditentukan dengan berdasarkan harga pasar yang dikutip pada tanggal pelaporan. Suatu pasar dianggap aktif apabila informasi mengenai harga kuotasian dapat diakses dengan mudah dan tersedia secara berkala dari suatu bursa, pedagang efek, broker, kelompok penilai harga pasar industri tertentu, regulator dan harga tersebut mencerminkan transaksi pasar yang aktual dan regular pada tingkat yang wajar. Harga pasar dikutip untuk aset keuangan yang dimiliki Grup adalah harga penawaran (bid price). Instrumeninstrumen tersebut digolongkan dalam Tingkat 1. Instrumen yang termasuk dalam Tingkat 1 umumnya meliputi investasi yang diklasifikasikan sebagai surat berharga yang dimiliki untuk diperdagangkan dan tersedia untuk dijual. The fair value of financial instruments traded in an active market (i.e. traded and available-for-sale securities), is based on qouted market price at reporting date. A market is regarded as active if quoted prices are readily and regularly available from exchange, dealer or broker, industry group pricing service or regulatory agency, and those prices represent actual and regularly occuring market transcarion on an arm’s length basis. The quoted market price used for financial asset held by group is bid price. These instruments are included in Level 1. Instruments included in Level 1 comprise primarily of securities classified as heldfor-trading and available-for-sale. Nilai wajar instrumen keuangan yang tidak diperdagangkan di pasar aktif (contohnya derivatif over-the-counter) ditentukan dengan teknik penilaian. Teknik-teknik penilaian tersebut menggunakan data pasar yang dapat diobservasi dan sedapat mungkin meminimalisir penggunaan estimasi spesifik dari entitas. Apabila seluruh input yang dibutuhkan untuk menentukan nilai wajar instrumen keuangan dapat diobservasi, maka instrumen keuangan tersebut dikategorikan dalam Tingkat 2. Sebaliknya, jika salah satu atau lebih data tidak didasarkan pada data pasar yang dapat diobservasi, instrumen ini termasuk dalam Tingkat 3. The fair value of financial instruments that are not traded in an active market (i.e over-the-counter derivatives) is determined by using valuation techniques. These valuation tchnique maximise the use of observable market data where it is available and rely as little as possible on entity’s specific estimates. If all significant inputs required for the fair value of an instrument are observable, the instrument is included in Level 2. Otherwise, if one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. Teknik penilaian spesisfik yang digunakan untuk melakukan penilaian pada instrumen keuangan, antara lain: • Harga yang dikutip dari pasar atau pedagang efek instrumen serupa • Nilai wajar dari swap tingkat suku bunga yang diperhitungkan sebagai nilai kini dari estimasi arus kas masa datang berdasarkan kurva imbal hasil yang dapat diobservasi • Nilai wajar dari kontrak berjangka valuta asing yang ditentukan berdasarkan kurs berjangka pada tanggal pelaporan keuangan, dan • Teknik-teknik lainnya, seperti analisis arus kas diskontoan yang digunakan untuk menentukan nilai wajar instrumen keuangan lainnya Specific valuation techniques financial instruments include: • • • • used to value Quoted market prices or dealer quotes for similar instruments Fair value of interest rate swap is calculated as the present value of estimated future cashflow based on observable yield curves Fair value of foreign exchange contracts is determined using forward exchange rates at reporting date,and Other techniques, such as discounted cash flow analysis, are used to determine fair value for other financial instrument 236 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1051
  1052. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 54. NILAI WAJAR ASET KEUANGAN (lanjutan) DAN LIABILITAS 54. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (continued) (i) Giro pada Bank Indonesia, giro pada bank lain, penempatan pada bank lain dan Bank Indonesia, efek-efek, wesel ekspor dan tagihan lainnya, efek-efek yang dibeli dengan janji dijual kembali, penyertaan saham, tagihan akseptasi dan aset lain-lain. (i) Current accounts with Bank Indonesia, current accounts with other banks, placements with other banks and Bank Indonesia, marketable securities, bills and other receivables, equity investments, acceptances receivables, securities purchases under agreements to resell and other assets. 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 FASBI, call money, “fixed-term” placements, time deposits and others. Estimasi nilai wajar terhadap penyertaan saham sementara ditetapkan berdasarkan penilaian yang dilakukan oleh Kantor Jasa Penilai Publik (KJPP). The estimated fair value of temporary equity investments were based on valuation done by an independent appraiser. Nilai tercatat dari kas dan setara kas, serta penempatan dengan suku bunga mengambang adalah perkiraan yang layak atas nilai wajar. The carrying amount of cash and cash equivalents, as well as placements with floating rates are a reasonable approximation of fair value. Estimasi nilai wajar terhadap penempatan dengan suku bunga tetap, efek-efek, wesel ekspor dan tagihan lainnya, tagihan akseptasi dan aset lain-lain ditetapkan berdasarkan diskonto arus kas dengan menggunakan suku bunga pasar uang yang berlaku untuk utang dengan risiko kredit dan sisa jatuh tempo yang serupa. Karena sisa jatuh tempo di bawah satu tahun sehingga nilai tercatat dari penempatan dengan suku bunga tetap, wesel ekspor, tagihan lainnya, efek-efek yang dibeli dengan janji untuk dijual kembali, tagihan akseptasi dan aset lain-lain adalah perkiraan yang layak atas nilai wajar. The estimated fair values of fixed interest bearing placements, marketable securities, bills and other receivables, acceptances receivables and other assets were 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 one year, the carrying amounts of fixed rate placements, bills and other receivables, acceptances receivables, securities purchased under agreements to resell and other assets were a reasonable approximation of their fair value. (ii) Pinjaman yang diberikan (ii) Loans Portofolio kredit Bank secara umum terdiri dari pinjaman yang diberikan dengan suku bunga mengambang dan pinjaman yang diberikan jangka pendek dengan suku bunga tetap. Pinjaman yang diberikan dinyatakan berdasarkan amortized cost. Nilai wajar dari pinjaman yang diberikan menunjukkan nilai diskon dari perkiraan arus kas masa depan yang diharapkan akan diterima oleh Bank dengan menggunakan suku bunga pasar saat ini. Generally, the Bank’s portfolio consists of loans with floating interest rate and short-term loans with fixed interest rate. Loans are stated at amortized cost. The estimated fair value of loans represents the discounted amount of estimated future cash flows expected to be received by the Bank using the current market rates. Nilai tercatat dari pinjaman yang diberikan dengan suku bunga mengambang dan nilai tercatat atas pinjaman jangka pendek dengan suku bunga tetap adalah perkiraan yang layak atas nilai wajar. The carrying amount of floating rate loans and short-term fixed rate loans are the reasonable approximation of their fair values. 237 1052 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1053. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 54. NILAI WAJAR ASET KEUANGAN (lanjutan) DAN LIABILITAS 54. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (continued) (iii) Liabilitas segera, simpanan nasabah dan simpanan dari bank lain, liabilitas akseptasi dan liabilitas lain-lain (iii) Obligations due immediately, deposits from customers and deposits from other banks, acceptances payables and other liabilities Estimasi nilai wajar liabilitas segera, simpanan tanpa jatuh tempo, termasuk simpanan tanpa bunga adalah sebesar jumlah yang harus dibayarkan kembali sewaktu-waktu. The estimated fair value of obligations due immediately, deposits with no stated maturity, which include non-interest bearing deposits, are the amounts repayable on demand. Estimasi nilai wajar terhadap simpanan dengan tingkat suku bunga tetap dan liabilitas akseptasi ditetapkan berdasarkan diskonto arus kas dengan menggunakan suku bunga utang baru dengan sisa jatuh tempo yang serupa. Karena sisa jatuh tempo dibawah satu tahun sehingga nilai tercatat dari simpanan dengan suku bunga tetap, liabilitas akseptasi dan liabilitas lain-lain adalah perkiraan yang layak atas nilai wajar. The estimated fair values of fixed interestbearing deposits and acceptances payables are based on discounted cash flows using interest rates for new debts with similar remaining maturity. Since the maturity is below one year, the carrying amounts of fixed rate deposits, acceptances payable and other liabilities are the reasonable approximation of their fair values. (iv) Efek-efek dan Obligasi Pemerintah (iv) Marketable securities and Government Bonds Nilai wajar untuk efek-efek dan Obligasi Pemerintah yang dimiliki hingga jatuh tempo ditetapkan berdasarkan harga pasar atau harga kuotasi perantara (broker)/pedagang efek (dealer). Jika informasi ini tidak tersedia, nilai wajar diestimasi dengan menggunakan harga pasar kuotasi efek yang memiliki karakteristik kredit, jatuh tempo dan yield yang serupa atau dinilai dengan menggunakan metode penilaian. The fair value for held-to-maturity marketable securities and Government Bonds are based on the market prices or broker/dealer price quotations. When this information is not available, the fair value is estimated using quoted market prices for securities with similar credit, maturity and yield characteristics or using internal valuation model. (v) Efek-efek yang diterbitkan, pinjaman yang diterima, dan efek-efek yang dijual dengan janji dibeli kembali dan efek-efek subordinasi. (v) Securities issued, borrowings, securities sold under agreements to repurchase and subordinated securities. Nilai wajar agregat berdasarkan model diskonto arus kas menggunakan kurva yield terkini yang tepat untuk sisa periode jatuh temponya. The aggregate fair values are based on discounted cash flow model using current yield curve appropriate for the remaining term to maturity. 55. MANAJEMEN MODAL 55. CAPITAL MANAGEMENT Tujuan manajemen permodalan Bank adalah untuk mempertahankan posisi modal yang kuat untuk mendukung pertumbuhan bisnis dan mempertahankan investor, deposan, pelanggan dan kepercayaan pasar. Dalam pengelolaan permodalan, Bank mempertimbangkan faktor-faktor seperti: pengembalian modal yang optimal pada pemegang saham, menjaga keseimbangan antara keuntungan yang lebih tinggi dengan gearing ratio serta keamanan yang diberikan oleh posisi modal yang sehat. The Bank’s capital management objective is to maintain a strong capital position to support business growth and to sustain investor, depositor, customer and market confidence. In managing its capital, the Bank considers factors such as: providing optimal capital rate of return to shareholders and maintaining a balance between high return gearing ratio and safety provided by a sound capital position. 238 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1053
  1054. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 55. MANAJEMEN MODAL (lanjutan) 55. CAPITAL MANAGEMENT (continued) Pada tanggal 31 Desember 2018 dan 2017, Bank telah memenuhi semua persyaratan modal yang diwajibkan. As of 31 December 2018 and 2017, the Bank has complied with all capital requirements. Rasio Liabilitas Penyediaan Modal Minimum Capital Adequacy Ratio Rasio Liabilitas Penyediaan Modal Minimum (Capital Adequacy Ratio (CAR)) adalah rasio modal 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. Sesuai dengan Peraturan OJK No. 11/POJK.03/2016 dan Peraturan OJK No. 34/POJK.03/2016 tentang Kewajiban Penyediaan Modal Minimum Bank Umum dan Surat Edaran OJK No. 43/SEOJK.03/2016 tentang Transparansi dan Publikasi Laporan Bank Umum Konvensional, sejak akhir bulan September 2016, Cadangan Tujuan tidak dapat lagi diperhitungkan sebagai komponen Modal Bank. The Capital Adequacy Ratio (CAR) is the ratio of the Bank’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 Subsidiaries. In accordance with OJK Regulation No. 11/POJK.03/2016 and OJK Regulation No. 34/POJK.03/2016 concerning the Minimum Capital Requirement for Commercial Banks and OJK Circular Letter No.43/SEOJK.03/2016 on Transparency and Publication Conventional Commercial Bank Report, since the end of the month of September 2016, Specific Reserves can no longer be taken into account as a component of Capital Bank. Rasio Kecukupan Modal (hanya BNI) pada tanggaltanggal 31 Desember 2018 dan 2017 adalah sebagai berikut: The CAR of BNI (BNI only) as 31 December 2018 and 2017 are as follows: 2018 BNI - tanpa memperhitungkan risiko pasar Aset Tertimbang Menurut Risiko Total Modal Rasio Liabilitas Penyediaan Modal Minimum BNI Rasio Liabilitas Penyediaan Modal Minimum yang diwajibkan oleh Bank Indonesia BNI - dengan memperhitungkan risiko pasar Aset Tertimbang Menurut Risiko Total Modal Rasio Liabilitas Penyediaan Modal Minimum BNI Rasio Liabilitas Penyediaan Modal Minimum yang diwajibkan oleh Bank Indonesia BNI - dengan memperhitungkan risiko operasional, mulai berlaku sejak 1 Januari 2010 Aset Tertimbang Menurut Risiko Total Modal Rasio Liabilitas Penyediaan Modal Minimum BNI Rasio Liabilitas Penyediaan Modal Minimum yang diwajibkan oleh Bank Indonesia 2017 491,757,871 104,254,095 450,705,555 95,306,890 BNI - without considering market risk Risk Weighted Assets Total Capital 21.20% 21.15% Capital Adequacy Ratio 9.90% 9.90% Minimum Capital Adequacy Ratio required by Bank Indonesia 494,956,320 104,254,095 453,083,625 95,306,890 BNI - considering market risk Risk Weighted Assets Total Capital 21.06% 21.04% Capital Adequacy Ratio 9.90% 9.90% Minimum Capital Adequacy Ratio required by Bank Indonesia 563,439,969 104,254,095 514,476,829 95,306,890 BNI - considering operational risk, effective since 1 January 2010 Risk Weighted Assets Total Capital 18.50% 18.53% Capital Adequacy Ratio 9.90% 9.90% Minimum Capital Adequacy Ratio required by Bank Indonesia 239 1054 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1055. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 56. AKTIVITAS JASA LAINNYA 56. OTHER ACTIVITIES BNI menyediakan jasa kustodi, trustee, pengelolaan investasi dan reksadana kepada pihak-pihak ketiga. Aset yang terdapat dalam aktivitas jasa lainnya tidak termasuk dalam laporan keuangan konsolidasian ini. Jumlah komisi yang diterima dari pemberian jasa ini adalah masingmasing sebesar Rp83.696 dan Rp65.862 untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2018 dan 2017. BNI provides custodian, trustee, investment management and mutual fund services to third parties. Assets that are held in other activities are not included in these consolidated financial statements. Total fees received from these services amounted to Rp83,696 and Rp65,862 for the years ended 31 December 2018 and 2017, respectively. Kegiatan Jasa Kustodian Custodian Services Jasa Kustodian BNI mendapat izin operasi oleh Bapepam dan LK berdasarkan Surat Keputusan No. KEP-162/PM/1991 tertanggal 9 Desember 1991. Kustodian BNI merupakan bagian dari Divisi Operasional, dimana jasa-jasa yang ditawarkan adalah sebagai berikut: BNI Custodian Services has obtained an operating license based on the Decision Letter of Bapepam and LK No. KEP-162/PM/1991 dated 9 December 1991. BNI’s Custodian Department, which is part of the Operational Division, provides a full range of custodian services such as: a. a. Safekeeping and administration of marketable securities and other valuable assets; b. Settlement and handling services for script and scriptless trading transactions; c. Corporate action services related to the rights of the marketable securities; d. Proxy services for its customers’ shareholder meetings and bond holder meetings; e. Generate reports and information regarding customers’ marketable securities which are kept and administered by BNI’s custodian department. b. c. d. e. Penyimpanan (safekeeping) dan administrasi (administration) atas efek-efek maupun dokumen berharga lainnya; Penyelesaian transaksi (settlement) jual dan beli efek berbentuk warkat (script) maupun tanpa warkat (scriptless); Pengurusan hak-hak nasabah atas kepemilikan efek-efek yang disimpan sehingga hak tersebut efektif di rekening nasabah (corporate action); Perwalian (proxy) pada Rapat Umum Pemegang Saham dan Rapat Umum Pemegang Obligasi; Penyampaian laporan (reporting) dan informasi (information) yang terkait dengan efek-efek dan/atau dokumen berharga milik nasabah yang disimpan dan diadministrasikan oleh Kustodian BNI. Untuk memenuhi kebutuhan investor dalam melakukan investasi pada berbagai instrumen efekefek, Kustodian BNI memfasilitasinya dengan menyediakan beragam layanan: In order to fulfil the investors’ needs in investing in various marketable securities and instruments, BNI’s Custodian Operations facilitates various services as follows: a. Kustodian umum untuk melayani investor yang melakukan investasi pada instrumen pasar modal dan pasar uang di Indonesia; a. General custodian which provides services to investors investing in capital markets or money markets in Indonesia; b. Sub-Registry untuk melayani investor yang melakukan transaksi dan investasi pada Surat Utang Negara (SUN - Obligasi Pemerintah atau Surat Perbendaharaan Negara) serta Sertifikat Bank Indonesia (SBI); b. Sub-Registry service provider for settlement of Government Debenture Debt (SUN - either Government Bonds or Surat Perbendaharaan Negara) and SBI transactions; c. Kustodian reksadana (mutual fund) dan kontrak pengelolaan dana (discretionary fund) yang diterbitkan dan dikelola oleh manajer investasi; c. Custodian for mutual funds and discretionary funds issued and managed by investment manager; 240 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1055
  1056. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 56. AKTIVITAS JASA LAINNYA (lanjutan) 56. OTHER ACTIVITIES (continued) Kegiatan Jasa Kustodian (lanjutan) Custodian Services (continued) d. d. Kustodian Euroclear bagi nasabah yang akan melakukan investasi dan penyelesaian transaksi efek-efek yang tercatat di Euroclear Operations Centre, Brussels. Kustodian BNI merupakan anggota langsung dari Euroclear. Euroclear Custodian for customer who is conducting investment and settlement of securities transactions listed in Euroclear Operations Center, Brussels. BNI Custodian is a direct member of Euroclear. Pada tanggal-tanggal 31 Desember 2018 dan 2017, Kustodian BNI memiliki 138 nasabah (tidak diaudit) dan 264 nasabah (tidak diaudit). Nasabah utama terdiri dari dana pensiun, perusahaan asuransi, bank, yayasan, perusahaan sekuritas, reksadana, institusi/badan hukum lain dan perseorangan. Nilai portofolio yang disimpan pada tanggal 31 Desember 2018 dan 2017 adalah masing-masing sebesar Rp215.012.511 (tidak diaudit) dan Rp204.510.680 (tidak diaudit). As of 31 December 2018 and 2017, BNI’s custodian operations has 138 customers (unaudited) and 264 customers (unaudited), respectively. The customers are primarily pension funds, insurance companies, banks, foundations, securities companies, mutual funds, other institutions/legal entities and individual customers with a total portfolio value as of 31 Desember 2018 and 2017 of Rp215,012,511 (unaudited) and Rp204,510,680 (unaudited), respectively. BNI mengasuransikan portofolio nasabah yang disimpan di Kustodian terhadap kemungkinan kerugian yang timbul dari penyimpanan dan pemindahan efek-efek sesuai dengan ketentuan OJK, dahulu Bapepam dan LK. BNI carries insurance on custodian services against potential losses from safekeeping and transit of securities in accordance with OJK, previously Bapepam and LK regulation. Kegiatan Wali Amanat Trust Operations BNI mendapat izin operasi untuk kegiatan wali amanat berdasarkan Surat Keputusan No. 01/STTD-WA/PM/1996 tertanggal 27 Maret 1996. Jasa-jasa yang ditawarkan oleh wali amanat adalah sebagai berikut: BNI has obtained the operating license for trustee services based on Decision Letter of Capital Market and Financial Institutions Supervisory Agency No. 01/STTD-WA/PM/1996 dated 27 March 1996. The Trustee Services Business (TSB) provides a full range of the following services: a. a. b. c. d. e. Jasa Wali Amanat untuk obligasi dan mediumterm notes (MTN) Jasa Agen Pengelola Rekening Penampungan Jasa Agen Pembayaran Jasa Penampungan Dana IPO Jasa Agen Penjaminan b. c. d. e. BNI selaku Wali Amanat telah mengelola 23 emisi dengan nilai emisi (obligasi dan MTN) sebesar Rp64.544.000 (tidak diaudit) pada tanggal 31 Desember 2018 dan 31 emisi dengan nilai emisi (obligasi dan MTN) sebesar Rp45.450.652 (tidak diaudit) pada tanggal 31 Desember 2017. Trustee for bond and medium-term notes (MTN) Escrow Account Agent Paying Agent Initial Public Offering / IPO Receiving Bank Security Agent BNI as a Trustee, has 23 bonds and MTN issued amounting to Rp64,544,000 (unaudited) as of 31 December 2018 and 31 trusteeship arrangements with the total value of bonds and MTN issued amounting to Rp45,450,652 (unaudited) as of 31 December 2017. 57. RENCANA BARANG MODAL 57. CAPITAL EXPENDITURE COMMITMENTS BNI memiliki komitmen barang modal terkait dengan pembangunan gedung kantor cabang serta pengadaan perlengkapan komputer dan ATM adalah sebesar Rp2.128.416 dan Rp1.473.887 masing-masing pada tanggal-tanggal 31 Desember 2018 dan 2017 (tidak diaudit). BNI has capital expenditure plans in relation to the construction of branch offices and procurement of computer equipment and ATMs amounting to Rp2,128,416 and Rp1,473,887 as of 31 December 2018 and 2017 (unaudited), respectively. 241 1056 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1057. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 58. KREDIT KELOLAAN 58. CHANNELING LOANS BNI mengelola dana yang langsung dikeluarkan oleh Pemerintah Republik Indonesia (didanai oleh kreditur luar negeri) yang ditujukan kepada penerima pinjaman untuk keperluan pembiayaan proyek tertentu. Penerima pinjaman ini telah disetujui oleh Pemerintah Republik Indonesia. Pembayaran yang diterima oleh BNI dari penerima pinjaman dikembalikan lagi ke Pemerintah. BNI tidak menanggung risiko kredit atas transaksitransaksi tersebut. Pinjaman tersebut bukan merupakan aset BNI dan dana yang diterima dari Pemerintah Republik Indonesia bukan merupakan liabilitas BNI, pinjaman tersebut tidak dibukukan dalam laporan keuangan konsolidasian BNI. BNI memperoleh pendapatan atas pengelolaan pinjaman tersebut sebesar 0,25% dari rata-rata saldo baki debet pinjaman dalam mata uang Rupiah dan 0,15% dari rata-rata saldo baki debet pinjaman dalam mata uang Dolar Amerika Serikat. BNI administers loans directly disbursed by the Government of the Republic of Indonesia (financed by overseas creditors) to the borrowers of certain specified projects. These borrowers are approved by the Government of the Republic of Indonesia. Payments received by BNI from borrowers are remitted back to the Government. BNI bears no credit risk on these transactions. These loans are not the assets of BNI and funds received from the Government of Republic of Indonesia are not the liabilities of BNI. These loans are not recognized in BNI’s consolidated financial statements. BNI receives fees for administering the loans of 0.25% from the average of loans outstanding balance in Rupiah and 0.15% of the average of loan outstanding balance in United States Dollar. Jumlah kredit yang dikelola oleh BNI atas nama Pemerintah tersebut pada tanggal-tanggal 31 Desember 2018 dan 2017 (tidak diaudit) adalah sebagai berikut: Following is the outstanding loans balance administered by BNI on behalf of the Government as of 31 December 2018 and 2017 (unaudited): 2018 Sektor Listrik, gas dan air Pertanian Pengangkutan, pergudangan dan komunikasi Perdagangan, restoran dan hotel Jasa pelayanan sosial Jasa dunia usaha Perindustrian Konstruksi Lain-lain Total 2017 4,098 2,881 4,098 2,881 2,747 2,273 1,876 1,680 1,131 6 9,457 2,747 2,279 1,876 1,680 1,132 6 9,462 Sector Electricity, gas and water Agriculture Transportation, warehouse and communications Trading, restaurant and hotel Social services Business services Manufacturing Construction Others 26,149 26,161 Total 59. TAMBAHAN INFORMASI ARUS KAS 59. SUPPLEMENTARY CASH FLOW INFORMATION Perubahan pada liabilitas yang timbul dari aktivitas pendanaan pada laporan arus kas konsolidasian adalah sebagai berikut: 1 Januari 2018/ 1 January 2018 Changes in liabilities arising from financing activities in the consolidated cash flow statement are as follows: Selisih kurs/ Foreign exchange Arus kas/ Cash flow 31 Desember 2018/ 31 December 2018 Pinjaman yang diterima Efek-efek yang dijual dengan janji dibeli kembali Efek-efek Subordinasi 44,670,741 6,795,949 557,816 52,024,506 2,390,066 - 18,478,977 99,953 655,286 - 21,524,329 99,953 Borrowings Securities sold under agreements to repurchase Subordinated Securities Total 47,060,807 25,374,879 1,213,102 73,648,788 Total 242 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1057
  1058. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 60. STANDAR AKUNTANSI BARU 60. NEW PROSPECTIVE STANDARDS ACCOUNTING Pernyataan Standar Akuntansi Keuangan dan Interpretasi Standar Akuntansi Keuangan yang telah disahkan oleh Dewan Standar Akuntansi Keuangan - Ikatan Akuntan Indonesia (DSAK IAI), tetapi belum berlaku efektif untuk laporan keuangan tahun berjalan diungkapkan di bawah ini. Statements of Financial Accounting Standards and Interpretations of Statements of Financial Accounting Standards that are issued by the Indonesian Financial Accounting Standards Board - Indonesian Institute of Accountants (DSAK - IAI), but not yet effective for current financial statements are disclosed below. • • PSAK 71: Instrumen Keuangan, yang diadopsi dari IFRS 9, berlaku efektif 1 Januari 2020 dengan penerapan dini diperkenankan. PSAK ini mengatur klasifikasi dan pengukuran instrumen keuangan berdasarkan karakteristik dari arus kas kontraktual dan model bisnis entitas; metode kerugian kredit ekspektasian untuk penurunan nilai yang menghasilkan informasi yang lebih tepat waktu, relevan dan dimengerti oleh pemakai laporan keuangan; akuntansi untuk lindung nilai yang merefleksikan manajemen risiko entitas lebih baik dengan memperkenalkan persyaratan yang lebih umum berdasarkan pertimbangan manajemen. • This SFAS provides for classification and measurement of financial instruments based on the characteristics of contractual cash flows and business model of the entity; expected credit loss impairment model that resulting information more timely, relevant and understandable to users of financial statements; accounting for hedging that reflect the entity's risk management better by introduce a more general requirements based on management's judgment. PSAK 72: Pendapatan dari Kontrak dengan Pelanggan, yang diadopsi dari IFRS 15, berlaku efektif 1 Januari 2020 dengan penerapan dini diperkenankan. • PSAK ini adalah standar tunggal untuk pengakuan pendapatan yang merupakan hasil dari joint project yang sukses antara Dewan Standar Akuntansi Internasional dan Dewan Standar Akuntansi Keuangan, mengatur model pengakuan pendapatan dari kontrak dengan pelanggan, sehingga entitas diharapkan dapat melakukan analisis sebelum mengakui pendapatan. • SFAS 71: Financial Instruments, adopted from IFRS 9, effective 1 January 2020 with earlier application is permitted. PSAK 72: Revenue from Contracts with Customers, adopted from IFRS 15, effective January 1, 2020 with earlier application is permitted. This PSAK is a single standards that a joint project between the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB), provides revenue recognition from contracts with customers, and the entity is expected to have analizing before recognazing the revenue. • PSAK 73: Sewa, yang diadopsi dari IFRS 16, berlaku efektif 1 Januari 2020 dengan penerapan dini diperkenankan untuk entitas yang juga telah menerapkan PSAK 72: Pendapatan dari Kontrak dengan Pelanggan. PSAK ini menetapkan prinsip pengakuan, pengukuran, penyajian, dan pengungkapan atas sewa dengan memperkenalkan model akuntansi tunggal dengan mensyaratkan untuk mengakui aset hak-guna (right-of-use assets) dan liabilitas sewa. Terdapat 2 pengecualian opsional dalam pengakuan aset dan liabilitas sewa, yakni untuk: (i) sewa jangka-pendek dan (ii) sewa yang aset pendasarnya (underlying assets) bernilai-rendah. SFAS 73: Leases, adopted from IFRS 16, effective 1 January 2020 with earlier application is permitted, but not before an entity applies SFAS 72: Revenue from Contracts with Customers. This SFAS establish the principles of recognition, measurement, presentation, and disclosure of the lease by introducing a single accounting model, with the requirement to recognize the right-of-use assets and liability of the lease; there are 2 optional exclusions in the recognition of the lease assets and liabilities: (i) short-term lease and (ii) lease with low-value underlying assets. 243 1058 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1059. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 60. STANDAR AKUNTANSI BARU (lanjutan) • 60. NEW PROSPECTIVE STANDARDS (continued) Amandemen PSAK 62: Kontrak Asuransi tentang Menerapkan PSAK 71 Instrumen Keuangan dengan PSAK 62 Kontrak Asuransi, berlaku efektif 1 Januari 2020. • Amandemen ini mengizinkan asuradur yang memenuhi kriteria tertentu untuk menerapkan pengecualian sementara dari PSAK 71 (deferral approach) atau memilih untuk menerapkan pendekatan berlapis (overlay approach) untuk aset keuangan yang ditetapkan • Amendemen PSAK 24: Imbalan Kerja tentang Amendemen, Kurtailmen, atau Penyelesaian Program, berlaku efektif 1 Januari 2019 • Amendments to PSAK 24: Employee Benefits regarding Amendments, Kurtailmen, or Program Settlement, effective January 1, 2019 Amendments to PSAK 24 provide clearer guidance for entities in recognizing past service costs, settlement gains and losses, current service costs and net interest after amendments, curtailments, or completion of programs because they use the latest actuarial assumptions (previously using acturial assumptions at the beginning of the reporting period annual). In addition, the Amendment to PSAK 24 also clarifies how the accounting requirements for amendments, curtailments, or program completion can affect the asset boundary requirements as seen from the reduction in surplus which causes the impact of the asset limit to change. • ISAK 33 – Transaksi Valuta Asing dan Imbalan di Muka, berlaku efektif 1 Januari 2019 dengan penerapan dini diperkenankan. ISAK 33 mengklarifikasi penggunaan tanggal transaksi untuk menentukan kurs yang digunakan pada pengakuan awal aset, beban atau penghasilan terkait pada saat entitas telah menerima atau membayar imbalan di muka dalam valuta asing. • Amendments to SFAS 62: Insurance Contract on Applying PSAK 71 Financial Instruments with SFAS 62 Insurance Contract, effective 1 January 2020. This amendments allows those who meet certain criteria to apply a temporary exclusion of SFAS 71 (deferral approach) or choose to implement overlay approach for financial assets designated. Amendemen PSAK 24 memberikan panduan yang lebih jelas bagi entitas dalam mengakui biaya jasa lalu, keuntungan dan kerugian penyelesaian, biaya jasa kini dan bunga neto setelah adanya amendemen, kurtailmen, atau penyelesaian program karena menggunakan asumsi aktuarial terbaru (sebelumnya menggunakan asumsi akturial pada awal periode pelaporan tahunan). Selain itu, Amendemen PSAK 24 juga mengklarifikasi bagaimana persyaratan akuntansi untuk amendemen, kurtailmen, atau penyelesaian program dapat mempengaruhi persyaratan batas atas aset yang terlihat dari pengurangan surplus yang menyebabkan dampak batas atas aset berubah. • ACCOUNTING ISAK 33 – Foreign currency Transaction and Advance Consideration, effective 1 January 2019 with earlier application is permitted. ISAK 33 clarify the use of the transaction date to determine the exchange rate used in the initial recognition of the related asset, expense or income at the time the entity has received or paid advance consideration in the foreign currency. ISAK 34 : Ketidakpastian dalam Perlakuan Pajak Penghasilan, berlaku efektif 1 Januari 2019 dengan penerapan dini diperkenankan. • PSAK ini bertujuan untuk mengklarifikasi dan memberikan panduan dalam merefleksikan ketidakpastian perlakuan pajak penghasilan dalam laporan keuangan. SFAS No 34: Uncertainty over Income Tax Treatments, effective 1 January 2019 with earlier application is permitted. This SFAS is to clarifies and guidance of uncertainty over Income tax treatments at financial report Pada saat penerbitan laporan keuangan konsolidasian, Grup masih mempelajari dampak yang mungkin timbul dari penerapan standar baru dan revisi tersebut serta pengaruhnya pada laporan keuangan konsolidasian Grup. As at the authorisation date of this consolidated financial statements, the Group is still evaluating the potential impact of these new and revised standards to the Group’s consolidated financial statements. 244 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1059
  1060. The original consolidated financial statements included herein are in the Indonesian language . PT BANK NEGARA INDONESIA (PERSERO) Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) PT BANK NEGARA INDONESIA (PERSERO) Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 61. REKLASIFIKASI AKUN 61. RECLASSIFICATION OF ACCOUNTS Beberapa akun dalam laporan keuangan konsolidasian untuk tahun yang berakhir pada tanggal 31 Desember 2017 telah direklasifikasi agar sesuai dengan penyajian laporan keuangan konsolidasian untuk tahun yang berakhir pada tanggal 31 Desember 2018. Certain accounts in the consolidated financial statements for the year ended 31 December 2017 have been reclassified to conform with the presentation of the consolidated financial statements for the year ended 31 December 2018. Rincian reklasifikasi akun-akun tersebut adalah sebagai berikut: The details of the accounts reclassification are as follows: 2017 Laporan keuangan konsolidasian/ Consolidated financial statements Sebelum Setelah reklasifikasi/ reklasifikasi/ Before Reklasifikasi/ After reclassifications Reclassifications reclassifications Laporan posisi keuangan Statement of financial position LIABILITAS Simpanan dari bank lain Pinjaman yang diterima TOTAL LIABILITAS LIABILITIES 11,682,783 44,722,165 51,424 (51,424) 584,086,818 - 11,734,207 44,670,741 584,086,818 Laporan laba rugi dan penghasilan komprehensif lain 7,314,262 870,284 (2,747,569) LABA TAHUN BERJALAN 13,770,596 (442,355) (24,610) 466,965 - 6,871,907 Other fee and commission income 845,674 Other operating income (2,280,604) Other operating expenses 13,770,596 Laporan Arus Kas CASH FLOWS FROM OPERATING ACTIVITIES 10,585,204 (19,182,605) (466,965) 466,965 21,241,286 - 10,118,239 (18,715,640) Kas neto diperoleh dari aktivitas operasi Changes in operating assets and liabilities 1,370,680 51,424 1,422,104 33,625,854 51,424 33,677,278 ARUS KAS DARI AKTIVITAS PENDANAAN Kenaikan pinjaman yang diterima Kas neto diperoleh dari aktivitas pendanaan PENINGKATAN NETO KAS DAN SETARA KAS Other operating income Other operating expenses Cash flows before changes in 21,241,286 operating assets and liabilities Perubahan dalam aset dan liabilitas operasi: Kenaikan (penurunan) liabilitas operasi: Simpanan dari bank lain INCOME FOR THE YEAR Statement of Cash Flows ARUS KAS DARI AKTIVITAS OPERASI Arus kas sebelum perubahan dalam aset dan liabilitas operasi TOTAL LIABILITIES Statement of profit or loss and other comprehensive income Pendapatan Provisi dan komisi lainnya Pendapatan operasional lainnya Beban operasional lainnya Pendapatan operasional lainnya Beban operasional lainnya Deposits from other banks Borrowings Increase (decrease) in operating liabilities: Deposits from other banks Net cash provided from operating activities CASH FLOWS FROM FINANCING ACTIVITIES 12,333,663 (51,424) 3,245,370 (51,424) 13,596,952 - 12,282,239 Increase in borrowings 3,193,946 Net cash provided from financing activities 13,596,952 NET INCREASE IN CASH AND CASH EQUIVALENTS 245 1060 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1061. The original supplementary financial statements included herein are in the Indonesian language . INFORMASI KEUANGAN TAMBAHAN/SUPPLEMENTARY FINANCIAL INFORMATION Schedule 1 PT BANK NEGARA INDONESIA (PERSERO) Tbk PARENT ENTITY STATEMENT OF FINANCIAL POSITION As of 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) Lampiran 1 PT BANK NEGARA INDONESIA (PERSERO) Tbk ENTITAS INDUK LAPORAN POSISI KEUANGAN Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 31 Desember/December 2018 2017 ASET ASSETS Kas 13,681,004 11,330,043 Cash Giro pada Bank Indonesia 33,867,589 30,611,107 Current accounts with Bank Indonesia Giro pada bank lain Dikurangi: Cadangan kerugian penurunan nilai 12,841,692 - 21,019,282 - Current accounts with other banks Less: Allowance for impairment losses 12,841,692 21,019,282 35,871,963 - 24,569,026 - 35,871,963 24,569,026 27,292,142 (307,730) 29,729,231 (303,782) 26,984,412 29,425,449 - 548,458 - - 548,458 Penempatan pada bank lain dan Bank Indonesia Dikurangi: Cadangan kerugian penurunan nilai Efek-efek Dikurangi: Cadangan kerugian penurunan nilai Efek-efek yang dibeli dengan janji dijual kembali Dikurangi: Cadangan kerugian penurunan nilai Wesel ekspor dan tagihan lainnya Dikurangi: Cadangan kerugian penurunan nilai Tagihan akseptasi Dikurangi: Cadangan kerugian penurunan nilai Tagihan derivatif Pinjaman yang diberikan Dikurangi: Cadangan kerugian penurunan nilai 24,745,206 (158,344) 15,799,170 (98,245) 24,586,862 15,700,925 20,422,882 18,255,111 (179,221) (164,452) 20,243,661 18,090,659 605,248 216,884 483,421,821 (14,059,789) 417,151,310 (13,935,005) 469,362,032 403,216,305 Placements with other banks and Bank Indonesia Less: Allowance for impairment losses Marketable securities Less: Allowance for impairment losses Securities purchased under agreements to resell Less: Allowance for impairment losses Bills and other receivables Less: Allowance for impairment losses Acceptances receivables Less: Allowance for impairment losses Derivatives receivables Loans Less: Allowance for impairment losses 246 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1061
  1062. The original supplementary financial statements included herein are in the Indonesian language . INFORMASI KEUANGAN TAMBAHAN/SUPPLEMENTARY FINANCIAL INFORMATION Schedule 1 PT BANK NEGARA INDONESIA (PERSERO) Tbk PARENT ENTITY STATEMENT OF FINANCIAL POSITION (continued) As of 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) Lampiran 1 PT BANK NEGARA INDONESIA (PERSERO) Tbk ENTITAS INDUK LAPORAN POSISI KEUANGAN (lanjutan) Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 31 Desember/December 2018 2017 ASET (lanjutan) Obligasi Pemerintah ASSETS (continued) 72,087,759 68,393,187 Government Bonds Pajak dibayar di muka 1,623,560 619,751 Prepaid taxes Beban dibayar dimuka 2,114,901 2,096,716 Prepaid expenses Penyertaan saham Dikurangi: Cadangan kerugian penurunan nilai 4,081,332 (181,084) 4,081,332 (72,400) 3,900,248 4,008,932 9,795,844 8,741,143 32,954,473 (7,460,793) 29,333,004 (7,026,798) 25,493,680 22,306,206 1,514,755 764,300 Deferred tax assets - net 754,575,210 661,658,373 TOTAL ASSETS Aset lain-lain - neto Aset tetap Dikurangi: Akumulasi penyusutan Aset pajak tangguhan - neto TOTAL ASET Equity investments Less: Allowance for impairment losses Other assets - net Fixed assets Less: Accumulated depreciation 247 1062 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1063. The original supplementary financial statements included herein are in the Indonesian language . INFORMASI KEUANGAN TAMBAHAN/SUPPLEMENTARY FINANCIAL INFORMATION Schedule 1 PT BANK NEGARA INDONESIA (PERSERO) Tbk PARENT ENTITY STATEMENT OF FINANCIAL POSITION (continued) As of 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) Lampiran 1 PT BANK NEGARA INDONESIA (PERSERO) Tbk ENTITAS INDUK LAPORAN POSISI KEUANGAN (lanjutan) Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 31 Desember/December 2018 2017 LIABILITAS DAN EKUITAS LIABILITAS Liabilitas segera LIABILITIES AND EQUITY 4,115,403 4,834,397 LIABILITIES Obligations due immediately 544,659,543 487,461,508 Deposits from customers 14,179,005 12,011,881 Deposits from other banks 322,028 113,820 Derivatives payable 21,524,329 2,390,066 Securities sold under agreements to repurchase 4,364,479 4,491,419 Acceptances payable Beban yang masih harus dibayar 670,013 700,093 Accrued expenses Utang pajak - Pajak penghasilan badan - Pajak lainnya 398,615 35,367 6,044 25,910 Taxes payable Corporate income tax Other taxes - Total utang pajak 433,982 31,954 Total taxes payable 2,903,413 3,761,240 Employee benefits 176,219 190,881 Provision Liabilitas lain-lain 3,271,580 4,493,047 Other liabilities Efek-efek yang diterbitkan 2,999,044 2,998,818 Securities issued 51,267,143 44,161,992 Borrowings 99,953 - Subordinated Securities 650,986,134 567,641,116 TOTAL LIABILITIES Simpanan nasabah Simpanan dari bank lain Liabilitas derivatif Efek-efek yang dijual dengan janji dibeli kembali Liabilitas akseptasi Imbalan kerja Penyisihan Pinjaman yang diterima Efek-efek subordinasi TOTAL LIABILITAS 248 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1063
  1064. The original supplementary financial statements included herein are in the Indonesian language . INFORMASI KEUANGAN TAMBAHAN/SUPPLEMENTARY FINANCIAL INFORMATION Schedule 1 PT BANK NEGARA INDONESIA (PERSERO) Tbk PARENT ENTITY STATEMENT OF FINANCIAL POSITION (continued) As of 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) Lampiran 1 PT BANK NEGARA INDONESIA (PERSERO) Tbk ENTITAS INDUK LAPORAN POSISI KEUANGAN (lanjutan) Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 31 Desember/December 2018 2017 EKUITAS Modal saham: - Seri A Dwiwarna - nilai nominal Rp7.500 per saham (dalam Rupiah penuh) - Seri B - nilai nominal Rp7.500 per saham (dalam Rupiah penuh) - Seri C - nilai nominal Rp375 per saham (dalam Rupiah penuh) EQUITY Share capital: Class A Dwiwarna Rp7,500 par value per share (in full Rupiah amount) Class B - Rp7,500 par value per share (in full Rupiah amount) Class C - Rp375 par value per share (in full Rupiah amount) Modal dasar: - Seri A Dwiwarna - 1 saham - Seri B - 289.341.866 saham - Seri C - 34.213.162.660 saham Share capital - Authorized: Class A Dwiwarna - 1 share Class B - 289,341,866 shares Class C - 34,213,162,660 shares - Modal ditempatkan dan disetor penuh: - Seri A Dwiwarna - 1 saham - Seri B - 289.341.866 saham - Seri C - 18.359.314.591 saham 9,054,807 9,054,807 Issued and fully paid: Class A Dwiwarna - 1 share Class B - 289,341,866 shares Class C - 18,359,314,591 shares - Tambahan modal disetor 14,568,468 14,568,468 Additional paid-in capital Cadangan revaluasi aset 14,836,707 12,189,730 Asset revaluation reserve 280,627 Unrealized (losses)/gains on availablefor-sale marketable securities and Government Bonds, net of tax 93,279 Exchange difference in translation of foreign currency financial statements 2,778,412 65,250,930 2,778,412 55,051,934 Retained earnings Appropriated General and legal reserves Specific reserves Unappropriated 68,029,342 57,830,346 TOTAL EKUITAS 103,589,076 94,017,257 TOTAL EQUITY TOTAL LIABILITAS DAN EKUITAS 754,575,210 661,658,373 TOTAL LIABILITIES AND EQUITY (Rugi)/laba yang belum direalisasi atas efek-efek dan Obligasi Pemerintah dalam kelompok tersedia untuk dijual, setelah pajak Selisih kurs karena penjabaran laporan keuangan dalam mata uang asing Saldo laba Sudah ditentukan penggunaannya Cadangan umum dan wajib Cadangan khusus Tidak ditentukan penggunaannya (2,985,199) 84,951 249 1064 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1065. The original supplementary financial statements included herein are in the Indonesian language . INFORMASI KEUANGAN TAMBAHAN/SUPPLEMENTARY FINANCIAL INFORMATION Schedule 2 PT BANK NEGARA INDONESIA (PERSERO) Tbk PARENT ENTITY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the Year Ended 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) Lampiran 2 PT BANK NEGARA INDONESIA (PERSERO) Tbk ENTITAS INDUK LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN Untuk Tahun yang Berakhir Pada Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) Tahun yang Berakhir pada tanggal 31 Desember/Year ended December 2018 2017 50,270,825 44,839,446 (17,614,932) (15,230,292) 32,655,893 29,609,154 INTEREST INCOME - NET 8,353,459 7,372,139 OTHER OPERATING INCOME Other fee and commission 1,997,152 1,732,289 32,967 6,777 534,686 485,278 389,497 710,954 899,931 377,511 Recovery of assets written off Unrealized gain (losses) from from financial assets held for trading Gain on sale of financial assets classified as available-for-sale and held for trading Foreign exchange gains - net Others TOTAL PENDAPATAN OPERASIONAL LAINNYA 11,793,039 11,099,601 TOTAL OTHER OPERATING INCOME PEMBENTUKAN CADANGAN KERUGIAN PENURUNAN NILAI (6,798,584) (6,503,163) ALLOWANCE FOR IMPAIRMENT LOSSES BEBAN OPERASIONAL LAINNYA Gaji dan tunjangan Umum dan administrasi Beban promosi Premi penjaminan Lain-lain (8,106,388) (6,908,898) (1,101,141) (970,733) (1,824,150) (8,124,341) (6,209,154) (864,323) (877,307) (1,790,289) OTHER OPERATING EXPENSES Salaries and employees’ benefits General and administrative Promotion expense Guarantee premium Others (18,911,310) (17,865,414) TOTAL OTHER OPERATING EXPENSES 18,739,038 16,340,178 PENDAPATAN BUNGA BEBAN BUNGA PENDAPATAN BUNGA - NETO PENDAPATAN OPERASIONAL LAINNYA Provisi dan komisi lainnya Penerimaan kembali aset yang telah dihapusbukukan Keuntungan (kerugian) yang belum direalisasi dari aset keuangan yang dimiliki untuk diperdagangkan Keuntungan dari penjualan aset keuangan yang diklasifikasikan tersedia untuk dijual dan dimiliki untuk diperdagangkan Laba selisih kurs - neto Lain-lain TOTAL BEBAN OPERASIONAL LAINNYA LABA OPERASIONAL PENDAPATAN/(BEBAN) BUKAN OPERASIONAL - NETO 302,888 (12,684) INTEREST INCOME INTEREST EXPENSE OPERATING INCOME NON-OPERATING INCOME/ (EXPENSES) - NET LABA SEBELUM BEBAN PAJAK 19,041,926 16,327,494 INCOME BEFORE TAX EXPENSE BEBAN PAJAK Kini Tangguhan (4,768,134) 188,370 (3,143,534) (138,115) TAX EXPENSE Current Deferred TOTAL BEBAN PAJAK (4,579,764) (3,281,649) TOTAL TAX EXPENSE LABA TAHUN BERJALAN 14,462,162 13,045,845 INCOME FOR THE YEAR 250 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1065
  1066. The original supplementary financial statements included herein are in the Indonesian language . INFORMASI KEUANGAN TAMBAHAN/SUPPLEMENTARY FINANCIAL INFORMATION Schedule 2 PT BANK NEGARA INDONESIA (PERSERO) Tbk PARENT ENTITY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (continued) For the Year Ended 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) Lampiran 2 PT BANK NEGARA INDONESIA (PERSERO) Tbk ENTITAS INDUK LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN (lanjutan) Untuk Tahun yang Berakhir Pada Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) Tahun yang Berakhir pada tanggal 31 Desember/Year ended December LABA TAHUN BERJALAN 2018 2017 14,462,162 13,045,845 PENGHASILAN KOMPREHENSIF LAIN: OTHER COMPREHENSIVE INCOME: Pos-pos yang tidak akan direklasifikasi ke laba rugi Keuntungan revaluasi aset tetap Pengukuran kembali liabilitas imbalan kerja Pajak penghasilan terkait dengan komponen pendapatan komprehensif lain Pos-pos yang akan direklasifikasi ke laba rugi Penyesuaian akibat penjabaran laporan keuangan dalam mata uang asing (Kerugian) keuntungan dari perubahan nilai aset keuangan dalam kelompok tersedia untuk dijual Pajak penghasilan terkait dengan komponen pendapatan komprehensif lain PENGHASILAN KOMPREHENSIF LAIN TAHUN BERJALAN SETELAH PAJAK TOTAL LABA KOMPREHENSIF TAHUN BERJALAN INCOME FOR THE YEAR Items that will not be reclassified to profit or loss 2,755,924 (227) Gain on revaluation of fixed assets 628,250 (186,118) Remeasurement of post employment benefit 37,224 Income tax relating to components of other comprehensive income 11,564 Items that will be reclassified to profit or loss Translation adjustment of foreign currency financial statements 1,912,357 (Losses) gain on changes in value of financial assets categorized as available-for-sale (384,282) Income tax relating to components of other comprehensive income (234,596) (8,328) (4,082,282) 816,456 (124,576) 14,337,586 1,390,518 OTHER COMPREHENSIVE INCOME FOR THE YEAR AFTER TAXES 14,436,363 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 251 1066 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1067. PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1067 14,568,468 - 9,054,807 - 14,568,468 - 9,054,807 Tambahan modal disetor/ Additional paid-in capital 280,627 (2,985,199) - (3,265,826) 84,951 - (8,328) 93,279 *) Termasuk di dalam saldo laba tidak dicadangkan adalah pengukuran kembali liabilitas imbalan kerja, neto setelah pajak sebesar Rp502.601. Saldo per 31 Desember 2018 Pembagian dividen tunai Laba komprehensif tahun berjalan Saldo per 31 Desember 2017 Modal ditempatkan dan disetor penuh/ Issued and fully paid-up capital (Rugi) laba yang belum direalisasi atas efek-efek dan Obligasi Pemerintah Selisih dalam kelompok kurs karena tersedia penjabaran untuk dijual, laporan setelah pajak/ keuangan Unrealized dalam mata (losses) gain uang asing/ on availableExchange for-sale difference from marketable translation of securities foreign and Government currency Bonds, financial net of tax statements Lampiran 3 PT BANK NEGARA INDONESIA (PERSERO) Tbk ENTITAS INDUK LAPORAN PERUBAHAN EKUITAS Untuk Tahun yang Berakhir Pada Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) *) 14,836,707 - 2,646,977 12,189,730 Cadangan revaluasi aset/ Asset revaluation reserve 65,250,930 (4,765,767) 14,964,763 55,051,934 Tidak dicadangkan/ Unappropriated*) 103,589,076 (4,765,767) 14,337,586 94,017,257 Total ekuitas/ Total equity Balance as of 31 December 2017 Balance as of 31 December 2018 Distribution of cash dividends Comprehensive income for the year Included in unappropriated retained earnings is the remeasurement of post employment benefit, net of tax amounting to Rp502,601. 2,778,412 - - 2,778,412 Cadangan umum dan wajib/ General and legal reserves Dicadangkan/ Appropriated Saldo laba/Retained earnings Schedule 3 PT BANK NEGARA INDONESIA (PERSERO) Tbk PARENT ENTITY STATEMENT OF CHANGES IN EQUITY For The Year Ended 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) INFORMASI KEUANGAN TAMBAHAN/SUPPLEMENTARY FINANCIAL INFORMATION The original supplementary financial statements included herein are in the Indonesian language.
  1068. The original supplementary financial statements included herein are in the Indonesian language . 83,549,229 Distribution of cash dividends Comprehensive income for the year Balance as of 31 December 2016 Schedule 3 PT BANK NEGARA INDONESIA (PERSERO) Tbk PARENT ENTITY STATEMENT OF CHANGES IN EQUITY (continued) For The Year Ended 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) INFORMASI KEUANGAN TAMBAHAN/SUPPLEMENTARY FINANCIAL INFORMATION Lampiran 3 PT BANK NEGARA INDONESIA (PERSERO) Tbk ENTITAS INDUK LAPORAN PERUBAHAN EKUITAS (lanjutan) Untuk Tahun yang Berakhir Pada Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) Saldo laba/Retained earnings Dicadangkan/ Appropriated 46,123,318 14,436,363 Total ekuitas/ Total equity 2,778,412 12,896,951 Tidak dicadangkan/ Unappropriated*) 12,189,957 - Cadangan umum dan wajib/ General and legal reserves 81,715 (227) Cadangan revaluasi aset/ Asset revaluation reserve (1,247,448) 11,564 (Rugi) laba yang belum direalisasi atas efek-efek dan Obligasi Pemerintah Selisih dalam kelompok kurs karena tersedia penjabaran untuk dijual, laporan setelah pajak/ keuangan Unrealized dalam mata (losses) gain uang asing/ on availableExchange for-sale difference from marketable translation of securities foreign and Government currency Bonds, financial net of tax statements 14,568,468 1,528,075 227 (3,968,562) Tambahan modal disetor/ Additional paid-in capital 9,054,807 - 227 (3,968,562) Modal ditempatkan dan disetor penuh/ Issued and fully paid-up capital - - - Saldo per 31 Desember 2016 Laba komprehensif tahun berjalan - - Land/Building disposal after revaluation - - Balance as of 31 December 2017 - 94,017,257 - 55,051,934 Included in unappropriated retained earnings is the remeasurement of post employment benefit, net of tax amounting to Rp148,894. 2,778,412 - *) 12,189,730 - 93,279 - 280,627 - 14,568,468 Pelepasan tanah/bangunan yang telah direvaluasi 9,054,807 Pembagian dividen tunai Saldo per 31 Desember 2017 *) Termasuk di dalam saldo laba tidak dicadangkan adalah pengukuran kembali liabilitas imbalan kerja, neto setelah pajak sebesar Rp148.894. PT Bank Negara Indonesia (Persero) Tbk Adapting Quickly to Face Change 1068
  1069. The original supplementary financial statements included herein are in the Indonesian language . INFORMASI KEUANGAN TAMBAHAN/SUPPLEMENTARY FINANCIAL INFORMATION Schedule 4 PT BANK NEGARA INDONESIA (PERSERO) Tbk PARENT ENTITY STATEMENT OF CASH FLOWS For the Year Ended 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) Lampiran 4 PT BANK NEGARA INDONESIA (PERSERO) Tbk ENTITAS INDUK LAPORAN ARUS KAS Untuk Tahun yang Berakhir Pada Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) Tahun yang Berakhir pada tanggal 31 Desember/Year ended December 2018 ARUS KAS DARI AKTIVITAS OPERASI Pendapatan bunga Beban bunga Pendapatan operasional lainnya Beban operasional lainnya Pendapatan/(beban) bukan operasional - bersih Pembayaran pajak penghasilan Arus kas sebelum perubahan dalam aset dan liabilitas operasi Perubahan dalam aset dan liabilitas operasi: Penurunan/(kenaikan) aset operasi: Penempatan pada Bank Indonesia dan Bank lain Efek-efek dan Obligasi Pemerintah yang diukur pada nilai wajar melalui laporan laba rugi Wesel ekspor dan tagihan lainnya Efek-efek yang dibeli dengan janji dijual kembali Pinjaman yang diberikan Tagihan akseptasi Biaya dibayar di muka Aset lain-lain Kenaikan/(penurunan) liabilitas operasi: Liabilitas segera Simpanan nasabah Simpanan dari bank lain Beban yang masih harus dibayar Imbalan kerja Liabilitas akseptasi Utang pajak Kenaikan efek-efek yang diterbitkan Liabilitas lain-lain Kas neto (digunakan untuk)/diperoleh dari aktivitas operasi 2017 CASH FLOWS FROM OPERATING ACTIVITIES Interest incomes Interest expenses Other operating incomes Other operating expenses Non-operating income/(expense) - net Payment of income tax 49,424,527 (17,301,553) 11,847,043 (16,209,388) 302,889 (3,755,813) 44,517,273 (15,165,266) 10,804,408 (17,435,483) (12,684) (3,210,791) 24,307,705 19,497,457 Cash flows before changes in operating assets and liabilities 551,069 Changes in operating assets and liabilities: Decrease (increase) in operating assets: Placements with Bank Indonesia and other banks 350,201 (60,082) (8,946,037) (2,000,717) (7,200,107) 548,458 (73,717,903) (2,167,771) (18,185) (1,831,966) 776,802 (53,925,776) (3,450,738) 115,201 (3,097,456) (718,994) 57,198,035 2,167,124 (30,080) (683,241) (126,940) 9,457 1,591,838 75,313,941 1,558,071 (149,574) 647,953 137,737 (19,245) 226 (1,534,844) 723,758 (5,254,837) 31,070,214 Marketable securities and Government Bond at fair value through profit or loss Bills and other receivables Securities purchased under agreements to resell Loans Acceptances receivable Prepaid expenses Other assets Increase/(decrease) in operating liabilities: Obligations due immediately Deposits from customers Deposits from other banks Accrued expenses Employee benefits Acceptances payable Taxes payable Increase in marketable securities issued Other liabilities Net cash (used in)/provided from operating activities ARUS KAS DARI AKTIVITAS INVESTASI Penjualan/(pembelian) efek-efek yang tersedia untuk dijual dan dimiliki hingga jatuh tempo - neto Pembelian Obligasi Pemerintah - neto Penambahan aset tetap Hasil penjualan aset tetap 2,336,344 (8,946,739) (7,027,069) (1,747,025) 197,315 (11,677,380) (1,764,157) 10,040 CASH FLOWS FROM INVESTING ACTIVITIES Sale/(purchase) of marketable securities available-for-sale and held-for-maturity - net Purchases sales of Government Bond - net Acquisition of fixed assets Proceeds from sale of fixed assets Kas neto digunakan untuk aktivitas investasi (6,240,435) (22,378,236) Net cash used in investing activities 254 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1069
  1070. The original supplementary financial statements included herein are in the Indonesian language . INFORMASI KEUANGAN TAMBAHAN/SUPPLEMENTARY FINANCIAL INFORMATION Schedule 4 PT BANK NEGARA INDONESIA (PERSERO) Tbk PARENT ENTITY STATEMENT OF CASH FLOWS (continued) For the Year Ended 31 December 2018 (Expressed in millions of Rupiah, unless otherwise stated) Lampiran 4 PT BANK NEGARA INDONESIA (PERSERO) Tbk ENTITAS INDUK LAPORAN ARUS KAS (lanjutan) Untuk Tahun yang Berakhir Pada Tanggal 31 Desember 2018 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) Tahun yang Berakhir pada tanggal 31 Desember/Year ended Decem 2018 2017 ARUS KAS DARI AKTIVITAS PENDANAAN Kenaikan pinjaman yang diterima Penurunan efek-efek yang diterbitkan Kenaikan/(penurunan) efek-efek yang dijual dengan janji dibeli kembali Kenaikan efek-efek subordinasi Pembayaran dividen 18,478,976 99,953 (4,765,767) (1,374,895) (3,968,562) Kas neto diperoleh dari aktivitas pendanaan 20,360,497 2,797,737 Net cash provided from financing activities 8,865,225 11,489,715 NET INCREASE IN CASH AND CASH EQUIVALENTS 85,455,451 73,869,860 217,767 95,876 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR Effect of foreign currency exchange rate changes 94,538,443 85,455,451 CASH AND CASH EQUIVALENTS AT END OF YEAR KENAIKAN NETO KAS DAN SETARA KAS KAS DAN SETARA KAS PADA AWAL TAHUN Pengaruh perubahan kurs mata uang asing KAS DAN SETARA KAS PADA AKHIR TAHUN 6,547,335 - 11,873,491 (3,732,297) CASH FLOWS FROM FINANCING ACTIVITIES Increase in borrowings Decrease in marketable securities issued Increase/(decrease) in securities sold under agreements to repurchase Increase in subordinates securities Payment of dividends COMPONENTS OF CASH AND CASH EQUIVALENTS: KOMPONEN KAS DAN SETARA KAS: Kas 13,681,004 11,330,043 Cash Giro pada Bank Indonesia 33,867,589 30,611,107 Current accounts with Bank Indonesia Giro pada bank lain 12,841,692 21,019,282 Current accounts with other banks Penempatan pada Bank Indonesia dan bank lain - jangka waktu jatuh tempo tiga bulan atau kurang sejak tanggal perolehan 34,148,158 22,495,019 Placement with Bank Indonesia and other banks - maturing within three months of acquisition date Total kas dan setara kas 94,538,443 85,455,451 Total cash and cash equivalents Perubahan pada liabilitas yang timbul dari aktivitas pendanaan pada laporan arus kas adalah sebagai berikut: 1 Januari 2018/ 1 January 2018 Changes in liabilities arising from financing activities in the cash flow statement is as follows: Selisih kurs/ Foreign exchange Arus kas/ Cash flow 31 Desember 2018/ 31 December 2018 Pinjaman yang diterima Efek-efek yang dijual dengan janji dibeli kembali Efek-efek subordinasi 44,161,992 6,547,335 557,816 51,267,143 2,390,066 - 18,478,976 99,953 655,287 - 21,524,329 99,953 Borrowings Securities sold under agreements to repurchase Subordinated securities Total 46,552,058 25,126,264 1,213,103 72,891,425 Total 255 1070 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk
  1071. The original supplementary financial statements included herein are in the Indonesian language . INFORMASI KEUANGAN TAMBAHAN/SUPPLEMENTARY FINANCIAL INFORMATION NOTES TO THE FINANCIAL STATEMENTS PARENT ENTITY As of 31 December 2018 and For the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) CATATAN ATAS LAPORAN KEUANGAN ENTITAS INDUK Tanggal 31 Desember 2018 dan untuk Tahun yang Berakhir Pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 1. 2. Ikhtisar Kebijakan Akuntansi Signifikan 1. Significant Accounting Policy Dasar penyusunan laporan keuangan tersendiri entitas induk. Basis of preparation of the separate financial statements of the parent entity. Laporan keuangan tersendiri entitas induk disusun sesuai dengan Pernyataan Standar Akuntansi Keuangan (“PSAK”) No.4 (revisi 2013), “Laporan Keuangan Tersendiri”. The separate financial statements of parent entity are prepare in accordance with the statement of Financial Accounting Standards (“PSAK”) No.4 (revised 2013), “Separate Financial Statements”. PSAK No.4 (Revisi 2013) mengatur dalam hal entitas menyajikan laporan keuangan tersendiri maka laporan tersebut hanya dapat disajikan sebagai informasi tambahan dalam laporan keuangan konsolidasian. Laporan keuangan tersendiri adalah laporan yang disajikan oleh entitas induk yang mencatat investasi pada entitas anak, entitas asosiasi, dan pengendalian bersama entitas berdasarkan kepemilikan ekuitas langsung bukan berdasarkan pelaporan hasil dan aset neto investee. PSAK No.4 (Revised 2013) regulates that when an entity present the separate fincaial statements, such financial statements should be presented as supplementary information to the consolidated financial statements. Separate financial statements are those presented by a parent entity, in which the investments are accounted for on the basis of the direct equity interest rather than on the basis of the reported results and net assets of the investees. Kebijakan akuntansi yang diterapkan dalam penyusunan laporan keuangan tersendiri entitas induk adalah sama dengan kebijakan akuntansi yang diterapkan dalam penyusunan laporan keuangan konsolidasian sebagaimana diungkapkan pada Catatan 2 atas laporan keuangan konsolidasian, kecuali untuk penyertaan pada entitas anak yang disajikan pada biaya perolehan. Accounting policies adopted in the preparation of the parent entity separate financial statements are the same as the accounting policies adopted in the preparation of the consolidated financial statements as disclosed in Note2 to the consolidated financial statements, except for investments in subsidiaries which are stated at cost. Penyertaan Saham 2. Informasi mengenai entitas anak yang dimiliki Bank diungkapkan pada Catatan 1i atas laporan keuangan konsolidasian. Equity Investment Information pertaining to subsidiaries of the Bank is disclosed in Note 1i to the consolidated financial statements. 256 PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 1071
  1072. 1072 Adapting Quickly to Face Change  PT Bank Negara Indonesia (Persero) Tbk