Continuous Investment and Growth

PT Bank QNB Indonesia Tbk

Annual Report 2015

Continuous Investment and Growth

Telp : (+6221) 515 5155 Fax : (+6221) 515 5388 e-mail : [email protected]

qnb.co.id

Annual Report 2015

PT Bank QNB Indonesia Tbk QNB Tower 18 Parc SCBD Jl. Jend. Sudirman Kav. 52-53 Jakarta 12190

Continuous Investment and Growth Annual Report 2015

Disclaimer Certain of the matters discussed in this Annual Report about future performance, including, without limitation, future revenues, earnings, strategies, prospects, consequences and all other statements that are not purely historical constitute “forward-looking statements. These prospective statements in this annual report are prepared based on various assumptions on current and future conditions of the Bank, as well as its business environment in which the Bank operates. The Bank does not guarantee that the documents which have been ensured of their validity will bring certain results as targeted. Due care and attention have been used in the preparation of forecast information. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of PT Bank QNB Indonesia Tbk, which may cause actual results to differ materially from those expressed or implied in such statements due to changes in the business environment and other factors. This annual report contains the word “Bank” which are defined as PT Bank QNB Indonesia Tbk that operates in the field of banking industry.

2015 Performance

Overview of The 2015 Annual Report Annual Report of PT Bank QNB Indonesia Tbk in 2015 features an elaborated overview of important information about the Bank. The highlight of this report is "Continuous Investment and Growth" which described how the Bank has leveraged on simplified process, higher efficiencies, and enhanced quality of its operational team to sustain growth in times of global and local volatility. At the same time, the theme also addressed how the Bank aggressively boosted new developments on products and services as well as people and information technology as among the main business enabler in the Bank. The annual report primarily presented to disclose significant and material information on the Bank to both shareholders and stakeholders including internal employees, general public, regulators, government, etc. The report contains comprehensive information and in-depth analysis on the Bank's performance during the year in terms of financial, operation, governance, and citizenship. Through this annual report, the Bank aims to meet its responsibility to report management accountability to shareholders but also to deliver both internal and external parties concerned, accurate, relevant information on the Bank.

Annual Report 2015


1

Our Journey 2012 Make a Difference 2012 was a year of transformation for PT Bank QNB Indonesia Tbk (formerly PT Bank QNB Kesawan Tbk). The change in business paradigm of PT Bank QNB Indonesia Tbk (formerly PT Bank QNB Kesawan Tbk) to serve a broader market segment demanded for a development in infrastructures, operating systems, work procedures, information technology, organizational performance, competencies of human resources, as well as implementation on company’s culture in line with the new vision and mission.

2013 Aligning Strength and Enhancing Values 2013 was a year of consolidation which was reflected in the improvement of processes, human resources, and products that were utilized as pillars for the growth of the Bank. Assisted with the hard work of all employees, PT Bank QNB Indonesia Tbk (formerly PT Bank QNB Kesawan Tbk) was successful in improving the quality of customer service, capability, and excellent processing. The positive growth and competitive benefit were optimally utilized by PT Bank QNB Indonesia Tbk (formerly PT Bank QNB Kesawan Tbk) in order to align its strength and enhance its values.

2014 Commitment on Our Strong Growth 2014 is a commitment year for PT Bank QNB Indonesia Tbk (formerly PT Bank QNB Kesawan Tbk). The solid commitment to sustainable growth was particularly reflected in the implementation of a series of strategic steps including applying compliance and prudent principles, improving the loyalty and quality of human resources, sharpening focus, developing a balance in the social and economy aspects, maintaining relationship harmony, optimizing potential and resources, as well as preserving consistency in providing the best service for all stakeholders. The commitment will guide PT Bank QNB Indonesia Tbk closer and on track to achieving its vision, which is to be the top tier bank in Indonesia in terms of financial performance.

Focus 2015 2015 was an important chapter in a multi-year story of the growth for PT Bank QNB Indonesia Tbk (QNB Indonesia). It was also a year of challenges. However, we can see how far our Bank has come as we made bolder operational strides to support our growth. The Bank took actions to further develop people, enhance compliance, define and invest in core offerings, and improve the efficiency of overall business process to support growth. In addition, the Bank also continued to invest in the business in order to capture emerging growth opportunities. Apart from promoting compliance culture through numerous initiatives across business process, the Bank also set new standards to improve people as its most important assets. Most importantly, business-driven IT Development have been one of the priorities for the Bank to facilitate a more competitive products and services. We believe that the progress we made this year shall position us stronger and set us ready for maintaining significant growth in shareholder value over the future years.

Ta b

le

of

Co n

te nt

2015 Performance


4

Annual Report 2015

2015 Performance

1

Overview of The 2015 Annual Report

2

Our Journey

3

Focus 2015

118 120

Foundation of Corporate Governance Implementation

121

GCG Principles

123 125 126

06 08 11 12 16 22 26 27

147

Committees under Board of Commissioners

164

Board of Directors

Financial Ratio Share Highlights Highlights on Shareholders' Profile Event Highlights 2015 Awards and Accolades Testimonial from Customers and Partners

Board of Commissioners’ Report

46 48 49 50 52 54 56 58 59 64 66

68 70 74 78 93

114 116

Board of Commissioners’ Profile Board of Directors’ Report Board of Directors’ Profile

Company Profile Corporate Identity QNB Logo PT Bank QNB Indonesia Tbk at a Glance Vision, Mission, and QNB Values Service Spirit Milestones Line of Business

133

179 189 198 201 203 206 240

General Meeting of Shareholders Board of Commissioners

Committees under Board of Directors Compliance Function Internal Audit External Audit Corporate Secretary Risk Management Internal Control System

240

Legal Disputes and Administrative Sanctions

242

Code of Conducts and Corporate Culture

243 244

Tax Compliance Whistleblowing System

246

Information Disclosure and Access to Bank’s Information

248

Provision of Funds to Related Parties and Large Fund Exposure

248

Provision of Funds for Political Activities

249

Bank Strategic Plan

250

Transparency of Bank Financial and Non-Financial Performances

251

Conflict of Interests Transaction

251 251

252 256

Corporate Social Responsibility Environmental Responsibility

257

Labor, Occupational Safety, and Health

259

Social and Community Development

260

GCG Structure

Financial Highlights

30

42

GCG Assessment

127

Letters to Shareholders

38

GCG Implementation

2015 Performance

28 34

Corporate Governance Report

Product and Consumer Responsibility

Responsibility 262 Statement of the Board of Commissioners & the Board of Directors Auxiliary 266 Information 268

Profile of Executive Officers

271

Capital Market Supporting Profession and Institutions

272

Branch Office Addresses

276

Index of Bapepam-LK Regulation No. X.K.6

286 Financial Statements

Shares Option Shares and Bond Buy Back

Products and Services Operational Map Organisational Structure

Management Discussion and Analysis Industry Overview Business Review Business Supporting Unit Review Financial Review Marketing Aspect Business Prospects

Annual Report 2015


5

15

20 m

fo r

Pe r an ce

2015 Performance

Financial Highlights (in million Rupiah) Financial Position Statements Assets Cash

Current Accounts with Bank Indonesia Current Accounts with Other Banks Placements with Bank Indonesia and Other Banks

2015

2014*)

2013*)

2012

2011

45,432

52,653

56,633

43,671

37,131

1,710,947

1,425,155

818,168

292,689

224,106

31,146

43,324

19,038

98,564

55,079

2,111,813

3,324,797

1,242,652

469,495

711,339 -

Derivatives Receivable

2,921

849

3,600

2,639

Acceptances Receivable

61,821

60,744

-

-

-

269,117

268,324

73,881

-

312,635

Securities Purchased under Agreement to Resell

20,788,304

15,093,659

8,197,682

3,168,908

1,983,974

Securities

325,444

232,642

367,681

365,827

208,426

Prepayments

108,443

57,114

43,881

39,897

19,387

-

-

11,867

9,865

3,726

110,577

114,631

111,225

118,302

30,834

Loans - Net

Deferred Tax Assets - Net Fixed Assets Intangible Assets

45,670

42,370

34,192

20,817

525

Other Assets - Net

146,014

122,756

70,847

13,980

6,655

25,757,649

20,839,018

11,051,347

4,644,654

3,593,817

Total Assets Liabilities

337,357

252,785

178,304

68,083

13,553

18,509,008

16,161,710

7,244,934

3,633,084

2,644,465

3,179,111

1,863,330

1,853,000

36,356

15,088

61,821

60,744

-

-

-

Derivatives Payable

661

1,371

141,678

2,534

-

Current Tax Payable

2,401

20,402

-

-

-

80,619

63,892

42,954

17,795

8,965

Liabilities Payable on Demand Deposits from Customers Deposits from Other Banks Acceptances Payable

Obligation for Post-Employment Benefits Deferred Tax Liabilities - Net

42,324

7,031

-

-

-

Accruals and Other Liabilities

155,213

142,732

88,645

23,734

19,173

Subordinated Loan

964,950

-

-

-

-

23,333,465

18,573,997

9,549,515

3,781,586

2,701,244

2,189,287

2,189,287

1,539,583

890,447

890,447

(24,570)

(24,570)

(21,983)

(19,458)

(19,458)

-

(58)

-

8

14

(16,444)

(19,503)

(14,108)

-

-

Total Liabilities Equity

Share Capital Additional Paid-in Capital - Net Unrealized loss on available - for-sale securities net of deferred tax Other Comprehensive Loss Retained Earnings (deficit): Appropriated Unappropriated Equity - Net Total Liabilities and Equity

4,396

4,396

4,396

4,396

2,541

271,515

115,469

(6,056)

(12,325)

19,029

2,424,184

2,265,021

1,501,832

863,068

892,573

25,757,649

20,839,018

11,051,347

4,644,654

3,593,817

*) After the transition adjustment to SFAS No. 24 (Revised 2013)


8

Annual Report 2015

2015 Performance

(in million Rupiah) Comprehensive Income Statement Operating Income and Expense

2015

2014*)

2013*)

2012

2011

2,040,582

1,221,121

506,437

336,359

294,564

(1,351,331)

(814,499)

(275,492)

(163,850)

(135,811)

194,258

174,801

95,023

4,129

4,503

13,434

29,971

46,482

1,606

3,237

Gain From Sale of Securities

-

-

-

18,185

-

Recoveries of Impairment Losses on Financial Assets - Net

-

-

3,773

4,304

-

Interest Income

Interest Expense

Net Interest Income

Other Operating Income Fees and Commission

Gain on Foreign Exchange Transactions - Net

Others

689,251

4,826

406,622

4,661

230,945

10,592

172,509

12,562

158,753

1,592

212,518

209,433

155,870

40,786

9,332

Personnel Expenses

(375,743)

(292,603)

(244,885)

(161,441)

(90,999)

General and Administrative Expenses

(225,106)

(149,612)

(138,668)

(93,139)

(54,359)

(87,472)

(1,626)

-

-

(1,078)

Total Other Operating Income Operating Expenses

Provision for Impairment Losses on Financial Assets Others

(8,175)

(12,296)

(7,085)

(2,200)

Total Other Operating Expenses

(696,496)

(456,137)

(390,638)

(256,780)

Non Operating Income - Net

3,662

2,910

10,550

9,061

Income From Operations

Income (LOSS) before Income Tax EXPENSE

205,273 208,935

159,918 162,828

(3,823)

(43,485)

6,727

(34,424)

(7,305)

(153,741) 14,344 1,206

15,550

(52,889)

(41,303)

(2,140) 4,587

(29,499)

4,925

(9,368)

77

(77)

(10)

(9)

-

(19)

19

2

3

-

58

(58)

(8)

(6)

-

Actuarial gain (loss) on defined benefit plan

4,078

(7,193)

4,292

-

-

Income Tax Related to Component of Other Comprehensive Income

(1,019)

1,798

(1,073)

-

-

3,059

(5,395)

-

-

Income (Benefit) Tax Expense

Net - Income (Loss) for the Year Other Comprehensive Income

Items that will be classified to profit or loss Fair value changes of available for sales securities

Income Tax Relating to Component of Other Comprehensive Income Items that will not be classified to profit or loss

Other Comprehensive Gain (Loss), Net of Tax

Total Comprehensive Income

Earnings Per Share - Basic (in full amount)

156,046

121,525

3,219

6,182

-

159,163

(5,453)

116,072

(3,211) 7,798

(29,505)

6,182

17.82

16.34

0.66

6.73

1.86

3,117

(6)


Annual Report 2015


9

2015 Performance

Total Assets

Total Equity

(in million Rupiah)

(in million Rupiah)

25,757,649

2,424,184

20,839,018

2,265,021 1,501,832

11,051,347

3,593,817 2011

892,573

4,644,654

2012

2013

2014

2015

Deposits from Customer

863,068

2011

2012

2013

2014

Loans - Net

(in million Rupiah)

(in million Rupiah)

18,509,008

20,788,304

16,161,710

15,093,659

8,197,682

7,244,934

2,644,465 2011

3,633,084

2012

1,983,974 2013

2014

2015

Interest Income

2011

3,168,908

2012

2013

2014

(in million Rupiah)

156,046

2,040,582 121,525

1,221,121

506,437

2011


10

6,182 (29,499)

336,359

2012

2015

Income for the Year

(in million Rupiah)

294,564

2015

2013

2014

2015

2011

2012

4,587

2013

2014

2015 Annual Report 2015

2015 Performance

Financial Ratio 2015

Financial Ratio (%) Capital

2014*)

2013*)

2012

2011

16.18

15.10

18.74

27.76

45.75

Productive Assets & Non Productive Assets (Non-Performing Assets) to Total Productive Assets & Non Productive Assets

2.13

0.21

0.14

0.49

1.15

Non-performing Productive Assets to Total Productive Assets

2.13

0.21

0.14

0.56

0.95

Financial Asset CKPN to Productive Assets

0.16

0.06

0.08

0.31

0.58

NPL Gross

2.59

0.31

0.23

0.73

1.56

NPL Net

2.39

0.23

0.10

0.31

0.82

ROA

0.87

1.05

0.09

-0.81

0.46

ROE

7.50

6.62

0.40

-3.38

0.72

NIM

3.08

2.80

2.82

4.63

5.34

90.95

88.90

100.57

111.53

95.26

112.54

93.47

113.30

87.37

75.48

Related Parties

0.00

0.00

0.00

0.00

0.00

Non Related Parties

0.00

0.00

0.00

0.00

0.00

Minimum Rupiah Demand Deposit

7.59

8.35

8.01

8.02

8.34

Minimum Foreign Currency Demand Deposit

8.54

8.14

8.32

8.19

8.28

Net Open Position

0.26

0.22

1.49

2.31

0.85

Capital Adequacy Ratio Productive Assets

Profitability

BOPO Liquidity LDR

Compliance

Percentage of Legal Lending Limit Violations


37.73

%

Loans-Net rose 37.73% to Rp20.79 trillion

Annual Report 2015

14.52

%

Deposits from Customer was up 14.52% to 18.51 trillion


11

2015 Performance

Share Highlights Bank QNB Indonesia Share Performance in 2014-2015 (in shares)

(in million Rupiah)

600,000

800 700

500,000

600 400,000

500

300,000

400 300

200,000

200 100,000

100

Volume

Dec, 15

Oct, 15

Nov, 15

Sept, 15

Aug, 15

Jul, 15

Jun, 15

May, 15

Apr, 15

Feb, 15

Mar, 15

Jan 1,15

Dec, 14

Nov, 14

Oct, 14

Sept, 14

Aug, 14

Jul, 14

Jun, 14

May, 14

Apr, 14

Mar, 14

Feb, 14

0 Jan, 14

0

Closing Price

During 2015, the Bank's share trading was suspended for 1 day on May 4, 2015, due to significant increase in the cumulative prices of Bank's shares.

Share Price, Volume, and Capitalization 2015

Opening

Highest

Lowest

Closing

Transaction Volume

Market Capitalization

Number of Listed Shares

Q1

410

430

330

330

55,000

2,860,959,597,540

8,669,574,538

Q2

330

800

358

434

948,000

3,762,595,349,492

8,669,574,538

Q3

434

480

306

335

860,800

2,904,307,470,230

8,669,574,538

Q4

335

374

253

290

926,200

2,514,176,616,020

8,669,574,538

Transaction Volume

Market Capitalization

2014

Price Lowest

Closing

Number of Listed Shares

Opening

Highest

Q1

450

450

350

420

34,800

2,560,633,829,040

6,096,747,212

Q2

420

410

355

355

49,200

2,806,435,344,625

7,905,451,675

Q3

355

443

360

361

400

3,129,716,408,218

8,669,574,538

Q4

361

410

350

410

71,100

3,554,525,560,580

8,669,574,538


12

Price

Annual Report 2015

2015 Performance

Shareholders’ Structure

• • • • • • • • • • •

H.M. Aksa Mahmud (30.70%) Hj. Ramlah Aksa (7.68%) Erwin Aksa (7.68%) Sadikin Aksa (7.68%) Melinda Aksa (7.68%) Atirah Aksa (7.68%) Muhammad Subhan Aksa (7.68%) Solfinz Capital Limited (8.45%) Monalisa Imprenditore Incorporated (5.07%) Inwardvest Overseas Limited (4.86%) Benefiquest Incorporated (4.84%)

Qatar Government

100.00%

Qatar Investment Authority

Qatar Investment Authority

Public

50.00%

50.00%

50.00%

PT Bosowa Corporindo

Sadikin Aksa

Qatar Holding LLC

Public

94.08%

5.92%

50.00%

50.00%

PT Bosowa Kapital

Qatar National Bank S.A.Q

8.15%

82.59%

Public

9.26%


Annual Report 2015


13

2015 Performance

Shareholders’ Composition Public

9.26%

PT Bosowa Kapital

Qatar National Bank S.A.Q

8.15%

82.59%

List of Top 20 Shareholders Name of Shareholders Qatar National Bank S.A.Q

Number of Shares (Shares)

Share Percentage (%)

Status Foreign Company

7,232,691,746

82.59%

713,429,674

8.15%

Local Company

294,880,950

3.37%

Local Company

139,319,228

1.59%

Local Individual

55,401,663

0.63%

Local Individual

45,326,827

0.52%

Local Company

37,826,668

0.43%

Local Company

37,602,484

0.43%

Local Company

31,640,428

0.36%

Local Individual

PT Asuransi Bosowa Periskop

29,630,167

0.34%

Local Company

"Barclays Bank PLC, Singapore – Wealth Management"

29,240,848

0.33%

Foreign Company

Jhon

20,000,000

0.23%

Local Individual

UBS AG Singapore Non-Treaty Omnibus Account - 2091144090

17,398,927

0.20%

Foreign Company

PT Bosowa Berlian Motor

14,429,699

0.16%

Local Company

Cherie Thomas

11,940,300

0.08%

Local Individual

Credit Suisse AG Singapore Trust A/C Clients - 2023904000

7,266,122

0.08%

Foreign Company

Atirah Aksa

6,703,626

0.08%

Local Individual

Asman Sutanto

6,666,666

0.08%

Local Individual

Linda Barki

6,407,323

0.07%

Local Individual

Lie Le

4,666,666

0.05%

Local Individual

PT Bosowa Kapital PT Jasa Investindo Albert Widjayatmo Rasio PT Sadira Finance PT Raya Niaga Abadi PT Bosowa Sekuritas Yulianto Kurniawan

*As of December 31, 2015, members of the Board of Commissioners and Board of Directors do not own any shares of the Bank. PT Bank QNB Indonesia Tbk

14

Annual Report 2015

2015 Performance

Chronology of Share Listing Description Before Initial Public Offering (IPO)

Corporate Action -

Paid-up Capital 321,200,000 shares = Rp80,300,000,000

IPO (November 2002)

Initial Public Offering of 78,800,800 shares and listed on Indonesia Stock Exchange under the code of ”BKSW”

400,000,000 shares = Rp100,000,000,000

Warrant Series I (November 2005)

Execution of Warrant Serial I into share of 101,219,000 shares

501,219,000 shares = Rp125,304,750,000

Rights Issue I (July 2009)

Limited Public Offering with Preemptive Rights (Rights Issue) I of 125,304,750 shares

626,523,750 shares = Rp156,630,937,500

Rights Issue II (January 2011)

Limited Public Offering with Preemptive Rights (Rights Issue) II of 2,935,263,768 shares

3,561,787,518 shares = Rp890,446,879,500

Rights Issue III (June 2013)

Limited Public Offering with Preemptive Rights (Rights Issue) III of 2,596,543,000 shares

6,158,330,518 shares = Rp1,539,582,629,500

Rights Issue IV (June 2014)

Limited Public Offering with Preemptive Rights (Rights Issue) IV of 2,598,815,479 shares

8,757,145,997 shares = Rp2,189,286,499,250

Annual Report 2015


15

2015 Performance

Highlights on Shareholders’ Profile Qatar National Bank Qatar National Bank S.A.Q (QNB) was established as a commercial bank in 1964 pursuant to the laws and regulations of the State of Qatar. QNB is located in Doha, Qatar, and established pursuant to the QNB Establishment Deed No. 7 Year 1964.

50% of its shares are owned by the Government of Qatar through its legal entity, namely Qatar Investment Authority/ Qatar Holding LLC.

It is one of the listed companies with the highest credit rating.

It is currently licensed to conduct business in more than 27 countries, including the UK, France, Yemen, Luxembourg, Oman, Kuwait, Egypt, Singapore, China, India, and Vietnam

It has more than 15,000 total employees operating through more than 635 locations, with an ATM network of more than 1,350 machines

Achievements QNB Group has steadily grown to be the biggest bank in Qatar and leading financial institution in the Middle East and North Africa Region with a market share around 45% of banking sector assets. Bloomberg Markets, the leading provider of Business, Financial and Economic news ranked QNB as “One of the World’s Strongest Banks” again in 2014.

The Global Finance Magazine ranked QNB as “One of The Top 50 Safest Banks in the World” in 2013. For two consecutive years, 2014 and 2015, the Bank was recognized as “The Best Bank in The Middle East” by Euromoney Magazine.

Rating According to Moody’s, Standard and Poor’s, Capital Intelligence, and Fitch, QNB Ratings are as follows: Capital Intelligence Foreign Currency Long Term

Short Term

AA-

A1+

Moody’s

Financial Strength

Support Rating

Outlook

AA-

1

Stable

Standard and Poor’s

16

Long Term

Short Term

Aa3

P-1

Financial Strength

Outlook

C-

Stable

Fitch

Bank Credit and Deposits Long Term

Short Term

A+

A-1


Bank Deposits

Outlook

Long Term

Short Term

Support

Viability

Outlook

Stable

AA-

F1+

1

a

Stable

Annual Report 2015

2015 Performance

Qatar National Bank S.A.Q. Consolidated Statement of Financial Position As of December 31, 2015 (All amounts are shown in thousands of Qatari Riyals) 2015 Assets

2014

30,754,168

Cash and Balances with Central Banks

31,565,771

Due from Banks

17,100,764

29,955,019

388,292,129

338,129,995

Loans and Advances to Customers

81,157,075

67,695,913

Investments in Associates

7,950,721

7,963,437

Property and Equipment

1,753,715

1,779,344

Intangible Assets

5,377,758

5,461,265

Other Assets

5,409,207

4,617,535

Total Assets

538,607,140

486,356,676

Investment Securities

LIABILITIES

36,281,598

22,113,705

395,190,302

357,491,479

Debt Securities

16,342,420

21,779,361

Other Borrowings

15,120,489

12,524,373

Other Liabilities

13,616,933

14,485,832

Total Liabilities

476,551,742

428,394,750

Due to Banks

Customer Deposits

EQUITY

Issued Capital

6,997,294

6,997,294

Legal Reserve

23,086,902

23,086,902

Risk Reserve

5,000,000

3,500,000

Fair Value Reserve Foreign Currency Translation Reserve

283,607

573,808

(2,033,640)

(1,329,797)

1,212,210

1,706,123

Retained Earnings

26,556,932

22,448,494

Total Equity Attributable to Equity Holders of the Bank

61,103,305

56,982,824

952,093

979,102

62,055,398

57,961,926

538,607,140

486,356,676

Other Reserves

Non - Controlling Interests Total Equity Total Liabilities and Equity

Annual Report 2015


17

2015 Performance

Qatar National Bank S.A.Q. Consolidated Income Statement For the Year Ended 31 December 2015 (All amounts are shown in thousands of Qatari Riyals) 2015

2014

Interest Income

20,019,476

18,666,333

Interest Expense

(7,273,706)

(6,404,346)

Net Interest Income

12,745,770

12,261,987

Fee and Commission Income

2,499,966

2,326,643

Fee and Commission Expense

(257,049)

(211,787)

Net Fee and Commission Income

2,242,917

2,114,856

Foreign Exchange Gain

746,295

814,952

Income from Investment Securities

162,418

96,522

5,036

126,532

Operating Income

15,902,436

15,414,849

Staff Expenses

(2,055,104)

(1,880,095)

Other Operating Income

Depreciation Other Expenses

(241,370)

(252,517)

(1,208,713)

(1,144,403)

Net Impairment Losses on Investment Securities

(179,774)

(89,951)

Net Impairment Losses on Loans and Advances to Customers

(433,043)

(1,109,301)

Amortisation of Intangible Assets

(79,775)

(78,505)

Other Provisions

(69,040)

(50,415)

(4,266,819)

(4,605,187)

Share of Results of Associates Profit Before Income Taxes Income Tax Expense

(672,791)

373,053

11,182,715

(665,077)

11,328,764

10,517,638

Equity Holders of the Bank

11,264,242

10,454,701

Non - Controlling Interests

64,522

62,937

11,328,764

10,517,638

16.1

14.9

Profit for the Year Attributable to:

Profit for the Year Basic and Diluted Earnings Per Share (QR)


18

365,938 12,001,555

Annual Report 2015

2015 Performance

Qatar National Bank S.A.Q. Consolidated Statement of Comprehensive Income For the Year Ended 31 December 2015 (All amounts are shown in thousands of Qatari Riyals) 2015

2014

11,328,764

10,517,638

Foreign Currency Translation Differences for Foreign Operations

(703,843)

(372,690)

Share of Other Comprehensive Income of Associates

(493,913)

(11,940)

(17,329)

(941,850)

Profit for the Year

Other comprehensive income to be reclassified to income statement in subsequent periods:

Effective Portion of Changes in Fair Value of Cash Flow Hedges Available-for-Sale Investment Securities Net Change in Fair Value Net Amount Transferred to Income Statement Total Other Comprehensive Income for the Year, net of Income Tax Total Comprehensive Income for the Year

(196,495)

126,081

(76,377)

(12,377)

(1,487,957)

(1,212,776)

9,840,807

9,304,862

Qatar National Bank S.A.Q. Consolidated Statement of Cash Flow For the Year Ended 31 December 2015 (All amounts are shown in thousands of Qatari Riyals) 2015 Cash Flows from Operating Activities Profit for the Year Before Income Taxes

2014

12,001,555

11,182,715

(20,019,476)

(18,666,333)

7,273,706

6,404,346

Adjustments for: Interest Income Interest Expense Depreciation

241,370

252,517

Net Impairment Losses on Loans and Advances

433,043

1,109,301

Net Impairment Losses on Investment Securities

179,774

89,951

Other Provisions

12,969

12,940

Dividend Income

(86,041)

(84,145)

Annual Report 2015


19

2015 Performance

2015 Net Gain on Sale of Property and Equipment Net Gain on Sale of Available-for-Sale Investment Securities Amortisation of Intangible Assets Net Amortisation of Premium or Discount on Financial Investments Net Share of Results of Associates

Changes in:

Due from Banks Loans and Advances to Customers Other Assets Due to Banks

2014 (159)

(75,822)

(76,377)

(12,377)

79,775

78,505

(27,148)

(25,906)

(178,566)

(231,418)

(165,575)

34,274

(1,338,061)

(1,859,629)

(50,595,177)

(28,527,250)

(372,896)

(43,723)

14,167,893

10,545,662

37,698,823

23,328,455

Other Liabilities

(2,391,977)

3,013,628

Cash Used in Operations

(2,996,970)

6,491,417

Customer Deposits

Interest Received Interest Paid Dividends Received Income Tax Paid Other Provisions Paid Net Cash from Operating Activities Cash Flows from Investing Activities Acquisition of Investment Securities

Proceeds from Sale / Redemption of Investment Securities Investments in Associates Additions of Property and Equipment Proceeds from Sale of Property and Equipment Net Cash (used in) / from Investing Activities Cash Flows from Financing Activities

19,546,140

18,439,829

(7,600,125)

(5,724,205)

86,041

84,145

(661,824)

(524,930)

(5,372)

(3,414)

8,367,890

18,762,842

(71,073,236)

(32,053,642)

55,220,622

42,314,443

(49,909)

(2,101,929)

(290,301)

(691,901)

1,833

83,212

(16,190,991)

7,550,183

(5,460,750)

-

2,563,174

99,754

Dividends Paid

(5,231,852)

(4,887,261)

Net Cash Used in Financing Activities

(8,129,428)

(4,787,507)

(15,952,529)

21,525,518

Repayment of Debt Securities

Proceeds from Other Borrowings

Net (Decrease) / Increase in Cash and Cash Equivalents

2,571,816

812,329

Cash and Cash Equivalents at January 1

43,431,327

21,093,480

Cash and Cash Equivalents on December 31

30,050,614

43,431,327

Effect of Exchange Rate Fluctuations on Cash Held


20

Annual Report 2015

2015 Performance

PT Bosowa Kapital PT Bosowa Kapital was initially established under the name of PT Darmex Corporation pursuant to the Deed No. 94 dated December 14, 1993, prepared and presented before Rukmasanti Hardjasatya, S.H., Notary in Jakarta, which had received approval from the Minister of Justice of Republic of Indonesia by the issuance of the Decree No. C2-11223.HT.01.01 year 1994, dated July 21, 1994, registered on February 24, 1999, under the No. 08/1999 at the Central Jakarta District Court, and published in the State Gazette of Republic of Indonesia No. 32 dated April 20, 1999, Supplement No. 2331. The Articles of Association of PT Bosowa Kapital has been amended several times, with last amendment in the Statement Deed of the Shareholders’ decision to circulation No. 110, dated June 27, 2013, prepared and presented before Karin Christiana Basoeki, S.H., Notary in Jakarta. The amendment of the Articles of Association has been approved and recorded in the database of Legal Entities Administration System (Sisminbakum) of the Ministry of Law and Human Rights of Republic of Indonesia No. AHU-AH. 01.10-26349 dated June 28, 2013. As of December 31, 2015, PT Bosowa Kapital owns 8.15% of the shares of PT Bank QNB Indonesia Tbk.

Annual Report 2015

Aims and Objectives PT Bosowa Kapital is a parent company. Pursuant to the Article 3 of the Articles of Association of PT Bosowa Kapital, the purpose and objective of the company is to operate in the fields of services, construction, land transportation, trade, industry, and agriculture.


21

2015 Performance

Event Highlights 2015

01

02

January

01 »

»

Bank’s advertisement placement at Airport Aerobridges in Kualanamu International Airport, Medan Bank’s billboard placement at Pedestrian bridge on Jalan Jend. Sudirman, Jakarta

03

February

23 »

»

Opening of Medan Centre Point Branch (relocated from Tanjung Balai, North Sumatera) Chinese New Year Celebration in Medan

March

05

Seminar on 2015 Economic Outlook in Balikpapan

05

Opening of Balikpapan Branch

25

Chinese New Year Celebration in Jakarta

29

Christmas and New Year Celebration in QNB Tower, SCBD, Jakarta

27 » »

26 Annual General Meeting of Shareholders The Bank was awarded as 'The Most Improved Banking of The Year' by Indonesia Improvement Award 2015

The Bank received 'The Strongest in Digital' award from Infobank Magazine

27-28

The Bank participated in Bosowa Family and Food Festival, Makassar


22

Annual Report 2015

2015 Performance

04

05

April

20

Opening of Jababeka Branch in Cikarang

06

May

June

18

03

25

08

QNB Movie Night at Blitz Megaplex, Pacific Place, Jakarta

QNB Indonesia Peduli Donor Darah in QNB Tower, SCBD, Jakarta

Developing Great Talent Workshop at Sultan Hotel, Jakarta

Commercial Banking Customer Gathering in Bali

15

Commercial Banking Customer Gathering in Semarang

18

The Bank participated in Asian Business Forum, Singapore

Annual Report 2015


23

2015 Performance

07

08

July

07

CSR QNB Indonesia Peduli: Mari Berbagi Seni

09

August

07

Halal Bihalal and Townhall

September

9-11

The Bank Participated in Indonesia Banking Expo (IBEX) 2015

08

BPRconnect Gathering, at Midtown Restaurant, Jakarta

17

08

Ramadhan Gathering at QNB Tower, SCBD, Jakarta

19

The Bank participated in Bank Indonesia dissemination program for 'Use of Rupiah in Indonesia Region'


24

»

Opening of Palembang Branch

»

QNB Introduction Event at Arista Hotel, Palembang

Annual Report 2015

2015 Performance

10

11

October

01

CSR program: distribution of mask in Palembang together with daily newspaper Sumatera Ekspres

November

09 »

»

»

Wealth Management Partnership Signing Ceremony, QNB Tower, Jakarta Relocation of Taman Palem branch office to Gajah Mada, Jakarta Seminar on 2015 Economic Outlook at Dollar Shop, Gajah Mada, Jakarta

09

10

29

19

Annual Report 2015

05

The Bank participated in QNB Group Annual Strategic Conference "Shaping an Icon" at Doha, Qatar

The Bank participated in Expo City of Radiant, Center Point Medan Mall, Medan

The Bank participated in BPRconnect, Perbarindo National Work Meeting in Clarion Hotel, Kendari

The Bank's Compliance Director as a guest lecturer in Jenderal Soedirman University, Central Java

December

14-20

Extraordinary General Meeting of Shareholders and Public Expose

19

12

Financial Literacy in Senior High School Tarsisius 2, Jakarta

16

The Bank participated in Qatar National Day at Raffles Hotel, Jakarta

Financial Literacy in Senior High School Al Izhar Pondok Labu, Jakarta


25

2015 Performance

Awards and Accolades

01

02

04

03

05

06

01. Indonesia Banking Award 2015

04. Indonesia Improvement Award 2015



(Presented by Economic Review Magazine) 1st place, "Finance: Efficiency & Profit"

(Presented by Economic Review Magazine) » 2nd place, Bank BUKU II » 3rd place GCG » 3rd place Risk Management


(Presented by Economic Review Magazine) 3rd place, Marketing


26

(Presented by Indonesia Improvement Award) The Most Improved Banking of the Year.

(Presented by Economic Review Magazine) 1st place, Human Capital

06. 4th Infobank Digital Brand of the Year 2015 (Presented by Infobank Magazine) 1st place, ATM Card Product Category

Annual Report 2015

2015 Performance

Testimonial from Customers and Partners

PT J-RESOURCES (Natalia Thamrin, Finance Specialist)

"

We are very satisfied with Mitra Bisnis service from QNB Indonesia. They keep in touch with us from time to time and always give their best in attending to our needs. Mitra Bisnis has really been a great help to our company."

Annual Report 2015

PT KERTAS BASUKI RAHMAT

PT CISADANE RAYA CHEMICALS

"

"

(Dian Natha, Finance Department) Being a customers for two years now, we continue to experience excellent service from Mitra Bisnis in QNB Indonesia. All this time, Mitra Bisnis team have always been very friendly and responsive in replying to inquiries from our company. Mitra Bisnis team is the best. Well done!"

(Neneng, Finance Team)

QNB Indonesia’s service is fast and accurate, especially Mitra Bisnis service. We hope they will maintain the service excellence and we can continue to work with them in the future."


27

st o

tt er

Le

ol de

ar eh

Sh rs


Board of Commissioners' Report Dear valued shareholders and stakeholders,

Ali Ahmed Z A Al Kuwari President Commissioner

All praise to God Almighty for His grace, PT Bank QNB Indonesia Tbk was able to realized good performance in 2015. The Board of Commissioners is grateful that the Bank has successfully passed 2015 considering the less stable economic conditions of both global and domestic. It is an honor for me representing the Board of Commissioners of PT Bank QNB Indonesia Tbk in presenting the 2015 Annual Report.

Global and Indonesia Economic Development The volatility of global economic conditions is still high. The improvement in the US economy was not balanced with the development of the European while in Asia, the Japanese economy was still in stagnation due to falling investment and deteriorating inventories even though it offset was helped by strong recovery in exports and private consumption. Similarly, the economic conditions in China also indicated a tendency to slow down due to the decline of export demand which pushed an easing of monetary policy. The Chinese Government also performed several financial market reform as well as internationalization of Renmimbi thus contributed a significant impact toward emerging markets including Indonesia.


30

In response to the slowing global economy, Indonesia’s government has unveiled a series of economic policy package that aims to boost economic growth of Indonesia amid a highly uncertain global context. In coordination with the central bank (Bank Indonesia) and the Financial Services Authority (OJK), the Indonesia government started to roll out a series of stimulus package since September 2015 with the aim to create a conducive macroeconomic environment (particularly by revitalizing the real sector) hence boosting the country’s economic growth that has slowed to the sixyear low of 4.73 percent (year-onyear) in the third quarter of 2015. The first phase of this package was officially announced on September 1, 2015. The package basically consists of three steps which are believed to drive the national real sector. Following the first phase of package, the government also announced another seven economic packages over the past couple months, making it a total of eight packages by the end of 2015. While the first two packages involved deregulation measures in an effort to attract (domestic and foreign) investment, the third installment is more focused on cutting domestic operational costs in order to support local

Annual Report 2015


industries. On the other hand, the fourth economic stimulus package is mainly aimed to boost the welfare of labor and employment in Indonesia. Concluding the year are the fifth, sixth, seventh and eighth economic stimulus package which involves tax incentives for investment in Indonesia's special economic zones and labor intensive industries while the eighth package aims to anticipate the developments and the competitive power of government in the economic and global markets.

In particular, the overall performance of QNB Indonesia as of December 2015 showed a positive achievement both in terms of financial and non-financial aspects. On the financial aspect, the net profit booked at Rp156.05 billion or grew by 28.41% and total assets reached Rp25.76 trillion or grew by 23.60% from the previous year. In addition, the growth of loans-net also increased by 37.73% to Rp20.79 trillion and Third Party Fund (DPK) grew by 14.52% to Rp18.51 trillion.

In general perspective, the government's first shot at economic reform was welcomed very positively by the market as seen from the improved domestic household consumption as well as strengthened equity market. GDP growth was also maintained at moderate level of 4.7% while financial market and banking industry took a hit with impacts vary from one to another due to their precautionary prudent measures. QNB Indonesia, one of the institution which remained resilient and passed 2015, successfully.

Assessment on the Board of Directors’ Performance

This achievement was followed by the improvement in other key ratio indicators, among others, such as 7.50% in ROE, 90.95% in OER/BOPO (operating expenses toward operating cost), and 3.08% in NIM. In line with the Bank’s focus on selective credit expansion, the Board of Directors managed to maintain asset quality with NPL gross rate of 2.59% and NPL net of 2.40%. In terms of capital adequacy, the Bank was able to maintain the CAR of 16.18%, far above the defined terms. The Board of Commissioners also appreciates the continuous support of QNB Group to increase the Bank’s capital and business support in order to facilitate the Bank’s growth.

In pursuant to the performance of the Bank in general and the Board of Directors in particular, the Board of Commissioners has conducted qualitative and quantitative assessment, among others, as indicated through the realization of Bank's Business Plan as well as the Bank’s soundness level in 2015. Due to both indicators, it was shown that the performance of QNB Indonesia has surpassed the target set in most of main indicators and also declared as a sound bank.

Upon these achievements, the Board of Commissioners considered that the performance of the Board of Directors in 2015 was encouraging. The Board of Commissioners believes that strategic measures prepared by the Board of Directors was appropriate to gradually increase the Bank’s performance and on this basis the Board of Commissioners expressed the highest appreciation for the commitment and perseverance of the Board of Directors in realizing these achievements.

Annual Report 2015


31


" The Board of

Commissioners is grateful that the Bank has successfully passed 2015 considering the less stable economic conditions of both global and domestic."

Implementation of Good Corporate Governance

Performance of the Committees

In conducting monitoring function, the Board of Commissioners is not only responsible in monitoring the results of the Bank’s operations but also in monitoring the process of achieving the results. In order to achieve sustainable growth, both the process and results should be deemed appropriate and good. Furthermore, the Board of Commissioners also believes that the implementation of Good Corporate Governance (GCG) is way more important and it should be beyond compliance. Overall, in 2015 the Board of Commissioners is responsible in monitoring the compliance, implementation of GCG, the Bank’s achievement fulfillment, as well as providing advice to the Board of Directors.

In implementing the duties and responsibilities, the Board of Commissioners is assisted by three committees, namely Audit Committee, Remuneration & Nomination Committee, as well as Risk Oversight Committee. During 2015, the three committees have shown good performance and have contributed greatly to achievement. In addition to the proper implementation of the work program, the function of each committee was also constantly improved to better support the tasks and responsibilities of the Board of Commissioners. Assisted by these three committees, the Board of Commissioners continued to encourage the application of good governance standard in all level of organisation in QNB Indonesia.

Along with the Board of Directors, the implementation of GCG also remains to be the focus of the duties and responsibilities of the Board of Commissioners. The Board of Commissioners along with the Board of Directors have the purpose to realize the long-term development of GCG that is expected to generate sustainable value. This commitment was also realized, among others, through the proper implementation and sustainable improvement of risk control. The Board of Commissioners considers that QNB Indonesia has built a good risk monitoring system as a strong foundation and best implemented the guidelines of corporate governance, risk management, and internal control system.


32

Changes in the Composition of the Board of Commissioners On this occasion, we would also like to inform that in 2015 there was a change in the composition of the Board of Commissioners with the appointment of Djoko Sarwono as the new Independent Commissioner substituting Nasrul Husin, the previous Independent Commissioner of QNB Indonesia. The Board of Commissioners welcomes Djoko Sarwono to the Board and hopes that his appointment will contribute greatly to the growth of QNB Indonesia. The Board of Commissioners would also like to thank Nasrul Husin upon his contribution toward the Bank during his term of office.

Annual Report 2015


Business Outlook

Board of Commissioners’ Recommendation

Despite the uncertainty condition which is predicted to carry on in 2016, both global and Indonesia economic conditions are predicted to grow better than 2015. The global economic condition is expected to slowly recover and maintain its balance despite the macroeconomic impact of global financial crisis is likely to slow the pace of economic growth in many countries in the world and also reduce Indonesia's economic growth rate in the range of 5.2%-5.6%. The economic condition development in Indonesia will be more or less influenced by the behaviour of investor especially in terms of reviewing the impact of ASEAN Economic Community (AEC) and the issuance of economic policy package. It is expected that the economic policy package will attract more local and foreign investors. The government’s commitment to deregulate and make structural reform, in particular, will remain the main key for increasing industry competitiveness and accelerate domestic investment.

In accordance with the duties and responsibilities to provide recommendation to the Board of Directors, the Board of Commissioners has three recommendations in terms of business and operations. First, the Board of Commissioners believes that behind every challenge lies opportunity to be capitalized on. Therefore, the Bank should capitalize on every opportunity to come in order to be one of the top players in banking industry. Second, the Bank shall maintain its NPL through selective credit expansion and optimize the recovery from NPL accounts. Third, the Board of Commissioners believes that the Bank shall commit in optimizing its compliance toward the regulations of Bank Indonesia and Financial Services Authority. The Board of Commissioners also believes that by optimizing its compliance the Bank has already minimized the possibility of arising risks.

Overall, 2016 is expected to provide a conducive environment for the Indonesia’s economic growth and banking industry in particular. The Board of Commissioners believes that the business plan that had been prepared by the Board of Directors is appropriate and shall deliver the Bank to achieve optimal growth. The Board of Commissioners also believes that QNB Indonesia will be able to capitalize the opportunities and become one of the top players in banking industry.

Appreciation and gratitude profusely addressed to shareholders and stakeholders upon their trust and support. We believe that QNB Indonesia, supported by QNB Group as one of the World’s Strongest Bank, will keep moving forward and achieve significant growth in the coming years. Our deepest appreciation is also addressed to the entire Board of Directors, employees, and business partners that participate and support QNB Indonesia to continue to grow and thrive. May God Almighty provides ease and blessing for all of us in realizing the vision that we aspire together.

Our Appreciation

On behalf of the Board of Commissioners,

Ali Ahmed Z A Al Kuwari President Commissioner

Annual Report 2015


33


Board of Commissioners' Profile

Ali Ahmed Z A Al Kuwari

Grant Eric Lowen

President Commissioner

Commissioner

Citizen of Qatar, 54 years old. He was appointed as the President

Citizen of Australia, 57 years old. He was appointed as the Commissioner

GMS dated January 27, 2012. He has a Bachelor in Math and Computer

4, 2013. Earned his Chartered Accountant (CA) Degree in Accounting/

Commissioner of the Bank based on the Resolution of Extraordinary Science from Eastern Washington University in 1984 and a Master

Degree of Science in Management Information System from the Seattle

of the Bank based on the Resolution of Extraordinary GMS dated March

Finance from New Zealand Society of Accountant Examination in 1979.

Pacific University in 1987. He also attended a number of Executive

He started his career in the KPMG Christchurch (New Zealand), London

Cambridge University and Duke University.

Westpac Banking Corporation as Manager of Financial Management

programs at Wharton School of Business, London Business School,

He has joined Qatar National Bank (QNB) in 1988. Prior to his

appointment as QNB Group Chief Executive Officer in July 2013, he was the Executive General Manager and Group Business Officer. He was

responsible for all business lines of QNB and he played a key role in QNB becoming the leading financial institution in the Middle East and North Africa.

Mr. Al Kuwari is also Chairman of MasterCard Middle East and North Africa Advisory Board, Chairman of QNB Capital (the investment

banking and advisory arm of QNB Group), and Chairman of QNB Privee

Suisse in Switzerland, Vice Chairman of Commercial Bank International in the UAE and Vice Chairman in Qatar Exchange.

In 2015, he actively attended several competence development

programs, among others, Institute of International Finance (IIF)

and Emerging Market Advisory Council (EMAC), CEO's and Spring

Membership Meetings at Doha, Qatar (March 2015) and United Arab Banks Summit at Budapest, Hungary (June 2015).

(UK), Sydney (Australia) (1984-1988). Subsequently, he served at

Accounting (1988-1991), Group Management Accountant (1991-1994), Chief Manager Portfolio Management – Institutional and International

Banking Group (1994-1996), Chief Manager Group Credit Risk Analysis (1996-1998), Head of Business Banking Product and Services (1998-

1999), Chief Manager Business Re-Design (1999-2000), Chief Manager of Strategy & Design, IT & Operations (2000-2001). He has also served as Group Auditor & General Manager Operational Risk at St. George Bank (2001-2004), Executive General Manager Group Audit at CBA (2004-2007), Acting Group Chief Risk Officer at CBA (2007-2008),

Deputy Group Chief Risk Officer at CBA (2008), Chief Risk Officer of Regional Banking & Support at CBA (2008-2010), Chief Risk Officer of International Financial Services CBA, and Chief Risk Officer of

Bankwest, CBA (2010-2012). In addition to serving as Commissioner of the Bank, he also served as Group Chief Risk Officer at Qatar National

Bank (2012-present), Board Member of QNB Al Ahli (2013-present), and as member of Remuneration and Nomination Committee of the Bank (2014-present).


programs, among others, IIF Mena CRO forum - Global and Regional

Issues Impacting Banking (March 2015), IIF Spring Membership Meeting - Global Energy at a Turning Point (March 2015), QNB Group Leadership Development Program (May 2015), QNB Global Risk Conference (May 2015), IIA Qatar Conference - Global and Regional Issues Impacting Internal Audit and Risk (May 2015). PT Bank QNB Indonesia Tbk

34

Annual Report 2015


Muthu Chidambaram Commissioner

Suroto Moehadji

Independent Commissioner

Citizen of India, 59 years old. He was appointed as the Commissioner

Citizen of Indonesia, 63 years old. He was appointed as the Independent

2012. Graduated with a Bachelor Degree in Chemistry from the Madurai

June 24, 2011. He formerly served as the President Commissioner of the

of the Bank based on the Resolution of Annual GMS dated May 29, Kamaraj University, India, in 1977.

His work experience including at the Indian Overseas Bank Mumbai

and Chennai, India (1978-1991), National Bank of Oman (1991-1997

Commissioner of the Bank based on the Resolution of Annual GMS dated Bank (2010-2011). Graduated with a Bachelor Degree in Economy from

the University of Jember, East Java (1979) and earned Master of Business Administration from Tulane University, New Orleans, USA (1988).

and 2004-2007), Emirates Bank International Ltd, Dubai, UAE (1997-

Started his career in PT Bank Negara Indonesia (Persero) Tbk from 1979

at Majan International Bank, Muscat, Sultanate of Oman (2000-2003),

Director of Commerce (2003-2005), Director of Human Resources

2000). He has also served as the Head of Corporate Banking Division

Assistant GM - Corporate Banking at Bank Dhofar Al Omani Al Fransi (2004), Managing Director of Sarasin Alpen LLC/Alpen Capital LLC,

Oman (2007-2009) General Manager of Qatar National Bank, Singapore (2009-2014). He concurrently serves as Regional General Manager of

Asia Qatar National Bank (2014-present), Director of QNB (India) Private Limited (2012-present) and as member of Risk Oversight Committee of the Bank (2013-present).


programs, among others, Internal Compliance and KYC Trainings in Singapore (October 2015), BARA - Risk Management Certification

until his retirement in 2008, occupying various positions including

(2005-2007) and lastly as the Director of Operations & General Services (2008). He has also served as Director in PT BNI Nomura Jafco (1991-

1994), Commissioner of PT Bank Finconesia (2001-2002), Vice Rector of University of Pancasila (2008-2012), and Extraordinary Lecturer

of University of Pancasila (2008-present). He also Chairman of Risk Oversight Committee of the Bank (2011-present).


programs, among others BSMR - “Liquidity Risk Management in Banks” Workshop (August 2015).

Refreshment in Jakarta (September 2015).

Annual Report 2015


35


Muhammad Anas Malla Independent Commissioner

Djoko Sarwono




GMS dated September 16, 2011. Earned his Bachelor Degree in Law from

dated October 9, 2015. Earned his Bachelor Degree in Law from Trisakti

Commissioner of the Bank based on the Resolution of Extraordinary Trisakti University, Jakarta (1989) and Master of Laws from Tulane University, New Orleans, USA (1998).

During his career, he has held numerous position in PT Bank Negara Indonesia (Persero) Tbk, among others, as Deputy General Manager

Commissioner of the Bank based on the Resolution of Extraordinary GMS University, Jakarta (1975), Master in Public Administration (MPA) from

University of Southern California, Los Angeles, USA (1985), and Doctor of Philosophy in Public Administration (DPA) from University of Southern California, Los Angeles, California, USA (1989).

of Operations at Tokyo Branch Office (1998-2001), Head of Samarinda

During his career, he has held numerous position, among others, as

Padang – Branch Development Sector (2002-2003), Deputy Head of

(1999-2001), Chief Office of Bank Indonesia – Regional Bandung (2001-

Branch Office (2001-2002), Deputy Head of Regional Office Area 02 Legal and Compliance Division – Legal Development Sector (2003-

2004), Deputy Head of Compliance Division (2004), Head of Compliance Division (2004-2006), and Head of Internal Control (2006-2011). He has also served as the Commissioner of PT Swadarma Sarana Informatika (2012-2013). In addition to serving as Independent Commissioner of the Bank, he also served concurrently as President Commissioner of

PT Swadarma Sarana Informatika (2013-present). He is Chairman of

Remuneration and Nomination Committee (2011-present) and Acting Chairman of Audit Committee of the Bank (2015-present).


programs, among others, “Becoming An Effective and Responsible Commissioner” Workshop (November 2015)


36

Executive Director of Banking Policy and Regulation Bank Indonesia

2003), President Director of Indover Bank, Amsterdam and concurrently served as Chairman of the Board of Directors of Indover Bank, Hong

Kong (2003-2006), Assistant to Governor of Bank Indonesia (2006-2009), joins the Indonesian Banking Development Institute (LPPI) in 2010 as the Advisor to Board and currently serves as Senior Faculty since May 2015. He was the President Commissioner of Pefindo Rating Agency

(2011 – 2014), President Commissioner of PT NISP Asset Management (2013-2014), Vice President Commissioner of PT Aberdeen Asset

Management (2014-2015), Commissioner of Pefindo Research and

Consulting (2014-2015) and President Commissioner of Pefindo Credit Bureau (2014-present).

In 2015, he actively attended several competence development programs, among others, Risk Management Certification level 1 & 2 (July 2015).

Annual Report 2015


Annual Report 2015


37


Board of Directors' Report Dear distinguished shareholders,

Andrew Duff

President Director

As a member of one of the World’s Strongest Bank, QNB Group, QNB Indonesia continues to be committed to growing the footprint, product and customer base of its business in Indonesia. This commitment is supported by the fact that Indonesia is the largest market in ASEAN and the policies of successive government have been towards continued growth of the economy and growing prosperity of all Indonesia people. This operating environment is favourable to a growth strategy. We are delighted to share with our shareholders and customers that we have spent 2015 further developing our people, enhancing our compliance, defining and investing in our core offerings, and improving the efficiency of our overall business process to support our growth.

2015 Performance A Challenging Economy Indonesia has faced one of its most problematic years since the Asian crisis. Dramatic falls in commodity prices, headwinds from a slowdown in China and uncertainty with respect to US$ interest rates have all exacerbated local conditions where liquidity has been very tight for nearly 12 months as monetary policy has been used to cool down demand. This has had a positive impact on the current account and yet we have seen further falls in Rupiah and GDP growth slipping below 5%.


38

Most pundits now believe this to be a cyclical correction which will have an impact on business generally through 2017. Asset values in almost all classes are adjusting because of lower demand. Corporate Indonesia is now aggressively adjusting business models to match this changing paradigm. For the banking industry as a whole, growth is slower and cost of credit is increasing as non-performing loans (NPLs) slowly creep upwards. A Continued Good Performance: Navigating Strategically Overall growth has exceeded market average with total assets growing by 23.60% y-o-y with loans and deposits similarly growing at 37.73% and 14.52% respectively, or approximately 102.64% and 90.71% of the target. Our majority shareholders also contributed an additional US$70 million as additional capital (subordinated debt) to facilitate this growth. Notwithstanding the pleasing growth, we have become more selective and tightened our underwriting criteria to reflect the changing environment. 2015 Profitability was recorded at Rp156.05 billion or increase by 28.41% y-o-y. The profitability has included the rising of NPLs and provisions as we build our coverage ratio of NPL’s. The majority of our NPL’s are covered by more than 100% fixed asset collateral so we do not foresee any significant future losses.

Annual Report 2015


Description

2015

2014

Growth (%)

Total Assets

25,757,649

20,839,018

23.60%

Loans – Net

20,788,304

15,093,659

37.73%

Deposits from Customers

18,509,008

16,161,710

14.52%

2,189,287

2,189,287

0.00%

Net Interest Income

689,251

406,622

69.51%

Total Other Operating Income

212,518

209,433

1.47%

Net Income for the Year

156,046

121,525

28.41%

2.40%

0.23%

(2.16)%

Share Capital

NPL Net

As part of our commitment to growth, we continue to invest in the business by widening customer segmentation, introducing new products, and expanding delivery channels.

A yearlong project has been run to redo customer profiling to ensure compliance with both “Know Your Customer Principles” (KYC) and anti-money laundering detection and prevention.

We have invested in QNB First, the group’s premium banking brand across multiple branches with dedicated relationship managers, investment products, one point of customer service with regular customer events and segment-specific communication. The segment is growing rapidly and now has 2,000 customers.

This year, we launched the first of our personal credit programmes since the transformation of the Bank began in 2012. After significant market research and establishment of a direct sales marketing channel, we launched personal loans early in the year. New customer acquisition and loan establishment has increased 10x on a monthly basis since the onset and we expect this product to be a major contributor to net profit going forward once we reach critical mass during 2016. We will progressively introduce more personal credit options going forward.

Mobile channels, we believe, are the way of the future and collaboration between banks and commerce are an integral part of making these channels a success as well as being conduits for a more inclusive banking system. We continue to invest. Currently, we have over 105,000 active banking customers on this channel. We are conducting a number of pilots with strategic partners and we expect exponential growth in both customers and the usage in 2016. Branch growth is selective with a focus on servicing key cities and this year we added branches in Jababeka, Palembang, and Balikpapan and now have 49 branches. Given the compound growth of 61% since 2010 we undertook major projects to improve the efficiency (measured by how well we meet customer expectations) in both branch operations and wholesale operations. We are pleased to say that we are achieving up to 90% improvement in both cycle time and defects in many areas and our target is to achieve this across the board.

Annual Report 2015

Our SME loan program has been revamped and streamlined in the latter half of the year and acquisition of new customers and loans has been accelerating since then.

2016 Challenges and Strategies Success in any service industry is determined by the quality of people with respect both to skills and leadership. QNB Indonesia’s strategy with respect to Human Capital reflects this.


39


" Given the compound

growth of 61% since 2010 we undertook major projects to improve the efficiency (measured by how well we meet customer expectations) in both branch operations and wholesale operations. We are pleased to say that we are achieving up to 90% improvement in both cycle time and defects in many areas and our target is to achieve this across the board."

In 2015, we began significantly investing in a training curriculum which focuses on all skills required in the Bank. It is the attention going forward that all employees must be accredited with appropriate skills for the job they are doing and we have progressive targets to ensure 100% compliance with this through 2017. Conversely, we have a minimum training promise to employees which also increases. We are investing in new channels to assist with this leading to a combination of interactive online training, experiential classroom activities and post training reinforcement with an electronically accessible data base and search engine. We call this Q University. With respect to leadership there are three main areas of focus: »


40

Recognising and nurturing leadership potential. We introduced this year Developing Great Talent where we use tools for individuals and their supervisors to jointly assess leadership potential and then produce personal development plans which can be monitored on a six monthly basis.

»

Class room training for new and mid-level managers and supervisors as well as bespoke programmes for senior leaders.

»

Our Management Development Programme. A three-year programme designed to accelerate leadership and banking development for select university graduates. By the end of this year, we will have 28 future leaders in the programme.

Implementation of Good Corporate Governance Implementation of Good Corporate Governance or GCG has always become the main foundation for the Board of Directors and the entire Management in managing the Bank and conducting operational activities. By consistently applying transparency, accountability, responsibility, independence, and fairness principles in business process of all its business lines, we believe that we could maintain good performance and create an added value for stakeholders as well. Adapting to the regulatory framework, we continuously review, formulate and implement GCG principles with due observance to prevailing laws and regulations, the Indonesian Corporate Governance Code, as well as recent standards, including ASEAN Corporate Governance Scorecard to gain feedback regarding the quality of the Bank’s GCG implementation. To ensure the best practices of GCG at all levels of the organization, we has consistently conducted an internal socialization program to raise GCG awareness, enhanced GCG tools such as whistleblowing system, a customer complaint system, and AML function among others. Further, in ensuring continuous GCG implementation improvements, we have also held a GCG assessment, using a self-assessment method in line with regulatory requirement, evaluating business performance based on certain predetermined indicators as well as policies and system.

Annual Report 2015


Changes to the Board of Directors We were delighted to welcome a new Director to the Board during the year. Novi Mayasari joined us in September 2014. Novi Mayasari was appointed as Director of Human Resources. Previously, she held the position as Head of Human Resources. Her appointment was established in the Annual General Meeting of Shareholders on February 27, 2015 and approved by Financial Services Authority on October 2, 2015. We hope her appointment will bring a good balance of additional skills and experience to our Board.

The external economic environment is not likely to assist with continued but slowing pressure on Rupiah and weak commodity prices. At QNB Indonesia, we believe we have adapted well to the changed environment in 2015 and so in 2016 we will continue to invest in the future, grow selectively and take advantages of opportunities which may emerge as a result of the environment either organically or inorganically.

Appreciation and Closing Remarks

2016 Outlook

Our progress in 2015 was first and foremost a result of the dedication and hard work of our employees across the organization, and we would like to express our gratitude to all of them for their efforts. We are also grateful to the regulators, the Indonesia Financial Services Authority, Bank Indonesia, and other regulators, for the direction and support given to QNB Indonesia throughout the year.

We expect operating conditions in 2016 to be similar to 2015 with moderated growth compared to Indonesia’s recent history but still very robust compared to the average of other world economies. We expect the pressure on growing NPLs to abate as particularly Corporate Indonesia will in the main have adjusted business models to better suit the changed operating environment.

Furthermore, we would also like to thank our two major shareholders, QNB Group and Bosowa Group, both of which are extremely supportive of the efforts of the BOD while respecting appropriate governance. Finally, we appreciate support from all customers, business partners and other stakeholders. Our success could not have been achieved without their support.

It has been a slow start to the government’s infrastructure ambitions and we expect this to accelerate in 2016 which should have a positive impact on the private sector as both services and suppliers are engaged to meet this growth in infrastructure.

Going forward, we will continue to leverage our strong position, robust capital and creative innovation to realize our vision of being a leading bank in Indonesia that continue to grow together with our stakeholders.

Another Director, who previously in charge of Finance Directorate stepped down in the Extraordinary General Meeting of Shareholders on October 9, 2015. We are grateful for the tremendous contribution he made to the Bank during his term on the Board.

On behalf of the Board of Directors,

Andrew Duff

President Director

Annual Report 2015


41


Board of Directors' Profile

Andrew Duff

Azhar bin Abdul Wahab

President Director

Chief Business Director

Citizen of Australia, 60 years old. He was appointed as the President

Citizen of Malaysia, 46 years old. He was appointed as the Director

dated March 4, 2013. Prior to serving as President Director, he served as

2011. Earned his Bachelor Degree from the Faculty of Management,

Director of the Bank based on the Resolution of Extraordinary GMS

Commissioner of the Bank (2011-2013). Earned his Bachelor Degree in Law from the Queensland Solicitors Board Australia (1978).

He has had a 33-year career in banking. He practised law with Heiser

Bayly and McDonald until 1980 and then joined Citibank where he held

of the Bank based on the Resolution of Annual GMS dated June 24,

Universiti Teknologi Malaysia (1992), Graduate Diploma in Applied

Finance & Investment from the Securities Institute of Australia (2003), and Program for Executive Development (PED) from Institute for Management Development (IMD), Switzerland (2004).

numerous positions and his last position was Acting Country Head of

Started his career in Permodalan Nasional Berhad (1992-1997) and later

last position as MENA Wholesale Head (2000-2003), Chief Operations

Permodalan Nasional Berhad (1997-2006), Maybank Investment Bank

Malaysia (1981-1999). He worked in Standard Chartered Bank with the Officer of Commercial Bank of Qatar (2004-2005), Chief Executive

Officer of National Bank of Oman (2005-2007) and General Manager International of Qatar National Bank (2008-March 2013).

worked in Nomura Jafco Investment Asia Ltd., (1996-1997); rejoined

Berhad (2006-2008), and joined Qatar National Bank (2008-June 2011)

with the last position as Head of Mergers & Acquisitions, International Banking.



QNB Values for Leader in September 2015.

Pengembangan Produk & Layanan E-Channel dalam Meningkatkan

programs, among others, Developing Great Talent held in June 2015 and

programs, among others, “Branchless Banking sebagai Sarana

Profit Lembaga Jasa Keuangan” Seminar held in March 2015, Developing Great Talent held in June 2015, Global Payment Summit held in August 2015, and QNB Values for Leader held in September 2015.


42

Annual Report 2015


Lloyd Rolston

Rusli

Risk Director

Operations Director

Citizen of Australia, 57 years old. He was appointed as the Director

Citizen of Indonesia, 44 years old. He was appointed as the Director of

September 16, 2011. Earned his Bachelor Degree in Commerce from the

Earned his Bachelor Degree in Engineering from Trisakti University,

of the Bank based on the Resolution of Extraordinary GMS dated

University of Western, Australia (1981), Post Graduate Diploma Course from the Securities Institute of Australia, Australia (1985) and Project

the Bank based on the Resolution of Annual GMS dated April 15, 2002. Jakarta (1993).

Management Professionals (2011).

During his career, he has held numerous positions, among others, in

He joined ABN AMRO Bank/ Royal Bank of Scotland in 1986-2011 and

(1992-1997) and Senior Foreign Exchange Dealer at Bank BNP Lippo

has held numerous position, including Country Risk Officer at ABN

AMRO Bank N.V. Indonesia (1998-2001), Senior Vice President Group Risk Management at ABN AMRO N.V. Amsterdam, The Netherlands

Bank Prima Express with the last position as Foreign Exchange Dealer (1997). Prior to serving as the Operations Director of the Bank, he has

served as Chief Dealer (1997-2000) and Head of Treasury (2000-2002).

(2002-2003), Head of Risk Management Bank of Asia, Bangkok, Thailand


(2004-2008), and last position as Head of Commercial Risk – Asia Royal

“Liquidity Risk Management in Banks” Workshop held in August 2015,

(2003-2004), Senior Risk Advisor at ABN AMRO Bank N.V. Singapore Bank of Scotland N.V. Singapore (2008-2011).


programs, among others, Developing Great Talent held in June 2015,

"Revamping the Capability in Loan Analysis" Workshop and QNB Values for Leader in September 2015.

programs, among others, AML-CFT (e-Learning) held in January 2015,

Developing Great Talent held in June 2015 and QNB Values for Leader in September 2015.

Annual Report 2015


43


Windiartono Tabingin

Novi Mayasari

Compliance Director

Human Resources Director

Citizen of Indonesia, 54 years old. He was appointed as the Director of the

Citizen of Indonesia, 44 years old. She was appointed as the Director

2012. Earned his Bachelor Degree from Jenderal Soedirman University,

27, 2015. Earned her Bachelor Degree in Economic from Padjadjaran

Bank based on the Resolution of Extraordinary GMS dated November 29, Purwokerto (1984) and Graduate Degree of Finance and HRM &

Organizational Behaviour from Rensselaer Polytechnic Institute, Troy New York (1994).

of the Bank based on the Resolution of Annual GMS dated February

University, Bandung (1994) and Master Degree in Wealth Management

from the Faculty of Economics and Business of Gadjah Mada University, Yogyakarta (2013).

He started his career at Bank Rakyat Indonesia (Persero) from 1986

She started her career as Management Trainee on HRODP of

Manager of Human Resources Division (1999-2001), Deputy Manager

Organization Development of PT. United Tractors Pandu Engineering

until 2012 and held various positions, among others, Deputy General

of Yogyakarta and Central Java Region (2001-2002), Deputy Manager of Semarang - Central Java Region (2002-2004), Deputy Manager of

Surabaya - East Java Region (2004-2006), Head of Risk Management

Division (2006-2009), Head of Audit of Bali, West Nusa Tenggara and East Nusa Tenggara Regions (2009-2010), Head of Audit of East Java Region (January 2010-June 2010), Head of Micro Business Division

PT Astra International Tbk (1994-1995), Analyst on Remuneration & (1996 - 2000), HR Associate for Eli Lilly Indonesia (2000-2001). She joined Citibank N.A. Indonesia from September 2001 to September

2014 with last position as HR Head for Consumer Bank - Senior Vice

President. Prior to serving as Director of the Bank, she has served as HR Head - Executive Vice President (September 2014 - February 2015).

(July 2010-June 2012), Head of Audit of West Java Region (July

In 2015, she actively attended several competence development

Jiwa Sejahtera (July 2011-November 2012).

5 held in January 2015, the 3rd Industrial Relations Convention 2015

2012-December 2012) and Commissioner of PT Asuransi Jiwa Bringin


programs, among others, the 7th IFSB Public Lecture on Financial Policy

and Stability: IFSB Seminar on Enhancing Financial Inclusion Through

programs, among others, Risk Management Certification Training Level held in May 2015, Developing Great Talent held in June 2015, Draft of

Government Regulation introduction held in June 2015 and QNB Values for Leader held in September 2015.

Islamic Finance held in April 2015, Developing Great Talent held in June 2015, International Seminar on Financial Literacy to Support Financial

Inclusion held in June 2015, Workshop for Banking Assessor Candidate held in August 2015, QNB Values for Leader held in September 2015,

Sustainable Finance to Support Sustainable Development Goals as well as Risk and Governance Summit 2015 held in November 2015.


44

Annual Report 2015


Annual Report 2015


45

ny

pa

Co m le

Pr ofi

Company Profile

Corporate Identity

Company Name


Line of Business

Banking

Share Ownership

» Qatar National Bank S.A.Q (82.59%) » PT Bosowa Kapital (8.15%) » Public (9.26%)

Date of Establishment

April 28, 1913

Legal Basis of Establishment

Established pursuant to the Deed No. 53 dated April 28, 1913, prepared before Leonard Hendrik-Willem Van Sandick, a Notary in Medan, approved by Besluit Gouverneur Generaal of the Dutch East Indies No. 58 dated July 16, 1913, and announced in the Extra Bijvoegsel der Javasche Courant No. 78 dated September 30, 1913.

Authorized Capital

Rp8,000,000,000,000 (eight trillion Rupiah)

Issued and Fully Paid Capital

Rp2,189,286,499,250 (two trillion one hundred eighty nine billion two hundred eighty six million and four hundred ninety nine thousand two hundred fifty Rupiah)

Share Listing

The Company’s shares were listed on the Indonesia Stock Exchange (previously Jakarta Stock Exchange) on November 21, 2002

Ticker Symbol

BKSW

SWIFT Code

AWANIDJA

Ratings

PT Bank QNB Indonesia Tbk is rated “idAA” with “Stable” Outlook by Pefindo.

Number of Employees

944

Address

QNB Tower 18 Parc SCBD Jl. Jendral Sudirman Kav. 52-53, Jakarta 12190 Phone : (+62 21) 515 515 5 Fax : (+62 21) 515 538 8 qnb.co.id

Call Center

(+62 21) 300 553 00

Contact Center

[email protected]

Network

1 (one) head office 15 (fifteen) branch offices 34 (thirty four) sub branch offices 62 (sixty two) ATMs


48

Annual Report 2015

Company Profile

QNB Logo

•

Four arrows directed to a single center symbolize the energy and skills focused to serve and assist all customers in maximizing their potential.

•

The color differences in the arrows show the diversity of customers that continue to grow and develop.

A ribbon consisting of two colors portrays a commitment to always generating progress and thinking ahead beyond the boundaries in providing added values for institution in general and for customers in particular.

Annual Report 2015


49

Company Profile

PT Bank QNB Indonesia Tbk at a Glance

For over 100 years now, PT Bank QNB Indonesia Tbk (henceforward referred as the Bank) have recorded historic milestones, achievements and commitment to Indonesian community. Established as NV Chunghwa Shangyeh Maatschappij (The Chinese Trading Company Limited) in Medan based on the Notarial Deed No.53 dated April 28, 1913, the Bank is primarily engaged in the business of savings and loans as well as general trading. It is only in 1958, after almost half century later, that the company officially commenced its operation as a commercial bank based on Decree of the Minister of Finance No. 191547/U.M.II dated October 28, 1958. From there, it continued to be reformed as a Limited Liability Company, under a new name of PT Bank Chunghwa Shangyeh in 1962 and then PT Bank Kesawan in 1965.

Trader in 1995, and in the year after, approval to be a Foreign Exchange Bank and National Cash Perception Bank, which is a bank that may accept tax payments.

With one change after another, the Bank took a turning point after the relocation of its head office from Medan to capital city, Jakarta in 1990. The relocation was then followed by the Bank obtaining a license to become Foreign Exchange

In 2009, the Bank executed Limited Public Offering I (Right Issue I) to all Shareholders through the issuance of preemptive rights of 125,304,750 shares or amounted to Rp40,097,520,000.


50

A new chapter begun in the Bank’s history in 2002 as its status changed from a private company to public company through the Initial Public Offering of 78.8 million shares or amounted to Rp19.700.000.000 in Indonesia Stock Exchange (formerly Jakarta Stock Exchange). In the same year, the Bank also implemented online operating system at all of its branches. In 2005, the Bank executed warrant series I of 101,219,000 shares or amounted to Rp25,304,750,000, which were issued during Initial Public Offering in 2002.

Annual Report 2015

Company Profile

Subsequently in 2011, the Bank executed Limited Public Offering II (Right Issue II) to all Shareholders through the issuance of preemptive rights of 2,935,263,768 shares or amounted to Rp733,815,942,000, with the Qatar National Bank S.A.Q acted as a stand-by buyer. The execution of Right Issue II changed the status of share ownership, Qatar National Bank S.A.Q became the major shareholder by owned 69.59% shares of the Bank. Following the acquisition, the Bank was renamed to PT Bank QNB Kesawan Tbk. In 2013 and 2014, Bank took similar corporate actions as it did in the previous year. It decided to execute Limited Public Offering III (Right Issue III) and Limited Public Offering IV (Right Issue IV) to all shareholders through the issuance of pre-emptive rights amounted to 2,596,543,000 shares or amounted to Rp649,135,750,000 and 2,598,815,479 shares or as much as Rp649,703,869,750, respectively. It further strengthening Bank’s capital amidst challenging environment and sustaining long-term growth. At the same time, the Bank also underwent rebranding by changing its

Annual Report 2015

name and logo; from PT Bank QNB Kesawan Tbk into PT Bank QNB Indonesia Tbk. Eventually, 2015 is a milestone year for PT Bank QNB Indonesia Tbk. The strong capital support from Qatar National Bank S.A.Q as major shareholder and robust asset quality has led to the Bank’s success in surviving the economic turmoil and maintaining a positive performance as reflected in the rank “idAA” with “Stable” Outlook from Pefindo, a prominent credit rating agency. While launching the next phase of its strategy to become one of the leading bank in Indonesia that grows together with its stakeholders, the Bank remains committed to a sustainable growth as well as Indonesia prosperity. PT Bank QNB Indonesia Tbk is proud to support local people, businesses, and communities for the past 102 years and look forward to continue serving Indonesia communities in the years ahead.


51

Company Profile

Vision, Mission, and QNB Values Vision

By 2017 we will be: • An icon* in Indonesia that grows together with our stakeholders. • A top tier bank in terms of financial performance in Indonesia. * In terms of technology enabled convenience and simplicity of process.

Mission

We provide outstanding technology enabled banking products and services supported by an international network that delivers enhanced stakeholers value to be a financial institution of choice. The Bank’s Vision and Mission were established through the Board of Directors Decree No. 074/SK-Direksi/VI/2015 dated June 1, 2015.


52

Annual Report 2015

Company Profile

Passion for Excellence We strive to go the extramile to achieve the highest professional standards.

Professionalism with Integrity We shall continuously develop our competencies and behavior to reliably deliver what is expected from us. We shall be honest, fair, and accountable.

Responsible Citizenship We shall respects with dignity and be concerned for the well-being of people and environment in which we operates

Innovative

QNB Values

We shall be adaptive to change and value creative thinking to continuously attain superior benefits.

Synergistic Team We shall effectively harness our strength to achieve our common goals with pride.

Note: In 2015, PT Bank QNB Indonesia Tbk has renewed its core values and service spirit to support the strength organizational culture and responding to the Bank’s future challenges, as stipulated in the Board of Directors Decree No. 074/SK-Direksi/VI/2015 dated June 1, 2015.

Annual Report 2015


53

Company Profile

Vision, Mission, Service Spirit and Q Values

ng di vi ro , p s. ly nce ce e n siv rie ie on pe en sp ex v g re nt n sa Con rvi lea Se d p an

Sol So u l an vi ti n d g on in no cre pr s va ati ob tiv ng lem el ne s, y. w de op liv po er rt ing un iti ben es efi ts

Tr Fu us l pr fil te re ude ling d l be iab nc co ne ili e, i m fit ty, nt mi s. an eg tm d rity en en , t su res s w rin po ith n g m sib ut ili ua ty , l

, ly y. ed sl rt ou ea rte ly leh ou re ho d c ce w an n ng y, Si vi stl r Se rne ea

Trusted bank, sincerely delivering solutions and convenience.

se ea

Note: In 2015, PT Bank QNB Indonesia Tbk has renewed its core values and service spirit to support the strength organizational culture and responding to the Bank’s future challenges, as stipulated in the Board of Directors Decree No. 074/SK-Direksi/VI/2015 dated June 1, 2015.


54

Annual Report 2015

Company Profile

Annual Report 2015


55

Company Profile

Milestones

1913

1990

The establishment of Bank Kesawan in Medan under the name of NV Chunghwa Shangyeh Maatschappij (The Chinese Trading Company Limited).

Headquarter relocation to Jakarta.

1996

Operating as a commercial bank.

Obtained the license to be a Foreign Exchange Bank.ange Bank.

Changed its name to PT Bank Chungwa Shangyeh.

Awarded “Bank A” category from Bank Indonesia.

1962

1998


56

1958

Changed its name to PT Bank Kesawan.

Initial Public Offering by listing 78.8 million shares on the Indonesia Stock Exchange.

1965

2002

Annual Report 2015

Company Profile

2009

2013

Rights Issue I.

Rights Issue III.

2010

2014

Reorganization, changed its vision and mission.

» Transformed its name and logo to PT Bank QNB Indonesia Tbk. » Rights Issue IV QNB share ownership increased to 82.59%.

Rights Issue II. « QNB became the major « shareholder, owned the Bank by 69.59%. Changed its name to PT Bank « QNB Kesawan Tbk.

2011

Renewal and internalizaton of QNB Values.

«

Subordinated loan amounted to US$ 70 million for 5 years, which has been calculated as Tier 2 Capital as of September 30, 2015.

«

2015 Relocation of headquarter and launching of new logo.

2012 Annual Report 2015


57

Company Profile

Line of Business Based on article 3 of the Bank's Articles of Association, the purpose and scope of business activities of the Bank is to run a business in the sector of banking in accordance with the provisions of prevailing laws and regulation. In achieving its purpose, the Bank shall perform main business activities, as follows: a.

b.

c. d.

e. f.

g.

h.

Collecting funds from public in the form of deposits including demand deposits, time deposits, certificates of deposit, savings, and / or other similar forms Extending loans, either long-term, medium-term or short term loans or loans in any other forms commonly granted in the banking sector Issuing promissory notes Purchasing, selling, or guarantee at its own risk and for the benefit of and under the instruction of its customers, including: » Negotiable instruments, including negotiable instruments that are accepted by the Bank whose periods of terms are no longer than normal practice in the trading of such negotiable instruments » Acknowledgements of indebtedness and other trade papers whose terms are no longer than normal practice in the trading of such papers » State Treasury Certificates and Government Guarantees » Bank Indonesia Certificates » Bonds » Fixed-term trade papers » Other fixed term commercial papers instruments Transferring funds for the Bank’s own interests and for the interests of customers Placing funds with, borrowing funds from, or lending funds to other banks using paper, telecommunications facilities and bearer negotiable instruments, checks or other means. Receiving payments of claims in respect of commercial papers and conducting calculations with or in respect of third parties Providing places for the storage of valuable items and papers


58

i.

Providing custodian services to other parties on a contractual basis j. Investing customer funds in other customers through the purchase of securities listed on the stock exchange. k. Providing financing and/or engaging in other activities in accordance with sharia principle, in accordance with the provisions stipulated by Bank Indonesia and/or Financial Services Authority. l. Engaging in factoring activities, credit card business and trustee service. m. Issuing letter of credit in various forms and bank guarantee. n. Engaging in activities in foreign exchange. o. Engaging in activities of capital investment in a bank or other companies in the financial sector, such as financing, fund management, leasing, venture capital, securities company, insurance, clearing house, and guaranty as well as clearing settlement and depository institution. p. Engaging in activities of temporary capital investment for dealing with non-performing loans, including failure of Sharia-based financing and non-Sharia principles. q. Acting as the founder and manager of pension funds. r. Purchasing collateral, either entirely or partly, through or outside an auction, in the event that the debtor fails to fulfill its obligation to the bank, provided that the purchased must be immediately saleable. s. Engaging in such other activities as are customarily engaged in by a bank in so far as they do not violate the provisions of the laws and regulations. Other than main business activities as set forth above, the Bank shall perform additional business activities in so far as they do not violate the provisions of the laws and regulations, specifically banking regulations. In conducting its business operations, the Bank offers a wide variety of products and services, as described in the “Products and Services” section of this Annual Report.

Annual Report 2015

Company Profile

Products and Services

In conducting its business activities, the Bank provides various products divided into savings and loan products, other products as well as various services as further elaborated below:

Savings Products

PREMIUM SAVING ACCOUNT The savings that offer various benefits for the customers. » Free RTGS, LLG, and clearing transactions » Free transaction fee at ATM Bersama networks » Free cash withdrawal from all MEPS (Malaysian Electronic Payment System) networks.

Savings Account Savings with extra protection. » Free health insurance ; hence the customers do not have to pay for the premiums of this health insurance » Free transaction fee at all of the ATM Bersama networks for balance inquiry, cash withdrawal, and over booking transfer.

PREMIUM CHECKING ACCOUNT A checking account that is designed for the comfort of banking transactions. » Provides benefits similar to the Q Premium Checking Account as well as » Free cheque book fee up to 4 books/month for customers’ account with average balance Rp50 million/month.

CHECKING ACCOUNT Checking account designed for the comfort of business transactions. » The checking account in Rupiah currency which facilitates the customers to withdraw cash using cheque or demand deposit.

FIRST SWITCHING ACCOUNT A foreign exchange savings in which the foreign exchange can be switched to other foreign currencies (USD, SGD, AUD, EUR, JPY, and GBP). » Currency switching can take place at any time » Minimum placement of USD100

Annual Report 2015


59

Company Profile

GLOBAL ACCOUNT Savings in foreign currencies for the customers’ investment needs. » Competitive foreign exchange rate » Interest rate is calculated based on the daily balance » Affordable remittance cost of Rp35,000 for all currencies » Reporting medium using a book so that the customers can easily monitor the transactions.

SBLC The Bank issued an insurance on the customers’ demand to conduct payment to the beneficiary on the requirement that all the necessary documents have been completed. ISSUANCE OF LETTER OF CREDIT - SIGHT and USANCE L/C A payment bond of the Bank which issued an L/C on the submission of documents that corresponds to the requirements of the L/C for the import transaction of goods.

GLOBAL CHECKING ACCOUNT A checking account in foreign currencies for secure business or investment needs. » Competitive foreign exchange rate » Interest rate is calculated based on the daily balance » Affordable remittance cost of Rp35,000 for all currencies » Reporting medium using a book so that the customers can easily monitor the transactions. FOREX Foreign exchange transactions with competitive exchange rate. » Covering more than 200 foreign currencies » Accurate, competitive, and real time prices » Foreign exchange investment products.

Loan Products Q PERSONAL LOAN Instant Unsecured Loans up to Rp250 million and tenor up to 6 years. » Quick process and easy requirements. WORKING CAPITAL LOAN A short term payment facility with tenor up to 1 year. » Easy requirements for customers who are in need of business capital. INVESTMENT LOAN Medium-term and long-term payment facilities. » Can be used to fund the procurement of capital goods intended for rehabilitation, modernization, expansion, or establishment of new projects as well as refinancing. BANK GUARANTEES A bond product which is the choice of all businessmen. » Specifically designed to fulfill the needs of businessmen in terms of Bid Bond, Performance Bond, Advance Payment Bond, Maintenance, etc. PT Bank QNB Indonesia Tbk

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Credit Card Payment card as a method of payment. » Free Annual Fee Free annual fee of QNB Visa Infinite credit card for the first year. » Credit Card Insurance Providing protection to the QNB Visa Infinite Credit Card holder if they cannot pay the credit card bill in the event of an accident, as well as providing free fire insurance. » Travel Guard & Purchase Protection • Free travel insurance for flight accident with the maximum amount of Rp5 billion • Compensation for travel inconvenience and purchase protection for the holders of QNB Visa Infinite Credit Card » Executive Lounge Free facility of the executive airport lounge for QNB Visa Infinite Credit Card (valid for 2 people) » Partnership Special discount with 0% installment at various QNB merchants. » Point Reward Points that are obtained from retail or online shopping using QNB Visa Infinite Credit Card » Install Program Fixed 3 - 24 months installment for any transaction Annual Report 2015

Company Profile

Other Products (Wealth Products) Q SMARTHEALTH GOLD An insurance product with easy payment process specifically prepared for emergency situations for all customers. » Affordable premium without having to undergo medical check-ups » Cashless service for inpatient and surgery at partner hospitals. Q SMARTHEALTH PLATINUM An insurance product with superior benefits. » Cashless service for inpatient and surgery at partner hospitals » Local and International ambulance service, Second Medical Opinion, and Medical Concierge Services.

Q Health Protection Integrated life and health insurance for companies with fixed benefits. » Cover inpatient care, outpatient care, and dental care in pre-determined scheme. Mutual Funds Collaboration of QNB First with experienced Investment Managers to help your investment. Offers four types of mutual funds: money market funds, fixed-income funds, mixed-assets funds, and equity funds. » Potentials investment growth » Flexible liquidity as it can be redeemed at any time » Convenient and easy investing

Services

Q OPTIMA LINK Provide customers with 2 (two) benefits in one product, namely a maximum protection and optimum investment. » Provide maximum protection and optimum investment » Provide the customers with flexibility to freely decide choice and allocation, withdrawal, and increase of investment fund » Provide loyalty bonus of 50% from the Basic Premium for the customer who have paid the Basic Premium up to their 11th Premium Year. Q Optima Link Assurance Provide customers with one custom main benefit for six different package such as personal, spouse, kid, child gift, retirement, and legacy. » Hospitalization costs for personal, spouse, and kid packages » Cash value savings for child gift and retirement packages » Death benefit for legacy package Q Health Care Integrated life and health insurance for companies in which the benefits can be customized based on the available budget. » Cover customized benefits of inpatient care, outpatient care, dental care, delivery and glasses cost.

Annual Report 2015

ATM Electronic banking services with real time, online access around the clock. » Easy cash and cashless through ATM services at ATM Bersama and MEPS » Free cash withdrawal and balance inquiry fee at all of the Bank’s ATMs and ATM Bersama and MEPS. Remittance / Swift Fund transfer service for foreign currencies. » Can take place quickly and securely around the world with a variety of foreign currencies as well at competitive telegraph exchange rate and fee.


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Company Profile

RTGS/LLG/Clearing Fund transfer service for Rupiah. » Can take place quickly and securely at a competitive price.

FX Today Foreign exchange purchase/sale on foreign exchange rate determined at the time of transaction, with payment and delivery on the same day as the transaction date. » Provide services at an accurate and competitive price. FX Tomorrow Foreign exchange purchase/sale on foreign exchange rate determined at the time of transaction, with payment and delivery on the working day after the transaction date. » Provide services at an accurate and competitive price » Customer foreign exchange rate hedging (this transaction allows customers to hedge foreign exchange risk exposure to fluctuated currency exchange rate).

QNB First Priority banking services for preferred customers. » Comfortable lounge service privileges with the best facilities » Airport transfer, local airport lounge, luggage handling, and immigration handling facilities. SDB Box rental facilities to store goods, valuables, or important documents. » Secure and protected deposit box at a competitive price. Letter of Credit Facility of L/C issuance for purchase of goods and services from abroad to inside or outside Indonesia’s custom area. » Ensure secure transactions for importers in which the payment (to beneficiary) is made after all the documents accepted have met the requirements from importers to bank (for transaction).


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FX Spot Foreign exchange purchase/sale on foreign exchange rate determined at the time of transaction, with payment and delivery on 2 (two) working days after the transaction date. » Provide services at an accurate and competitive price » Customer foreign exchange rate hedging (this transaction allows customers to hedge foreign exchange risk exposure to fluctuated currency exchange rate. FX Swap Foreign exchange purchase/sale on foreign exchange rate determined at the time of transaction, with payment and delivery on 2 (two) different days, using the agreed swap price. » Provide services at an accurate and competitive price » Customer foreign exchange rate hedging (this transaction allows customers to hedge foreign exchange risk exposure to fluctuated currency exchange rate

Annual Report 2015

Company Profile

Other Services

Dooet+ Mobile Banking. » Smartphone application with easy-to-use features. » Various type of financial (transfer, payment, and purchase) and non-financial transactions are only 2 (two) clicks away. Corporate Internet Banking Internet Banking service for corporate customers. » Ability to set banking transactions anywhere and anytime » Ability to customize limit of daily transaction and number of registered users on their own » Token to secure transaction and SSL-protected web pages » No installation or monthly fee on the customers.

Annual Report 2015

QNB Online Banking Internet Banking service for individual customers. » Can be accessed through computers or smartphones, for various kind of activities in practical and safe manner » Various services such as inter-bank transfers, bill payments, credit reload, etc. » Access to information of various accounts (Checking Account, Savings, Time Deposits, and Loans) in integrated service. Corporate ATM Card ATM Card service for corporate customers. » Customized QNB ATM card with design and logo of corporate customers » Can be used for cash withdrawal, payment, and purchase » Comes with application to control supplies and demand of cards related to the Bank.


63

Company Profile

Operational Map

Palembang 1 Branch Office

Jakarta 19 Branch Offices

Semarang 2 Branch Offices

Medan 8 Branch Offices

Pematangsiantar 1 Branch Office

Batam 1 Branch Office

Depok 1 Branch Office

Bekasi 2 Branch Offices

Pekanbaru

Tangerang

4 Branch Offices

1 Branch Office


64

Bandung 2 Branch Offices Annual Report 2015

Company Profile

Pasuruan

Makassar

1 Branch Office

1 Branch Office

Balikpapan 1 Branch Office

Surabaya

Denpasar

3 Branch Offices

1 Branch Office

Annual Report 2015


65

Company Profile

Organisational Structure

Board of Commissioners

President Director

Committees*

Andrew Duff


Risk Director


Lloyd Rolston

Head of E-Banking & Non Traditional Channel

Group Head of Retail Banking

Tba

Indra Utama Nasution

Caroline Halim

MIS Head

Head of Network & Distribution

Head of Commercial Banking

Head of Commercial Credit

R Andi Kartiko Utomo

Tammadi

Head of Corporate Banking & Financial Institution

Head of Risk Management

Rasmoro Pramono Aji

M Agus S Meliala

Wendriani Eka Lukito

Head of Alternate Channel

Titis Satryo Utomo

Head of Transaction Services

Thomas Hartono Tulus

Head of Corporate Credit Risk & Credit Administration

Head of Retail Product Development

Head of Structured Finance & Advisory

Head of SME Credit Review

Head of Treasury

Head of Retail Banking Credit Review

Edwin Tanu Teintang

Head of QNB First

Joyce Puspa Chandrayani

Tenny Prasetya WJ

Novy Angela Andow

Elquino Simanjuntak

Ervin Gumilar

Joseph Puradi Wirakotan

Head of Client Services

Monica Riesanty Wahyudi


66

Annual Report 2015

Company Profile

Operation Director

Remuneration & Nomination Committee

Risk Oversight Committee

Rusli


Compliance Director


Head of Operations

Head of Compliance & Procedure

Head of Human Resources

Tba

Head of IT

Rr Utami Tjipto

Bambang Wijayanto

Head of Internal Control

Head of Corporate Secretary

Tba

Novi Mayasari

Head of Legal

Slamet Riyadi

Audit Committee

Lina

Head of General Services

Denny Soedharmo

Tba

Chief Auditor

Tota Melanie Loembantobing

Head of Corporate Communication

Glenn Ranti

Head of Total Quality & Strategy Implementation

Tba

Head of Finance & Accounting

Tomi Parisianto Wibowo

* This structure has been approved pursuant to the Decree of the Board of Directors No. 089/SK-Direksi/XI/2015 on September 23, 2015 ** HR Committee IT Committee Risk Management Committee Asset & Liability Committee (ALCO) Credit Committee Procurement Committee Product & New Activity Committee Fraud Oversight Committee

Annual Report 2015


67

en tD an i d scu A s na si ly on si s

em

ag

an

M

Management Discussion and Analysis

Industry Overview Macroeconomic Overview In 2015, growth prospects for the advanced economies have improved, but this is largely on account of good growth in the U.S. and the U.K. The euro zone remains mired in low growth and Japan’s economy appears to have stalled again. On the other hand, emerging market economies, which had become the main drivers of global growth in the aftermath of the financial crisis, are now leading the world economy into a slump. Growth has fallen, business and consumer confidence are eroding, and financial markets have taken a beating in these economies. Commodity-exporting countries, both advanced and emerging, have also been hit by sharp growth slowdowns. Even, the oil price which are indicated to rebound, was held

back again with excess supply amidst the weak demand pushing the prices lower. On similar note, global financial market in 2015 remained volatile with expectation of US interest rate (Fed Fund Rate) hike and US dollar appreciation to trigger turbulence in stock market especially those of emerging countries. As the global economy hit speed bumps, Indonesia is equally struggling. Indonesia have been decimated, in part a result of investors moving their funds out of emerging markets. Indonesia's economy, Southeast Asia's largest economy, expanded only slightly to 4.73% in the third quarter and projected to reach 4.95% in the fourth quarter of 2015, according to Bank Indonesia.

Indonesian GDP Quarterly Growth Rate (2015) (in percentage) 6.00 5.00

5.02

4.71

4.67

Q1 2015

Q2 2015

4.73

4.95

4.00 3.00 2.00 1.00 0

Q4 2014

Q3 2015

Q4 2015*

Source: Statistics Indonesia *) Based on Bank Indonesia Projection

On the expenditure side, private consumption expanded by 4.96% year-on-year, following a 4.97% growth in the preceding quarter. Government spending rose by 6.56%, accelerating from a 2.28% expansion in June 2015. Gross fixed capital formation also grew 4.62%, up from a 3.55% rise in the previous three months. Private non-profit expenditure expanded by 6.39%, reversing from an 8.25% in the preceding quarter. In contrast, exports fell 0.69%, following a 0.13% decline in the second quarter. Imports also dropped by 6.11%, following a 6.85% contraction in the three months to June 2015.


70

While improved public spending and higher investment demand have brightened the country's growth outlook to some extent, national economy was still overshadowed by considerable risks from both internal and external factors throughout the year. Externally, normalization of US interest rates, continued slowdown in key trading partners, including China particularly contributed to the moderate pace of the country's GDP growth in 2015 and thus, annual average growth. Similarly, exports continued its negative growth while private consumption growth remained dampened, reflecting weaker household purchasing power amid high interest rates, elevated inflation and a downbeat consumer and business sentiment. Annual Report 2015


In reference to Statistics Indonesia, annual inflation rate eased to 3.35% in December of 2015 from 4.89% in November but slightly above market consensus of 3.0%. It is the lowest figure since March 2010, as prices of most components moderated while cost of transport fell. Year-on-year, cost rose at a slower pace for: staple food (+4.93 percent in December from +4.96 percent in Indonesian Quarterly Inflation Rate (2015)

November); processed food, beverage, cigarette and tobacco (+6.42 percent from +7.97 percent); housing & utilities (+ 4.42 percent from 4.78 percent), clothing (+3.34 percent from +4.42 percent); health (+5.32 percent from +5.84 percent) and education (+3.97 percent from +4.28 percent). In contrast, cost of transport dropped by 1.53 percent, following a 3.47 percent rise in November. Core inflation rose 3.95 percent, down from 4.77 percent in the previous month.

(in percentage) 8 7

6.54

7.07

7.09

6

5.57 4.83

5 4 3 2 1 0

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Source: Bank Indonesia

In response to the adverse conditions, the government recognized the need to improve business confidence and the investment climate in order to enhance Indonesia’s potential growth rate and has taken several important steps in this direction. In coordination with Bank Indonesia (BI) and the Financial Services Authority (FSA), the Indonesia government announced a series of reform packages focused on reducing the regulatory burden and decreasing the costs of doing business, for example, through expediting investment and land use permits, faster firm registration, and lower energy prices for industrial consumers. In addition to the policy packages, the draft 2016 State Budget signals the objective of further improving the composition of public expenditures by strengthening social programs and by redirecting spending from energy subsidies to infrastructure development.

Annual Report 2015

In pursuant of creating a conducive economic environment, BI follows the Government’s lead and issued a policy package on the monetary side. This included more collaboration with regional governments in seeking to control local prices, controlling beef prices and seeking to reduce rupiah instability through secondary and bonds markets. To improve the domestic supply of foreign currency, regulators provided convenience for the foreigners in opening bank accounts in foreign currency for certain amount.


71


Banking Industry Overview Turning to the domestic banking sector, recent economic condition has slightly reduced the banking industry growth. Current business environment has led banks to be more cautious in disbursing loans, thus decelerate the loan growth across all industries. Most banks posted a singledigit loan growth and revised its business plan to adjust to the current economic condition. Financial Services Authority revised its 2015 loan growth projection from 17% - 18% in the beginning of this year to 13% to 15% in June 2015. Loan growth has remained subdued due to both weak demand and supply. Loan growth declined from 10.4% y-o-y in April 2015 to 9.3% y-o-y in July 2015, its lowest rate since January 2010, but increased to 10.9% y-o-y in August 2015. The August 2015 improvement in credit growth was due to a rise in investment loan growth to 12.9% y-o-y, from 11.2% in April 2015, while other lending growth continued to decline. Bank liquidity is ample, with commercial and stateowned bank loan-to-deposit ratios at 88.8% and 86.3%, respectively, compared with a regulatory maximum of 92%. On the supply side, deposit growth dropped to 12.6% in August 2015, from 14.5% in April 2015. Non-performing loan (NPL) reached 2.8% in August, up from 2.4% in March 2015. However, the increase in NPL has been kept in check by banks’ ability to restructure loans. As asset quality continues to deteriorate, credit supply may become more limited due to banks tightening their lending standards further. Given limited scope for monetary policy to address weak domestic demand, BI eased its macro-prudential regulation as of June 2015 to support property and motor vehicle credit. While there has been a marginal increase in the growth rate of housing loans in July 2015, other types of consumer credit have not shown signs of improvement yet. Motor vehicle loan growth has been on a declining trend


72

continuously since May 2014, reaching 3.2% y-o-y in July 2015, down from 16.4% in April 2015. In comparison, when BI tightened macro-prudential policy in September 2013, property credit growth slowed, while motor vehicle lending did not respond as expected. Given weak domestic demand and heightened exchange rate uncertainty, the effect of the current easing in loan-to-value ratios may be limited. Policy space remains constrained, mainly due to the unfavorable external environment. BI’s policy stance is expected to remain tight in the near term because of the possibility of further financial market volatility related to U.S. monetary policy normalization. While the weakening position of the mining and commodity sectors has contributed to deteriorating asset quality for the banking sector as a whole, strong buffers in terms of high profitability and capital as well as healthy balance sheets are expected to help Indonesian banks to withstand the challenging operating environment. In recent years, the Indonesian banking sector has enjoyed a steady growth with compound annual growth rate (CAGR) of 16.9%, and is likely to continue its growth. The factors driving the growth are underpenetrated banking market, large consumer base and the rise of middle income population. On different note, with a total population of 600 million, ASEAN has grown rapidly to be one of the largest economies in the world with a combined GDP of over USD2.1 trillion. With the directives from the ASEAN Economic Community (AEC) gradually coming into effect, intra-ASEAN Foreign Direct Investments (FDIs) and trade have grown tremendously as corporations across the region continue to keep pace whilst enabling new economic opportunities. With regard to investment aand banking industry in Indonesia, AEC poses challenges and opportunities at the same time. The Bank, in particular, have made a series of preparation in terms of improvement of business process and people aspect as the most vital assets to compete in the market.

Annual Report 2015


QNB Indonesia in National Banking QNB Indonesia managed to maintain asset growth higher than the average growth of the national banks.

In the midst of economic slowdown in 2015, which also influencing the growth of banks in Indonesia, Bank QNB Indonesia

National Banking

Description

88.6%

Trillion (IDR)

38.8%

29.2%

137.9%

23.6% 20.84

4Y CAGR 69.8%

3.60

4.65 2012

2013

QNB Indonesia's Assets

3,653

2014

16.7%

25.76

11.05

2011

21.4%

2015

2011

Growth (y-o-y)

4,263

2012

16.2%

4,954

2013

Indonesia Banking's Assets

13.3% 5,615

2014

14.1% 6,416

2015*

Growth (y-o-y) *)projections

The Bank’s assets as of December 2015 stood at Rp25,758 billion, a 23.60% increase from 2014 at Rp20,839 billion and higher than the average national banking. The increase is particularly due to its growing loan portfolio.

84.0% 59.0%

157.8%

37.9%

Trillion (IDR)

17.1%

15.11

4Y CAGR 84.7%

1.99

3.17 2012

2013

QNB Indonesia's Loan

2,201

2014

23.0%

20.83

8.21

2011

24.6%

2015

2011

2,708

2012

21.6%

3,293

2013

Indonesia Banking's Loan

Growth (y-o-y)

11.6%

13.0%

3,674

4,152

2014

2015*


In 2015, the Bank successfully registered a growth of 37.89% in loan growth. The achievement is also higher than the banking industry. The growth is supported by the improvement in loan process and management while also taking into account prudential banking principles.

99.4%

37.4%

23.1% 14.5%

Trillion (IDR)

11,2%

2,785

7.25

2011

15.8%

16.16

4Y CAGR 43.6%

2.64

19.9%

18.51

3,225

13.6%

3,664

12.3%

15.0%

4,114

4,731

2014

2015*

3.62 2012 QNB Indonesia's Third Party Fund

Annual Report 2015

2013

2014

2015

Growth (y-o-y)

2011

2012

2013

Indonesia Banking's Third Party Fund


In terms of funding, the Bank’s thirdparty funds rose by 14.52% to Rp18,509 billion compared to Rp16,162 billion in 2014 and higher than the average national banking. The Bank will continue to improve composition of low-cost funding.


73


Business Review Retail Banking

On the Third Party Fund, the growth was supported by QNB First products and services which accounted for 30% of the retail banking funding as well as general banking activities which occupied the rest of 70%.

Retail Banking encompasses a full range of SME and consumer banking needs, including deposits, loans, and wealth management through its four divisions - Alternatif Channel, QNB First, Network and Distribution, and Retail and Product Development.

To further expand its portfolio, 2015 also saw the Bank officially stepped into wealth management business after obtaining license from the regulator. In the fast-growing off-balance sheet, the Bank introduced mutual fund in partnership with 7 (seven) fund managers, namely Trimegah Asset Management, First State Investments Indonesia, Syailendra, Batavia Prosperindo Aset Manajemen, Danareksa Investment Management, Mandiri Investasi, and Manulife Aset Manajemen.

With uncertain economic conditions and a business slowdown over 2015, the Bank’s Retail Banking portfolio continued its growth momentum which supported by several improvements performed by the Bank, such as simplifying operations, foster efficiencies, and enhance quality of its operational team. The Bank also continues to build a lighter, more purposeful footprint of next-generation retail formats and a digitally sophisticated presence through its versatile digital platform, Q Virtual Accounts (QVA). Through QVA, the Bank is confident to drive higher growth of Third-Party Funds while also improving composition of low-cost funding and increasing fee-based income.

Furthermore, the Bank also launched a number of new bancassurance products, namely Q Optima Link Assurance, Q Health Care, and Q Health Protection. The new bancassurance products which offers more flexible and custom benefits for various customer profiles are expected to lift up the fee income of the Bank.

To meet the needs of the emerging affluent, the Bank launched a unique value proposition called QNB First. This offering delivers tailored solutions and excellent service to support dynamic lifestyle of its customers. Through QNB First, the Bank offers personalized service and unique benefits to its priority banking customers.

Similarly, as part of the efforts to become an icon in Indonesia that grows together with its stakeholders in terms of technology enabled convenience and simplicity of processes, the Bank introduced a number of innovative digital and mobile products. Among others is DooET, noncash transaction instrument in the form of mobile banking application that offers customers cashless banking service to pay and shops in two easy steps “Scan and Pay”.

Strategy and Achievement of Retail Banking in 2015 Generally, key business drivers reflect continued momentum. Lending rose 27.49% while third party fund increased 15.09%. Lending growth in retail banking portfolio was particularly supported by the growth of personal loans and business loans which increased by 1,100% and 40% respectively. Business loans, which provide lending to SME segment were still dominated by business services, trading, restaurant, and hotels sectors.

1 1. 2.

Wealth Management Partnership with PT Danareksa Investment Management Wealth Management Partnership with PT Batavia Prosperindo Aset Manajemen


74

2

Along with the product development and operational improvement, the Bank also focused on enhancing customer experiences across the customer touch points, especially the branch offices. In 2015, the Bank has opened some new branches and relocated some of the existing

3 3. 4.

Wealth Management Partnership with PT First State Investments Indonesia Wealth Management Partnership with PT Syailendra

4

5 5.

Wealth Management Partnership with PT Mandiri Manajemen Investasi

Annual Report 2015


branches to improve customer experiences at branches. In addition, the Bank has also implemented branch accreditation program for all employees engaged in retail banking operation to ensure customer satisfaction and improve customer engagement.

banking work unit, branch manager accreditation program, operational certification, and Standard Operating Procedure (SOP) update. In terms of productivity, the Bank expects to promote sales culture, build accreditation, and boost customer acquisition through effective marketing programs.

Last but not least, the emerging affluent continued to become one of the key target segment. QNB First, the group’s premium banking service equipped with dedicated relationship managers, investment products, one point of customer service with regular customer events has been growing rapidly in the past one years with over 2,000 customers.

Aside of traditional channel in banking industry, technology become phenomenal and is disrupting the way of customer to pay, do transaction and access other financial services. With the penetration of more than 100% mobile handset in Indonesia, smart phone has become unbeatable channel for almost everything, including financial services. Statistic showed that 40% of mass affluent Asian customers prefers online or mobile banking and 50% of them look for full set of digital banking services. And the data also suggested that digital banking customer will increase from 670 million to 1.7 billion in 2020.

Retail Banking Strategy for 2016 Looking ahead, the Bank seeks to constantly improve Net Interest Margin (NIM), boost portfolio grade, reduce funding cost, and actively manage NPL portfolio. To improve NIM, the Bank looks forward to optimize integration of QVA to its banking product and service while applying strategic measures to drive higher Business Loans growth and fee-based income. The Bank will focus on sharpening its segmentation, revamping underwriting policy, and strenghtening back-end process to the extent of collection while bolstering its backbone funding, i.e QNB First. On product development, the Bank will particularly emphasize on fitting in with the customers' needs of diverse risk profiles and further equip its product and services to achieve service excellence. Among others, the Bank plans to add some fund managers and bancassurance partners, where the majority of the products will be channeled through QNB First. Similary, assets management which include current account and savings account will be integrated with insurance products as well as internet banking and mobile banking services. In addition, other focus of retail banking improvement are people development and productivity. Among the future development initiatives are certification program for retail

QNB Indonesia will be part of those development in the new wave of financial services technology. The branches, ATM will still play an important role in the next 10 years, but, with the double growth of smart phone users, which is currently still under 40%, it will change the banking business landscape. To prepare the above, in 2016, the Bank will start assessing thoroughly from the robustness of the platform, certifications, compliance and product features. Enrich the product/services is a must to at least to be par with the competitors and also to strengthen the back-end process to eliminate or at least minimize the fraudulance as well as non compliance. Creating and developing the financial ecosystem such as payment, transfer/remittance and purchase, by connecting customer, merchants, billers and the Bank as well as telecommunication companies is critical to open up the strategy to acquire customers whereas as in any business, customer base is the key to survive in the new era of mobile banking and sustain in the industry.

Wholesale Banking In general, wholesale banking consists of six specific units: Corporate Banking, Client Services, Structured Finance & Advisory, Commercial Banking, Transaction Services, and Treasury Divisions. The Bank’s wholesale banking provides middle and large companies with easy access to award-winning products. Corporate Banking is established to attend to multinational Perbarindo National Congress 2015 Kendari, Southeast Sulawesi Annual Report 2015


75


companies as well as State Owned Enterprises (SOEs) while commercial banking serve similar target segment with smaller scale profiles. Structured finance and advisory, on the other hand, functions to provide companies which require debt restructuring through syndication loan. In addition, the Bank also provides each and every wholesale banking customers with comprehensive relationship coverage service to ensure the best possible service and responsiveness to our clients. To keep customer relationships at the forefront of banking for priority customers, the Bank has established Mitra Bisnis services under Client Services unit. Mitra Bisnis is a team of dedicated professionals which offers a sort of priority banking for wholesale banking customers, Client Services primarily serves to support both corporate banking and commercial banking day-to-day operation, particularly in replying to customers’ inquiries and specific demands. To better attend to their corporate customers’ needs in transactional banking Wholesale Banking in 2015 established a new division, namely Transaction Services. Transaction Services business provides integrated cash management and trade finance services including cash pick-up to multinational corporations, financial institutions and public sector organizations across the country.


76

Throughout 2015, the Bank consistently strives to maintain its asset quality while also expanding its Wholesale Banking portfolio and footprint in the national banking industry. Strategy and Achievement of Wholesale Banking in 2015 Similar to last year, the wholesale banking still accounted for the bigger share of the Bank’s portfolio in 2015. Generally, key business drivers reflect continued momentum: corporate lending grew 44.71%, commercial lending increased 36.33%, funding for wholesale banking up 13.55%. The positive performance is primarily attributed to the intensive and consistent customer engagement by Mitra Bisnis service. In 2015, Mitra Bisnis team was not only focused on maintaining customer engagement and strengthening customer relationship but also increased cross-selling transactions by wholesale banking customers. Among the cross-selling initiatives were to introduce QNB First services to the wholesale banking customers. On structured finance and advisory note, the Bank continued to acquire customers, among others, PT Bekasi Fajar Industrial Estate Tbk which signed off a syndication loan of US$100 million. Annual Report 2015


In terms of Transaction Services, the Bank will further strengthen its collaboration with rural banks through BPRconnect by expanding other products in addition to ATM card to meet the demand of customers in rural areas. BPRconnect will remain one of the main focus for the Bank to penetrate the barely untapped market in rural areas. In 2016, the Banks estimates to partner with approximately 300-400 new rural banks and published 100,000 ATM cards.

Transaction Services, to different extent, focused on integrating internet banking, virtual account, and branchless banking to expand customer acquisition. In 2015, the Bank has signed a partnership with Perbarindo, Institution for Rural Banks, to extend services through BPRconnect. Currently, there is a total of 20 rural banks across Indonesia which has actually joined the Bank to provide ATMs services in rural areas. Wholesale Banking Strategy for 2016 2016 will see wholesale banking collaborating with other financial institutions in its business partnership network and boosting corporate loan as well as other whosale banking services. In particular, the Bank will remain focused on the emerging affluent to market its funding products and other banking facilities such as wealth management and priority banking. In addition, the Bank will further deepen middle and large corporate portfolio in order to increase customer acquisition and extend scope of bank funding.

2015

Mitra Bisnis service under Client Services, on the other hand, will emphasize cross-selling products of retail banking. In 2016, the Mitra Bisnis team will start to offer bancassurance and mutual fund products to wholesale banking customers. The unit will also constantly look to capturing new business opportunities through cross-selling.

Profitability Discussion of the Bank’s profitability is based on geographical segment information which constitutes of several areas, namely, Jakarta, Sumatera, Jawa and East Region. was as follows: Region

Jakarta

Sumatera

Java

East Region

Total

Total assets

19,333,304

1,854,141

3,081,541

1,488,663

25,757,649

Total liabilities

18,107,169

2,260,257

2,815,819

150,220

23,333,465

Net Interest income

486,019

75,687

73,460

54,085

689,251

Net fees and commission income

173,005

3,848

15,366

2,039

194,258

13,509

2,554

737

1,460

18,260

(616,524)

(44,004)

(22,623)

(13,345)

(696,496)

3,616

50

18

(22)

3,662

59,625

38,135

66,958

44,217

208,935

Other operating income Operating Expenses Non-operating income - net Income (loss) before income tax

2014

Region Jakarta

Sumatera

Java

East Region

Total

Total assets

15,284,088

1,692,090

2,692,617

1,170,223

20,839,018

Total liabilities

13,118,978

2,808,592

2,477,018

169,409

18,573,997

Net Interest income (expenses)

212,899

(1,497)

106,575

88,645

406,622

Net fees and commission income

164,821

4,566

3,783

1,631

174,801

33,918

333

339

42

34,632

(393,495)

(33,877)

(20,603)

(8,162)

(456,137)

2,876

31

(9)

12

2,910

21,019

(30,444)

90,085

82,168

162,828

Other operating income Operating Expenses Non-operating income - net Income (loss) before income tax Annual Report 2015


77


Business Supporting Unit Review

Here at QNB Indonesia, our purpose is to be where growth is, connecting customers to opportunities. We strive for business to thrive and economies to prosper. Seamless operational banking transactions is the key to achieve our objective. To meet this particular objective, we constantly focus on business process improvement and operations efficiency.

Aside from developing improvement of compliance and business process, the Bank also seek to build the competence of people in operation. In 2015, people competence enhancement were carried out through certification and accreditation programs aimed to ensure all employees are well-equipped in technical and non-technical aspects accordingly to their job requirements.

In 2015, the Bank focuses on improving people and process by enhancing compliance and foster a more effective and efficient work process. In terms of compliance, the Bank has launced 12 initiatives enhance regulatory compliance and promote compliance culture across the organization.

Information Technology

Moreover, the Bank also intently emphasized on improving productivity and streamlining business process. Among the enhacement strategy were to implement pilot project on straight-through processing (STP) in both head office and branch offices.


78

Delivering solutions and creating new opportunities innovatively has been at the heart of our operation. As such, implementation and development of information technology is paramount to executing the Bank's business strategy. From time to time, the Bank actively improved infrastructure to enhance customer service and convenience in banking transaction while also ensuring competitiveness and efficiency in its banking solutions, as well as pose low operational risk. In 2015, the Bank particularly aligned its strategy to both business plan and most importantly, mission to provide outstanding technology-enabled banking product and servies.

Annual Report 2015


Information Technology Strategy in 2015 In 2015, the Bank has set out a series of information technology (IT) strategies which focuses on meeting its operational and strategic needs. The IT strategies in 2015 draws heavily on increasing internal capacity while further improving our business processes. To optimize IT capabilities in achieving the Bank’s objectives, IT Division implemented an initiative to remap and redeploy capacity. To boost internal capacity, the Bank has planned system infrastructure, rerun sharepoint project for enhancing business process management, collaboration, and Corp Portal, and reactivated Disaster Recovery Center (DRC) site for redundancy. Next, efficiency is one of the major focus of IT improvement in the Bank. To foster a more efficient implementation of IT framework, the Bank strived to reprioritize cost allocation and cost-oriented development. To ensure cost efficiency and efficient business process, the Bank strives for network and hardware efficient usage which included network back up, hardware virtualization, bandwidth size remapping, and licensing optimization. In addition, the Bank also revitalized in-house development with third party which consisted of various platforms: Q Performance Management dashboard to monitor performance of every business line, ATM Recon system to reconciliate ATM, Data Mart & BI as data mapping and warehousing for BI requirement, Branch front end sys as front end system for branch offices, SCM platform, DooET (Do One On One Electronic Transaction) Mobile application, and CIMS. In addition, the Bank also believes in business driven, IT development, that the successful IT development is a vital key to drive business growth. As such, the Bank consistently develops new systems and frameworks to support business expansion. In 2015, among the new developments that took place were B2B system development, B2C system development, and digital banking automation. For B2B system, the Bank has been developing SCM, CMS (Cash Management System), B2B Integration, BPRconnect, and CIB (Corporate Internet Banking). On the other hand, development of B2C system comprised of DooEt Mobile, DooEt Merchant, CRM Applications (Customer Relationship Management system), Internet Banking, and QFX (Q Foreign Exchange system). Finally, the Bank also further promoted digital banking automation through EMA, Estatement, Combine statement, CBS branch front end, Anti Money Laundering (AML), and Workflow.

Annual Report 2015

On the last note, the Bank also concentrated on analyzing business impact and monitoring performance to ensure high performance of IT Service management. Among the initiatives rolled out were development business impact analysis, performance monitoring system which include ATM Monitoring System, Network management, and system monitoring alert, as well as improvement of security system by implementing IPS (internet protocol security system), anti virus, and anti malware including firewall system and other security module to ensure high security and high availibility of IT operation. Information Technology Framework Information Technology (IT) Framework in the Bank comprises of four aspects, namely planning, development, management, and maintenance. Fundamentally, the four aspects serves as the cornerstone for the Bank to formulate, align, execute, and evaluate its IT strategy to meet its objective in accordance with business growth, good corporate governance, risk management, and profitability. »

Planning In IT Framework, IT Planning includes the formulation, discussion, and proposal of the Bank's IT strategies and initiatives in relation to optimizing capability, foster efficiency, provide outcomes, and maintain service level.

»

Development The Bank are fully aware that a sound IT system plays a key role in sustaining business growth. With the commitment to deliver solutions, the Bank applies System Development Life Cycle (SDLC) to ensure zero defect.

»

IT Operation Management IT operation management of the Bank is focused on managing operation and core banking system.

»

Monitoring Consistent maintenance is part of the Bank's efforts to monitor and mitigate risk impacts.

Information Technology Plan 2016 In banking industry, it is essential for business strategies and IT implementation are in sync. In addition, it requires consistent and continuous implementation for a bank to achieve the speed and agility required to meet expectations and at the same time remain focused on the cost effectiveness of IT initiatives. PT Bank QNB Indonesia Tbk

79


The Bank is uniquely positioned to demonstrate that business and IT strategic planning can co-exist. To meet the goal of providing technology - enabled banking product and services, the Bank derives from four strategic initiatives which sees implementation from 2015 to 2017, namely IT Capabilities Optimizing, IT Efficiency, Business Driven IT Development, and High Performance IT Service Management. In 2016, the Bank will continue the implementation of respective initiatives accordingly to project prioritization as detailed below. »

IT Capabilities Optimizing » Rerun Sharepoint project » System infrastructure capacity planning » Reactivation DRC site for redudancy

»

IT Efficiency » Network & HW usage efficiency » Revitalize in-house development

»

Business-Driven IT Development » B2B system development » B2C system development » Digital banking automation


80

»

High Performance IT Service Management » Develop business impact analaysis » Performance monitoring » Improving Security System

Human Resources Bank QNB Indonesia has strong belief that Human Resources Development is one of the main pillar in achieving Bank's vision. Therefore in 2015, the Bank established Human Resources Directorate as an independent directorate and continue strengthen the Directorate's capacity. The Directorate of Human Resources is led by the Human Resources Director, who oversees four sub-division, namely, Strategy and Organization Development, Learning & Development, Human Resources Operations, and Human Resources Business Partner. The Human Resources Director is responsible to the President Director.

Annual Report 2015


Human Resources Strategy in 2015 Nowadays successful companies need to be adaptive, resilient, and customer centered. Within such an environment, the effectiveness of Human Resources Management is crucial to business success. To maintain excellent performance, the Bank also continue to align its Human Resources policies with the Bank's strategy by taking into account prudential principles, risk management, good corporate governance as well as global best practices.

In line with its capacity planning objective and HR development road map, the Bank fulfilled its capacity needs through internal and external hiring as well as job rotation and Management Development Program (MDP).

The Bank's Human Resources Strategy in 2015 was focused on people development which include continuous embed QNB Value, Developing Great Talent Program, Strategic Succession Plan, and Intensification Leadership Trainings.

Internal hiring and job rotation provide further career opportunities for staffs. In summary, the internal and external recruitment process that have been conducted by the Bank in 2015 include: • Campus Hiring This program is aimed to recruit new talents who have just finished their education. These talents are recruited because of their potential to develop and grow at PT Bank QNB Indonesia Tbk

»

Organization Development In order to support business growth, the Bank consistently reviews its organizational structure to the extent of evaluating its productivity and effectiveness.

As for the capacity planning, the Bank has made perpetual efforts to establish a mature and structured framework to ensure efficient, effective, and competitive organization including capacity plan accordingly with the business growth and references from all work units.

»

In addition, the Bank also has taken the organization development further by extending it to the branch offices through relocation of non-productive branches to a more business oriented location. Furthermore, retail operation project to ensure continuous improvement also took places in the Bank's branch offices. By such efforts, the Bank expects to boost productivity and stimulates initiatives from employees at the branches offices toward stronger and more efficient organization in a bottom-up manner. Capacity Fulfillment The capacity planning refers to both the Bank’s long term business plan and short term business plan.

Annual Report 2015

•

Employee Referral All employees of PT Bank QNB Indonesia Tbk are invited to contribute in nominating the candidates that may fulfill the Bank’s business needs. This particular process is very helpful in accelerating recruitment process and meeting the expected qualities.

•

Internal Job Posting This program provides a wide opportunity for all employees to grow and develop through the internal recruitment program.

•

Mass Recruitment For certain capacity need, mass recruitment is conducted to acquire large number of employee.

•

Management Development Program (MDP) MDP is intended to recruit young potential leader for Bank's future need. The MDP talents are exposed to many strategic and leadership experience. During the 3 years program, each individual talent will receive tailored program to develop their competence.

In 2015, we hire 7 (seven) young talents from various reputable universities to join QNB Indonesia MDP.


81


»

»

Learning and Development Recruitment is only the first step in acquiring the best talent. Providing the opportunity to employees to continue growing is one of the most important keys to achieve best performance. To that extent, the Bank always strive to ensure that all of its employees are well-equipped with suitable skills and capabilities to address business challenges at present time and in the future. For that reason, the Bank consistently encourages its employees to learn, grow, and innovate. Learning and development programs are provided for all function across organization levels from staffs to the Board of Directors with both internal and external instructors. In 2015, the focus programs of learning and development included QNB Values refreshment and intensification of leadership trainings. Details of the learning and development programs conducted by the Bank throughout 2015 can be found in Human Resources Training and Development section within Human Resources chapter of this annual report. Performance Management and Reward As a performance-based organization, the Bank implements a modern performance management system in which performance is measured based on achievement of Key Performance Indicator (KPI) and implementation of QNB Values. The purpose of this system is to evaluate the performance of employees from both aspects, which are employees’ achievement of targets (KPI) and work performance in terms of behavior (QNB Values).

Bank has started to has multiple performance feedback for Division Heads. The purposes of this system are to help individual to see development opportunity from various channels.

To different extent, the result of performance evaluation also plays big role in determining employees’ remuneration. The Bank applies transparent and objective remuneration strategy in which the remuneration is based on the assessment of the performance and contribution to the Bank. Remuneration and benefits are provided to employees in accordance with the Bank’s grading system as well as the Bank’s capacity and relevant standard in banking industry. The Bank also regularly reviews


82

and improves remuneration and benefit by taking part in salary survey. By doing that, the Bank expects to keep a competitive employee compensation and benefit while assuring that employees earn rewards in correlation to their competence and position, enticing employees to maintain their performance and improve their contribution to the Bank.

All policies regarding the remuneration system is elaborated further in the Human Resources Committee and Remuneration and Nomination Committee as the organizational functions to ensure that the Bank's remuneration strategy balancing organization competitiveness and capability.

»

Talent Management A commitment to be a top tier Bank in terms of financial performance will also requires superior workforces. The year 2015 is the year which talent management program called Developing Great Talent (DGT) has been introduced to the Bank. DGT is a tool developed and tailored especially for the Bank to ensure the Bank manage and retain talented employees to ensure superior workforces aiming the bank to reach its goal.

As the first stage of DGT program, the Bank had asked all of the managers to assess and evaluate own potential as well as preparing their career development plan. The result and every talent management program initiative will be facilitated and monitored closely by the Human Resources team to ensure all participants reaching their maximum performance and potential, which eventually expected to support PT Bank QNB Indonesia Tbk growth in the future.

»

Internalization of Corporate Culture Within a dynamic industry like banking, it is become increasingly essential for an organization to have, embrace, instill, and put into practice a strong corporate culture. Such culture is particularly instrumental to the Bank's success in achieving its goals and vision in constantly changing banking environment. The Bank has developed and implemented positive and sound culture within its environment which aims to create individuals that are able to reflect and represent the Bank in the eyes of all stakeholders, as further detailed in Corporate Culture section in this annual report.

Annual Report 2015


In 2015, the Bank has carried out QNB Values Refreshment program which involves the Executive Management to actively communicate and share understanding of QNB Values to division head levels in regular basis. Among the activities held in regard to QNB Values Refreshment were QNB Values for Leader training in September 2015 which was intended for Division Head. QNB Values have been established through Decree of the Board of Directors and disseminated through email blast from Marketing

Communication division and refreshment program. In addition, the Bank consistently reminds the employees and Management on the values in every internal trainings. Employee Profile As of December 31, 2015, the Bank has a total of 944 people including contract employees. This number grew by 4.66% compared to 902 people in 2014. The increase was in line with the Bank’s business and operational activities.

Number of Employee Based on Organization Level

2014

902

Employees

2015

944

Employees

Annual Report 2015

4 19 28 61 60 77 4 21 28 67 65 102

Executive Vice President Senior Vice President Vice President Assistant Vice President Senior Manager Manager

Executive Vice President Senior Vice President Vice President Assistant Vice President Senior Manager Manager

82 142 93 122 177 37 92 131 98 134 166 36

Assistant Manager Senior Officer Officer Senior Assistant Assistant Non Clerical

Assistant Manager Senior Officer Officer Senior Assistant Assistant Non Clerical


83


Number of Employee Based on Education Level

2015

2014

902

944

Employees

61 552

Employees

131 158

Master/PhD Bachelor

Diploma High School and Below

63 611

130 140

Master/PhD Bachelor

Diploma High School and Below

Number of Employee Based on Age

2014

2015

902

944

Employees

2 5 63 211 197 PT Bank QNB Indonesia Tbk

84

< 20 > =55 20-24 25-29

Employees

138 149 94 43

35-39 40 - 44 45 - 49 50 - 54

44 204 222 162

20-24 25-29 30-34

153 109 50

40 - 44 45 - 49 50 - 54

35-39

30-34

Annual Report 2015


Number of Employee Based on Position

2014

902 Employees

2015

944 Employees

Annual Report 2015

120 103 78 62 44 456 39 117 174 71 67 51 426 38

Branch manager / sub branch manager / division head / sub division head Relationship Officer Teller Customer Service Operation Service Manager Back Office Non Clerk

Branch manager / sub branch manager / division head / sub division head Relationship Officer Teller Customer Service Operation Service Manager Back Office Non Clerk


85


Number of Employee Based on Working Period

2014

2015

902

944

Employees

154 32 83 448

57 128

<1 Year >=21 Years 11-15 Years 1-5 Years 16-20 Years 6-10 Years

Employees

156 34 90 469

54 141

<1 Year >=21 Years 11-15 Years 1-5 Years 16-20 Years 6-10 Years

Number of Employee Based on Status

2015

2014

944

902

Employees

Employees

854 48 PT Bank QNB Indonesia Tbk

86

Permanent Employees Contract Employees

892 52

Permanent Employees Contract Employees

Annual Report 2015


Employee Turnover The Bank constantly makes an effort to balance the movement or employees’ turnover rate. The balance can be maintained by improving the efficiency of recruitment system and employee’s rotation. The improvement of human resources quality and proper placement of individuals in accordance with their talents and competencies, are the focus of the Bank in effectively managing their human resources. Human Resources Training and Development The Bank's management believes that continuous employee development and competence improvement through trainings, accreditation and certification, coaching and mentoring, and various learning methods, are critical for the Bank in order to achieve its goals. This year, the Bank was particularly focused on setting up foundation for a targeted, integrated, and comprehensive learning program as well as mission to establish QNB University. As such, the highlights of HR development in the Bank in 2015 included development of a learning framework and internal accreditation curriculum for various functions and positions. In internal accreditation regard, the Bank has completed learning curriculum and modules for Branch Accreditation as a mandatory program for employees in retail banking segment including QNB First. All Branch Managers

Annual Report 2015

and Relationship Managers are required to enroll and pass every learning module within this accreditation program. In line with the commitment of internal accreditation development, the Bank also perpetually encourages improvement of quality and effectiveness of internal trainings, dissemination, and refreshment activities. Moreover, internal trainer also comes to the Bank's attention in which the "Train the Trainer" program has entered its third batch. The initiative is also supported by development and optimization of Learning Management System (e-Learning) for mandatory learning programs and refreshment. In 2015, HR Division has developed learning material Basic Anti Money Laundering - Combating of Terrorism Financing (AML-CFT) Program, AML-CFT Refreshment Program, and Induction Program. By the end of 2015, the Bank has also developed e-learning for risk management module, service standard, and Anti-fraud which are expected to be ready in early 2016. In order to support the talent management initiative of Developing Great Talent, which launched in mid 2015, the Bank also promotes development of soft-skills and leadership for all employees. The Bank developed "Managing Self" trainings for staff and specialist, "Managing Others" trainings for Supervisors and Line Managers and "Managing Team" trainings for Sub Division Head and Division Heads.


87


Table of the implementation of training and development programs throughout 2015. 2015

Program

2014

Total Program

Batch

Total Program

Batch

79

-

49

-

A. Core Program/Regulatory

9

30

7

76

B. Certification & Accreditation

10

20

8

52

C. Technical

49

125

32

78

D. Leadership & Professional Development

11

14

2

2

II. External Training

98

-

95

-

III. Talent Development & Management Development Program

4

4

1

1

IV. QNB Values Internalization

3

1

V. E-Learning

4

1

I. Internal/Inhouse Training

A. Core Program Core Program is a mandatory training program which is conducted in compliance with requirement from regulators (Bank Indonesia, Financial Services Authority) for employees on certain position and work functions as well as other employees as stipulated by the Bank in order to improve effectiveness of duties implementation and to assure the realization of Bank's target.

2015

Program

Induction Program

In addition to induction programs, anti-fraud, and AMP which sustainably granted to employees, new training modules also implemented in the category of core programs, namely Legal Knowledge for Frontliners & Branch Official.

2014

Batch

Total Participants

Batch

Total Participants

15

193

13

100

Anti-Fraud

8

190

5

66

AML - CFT

54

1026

43

813

Legal Basic Knowledge for Branch

7

165

-

-


88

Annual Report 2015


B.

Certification and Accreditation Program The Bank is fully committed to ensure its employees have the competences required in their positions and work functions through certification and accreditation program. Management continues to promote development of internal accreditation program to ensure all employees are well-equipped in technical and non-technical aspects accordingly to their job requirements, in addition to professional certification and accreditation granted by acknowledged institutions. In this accreditation program, the participants are obliged to pass tests/ complete tasks to reflect the Bank's acknowledgement of their competences. In addition to the certification fullfilment in accordance to the regulator requirements, such as WAPERD Certification and Risk Management Certification, in 2015, the Bank also conducted certification for the employees in Audit division, Treasury division, Compliance division and employees who are responsible as an Appraiser. The Bank has also enhanced and implemented the other two internal accreditation program for the retail banking, i.e the Branch Manager Accreditation and QNB First Academy. Thus, overall, there are 19 certification programs run in 2015, namely: 1. Credit Skill Assessment 2. Branch Manager Accreditation 3. QNB First Academy 4. Property Appraiser Education 5. Compliance Certification 6. Certified Internal Auditor Banker 7. Preparatory for Treasury Certification 8. WAPERD Certification 9. Risk Management Certification

Annual Report 2015

In addition to continuing certification program that has been running in the previous year, here are new certification and accreditation programs carried out in 2015:

1. Credit Skill Assessment Credit Skill Assessment is training and certification provided to employees related to commercial and corporate credit. The Bank partners with international certification organization - OMEGA in conducting the trainings. 2. QNB First Academy QNB First Academy is training provided to staffs related to wealth products (bancassurance and mutual fund). In the 72-hour comprehensive training, branch managers and relationship managers in QNB First are taught about wealth products, selling techniques, and methods to manage customers' fund. Through this accreditation, the employees are expected to be ready in performing their work roles effectively and responsibly, in line with the QNB First branches which commence operation. The trainings invite wealth management experts as well as internal instructors to ensure participants is comprehensively-equipped. 3. Branch Management Accreditation Program In 2015, all Area Managers and Branch Managers have completed 32 hour - Effective Branch Management module, which is the first module of the Branch Manager Accreditation Program.


89


The modules for Effective Branch Manager program were provided by internal instructors. It consists of Retail Banking Overview, Branch Leadership, Risk Management, Compliance, Audit, IT, Operations, Legal as well as Finance and Accounting. In 2016, Branch Managers will continue with the next module, i.e. Business Management Module which will be delivered by both Internal Instructors and External Instructors/ Professionals.

C.

Technical Training Program 49 programs

4. Appraisal Accreditation Program Appraisal Accreditation is training provided to Appraisal staffs to ensure that they have knowledge and skills required to perform their roles and positions effectively. The Bank partners with national certification organization, MAPPI (Indonesian Professional Appraiser Association). 5. Compliance Accreditation Program Compliance Accreditation Program is training provided to Compliance & Procedure staffs to ensure that they have knowledge and skills required to perform their roles and positions effectively. The Bank partners with national certification organization, FDKP (Banking Compliance Directors Communication Forum) in trainings and competence tests. The Bank's Compliance staffs are also required to complete e-learning module developed by QNB Group. 6. Audit Accreditation Program Audit Accreditation Program is training provided to Audit staffs to ensure that they have knowledge and skills required to perform their roles and positions effectively. The Bank partners with national certification IAIB (Institute of Internal Audit) and LSPP (Banking Professional Certification Agency) and international certification organization – IIA (International Internal Auditor) for trainings and competence tests.


90

Technical Training Program In 2015, there were 17 new technical training programs in addition to the existing 32 programs in 2014. As such, there were a total of 49 technical training programs in 2015. It demonstrated the strong commitment from the management to provide programs needed by the Bank to enhance the technical competencies in all functions and work units.

32 programs

2014 2015

Some highlighted technical programs in 2015: 1. Selling Skills & Product Knowledge As the Bank increases partnership with various banking partners, it is important to strengthening the knowledge of sales employees through series of trainings to update and refresh employees' sales skills and product knowledge. The Bank has conducted 12 product knowledge trainings with 570 participants. 2. Engaging Customer with Service Spirit Engaging Customer with Service Spirit is trainings aimed to equip frontliners in boosting motivation and capability to serve customers in line with the Bank's Spirit of Service. Engaging Customer with Service Spirit training is part of Frontliners Accreditation Program. There has been 9 batches of this training conducted across Indonesia with 192 participants. 3. Operation Excellence The Management continues to strengthen trainings for employees in operation function, among other through trainings related to Core System, Mini Bank, Devisa Traffic, and Forfeited Money Detection. Throughout 2015, the Bank has conducted 16 programs. Annual Report 2015


Development of comprehensive curriculum and internal accreditation program for employees in operation function, which covered Operation Support Manager/Service Supervisor, Teller, Customer Services, and Central Back Office will be the focus programs in 2016. While, Train the Trainer program for Operation team is targeted to be completed in early 2016, to ensure this Internal Accreditation programs will be ready to be implemented in the first quarter of 2016.

D.

E.

Leadership & Professional Development 1. Leadership Training After laying foundation for implementation of trainings with a more technical material in the previous year, this year the Bank promotes development of soft-skills and leadership programs.

Through accelerated and intensive learning program, MDP participants are expected to have reliable competencies, both on technical and non-technical aspects of banking in order to create added values for the Bank.

Leadership program, which was developed for employees across all level, is a leading/managing self program for staff level, leading/managing others program for supervisors level, as well as managing team program for Division Heads and Sub-division Heads level. Division Head and SubDivision Head participated in at least 3 (three) leadership-related trainings: Developing Great Talent, QNB Values for Leaders and Managing Team/Coaching. 2. Lean Six Sigma and Project Management Training In line with the continuous improvement projects performed by various work units, the Lean Six Sigma trainings were provided for projects team members, to enhance their knowledge and skills so as they can run the project systematically and right on target. 3. Train The Trainer (TTT) Train The Trainer is trainings provided to employees assigned as internal trainer in order to ensure these trainers are well-equipped in both knowledge and skills to perform their tasks. In addition, the program also reflects appreciation to internal trainers who have actively participated in promoting learning culture in the Bank. Throughout 2015, the Bank has conducted 3 (three) batches of Train The Trainer trainings with participants from across work units.

Annual Report 2015

Talent & Management Development Program 1. Management Development Program (MDP) MDP is training program especially tailored for fresh graduate with potentials and talents which will be developed into candidates of the Bank's future leaders. Unlike the previous year, the distribution of in class trainings provided by vendors and internal trainers became 30%70% in which all Division Heads have time to develop learning material in accordance with their expertise. Through this program, the Bank expects that the participants will not only able to acquire theoritical knowledge but also comprehend actual implementation and challenges in every work unit and thus, ready to participate in on the job training (OJT) in the Bank.

2. Talent Development Program Management are committed to develop employees who have high potencies and performance, among others, by enrolling employees in Global Mobility Scheme at QNB Group through on-the-job training. In 2015, there was one employee who sent to QNB Doha through this program. F. E-Learning E-Learning is a learning method using information technology medium. E-Learning is a learning solution which offers employees easy and quick access learning material without having to wait for class schedule. With e-Learning, the Bank expects that transfer of knowledge will take place faster and positively affect employee performance.

E-learning content development in 2015 was focused on core programs. The Bank has developed 4 (four) AML modules in 2015, i.e three basic AML-CFT modules and one AML Refreshment module. The next focus on e-learning development will be risk management, service standards, and Anti-Fraud modules.


91


2015 Training and Competence Development Expense The Bank always allocate sufficient funds for trainings and competence developments of employee with a commitment to increase it in accordance with the development needs of the employee.

Directorate

Total Employees 2015

2015 Training Distribution The Management is committed to ensure that all employees receive the necessary trainings in order to enhance their competencies and boost self-development. The following table shows 2015's training distribution.

Training Distribution in 2015

% Training Distribution in 2015

Total Employees 2014

Training Distribution in 2014

% Training Distribution in 2014

BOC, BOD, and Secretary

17

16

94.12%

12

8

66.67%

Business Directorate

406

402

99.01%

368

351

95,38%

Compliance & Legal

23

23

100.00%

25

24

96.00%

Operations

305

303

99.34%

318

314

98.74%

Risk

116

115

99.14%

95

92

96.84%

Human Resources

43

43

100.00%

44

43

97.73%

CEO Directorate

42

35

83.33%

52

51

98.08%

Total

944

929

98.41%

914

883

96.61%

Human Resources Strategy for 2016 In 2016, the Bank will continue to support its employees to achieve professional excellence and leadership effectiveness through internalization of corporate values, leadership-development trainings, and competence development programs as the major cornerstones for further projects on human resources development. As part of this strategy, the Bank's work plan in 2016 include:


92

1.

2.

3.

Continue the implementation of internal accreditation program, especially Operational Accreditation for Operations Support Manager/Service Supervisor, Teller, Customer Services and Central Back Office with focus on improving employees engagement in the Bank’s operational activities. Continue and improve the implementation of talent management program in relation to succession plan and sustainable leadership. Improve performance management and overall HR system in accordance with the organization growth.

Annual Report 2015


Financial Review

Financial Performance Review The Bank's financial performance discussion and analysis are prepared based on the financial statement of PT Bank QNB Indonesia Tbk which ended at December 31, 2015, in accordance with with the guidelines of Indonesian Financial Accounting Statements Standards (PSAK) and Accounting and Reporting Guidelines for Indonesian Banking Industry.

Annual Report 2015

The financial statements are audited by Public Accounting Firm (PAF) of Purwantono, Sungkoro & Surja (a member of Ernst & Young Global Limited) appointed by the Bank and has obtained unqualified opinion in all material respects. Elaborated discussion and analysis on the Bank's financial performance will be detailed in the Comprehensive Income Statement, Financial Position Report, and Cash Flow Statement.


93


Statement of Comprehensive Income (In Million Rp) Description

Growth

2014*)

2015

Percentage

Total

Operating Income and Expense Interest Income

2,040,582

1,221,121

819,461

(1,351,331)

(814,499)

(536,832)

65.91%

689,251

406,622

282,629

69.51%

194,258

174,801

19,457

11.13%

13,434

29,971

(16,537)

(55.18%)

4,826

4,661

165

3.54%

212,518

209,433

3,085

1.47%

Personal expenses

(375,743)

(292,603)

(83,140)

28.41%

General and administrative expenses

(225,106)

(149,612)

(75,494)

50.46%

(87,472)

(1,626)

(85,846)

5279.58%

(8,175)

(12,296)

4,121

(33.51%)

(696,496)

(456,137)

(240,359)

52.69%

205,273

159,918

45,355

28.36%

Interest Expense Net Interest Income

67.11%

Other Operating Income Fees and Commission Gain on foreign exchange transaction-net Others Total Other Operating Income Other Operating Expenses

Provision for impairment losses on financial assets Others Total other operating expenses Income from operations Non-Operating Income - Net

3,662

2,910

752

25.84%

Income before Income Tax EXPENSE

208,935

162,828

46,107

28.32%

Income Tax Expense

(52,889)

(41,303)

(11,586)

28.05%

Net - Income for the Year

156,046

121,525

34,521

28.41%

Other Comprehensive Income Items that will be classified to profit or loss Fair value changes of available for sales securities Income tax relating to component of other comprehensive income Items that will not be classified to profit or loss Actuarial gain (loss) on defined benefit plan Income Tax Related to Component of Other Comprehensive Income

77

(77)

154

(200)%

(19)

19

(38)

(200)%

58

(58)

116

(200)%

4,078

(7,193)

11,271

(156.69)%

(1,019)

1,798

(2,817)

(156.67)%

8,454

(156.70)%

3,059 Other Comprehensive Gain (Loss), Net of Tax Total Comprehensive Income

(5,395)

3,117

(5,453)

8,570

(157.16)%

159,163

116,072

43,091

37.12%



94

Annual Report 2015


Net Interest Income The Bank posted an increase in net interest income by 67.11% from Rp406.62 billion in 2014 to Rp689.25 billion in

2015. This increase was primarily derived from rising loan interest income which was in line with the lending growth.

(In Million Rp) Description

Interest Income Interest Expense Net Interest Income

2015

Growth

2014

Total

2,040,582

1,221,121

819,461

(1,351,331)

(814,499)

(536,832)

65.91%

689,251

406,622

282,629

69.51%

Other Operating Income The Bank posted an increase in operating income by 1.47% from Rp209.43 billion in 2014 to Rp212.52 billion in 2015.

Fees and Commission Gain on foreign exchange transaction-net Others Total Operating Income

Other Operating Expenses The Bank posted higher operating expenses in 2015 compared to 2014. Other operating expenses at the end of 2015 stood at Rp696.50 billion, compared to the end of 2014 which amounted to Rp456.14 billion, representing an increase of 52.69%. This increase was primarily due to the

Annual Report 2015

67.11%

This increase was primarily derived from higher fees and commission.


Percentage

2015

Growth

2014

Total

Percentage

194,258

174,801

19,457

11.13%

13,434

29,971

(16,537)

(55.18%)

4,826

4,661

165

3.54%

212,518

209,433

3,085

1.47%

increased provision for impairment losses during the year and personnel expenses in line with the growing number of employee, rising general and administrative expenses from higher operational cost for new branch opening.


95



2015

2014

Growth Total

Percentage

Personal expenses

(375,743)

(292,603)

(83,140)

28.41%

General and administrative expenses

(225,106)

(149,612)

(75,494)

50.46%

(87,472)

(1,626)

(85,846)

5279.58%

(8,175)

(12,296)

4,121

(33.51%)

(696,496)

(456,137)

(240,359)

52.69%

Provision for impairment losses on financial assets Others Total other operating expenses

Income from Operation In 2015, the Bank recorded Income from Operation amounted to Rp205.27 billion, a growth of 28.36%%

compared to Rp159.92 billion in 2014. The achievement was especially driven by the net interest income climb.


2015

2014

Growth Total

Percentage

Net Interest Income

689,251

406,622

282,629

69.51%

Other Operating Income

212,518

209,433

3,085

1.47%

(696,496)

(456,137)

(240,359)

52.69%

205,273

159,918

45,355

28.36%

Other Operating Expenses Income from Operation

Non-Operating Income - Net The Bank posted an increase in Non-Operating Expense by 25.82% from Rp2.91 billion in 2014 to Rp3.66 billion in 2015. This increase was primarily driven by the exchange gains


96

from translation of foreign currencies monetary assets and liabilities.

Annual Report 2015


Income before Income Tax The Bank posted an increase in operating Income before Income Tax by 28.32% from Rp162.83 billion in 2014 to Rp208.93 billion in 2015. This increase was due to the increase net interest income from growth in lending and fees and commission.

Income for the Year The Bank posted an increase in Income for the Year by 28.41% from Rp121.53 billion in 2014 to Rp156.05 billion in 2015. This increase was due to the increase net interest income from growth in net interest income and fees and commission.

Income Tax Expense The Bank’s Income Tax Expense in 2015 stood at Rp52.89 billion, an increase of 28.05% from Rp41.30 billion in 2014. The increase was driven by higher income before income tax expense.

Other Comprehensive Income The Bank’s Other Comprehensive Income stood at Rp3.12 billion in 2015, an increase in other comprehensive income by 157.16% from (Rp5.45 billion) in 2014. This increase was primarily derived from increased actuarial gain (loss) on defined benefit plan.


2015

Growth

2014

Total

Percentage

Other Comprehensive Income

Items that will be classified to profit or loss Fair value changes of available for sales securities

Income Tax Relating to Component of Other Comprehensive Income Items that will not be classified to profit or loss Actuarial gain (loss) on defined benefit plan

Income Tax Related to Component of Other Comprehensive Income Other Comprehensive Gain (Loss), Net of Tax

Total Comprehensive Income

Total Comprehensive Income for the Year The Bank posted an increase in total comprehensive profit of the current year by 37.12% from Rp116.07 billion in 2014 to Rp159.16 billion in 2015. The increase was driven

Annual Report 2015

77

(77)

154

(200)%

(19)

19

(38)

(200)%

58

(58)

116

(200)%

4,078

(7,193)

11,271

(156.69)%

(1,019)

1,798

(2,817)

(156.67)%

3,059

(5,395)

8,454

(156.70)%

159,163

116,072

8,570

(157.16)%

43,091

37.12%

3,117

(5,453)

by higher income from loan interest as well as fees and commission.


97


Statement of Financial Position (In Million Rp) Description

Growth

2014*)

2015

Percentage

Total

Assets Cash Current Accounts with Bank Indonesia Current Accounts with Other Banks Placements with Bank Indonesia and Other Banks

45,432

52,653

(7,221)

(13.71%)

1,710,947

1,425,155

285,792

20.05%

31,146

43,324

(12,178)

(28.11%)

2,111,813

3,324,797

(1,212,984)

(36.48%)

Derivative Receivables

2,921

849

2,072

244.05%

Acceptance Receivables

61,821

60,744

1,077

1.77%

Securties purchased under agreement to resell

269,117

268,324

793

0.30%

20,788,304

15,093,659

5,694,645

37.73%

Securities

325,444

232,642

92,802

39.89%

Prepayments

108,443

57,114

51,329

89.87%

Fixed Assets

110,577

114,631

(4,054)

(3.54%)

45,670

42,370

3,300

7.79%

Loan – Net

Intangible Assets Other Assets - Net Total Assets

146,014

122,756

23,258

18.95%

25,757,649

20,839,018

4,918,631

23.60%

Liabilities and Equity Liabilties Liabilities Payable on Demand Deposits from Customers Deposits from Other Banks Acceptances Payable

337,357

252,785

84,572

33.46%

18,509,008

16,161,710

2,347,298

14.52%

3,179,111

1,863,330

1,315,781

70.61%

61,821

60,744

1,077

1.77%

Derivatives Payable

661

1,371

(710)

(51.79%)

Income Tax Payable

2,401

20,402

(18,001)

(88.23%)

Obligation for Post-Employment Benefits

80,619

63,892

16,727

26.18%

Deferred Tax Liabilities, Net

42,324

7,031

35,293

501.96%


155,213

142,732

12,481

8.74%

Subordinated Loan

964,950

-

964,950

100%

23,333,465

18,573,997

4,759,468

25.62%

2,189,287

2,189,287

-

0.00%

(24,570)

(24,570)

-

0.00%

-

(58)

58

(100%)

Other Comprehensive Loss

(16,444)

(19,503)

3,059

(15.68%)

Retained Earnings

275,911

119,865

156,046

130.18%

Total Liabilities Equity Share Capital Additional Paid-in Capital – Net Unrealized loss on available – for-sale securities – net of deferred tax

Equity Net Total Liabilities and Equity

2,424,184

2,265,021

159,163

7.03%

25,757,649

20,839,018

4,918,631

23.60%

*) After the transition adjustment to SFAS No. 24 (Revised 2013) PT Bank QNB Indonesia Tbk

98

Annual Report 2015


Assets The Bank’s total Assets in 2015 increased by 23.60% from Rp25.76 trillion at the end of 2015 from Rp20.84 trillion at

the end of 2014. The increase especially was due to growth in lending.


Cash Current Accounts with Bank Indonesia Current Accounts with Other Banks Placements with Bank Indonesia and Other Banks

2015

Securities purchased under agreement to resell Loans – Net

Total

Percentage

45,432

52,653

1,710,947

1,425,155

285,792

20.05%

31,146

43,324

(12,178)

(28.11%)

2,111,813

3,324,797

(1,212,984)

(36.48%)

2,921

849

2,072

244.05%

Derivative Receivables Acceptance Receivables

Growth

2014

(7,221)

(13.71%)

61,821

60,744

1,077

1.77%

269,117

268,324

793

0.30%

20,788,304

15,093,659

5,694,645

37.73%

Securities

325,444

232,642

92,802

39.89%

Prepayments

108,443

57,114

51,329

89.87%

Fixed Assets

110,577

114,631

(4,054)

(3.54%)

Intangible Assets

45,670

42,370

3,300

7.79%

Other Assets - Net

146,014

122,756

23,258

18.95%

25,757,649

20,839,018

4,918,631

23.60%

Total Assets

Placements with Bank Indonesia and Other Banks The Bank recorded a decline of total placements with Bank Indonesia and Other Banks as much as 36.48% in 2015, from Rp3.32 trillion at the end of 2014 to Rp2.11 trillion by the end of 2015. The declining placement with Bank Indonesia and Other Banks was due to liquid fund placed in Bank Indonesia in accordance with the Bank’s LDR.

Loans - Net The Bank recorded an increase of total loans – net as much as 37.73% in 2015, growing from Rp15.09 trillion at the end of 2014 to Rp20.79 trillion by the end of 2015. The increase of loan - net was due to the growth in lending in accordance with the Bank’s vision and mission in 2015 to expand lending while maintaining prudent banking principles. Several debtors of the Bank also received facility from QNB Group, among facilities was syndication loan.


Related Parties

2015

Growth

2014

Total

Percentage

3,434

3,613

(179)

(4.96%)

Third Parties

20,826,610

15,102,507

5,724,103

37.90%

Total

20,830,044

15,106,120

5,723,924

37.89%

(41,740)

(12,461)

(29,729)

(234.97%)

20,788,304

15,093,659

5,694,645

37.73%

Allowance for Impairment Loss Loans - Net

Annual Report 2015


99


Liabilities The Bank recorded an increase of total liabilites as much as 25.62% in 2015, growing from Rp18.57 trillion at the end of 2014 to Rp23.33 trillion by the end of 2015. The increase of

liabilities was due to the higher deposits from customers, deposits from other banks, and subordinated loan.


Liabilities Payable on Demand Deposits from Customers Deposits from Other Banks Acceptances Payable

2015

Growth

2014

Total

Percentage

337,357

252,785

84,572

33.46%

18,509,008

16,161,710

2,347,298

14.52%

3,179,111

1,863,330

1,315,781

70.61%

61,821

60,744

1,077

1.77%

Derivatives Payable

661

1,371

(710)

(51.79%)

Income Tax Payable

2,401

20,402

(18,001)

(88.23%)

Obligation for Post-Employment Benefits

80,619

63,892

16,727

26.18%

Deferred Tax Liabilities, Net

42,324

7,031

35,293

501.96%


155,213

142,732

12,481

8.74%

Subordinated Loan

964,950

-

964,950

100%

23,333,465

18,573,997

4,759,468

25.62%

Total Liabilities

Deposits from Customers Deposits from Customers has an increase of 14.52% or amounted to Rp18.51 trillion compared to 2014 at Rp16.16 trillion. The increase was due to the Bank’s success to raise

customer funds used for lending amid the current economic slowdown.


Related Parties

2015

1,040,738

2014

260,199

Growth Total 780,539

Percentage 299.98%

Third Parties

17,468,270

15,901,511

1,566,759

9.85%

Total Deposits from Customers

18,509,008

16,161,710

2,347,298

14.52%


100

Annual Report 2015


Deposits from Other Banks Deposits from Other Banks has a slight increase of 70.61% or amounted to Rp3.18 trillion compared to 2014 at Rp1.86 trillion. The increase was driven by increased interbank

call money received from QNB Group to meet the Bank’s liquidity need.


Related Parties

2015

2,688,691

Third Parties Total Deposits from Other Banks

Growth

2014

Total

1,858,368

830,323

44.68%

490,420

4,962

485,458

9783.52%

3,179,111

1,863,330

1,315,781

70.61%

Retained Earnings The Bank’s Retained Earnings in 2015 increased by 130.18% from Rp119.87 billion at the end of 2014 to Rp275.91 trillion

at the end of 2015. The increase especially was due to the income for the year.


Percentage

2015

Growth

2014

Total

Percentage

4.396

4,396

-

0.00%

Unappropriated

271,515

115,469

156,046

135.14%

Retained Earnings

275,911

119,865

156,046

130.18%

Appropriated

Equity Equity has a considerable increase of 7.03% or amounted to Rp2.42 trillion compared to the 2014 at Rp2.27 trillion. The increase was due to the income for the year.

Annual Report 2015


101



Share Capital Additional Paid-in Capital – Net

2015

Retained Earnings Equity Net

Total

2,189,287

(24,570)

(24,570)

-

-

-

(58)

(58)

(100.00%)

(16,444)

(19,503)

3,059

(15.68%)

-

275,911

119,865

156,046

130.18%

2,265,021

159,163

7.03%

Cash Flows from Investment Activities The net cash flow used for investment activities for the fiscal year ending December 31, 2015 amounted to Rp129.15 billion as compared to 2014 at Rp98.33 billion. The cash flow for investments in 2015 was mainly due to the increased placements in securities for investment. Cash Flows from Financing Activities The net cash flow used for financing activities for the fiscal year ending December 31, 2015 amounted to Rp964.96 billion as compared to 2014 at Rp647.04 billion. The cash flow for financing in 2015 primarily came from subordinated loan from QNB SAQ amounted to US$ 70 million which has been approved by FSA and BI to be counted as Tier 2 Capital.

(In Million Rp)

Cash Flows from Operating Activities

-

2,424,184

Cash Flow Cash Flows from Operating Activities Net cash used in operating activities for the year ended December 31, 2015 reached Rp2.00 trillion, up by 204.03% from 2014 at Rp1.93 trillion. The increase was primarily due to the decline of deposits from customers compared to the previous year.

Description

Percentage

2,189,287

Unrealized loss on available – for-sale securities – net of deferred tax Other Comprehensive Loss

Growth

2014

2015

2014

Growth Total

Percentage

(2,003,503)

1,925,998

(3,929,501)

(204.03%)

(129,151)

98,331

(227,482)

(231.34%)

964,950

647,117

317,833

49.12%

(1,167,704)

2,671.446

(3,839,150)

(143.71%)

221,113

37,992

183,121

482.00%

Cash and Cash Equivalents, at the Beginning of the Year

4,845,929

2,136,491

2,709,438

126.82%

Cash and Cash Equivalents, at the End of the Year

3,899,338

4,845,929

(946,591)

(19.53%)

Cash Flows from Investment Activities Cash Flows from Financing Activities Net Increase (Decrease) in Cash and Cash Equivalent Effect of Foreign Exchange Fluctuation on Cash and Cash Equivalents


102

Annual Report 2015


Financial Ratio Financial Ratio (%)

2015

% Growth

2014*)

Capital Capital Adequacy Ratio (CAR)

16.18

15.10

1.08

Productive Assets & Non Productive Assets (Non-Performing Assets) to Total Productive Assets & Non Productive Assets

2.13

0.21

(1.92)

Non-performing Productive Assets to Total Productive Assets

2.13

0.21

(1.92)

Financial Asset CKPN to Productive Assets

0.16

0.06

0.10

Gross NPL

2.59

0.31

(2.28)

Net NPL

2.40

0.23

(2.16)

ROA

0.87

1.05

(0.18)

ROE

7.50

6.62

0.88

NIM

3.08

2.80

0.28

90.95

88.90

2.05

112.54

93.47

19.07

Minimum rupiah demand deposit

7.59

8.35

(0.76)

Minimum foreign currency demand deposit

8.54

8.14

0.40

Net Open Position

0.26

0.22

0.04

Productive Assets

Profitability

BOPO Liquidity LDR Compliance

Note: The financial ratio figures presented is for the Bank only. *) After the transition adjustment to SFAS No. 24 (Revised 2013)

Annual Report 2015


103


Other Financial Information Solvability and Collectability The Bank’s ability to meet its obligations both long term and short term is reflected in several ratios including liquidity ratio, solvency ratio, and profitability ratio as presented earlier in the Financial Ratio section. In terms of solvability, the Bank CAR ratio stood at 16.18%, higher than previous year. Liquidity, in similar note, was relatively stable throughout 2015 with LDR rose to 112.54% in line with the loan expansion and tightened banking liquidity condition against economic slowdown. In terms of collectability, NPL (net) was kept healthy at 2.40% in December 2015, which demonstrated positive outcome of the management's efforts to manage lending growth and maintain asset quality at the same time. The encouraging achievement also comes as a result of consistent implementation of prudent banking principles, strengthened risk management, and improved credit management system as well as stricter monitoring of existing debtors. Capital Structure In correspondence with the Bank Indonesia regulation No.15/12/PBI/2013, the Bank's capital structure consists of core capital (Tier I) and supplementary capital (Tier II). In the assessment of capital adequacy, the Bank uses Standardized Approach to measure capital adequacy for Credit Risk and Market Risk, whereas for Operational Risk, the Bank uses the Basic Indicator Approach. This assessment refers to the provisions of Circular Letter of Bank Indonesia No. 13/6/DPNP dated February 18, 2011, Bank Indonesia Circular Letter No. 14/21/DPNP dated July 18, 2012 and Circular Letter of Bank Indonesia No. 11/3/ DPNP dated January 27, 2009.


104

The disclosure of the Bank’s capital structure is pursuant to the Regulation of FSA number 6/POJK.03/2015 dated March 31, 2015 on the Transparency and Publication of Bank Report, and the Circular Letter of FSA regulation number 11/seojk.03/2015 dated April 17, 2015 on the Transparency and Publication of Conventional Commercial Bank Report and will be presented in the discussion of Risk Management section of this Annual Report In accordance with the Bank's activities, particularly in net loan disbursement which increased by 37.73% to Rp20.79 trillion, the capital adequacy ratio (CAR) increased from 15.10% in 2014 to 16.18% in 2015, thus higher above the minimum capital requirements (measured by 8% of risk weighted assets). Dividend Policy The Bank established dividend payout through Annual General Meeting of Shareholders (AGM). The amount and distribution of dividend is proposed by taking into account various aspects related to the Bank's business performance and capital strength. In 2015, the Bank through AGM held on February 27, 2015, approved the use of Bank’s net profit in financial year 2014 amounting to Rp120.84 billion to strengthen Bank’s CAR, and thus no dividend distribution. In 2014, the Bank through AGM held on March 28, 2014 approved the use of the Bank's net profit in financial year 2013 amounting to Rp3.36 billion to cover the Bank's loss in the previous year. Comparison between Targets and Actual Results in 2015 and Target For 2016 In general, the Bank made satisfactory progress in 2015, as reflected in the achievement of some key performance indicators in comparison to its target, among others, loan, third party funds, and interest income. On the other hand, the achievement and progress in 2015 also becomes the main foundation for the Bank to establish projections for 2016 while also taking into consideration of macroeconomic conditions as well as banking industry dynamics and future trends.

Annual Report 2015


The Bank’s loans stood at Rp20.79 trillion in 2015, achieving 102.64% of the target. Third Party Funds almost hit the target of 90.71% at Rp18.51 trillion in 2015. Lastly, net interest income stood at Rp689.25 billion or approximately 108.10% of the target. The loan in 2016 is estimated to grow by 28.01% from Rp20.79 trillion to Rp26.66 trillion, mainly derived from wholesale banking portfolio while the Bank strive to increase the retail banking contribution. Third party funds is also projected to increase to Rp26.64 trillion or grew by 43.96% from 2015’s result. The Bank will continue to improve its Current Account and Saving Account (CASA) ratio. Financial-wise, in 2016 the Bank sets target for net interest income to reach Rp880.77 billion, a 27.20% climb from the 2015.

Use of Proceeds from Public Offering Limited Public Offering (Right Issue) II In 2010, Bank conducted Limited Public Offering (Right Issue) II of 2,935,263,768 shares with offering price Rp250 per share so that the received proceeds are amounted to Rp733.82 billion. As of December 31, 2015, all of the proceeds from Rights Issue II conducted in 2010, after had been reduced by the expenses related to Right Issue II, had been used entirely according to its objective.

Material Information Information on Material Increase or Decrease from Net Sales/Income Throughout 2015, The Bank's entire transactions were fair transactions. Increase and decrease on return of all transactions were common results of business endeavors and were not the impacts of extraordinary circumstances that led to significant increase and/or decrease of return. Material Commitment for Capital Goods Investment As of December 31, 2015, the Bank did not have material commitment for capital goods investment.

Commitment and Contingency As o f December 31, 2015 the Bank has entered commitment and contingencies regarding unused loan facilities and Letters of Credit (L/C) with various parties as detailed below: 1. The Bank's unused loan facilities (uncommitted) granted to customers as of December 31, 2015 and 2014 were amounted to Rp2.96 trillion and Rp2,06 trillion respectively. 2. As of December 31, 2015 and 2014, the term of Letters of Credit (L/C) were approximately 1 month to 6 months, while the term of bank guarantees issued ranged between 1 month to 1 year and 90 days to 3 years respectively. Material Information on Investment, Expansion, Divestment, Acquisition or Restructuring of Debts and Capital During 2015, the Bank did not have any material transactions or activities related to investments, expansions, divestment, acquisition as well as restructuring of debts and capital. Nature of Relationship and Transactions with Related Parties The Bank conducted transactions with parties that have ownership and/or management relation. All transactions with related parties have been carried out in compliance with policies and requirements agreed by both parties. Therefore, the Bank’s transactions with related parties have been conducted appropriately. Disclosure of the Bank’s transactions with related parties follow SFAS No. 7 (revised 2010) on “Disclosure of Related Parties” in order to provide appropriate financial statements. The Bank’s material transactions with related parties in 2015 are presented under Note 34 of Audited Consolidated Financial Statements Changes in the Regulation and Impact on the Bank During 2015, Bank Indonesia and FSA have issued several regulations that have significant impacts on PT Bank QNB Indonesia Tbk. Those regulations are:

Material Information and Facts Subsequent to the Date of Accountant's Report There are no material information and facts subsequent to the date of accountant's report.

Annual Report 2015


105


No. 1

2

3

4

Subject Loan Dibsursement or Financing and Technical Assistance for Development of Micro, Small, and Medium Business

2015 Provision

Impact

PBI No. 17/12/PBI/2015 dated June 25, 2015

»

Commercial Banks shall maintain its SME Loan ratio on monthly basis

SE BI No. 17/19/DPUM dated July 8, 2015

»

Commercial Banks shall formulate plan on SME loan disbursement or financing by taking into account SME loan or financing on loan or financing ratio which are: 1. 2015, 5% at minimum 2. 2016, 10% at minimum 3. 2017, 15% at minimum; and 4. Since 2018, 20% at minimum

»

Commercial Banks shall report its actual loan disbursement online through Commercial Bank Monthly Reporting

Loan to Value or Financing to Value Ratio for Property Loan or Financing and Prepayment for Motor Vehicle Loan or Financing

PBI No.17/10/PBI/2015 dated June 18, 2015

»

Bank shall meet LTV KP and KKB Prepayment Limit

SE BI No.17/ 25 /DKMP dated October 12, 2015

»

Bank shall submit offline report on KP and KKB to Bank Indonesia

Branchless Banking Program for Financial Inclusion by Bank

6/SEOJK.03/2015 dated February 6, 2015

»

Bank shall provide trainings and education to Agents who have passed due diligence

»

Bank shall submit the following reports: 1. Report on Laku Pandai implementation for the first time 2. Report on plan to expand partnerships with Agents for Laku Pandai implementation every year in Bank Business Plan(BBP) of current year 3. Report on implementation of partnerships with Agents as well as BBP in accordance with the prevailing provision 4. Report on Laku Pandai implementation shall be submitted on quarterly basis 5. Report on first partnership plan with legal Agents which have partnered with other participant banks with the same business

»

Bank shall formulate, announce, and submit Publication which comprises of: 1. Monthly Financial Report; 2. Quarterly Financial Report; 3. Annual Report; and 4. Other Published Reports

»

Issuers or Public Companies shall : 1. Has website which presents information in Indonesian and foreign language with provision of the least foreign language being English 2. Contain general, actual, and latest information on Issuers or Public Companies 3. Make necessary adjustment in accordance with provision of OJK No. 8/POJK.04/2015 within six months since the POJK took effect

Bank Report Transparency and Publication

POJK No. 6/POJK.03/2015 dated March 31, 2015 SE OJK No. 11/ SEOJK.03/2015 dated April 17, 2015

5

Issuers or Public Companies Website


106

POJK No. 8/POJK.04/2015 dated June 25, 2015

Annual Report 2015


No. 6

Subject Guideline of Monitoring and Analysis on Consumer Protection

2015 Provision SE Dewan Komisioner No. 2 /SEDK.07/2015 dated June 30, 2015

Impact »

» » 7

8

Provision of Prudence for National Economic Stimulus for Commercial Banks

Code of Governance for Public Companies

Annual Report 2015

POJK No. 11/ POJK.03/2015 dated August 21, 2015

SE OJK No. 32 / SEOJK.04/2015 dated November 17, 2015

Work Unit which perform Consumer Education and Protection formulates work sheet consisting of: 1. Work Sheet for Education in Order to Improve Financial Literacy of Consumer and/or Public 2. Work Sheer for Customer Complaint Handling and Settlement 3. Work Sheet for Information Dissemination in Order for Product Marketing and/or Financial Services; and 4. Work Sheet for Standard Contract 5. Work Sheet for Data Confidentiality and Security and/or Consumer Private Information Work Sheet will be implemented 1 (once) a year on June with submission deadline on September 30 at the latest. Submission goes to webpage of peduli.ojk.go.id

»

In implementing policies to support economic stimulus, Bank consistently implanted prudential banking principles on the following aspect: 1. Risk Weighted Assets (RWA) for Credit Risk by using Standard Approach for: a. Loans Secured by Residential Property; and b. Loan for SME guaranteed by insurance institution c. Regional-Owned Enterprises (BUMD) Loan Insurance 2. Assessment and establishment of asset quality for: a. Loan and other provision of fund in small amount; and b. Restructuted loan 3. Venture Capital

»

When this POJK took effect : 1. Quality of the restructures loan and still in the term of 3 (three) time of loan and/or interest Payment Obligation after loan restructuring agreement signing; or 2. Quality of the restructured loan and still within the term of loan payment deadline after after loan restructuring agreement signing was established in accordance with the POJK

»

The POJK is valid until 2 years after it took effect.

»

Public Companies shall implement Code of Governance for Public Companies and/or explain the reason for not implementing the code of governance.

»

Public Companies implemented Code of Governance by adopting “Comply or Explain” approach. Through Comply or Explain approach, Public Companies are encouraged to drive implementation of good corporate governance aspects and principles.

»

In case Public Companies have not implemented the recommendations, they have to explain the reason and its alternative implementation (if any)


107


No.

Subject

2015 Provision

9

Submission of Tax-Related Foreign Customer Information to Country or Jurisdiction Partner

POJK No. 25 / POJK.03/2015 dated December 4, 2015

10

11

Criminal Investigation in Financial Services Sector

Liquidity Coverage Ratio for Commercial Banks


108

POJK No. 22/ POJK.01/2015 dated December 28, 2015

POJK No. 42/ POJK.03/2015 dated December 31, 2015

Impact »

In order for Automatic Information Exchange Agreement, Financial Services Institution (LJK) shall submit tax-related foreign customer information to tax authorities to be forwarded to State Tax or Jurisdiction Partner authorities

»

The aforementioned report is report on Foreign Customer Information which has account balance or account value at least in accordance with Automatic Information Exchange Agreement

»

Foreign Customer Information at least encompass: 1. Customer information; and 2. Customer financial information

»

Bank or Depositories shall comply with the inquiries from FSA Investigator

»

All parties can deliver report and/or information on alleged Criminal Acts in Financial Services Sector to FSA in written and/ or go directly to OJK

»

Report and/or information delivered in written at least include: 1. Whistleblower name 2. Whistleblower Identitu; and 3. Description of events and/or actions that allegedly was riminal Acts in Financial Services Sector

»

Bank shall maintain adequate liquidity coverage ratio which is calculated using LCR.

»

LCR is calculated in Rupiah.

»

Fulfillment of LCR is continuously set on 100% (a hundred percent) at minimum.

»

OJK is authorized to set LCR higher than the LCR requirement since OJK considers that Bank requires bigger liquidity.

»

Bank shall make individual and consolidated LCR calculation and reporting on: 1. Daily basis 2. Monthly Basis 3. Quarterly Basis

»

Banks included in BUKU 1 and BUKU 2 categories which are initially not obliged to meet LCR provision, which are then included in BUKU 3, BUKU 4, or foreign banks category, shall calculate and submit LCR report. Obligation to submit LCR report is established: 1. Monthly LCR Report is formulated for the first time on the third month since declared Banks in BUKU 3, BUKU 4, or foreign banks category. 2. Quarterly LCR Report is formulated for the first time on the next quarter after submitting monthly report as mentioned in point 1.

Annual Report 2015


No. 12

13

Subject Implementation of Scheduled Funds Transfer and Clearing by Bank Indonesia

Implementation of Instant Fund Settlement Through Bank Indonesia Real Time Gross Settlement

Annual Report 2015

2015 Provision PBI No.17/9/PBI/2015 dated May 29, 2015

Impact »

In implementing SKBI, participants shall: 1. Formulate Written Policies and Procedures (KPT) which support a good internal control system in SKBI operation including security procedure for SKNBI use in internal environment of participants 2. Performinternal audit on SKNBI operation 3. Perform security audit 4. Has BCP and DRP guidelines 5. Use SPK application in accordance with guidebook of SPK application 6. Ensure main and back up SPK to function properly.

»

Make an agreement with Organizer if necessary for SKNBI implementation

»

Inform the customers on transaction fee through SKNBI

»

Provide Bank Indonesia with dta and information related to SKBI implementation

»

Comply with regulations issue by association of payment system approved by Bank Indonesia

»

Comply with other provisions related to scheduled funds transfer and clearing

»

For the implementation of Fund Settlement through BI-RTGS System, participants shall:

»

Dalam rangka penyelenggaraan Setelmen Dana melalui Sistem BI-RTGS, Peserta wajib: 1. Formulate Written Policies and Procedures (KPT) which supports a good internal control system in implementation of BI-RTGS system 2. Perform internal audit to ensure operational security of BI-RTGS System 3. Perform security audit 4. Formulate information technology policies related with BI-RTGS System which are regularly reviewed and updated 5. Has guideline for Disaster Recovery Plan (DRP) and Business Continuity Plan (BCP) 6. Has RPP application in accordance with Guidebook for BI RTGS System Operation 7. Perform data maintenance 8. Ensure main and back up RPP function properly to perform various activities of BI-RTGS throughout operational hours of BI-RTGS System

»

Responsible for the accuracy of instruction for Fund Settlement and all information delivered by the participants to Organizer through BI-RTGS System.

»

Comply with provision sets by Organizer, provision of payment system association and other provision related to the implementation of Instant Fund Settlement through BI-RTGS System.

»

Comply with agreement on BI-RTGS use between the Organizer and participants

»

Inform the customers on Fund Transfer fee and customer service hours for Fund Transfer through BI-RTGS System.

»

Provide data and information related to the implementation of BI-RTGS System to Bank Indonesia.

SE BI No.17/13/DPSP dated June 5, 2015

PBI No. 17/18/PBI/2015 dated November 12, 2015


109


No.

14

Subject

Foreign Exchange Transactions Against Rupiah between Bank and Domestic Parties

2015 Provision PBI No. 17/18/PBI/2015 dated November 12, 2015

»

In implementation of BI-ETP, BI-SSSS, and BI-RTGS System, participants shall: 1. Maintain smoothness and security in the use of BI-ETP, BI-SSSS, and BI-RTGS System; 2. Responsible for validity of Transactions and/or instruction of Settlement as well as all information delivered by participants to Organizer through BI-ETP, BI-SSSS, and BI-RTGS System 3. Perform operational activities related to BI-ETP, BI-SSSS, and BI-RTGS System in accordance with the agreement on system usage between Organizer and participants and the prevailing regulations 4. Implementation of BI-ETP, BI-SSSS, and BI-RTGS System as well other provisions; 5. Inform the customers on transaction fees through BI-ETP, BI-SSSS, and BI-RTGS System; 6. Provide data and information related to operational activities on BI-ETP, BI-SSSS, and BI-RTGS System to Bank Indonesia; and 7. Comply with provisions issued by associations related to implementation of BI-ETP, BI-SSSS, and BI-RTGS System

PBI No.17/6/PBI/2015 dated May 29, 2015

»

Peningkatan threshold penjualan valuta asing melalui transaksi forward tanpa underlying transaksi, dari sebelumnya USD 1 juta menjadi USD 5 juta atau ekuivalennya per transaksi per nasabah. Sementara threshold penjualan valuta asing melalui transaksi option tetap sebesar USD 1 juta.

»

Prohibition of investment in the form of Bank Indonesia Securities in foreign exchange as underlying foreign exchange purchase against Rupiah through spot transactions and/or derivative transactions.

»

Translation of foreign exchange sales arrangements against Rupiah through forward transactions and transfers amount to foreign parties with such underlying transactions of foreign currency fund holdings in the country and abroad.

»

Translation adjustment of foreign exchange transactions against the Rupiah through the underlying transaction in the form of loan

»

Translation of forward selling settlement with the maximum amount at threshold and / or forward selling transactions with underlying transactions of foreign currency fund holdings at home and abroad that should be undertaken by means of main fund transfer

»

The affirmation and elaboration of the obligation to comply with the use of Rupiah in the territory of the Unitary State of the Republic of Indonesia

»

Setting that bank should implement procedures and document control system.

»

Improvement of underlying transaction document types

PBI No. 17/13/PBI/2015 dated August 25, 2015 PBI No. 17/15/PBI/2015 dated October 2, 2015 SE BI No.17/15/DPM dated June 12, 2015 SE BI No.17/20/DPM dated August 28, 2015 SE BI No. 17/23/DPM dated September 30, 2015 SE BI No.17/49/DPM dated December 21, 2015


110

Impact

Annual Report 2015


No.

Subject

15

Foreign Exchange Transactions Against Rupiah between Bank and Domestic Parties

2015 Provision PBI No. 17/7/PBI/2015 dated May 29, 2015

Impact »

Increase the threshold of foreign exchange sales through forward transactions without underlying transactions, from previously US$1 million to US$5 million or its equivalent per transaction per foreign party and per position (outstanding) per bank. While the threshold sale of foreign exchange through swap transactions and option remain fixed at US$1 million.

»

Prohibition of investment in the form of Bank Indonesia Securities in foreign exchange as underlying foreign exchange purchase against Rupiah through spot transactions and/or derivative transactions.

»

Translation of foreign exchange sales arrangements against Rupiah through forward transactions and transfers amount to foreign parties with such underlying transactions of foreign currency fund holdings at home and abroad.

»

Translation of adjustment on foreign exchange transactions against the Rupiah through the underlying transaction in the form of loan

»

Translation of forward selling settlement with the maximum amount at threshold and / or forward selling transactions with underlying transactions of foreign currency fund holdings at home and abroad that should be undertaken by means of main fund transfer

»

The affirmation and elaboration of the obligation to comply with the use of Rupiah in the territory of the Unitary State of the Republic of Indonesia

»

Setting that bank should implement procedures and document control system.

»

Improvement of underlying transaction document types

PBI No. 17/14/PBI/2015 dated August 25, 2015 PBI No. 17/16/PBI/2015 dated October 2, 2015 SE BI No. 17/16/DPM dated June 12, 2015 SE BI No.17/21/DPM dated August 28, 2015 SE BI No. 17/50/DPM dated December 21, 2015

Changes in Accounting Policies The Bank adopted the following accounting standards, which are considered relevant, starting on January 1, 2015: 1. SFAS No. 1 (Revised 2013), “Presentation of Financial Statements”, adopted from IAS 1, specifies changes of the grouping of items presented in other comprehensive income. Item to be reclassified to profit or loss would be presented separately from items that will never be reclassified to profit or loss. 2.

SFAS No. 24 (Revised 2013), “Employee Benefits”, adopted from IAS 19, which removes the corridor mechanism and contingent liability disclosure to simplify classification and disclosure.

3.

SFAS No. 46 (Revised 2014), “Income Tax”, adopted from IAS 12, specifies deferred tax asset and liability arises from asset measured using revaluation model and investment property measured using fair value

Annual Report 2015

4.

SFAS No. 48 (Revised 2014), “Impairment of Assets”, adopted from IAS 36, specifies measurement of recoverable amount of assets, related to implementation of SFAS No. 68, “Fair Value Measurement”.

5.

SFAS No. 50 (Revised 2014), “Financial Instrument: Presentation”, adopted from IAS 32, replaces SFAS No. 50 (Revised 2010): “Financial Instrument: Presentation & Disclosure”.

6.

SFAS No. 55 (Revised 2014), “Financial Instrument: Recognition and Measurement”, adopted from IAS 39, specifies recognition measurement of financial instrument, embedded derivative and discontinue of hedging accounting.


111


7.

SFAS No. 60 (Revised 2014), “Financial Instrument: Disclosure”, adopted from IFRS 7, specifies disclosure of financial instrument, and offsetting criteria of financial asset & liabilities in the financial statement.

8.

SFAS No. 68, “Fair Value Measurement”, adopted from IFRS 13, provides guidance in measuring fair value when fair value is required or permitted.

The standards and interpretations that are issued by the Indonesian Financial Accounting Standards Board (DSAK), but not yet effective for current financial statements are disclosed below. The Bank intends to adopt these standards, if applicable, when they become effective. 1. Amendments to SFAS No. 1: Presentation of Financial Statements on Disclosures initiative. This amendments clarify, rather than significantly change, existing SFAS No. 1 requirements, among others, to clarify the materiality, flexibility as to the order in which they present the notes to financial statements and identification of significant accounting policies. 2.

3.

Amendments to SFAS No. 16: Property, Plant and Equipment on Clarification of the accepted method for depreciation and amortization. The amendments clarify the principle in SFAS No. 16 and SFAS No. 19 Intangible Asset that revenue reflects a pattern of economic benefits that are generated from operating a business (of which the asset is part) rather than the economic benefits that are consumed through use of the asset. As a result, a revenuebased method connot be used to depreciate the Property, Plant and Equipment. Amendment to SFAS No. 24: Employee Benefits on Defined benefit plans: Employee Contributions. SFAS No. 24 requires an entity to consider contributions from employees or third parties when accounting for defined benefit plans. Where the contributions are linked to service, they should be attributed to periods of service as a negative benefit. These amendments clarify that, if the amount of the contributions is independent of the number of years of service, an entity is permitted to recognise such contributions as a reduction in the service cost in the period in which the service is rendered, instead of allocating the contributions to the periods of service.


112

4.

SFAS No. 5 (2015 Improvement): Operating Segments. The improvement clarifies that: » An entity must disclose the judgements made by management in applying the aggregation criteria in paragraph 12 of SFAS No. 5 including a brief description of operating segments that have been aggregated and the economic characteristics. » Disclose the reconciliation of segment assets to total assets if the reconciliation is reported to the chief operating decision maker, similar to the required disclosure for segment liabilities.

5.

SFAS No. No. 7 (2015 Improvement): Related Party Disclosures. The improvement clarifies that a management entity (an entity that provides key management personnel services) is a related party subject to the related party disclosures. In addition, an entity that uses a management entity is required to disclose the expenses incurred for management services.

6.

SFAS No. 16 (2015 Improvement): Property, Plant and Equipment. The improvement clarifies that in SFAS No. 16 and SFAS No. 19 that the asset may be revalued by reference to observable data on either the gross or the net carrying amount. In addition, the accumulated depreciation or amortization is the difference between the gross and carrying amounts of the asset. Carrying amounts of the asset is restated by revaluated amounts.

7.

SFAS No. 19 (2015 Improvement): Intangible Assets. The improvement clarifies that in SFAS No. 16 and SFAS No. 19 that the asset may be revalued by reference to observable data on either the gross or the net carrying amount. In addition, the accumulated depreciation or amortisation is the difference between the gross and carrying amounts of the asset. Carrying amounts of the asset is restated by revaluated amounts.

8.

SFAS No. 25 (2015 Improvement): Accounting Policies, Changes in Accounting Estimates and Errors. The improvement provides editorial correction for paragraph 27 of SFAS No. 25.

Annual Report 2015


9.

SFAS No. 68 (2015 Improvement): Fair value Measurement. The improvement clarifies that the portfolio exception in SFAS No. 68 can be applied not only to financial assets and financial liabilities, but also to other contracts within the scope of SFAS No. 55.

The Bank is presently evaluating and has not yet determined the effects of these accounting standards on its financial statements. Deposits and Lending Rate Pursuant to Financial Services Authority Circular Letter Number 11/SEOJK.03/2015 on Report Publication of Conventional Commercial Banks, the Bank has been transparent in providing both deposits and lending rate information to the public in the annual report.

To mitigate the interest rate risk arising from fixed rate loans, based on the loan agreements with the debtors/ customers, the Bank has the rights to change the interest rates at any time at its discretion, except for certain loans which repricing period have been determined. In general, the Bank is liability sensitive because its interest-earning assets have a longer duration and being repriced less frequently than interest bearing liabilities. This means that in rising interest rate environment, margin earned will narrow as liabilities reprice. However, the actual effect will depend on a number of factors, including the extent to which repayments are made earlier or later than the contractual maturity dates and extension of customer deposits on a roll-over basis. The following is information on the range of interest rate for both deposits and lending rate set by the Bank in 2015:

Deposits Lending Rate in 2015 Rupiah Description

Loans

Contractual 0% - 32.98%

Foreign Currencies Effective 12.89%

Rupiah Description

Contractual

Contractual

Effective

4.66% - 6.11%

5.59%

Foreign Currencies Effective

Contractual

Effective

Deposits from customers Current accounts

0% - 4.25%

0.81%

0.00% - 1.50%

0.17%

Saving accounts

0% - 5.00%

1.61%

-

-

0.25% - 12.00%

9.43%

0.10% - 3.50%

2.14%

Time deposits and deposit on call

Annual Report 2015


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Marketing Aspect For several past years, national banking industry has been in tight competition condition. While the majority of market share of approximately 70% still belongs to 12 prominent local banks, the competition has never gotten easier with both leading global banks and regional banks aggresively went for the same pie of Indonesian market. Currently, retail banking still accounts for most of the banking revenue, generating revenues about 2x of the corporate banking. The trend are projected to sustain in the future as affluent individuals are likely to continue dominating 60% or retail banking funding across Indonesian banks. The trend is also supported by the fact that the affluent actually has financial relation with more than three banks and the bank security is their utmost priority. Corporate banking growth, on the other hand, are primarily affected corporate customers who prefers banks which can provide services in their supply chain with other companies. In addition to the retail and corporate segment, SME also has a vital role in national banking industry for the last few years. SME banking has particularly been a great support to drive economic growth by facilitating small medium business to grow. Similarly, sharia banking which starts to

gain attention since 90s. While it only accounts for 4% of natinal banking, sharia banking posts a higher growth than conventional banking by two times and holds a greater potential to flourish in the Moslem-dominated country such as Indonesia. In the face of such banking market and trends, the Bank continues to forge the path to enter the competition both in Asia and global banking market. To be a leading bank, the Bank has focused on several large-scale segments and leveraging on investment opportunities in rapidlygrowing markets. To achieve the objectives, the Bank has consistently built the required capacity to intensively working on its preferred market, among others, by developing best-in-class products and services, and investing in development of IT, branch networks, and other electronic networks. The Bank will also consistently build strategic alliances and excellent human resources while also closely managing performance. As of December 31, 2015, the position and market share of Bank QNB Indonesia in Indonesia Banking Industry can be seen as follow:

Table of Bank QNB Indonesia’s Market share in Indonesian Banking Industry % Total Assets

Descriptions Commercial Banks in Indonesia (in trillion Rupiah) QNB Indonesia (in trillion Rupiah)

Total Third Party Funds

Total Lending

2013

2012

2011

6,416

5,615

4,954

4,263

3,653

26

21

11

5

4

0.41

0.37

0.22

0.12

0.11

Commercial Banks in Indonesia (in trillion Rupiah)

4,731

4,114

3,664

3,225

2,785

QNB Indonesia (in trillion Rupiah)

19

16

7

4

3

Market Share (%)

0.40

0.39

0.20

0.12

0.09

Commercial Banks in Indonesia (in trillion Rupiah)

4,152

3,674

3,293

2,708

2,201

19

15

8

3

2

0.46

0.41

0.24

0.11

0.09

Market Share (%)

114

2014

Market Share (%)

QNB Indonesia (in trillion Rupiah)


2015

Annual Report 2015


Branding and Positioning 2015, in particular, has brought the Bank closer to achieve its goals in which its latest rebranding took place. To introduce its new name and logo, the Bank held a series of activities and implemented branding strategies and promotion. The rebranding is also expected to help building the Bank’s reputation through various communication tools. In the first place, the Bank focused on selecting popular activities/events as well as advertising spots which connects with commercial activities. The Bank particularly selected strategic locations commonly used as meeting point or transit for the general public. As for the promotion purposes, the branding activation strategy which have been implemented by the Bank in terms of Above the Line included Billboard which were placed on footbridge in Jakarta’s golden triangle, Soekarno-Hatta International Airport Terminal 2 D-E-F and Kualanamu International Airport’s connecting bridge. Moreover, the Bank also publicized the branding in both print and online Annual Report 2015

media which features corporate action so as to increase awareness of the public on PT Bank QNB Indonesia Tbk. To support the promotion, the Bank also implemented Below the Line activation, which comprised of activities to disseminate on its banking product and services through micro marketing, Economic Outlook gathering, new branch opening opening ceremony in selected cities where the branch offices are located as well as public expose. The objective of this activation is to build good relationship and improve trusts of existing and prospective customers while also broadening financial knowledge so that they would be informed on the general development of financial industry. The Bank not only held promotion activities but also held educational program in partnership with various banking and school institutions Looking ahead, the Bank will continue to held branding and promotion activities on regular basis in order to achieve its vision of becoming a top tier bank in terms of financial performance in Indonesia. PT Bank QNB Indonesia Tbk

115


Business Prospects

The world economy next year is shaping up to be stronger than in 2015. While it is expected to turn better, overall outlook for both advanced and emerging economies remained softer with the prospect of rising interest rates in the United States and China's slowdown are contributing to uncertainty and higher market volatility. A slew of economic forecasts from the the Organisation for Economic Co-operation and Development (OECD), the International Monetary Fund (IMF), the World Bank, and Asian Development Bank (ADB) broadly agrees that the global economy is stuck in a holding pattern. Advanced economies are projected to seeing a "modest pickup while emerging economies will likely see their fifth consecutive year of declining rates of growth.


116

IMF expects the global economy to grow by 3.6% in 2016. Similarly, the World Bank estimates that emerging markets and developing economies will only post a combined 4.5% growth in 2016. In developing Asia which includes China as the world’s number two economy, ADB predicts things could get tougher as reduced Chinese appetite for energy, metals and other commodities may further pressure resource-based economies including Indonesia. 2016 would not be an easy year for Indonesia on account of lingering global economic uncertainty from US to China. Growth is projected to pick up gradually next year and reach 5.5% in 2017, according to IMF. On a more positive note, the proposed State Budget assumes 2016 economic growth at 5.5%. That is below 5.7% assumed in the revised 2015 budget, but still optimistic compared to the latest government outlook for this year of 5-5.2%.

Annual Report 2015


The budget proposal also sees an average rupiah exchange rate at 13,400 per US Dollar, much weaker than the 12,500 assumption made for 2015. Banking industry, in particular, are expected to grow an anemic 13%. On the back of generally volatile economic backgrounds, Indonesia’s banks are likely to remain picky in disbursing new credit, watch their credit quality, and are expected to post lacklustre growth in the process. However, the more selective loan disbursement should help control new non-performing loans (NPL) formation, and keep a close eye on the bad debt ratio. In addition, the recent wave of reform initiatives by the government is likely to improve business sentiment and induce a rising inflow of investment as the government reduces the red tape to lure higher domestic direct investments.

Annual Report 2015

Despite the unfavorable background, the Bank sees 2016 as an optimistic year. In 2015, the Bank has consistently refined its business fundamentals which encompasses, Development of HR, infrastructure, improvement of business process, and framework which support a good corporate governance as well as prudent risk management framework. The Bank is determined to continue the upward trend from 2015 to support its long term business plan. Optimization and efficiency remained the main focus of the Bank in 2016 in order to achieve business growth.


117

Co nc r e po Re ra po te rt

na

Go ve r


Foundation of Corporate Governance Implementation QNB Indonesia believes that the fulfillment of Good Corporate Governance (GCG) will support the achievement of the Bank’s objectives as regards performance, profitability and added value for all stakeholders, as well as ensure long-term business sustainability. Therefore, we continue to increase our commitment to upholding the values of corporate governance in carrying out business activities. We constantly keep abreast of best corporate governance practices from time to time. This effort includes to demonstrate the commitment of the top management and all employees in improving the quality of GCG best practices implementation

GCG Legal Reference The Bank’s GCG implementation is founded on GCG standards and guidelines established by a series of regulatory pillars, including from Bank Indonesia, the Law of the Republic of Indonesia, and Financial Services Authority (FSA) as follow: 1.

2. 3.

4.

5. 6. 7.

Law of the Republic of Indonesia No.10 year 1998 concerning the amendment on Law No.7 year 1992 on Banking; Law of the Republic of Indonesia No.40 year 2007 on Limited Liability Company (PT); Bank Indonesia Regulation No.8/4/PBI/2006 dated January 30, 2006 on Implementation of Good Corporate Governance for Commercial Banks, as amended by Bank Indonesia Regulation No.8/14/PBI/2006 dated October 5, 2006 on the Implementation of Good Corporate Governance for Commercial Banks; Bank Indonesia Circular Letter No.15/15/DPNP dated April 29, 2013 on Implementation of Good Corporate Governance for Commercial Banks; GCG Code published by the National Committee on Governance Policies; ASEAN Corporate Governance Scorecard; and Indonesia Good Corporate Governance Roadmap by Indonesia Financial Services Authority in 2014


120

GCG Objectives With reference to Indonesia Good Corporate Governance established by the National Committee on Corporate Governance (NCCG) in 2006, the main objectives of GCG implementation which related to the benefit of the Bank and shareholders are: 1.

2.

3.

4.

5.

6.

Achieving sustainable growth of the Bank through a management system based on the principles of transparency, accountability, responsibility, independency and fairness; Empowering the function and independency of each organ in the Bank, namely, the Board of Commissioners, the Board of Directors and the General Meeting of Shareholders; Encouraging shareholders, members of the Board of Commissioners and members of the Board of Directors to take decisions and actions based on high moral values and compliance with the law and regulations; Stimulating the Bank’s awareness of social responsibilities in particular the environmental and societal interests of the communities in which the Bank operates; Optimizing the value of the Bank for its shareholders by also taking into consideration the interests of other stakeholders; and Enhancing the competitiveness of the Bank, both nationally and internationally, in order to enhance market confidence which may promote investment flow and a sustainable national economic growth.

Annual Report 2015


GCG Principles

The corporate governance framework in the Bank is based on Indonesia's Code of Good Corporate Governance for Banking published by NCCG in 2006 as amended in 2012 which also conforms to Indonesia Corporate Governance Roadmap and international best practices on the Organization for Economic Co-operation and Development (OECD) Principles. Referring to the framework, the Bank strives to ensure that its business uphold transparency; has key performance indicators which are consistent with its corporate values, business goals, and strategies so as to reflect

Annual Report 2015

its accountability; builds on prudent banking practices and ensures compliance with applicable provision to demonstrate its responsibility; promotes decision making that is independent, objective, and free of conflicts of interest; continues to take all stakeholders' interest into account based on fairness principle. As such, the Bank corporate governance framework is built and applied on the following values:


121


GCG Principle Transparency

Description To preserve and maintain the objectivity in practicing business, the Bank shall provide material and relevant information that are easily accessible and understandable by stakeholders. To take the initiative to disclose not only the issues mandated by laws and regulations, but also other information deemed necessary by shareholders, creditors and other stakeholders to form a decision.

Application 1.

2.

3. 4. Accountability

To account for its performance transparently and fairly.

1.

To manage business in a proper and measurable manner, in such that it is aligned with the interest of the Bank by also considering the interest of shareholders and other stakeholders. Accountability is a prerequisite to achieve sustainable performance.

2. 3. 4.

5.

Responsibility

Independency

Fairness

To abide by laws and regulations and fulfill its responsibility to the communities and environment for the purpose of maintaining long term sustainability of the business and to be recognized as a good corporate citizen.

1.

To accelerate the implementation of the GCG principles by operating independently with an appropriate balance of power, in such a manner that no single organ shall dominate the other and that no intervention from other party shall exist.

1.

Always consider the interests of shareholders and other stakeholders based on a fairness principle in conducting business activities

1.

2.

2.

2. 3.


122

Disclosure of information in timely, appropriate, clear, accurate and comparable manner in which they are accessible to stakeholders in accordance with their rights Disclosure of information which include but not limited to the Bank’s vision, mission, business targets and strategy, financial condition, composition and compensation of the management, controlling shareholders, shares owned by members of the Board of Directors and the Board of Commissioners and its family members in a company and other companies, risk management system, oversight and internal control system, GCG structure and mechanism and its level of compliance, and important events that may affect the condition of the Bank Fulfillment of provisions on confidentiality in accordance with laws and regulations, professional confidentiality, and personal rights Formal written policies which are proportionally communicated to stakeholders Clear definition of the job description and responsibilities of each organ and all employees that are in line with the Bank’s vision, mission, values, and strategy Assurance that all of the Bank’s organs and all employees shall have the qualifications that fit its duty, responsibility, and role in GCG implementation Assurance of the existence of an effective internal control system within the Bank Establishment of performance indicators for all members of the Board of Directors and the Board of Commissioners as well as the employees that are consistent with the company’s objectives, and have a reward and punishment system Assurance that each organ of the Bank and all employees shall uphold to the business ethics and an agreed upon code of conduct in executing its duty and responsibility Assurance that all the Bank’s organs apply prudent banking principles and comply with laws and regulations, its articles of association and bylaws Fulfillment of social responsibility by having, inter alia, an awareness of the environmental and societal interests of the communities in which the Bank operates through an appropriate planning and implementation to address the issues Assurance that each of the Bank’s organ shall avoid the occurrence of domination by any party, shall not be influenced by any certain interest, avoid conflict of interests and any influence or pressure, so that the decision making can be carried out objectively Assurance that each of the Bank’s organ shall exercise its function and duties in accordance with the Articles of Association and rules and regulations, not dominating each other and or shifting the responsibility from one to the other Opportunities for stakeholders to give input and opinions in the interest of the Bank, and establish access to the Bank’s information in accordance with the transparency principle and within the scope of their respective capacities A fair and equitable treatment to stakeholders in accordance with benefit and contribution given to the Bank Equal opportunity in recruitment of employees, in career development and for employees to carry out their duty professionally Annual Report 2015


GCG Implementation GCG Basic Policies

GCG Roadmap

Apart from the external regulatory pillar, the Bank has also been supported by the Bank GCG Charter as stipulated in Charter No. 1-00 dated October 10, 2012 which highlighted the structure of GCG and priciples in implementing GCG. The implementation of GCG also supported by the establishment of Code of Conduct in 2014.

To improve the quality and coverage of GCG implementation on an ongoing basis, the Bank formulates a roadmap in which GCG implementation is carried out in several strategic phases: Corporate Governance Commitment, Good Governed Company, and Good Corporate Citizen. Each phase represent the process of formulation, implementation, and continuous monitoring and evaluation to move toward GCG excellence.

GCG Corporate Governance Commitment

GCG Good Governed Company

GCG Good Corporate Citizen

Commitment

System

Culture

Complying with GCG Guidelines, both mandatory and advisory

Satisfactory operation through internal control, risk management, and whistleblowing system implementation

The corporation is accepted as a part of the community through CSR approach

GCG : Creating added values and sustainable development Source: National Committee on Governance Policy (KNKG)

Annual Report 2015


123


GCG Implementation at a Glance Year

GCG Program

2012

Establishment of the GCG Charter

2013

1. 2. 3.

Establishment of Risk Oversight Committee Charter Renewal of Audit Committee Charter Establishment of Internal Audit Charter

2014

1.

Preparation and issuance the Annual Report in accordance with the requirements from FSA and Annual Report Award Criteria Evaluation of the GCG implementation through cooperation with the Independent Agency In-depth implementation of corporate value, code of etchics and corporate culture as well as improvement of the tools which may increase the corporate governance practices in overall

2. 3. 2015

1. 2. 3. 4. 5.

Renewal of Board of Commissioners Charter Renewal of Board of Directors Charter Renewal of Nomination Policy for members of Board of Commissioners, Board of Directors and members of the Committee responsible to the Board of Comissioners Renewal of Audit Committee Charter Renewal of Remuneration and Nomination Charter

GCG Mechanism

3.

As part of its efforts to improve the GCG implementation quality, the Bank has consistently applied GCG principles in its day-to-day operational activities through comprehensive internal policies and rules. Among others are GCG Charter, Code of Conduct, Board of Commissioners Charter, Board of Directors Charter, Nomination Policy, Whistleblowing System (WBS) Policy and various other operational policies of the Bank which are also compatible with recent GCG best practices.

4.

By ensuring consistent and effective implementation of GCG mechanism, the Bank strives to create a bettergoverned financial institution which gains benefits from the following expected results: 1. Reduction of cost of capital. 2. Increased share value in the long term. 3. Increased support from the stakeholders so that the Bank is able to operate and grow in a sustainable manner through various strategies and policies.

Commitment to GCG Implementation Indonesia Banking Code of Corporate Governance stipulates that commitment to GCG implementation is highly essential for banks in order to fully achive its goals and generate sustainable value. Implementation of policies and code of conduct enforcement, in particular, shall apply to everyone in the Bank. The Bank has also complied with a number of GCG basic principles that validates its strong commitment such as: 1. Has a clear and realistic vision and mission 2. Has corporate values that reflect a good moral attitude in doing business PT Bank QNB Indonesia Tbk

124

5. 6.

7.

Has Board Charters which contains work guidelines for the Board of Commisioners and Directors Has a set of business ethics and code of conduct which is formulated by involving GCG's organs and its supporting work units. Business ethics and code of conduct shall be enforced in sustainable and consistent manner so as to build a robust corporate culture which manifests the organization's core values Take active stance in contributing to natural resources and environment preservation causes Has internal policies which can ensure rights and obligation of all parties so as to create a conducive workplace Has a whistleblowing system which can accomodate reports, complaints, inputs, and corrective feedbacks from employees and other stakeholders

Going forward, the Bank will continue improving the GCG implementation with the latest GCG practices and standards as well as line with its operational policies. Initiatives that will be continuously implemented are as follow: 1. Enhancement of GCG implementation transparency via website and annual report based on industry best practices 2. Improvement and update various charters and policies 3. Development of design and management information system to support business and control processes 4. Increase of Transparency Aspects 5. Financial Literacy 6. Dissemination and socialization of GCG practices 7. Implementation of FATCA and enforcement of AML/ KYC

Annual Report 2015


GCG Assessment The implementation of GCG principles is also a factor considered in assessing the soundness of a bank, aside from the risk profile, rentability, and capital strength as stated in Bank Indonesia Regulation No. 13/1/PBI/2011 on the Assessment of Bank Soundness Level and supported by Bank Indonesia Regulation No.8/4/PBI/2006 dated January 30, 2006 as amended by PBI No.8/14/PBI/2006 dated October 5, 2006 and SE BI No.15/15/DPNP dated April 29, 2013. As such, the Bank regularly conducts GCG self-

No.

assessment on semi-annual basis with the following eleven criteria defined by Bank Indonesia, currently Financial Services Authority (FSA). GCG self-Assessment are carried out comprehensively and in a focused manner by integrating assessment factors into three (3) governance aspects, namely, governance structure, governance processes, and governance outcomes

Rank

Assessment Criteria

2015

1.

Implementation of Duties and Responsibilities of Board of Commissioners

1

2.

Implementation of Duties and Responsibilities of Board of Directors

1

3.

Integration and Implementation of Tasks of Committees

1

4.

Management of Conflicts of Interests

1

5.

Implementation of Compliance Function of the Bank

2

6.

Implementation of Internal Audit Function

2

7.

Implementation of External Audit Function

1

8.

Implementation of Risk Management and Internal Control Function

2

9.

Provision of Fund to Related Parties and Large Exposure

1

10.

Transparency of the Bank’s Financial and Non-Financial Conditions, GCG Implementation Report and Internal Reports

1

11.

Bank’s Strategic Plans

2

Composite Score based on Banks Self Assessment

1.36

Note: If there are differences between Bank self assessment with the regulator' assessment, the Bank will disclose the information in the Banks website

Based on the results of GCG Self-Assessment conducted in 2015, which was reflected in the Matrix of GCG Rating, the Bank earned the first rank with predicate of Very Good and average score of 1.36 on the implementation of GCG. The result indicates a positive improvement from the previous year in which the Bank managed to maintain satisfactory compliance with GCG principles.

Annual Report 2015

The rank affirms that implementation of GCG by the Bank is rated Very Good. This reflects that the implementation of Good Corporate Governance principles in general by the management of the Bank was very good. This is reflected from the very adequate fulfillment of the Good Corporate Governance principles. Any weakness in the GCG implementation, if any, are generally considered insignificant and could be corrected by the Bank's Management


125


GCG Structure Pursuant to the Law of the Republic of Indonesia Number 40 of 2007 on Limited Liability Companies and Bank Indonesia Regulation Number 8/14/PBI/2006 dated October 5, 2006, the Bank's governance structure comprises of several organs: General Meeting of Shareholders, the Board of Commissioners, and the Board of Directors. These organs carry out their respective functions in accordance with prevailing law and regulation.

In addition, the structure also includes a number of supporting functions such as internal control, risk management, corporate secretary, and compliance function as well as committees under the Board of Commissioners and Directors.

Structure and Governance Relation

GMS


Remuneration & Nomination Committee

Risk Oversight Committee

Audit Committee

Board of Directors

HR Committee


126

IT Committee

Risk Management Committee

Asset & Liability Committee (ALCO)

Credit Committee

Procurement Committee

Product & New Activity Committee

Fraud Oversight Committee

Annual Report 2015


General Meeting of Shareholders the rules and regulations. Resolutions taken in the GMS shall be based on the long term interest of the Bank. The GMS and/or shareholders, however, cannot intervene in the exercise of the duty, function and authority of the Board of Commissioners and the Board of Directors.

The GMS primarily serves to facilitate strategic decisionmaking regarding shareholders’ investment in the Bank, by observing provisions in the articles of association and

In relation to GCG structure, GMS, the Board of Commissioners and/or Board of Directors has a clear definition of rights and authorities which is illustrated as follows:

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Annual Report 2015

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The Law of the Republic of Indonesia Number 40 of 2007 concerning Limited Liability Company defines General Meeting of Shareholders (GMS) as the highest organ in GCG structure which has the authorities not conferred to the Board of Directors and the Board of Commissioners.


127


Authorities and Responsibilities of Shareholders Pursuant to the Bank’s Articles of Association, the GMS authorities include the right to take decisions concerning changes in the Company's Articles of Association, appoint and dismiss the members of Board of Commissioners and Directors, approve annual report, appoint Public Accounting Firm, and other matters related to the Bank's merger, acquisition, bankruptcy, and dismissal. The shareholders are responsible, among others, for properly exercising their rights in accordance with the Bank’s Articles of Association and prevailing laws and regulations. In addition, the shareholders are also expected to separate their functions as shareholders and as members of the Board of Commissioners or Board of Directors in a situation where a shareholder sits on one of the said two corporate organs.

Holding of GMS With reference to the Bank's Articles of Association and Indonesia Corporate Governance Manual, there are two types of GMS, Annual General Meeting and the Extraordinary General Meeting. Annual General Meeting (AGM) AGM is convened no later than 6 (six) months after the end of financial year. During the meeting, the shareholders discuss particular agenda including to make decision and give approval on matters relating to governing bodies, major corporate transactions, and other matters that require GMS’ approval in the interest of the Bank without prejudice to provisions in the Articles of Association. Extraordinary General Meeting (EGM) EGM is held at any time deemed necessary for the best interest of the Bank by the Board of Directors at the written request of the Board of Commissioners or the shareholders. The shareholders which have the right to make such request are 1 (one) or more shareholders which collectively represent at least 1/10th (one-tenth) of the total shares having valid voting rights.


128

Planning and Conducting GMS Both AGM and EGM is convened with careful planning and adherence to procedural guidelines in FSA Regulation No. 32/POJK.04/2014 dated December 8, 2014 on Planning and Conducting of General Meetings of Shareholders which revokes the previous Bapepam-LK Regulation No. IX.I.1 as attached to Decision of the Chairman of Bapepam-LK No. Kep-60/PM/1996, dated January 17, 1996. Under the guideline, the Bank has convened GMS in several phases which extends from request for GMS, notification for GMS, announcement of GMS, summons for GMS, and the GMS itself. The Bank has complied with the renewed procedures and convened the GMS with the following activities: 1. The Bank submitted notification to FSA regarding conducting GMS no later than five business days before announcement of a GMS 2. The Bank announced to the shareholders, through nation-wide newspaper 14 (fourteen) days prior to the notice of the GMS, excluding the date of announcement and summons for GMS 3. The Bank sent out summons for GMS through nationwide newspaper, IDX website, and its website 21 (twenty one) days prior to the date of GMS, excluding the date of summons for GMS and the date of GMS 4. The Bank submitted the evidence of announcement and summons for the GMS to FSA within 2 (two) business days after the publication/issuance of announcement and summons 5. The Bank conveyed the results of GMS maximum 2 (two) days after the GMS to the FSA and the Indonesia Stock Exchange, and announced it to the public through nation-wide newspaper The GMS was chaired by one of Board Commissioners’ member appointed by the Board of Commissioners and conducted in Indonesian language. The GMS then commenced with the rules and procedure of the GMS read out. In the opening of the GMS, GMS Chairman shall brief the shareholders on the Bank’s condition, GMS agenda, decision-making mechanism on the GMS’s agenda and procedures to exercise shareholders right in making inquiries and/or comment.

Annual Report 2015


At the end of discussion of each agenda of GMS, the Chairman of the Meeting will give the Shareholders or their proxies an opportunity to raise questions/comments related to the agenda of the GMS. The GMS Chairman or a Director appointed by the GMS Chairman, shall respond to the questions/comments raised by the shareholders. After all questions/comments have been properly addressed, GMS resumed with decision-making. The resolution is adopted on the bases of deliberation and

consensus. In the event of failure to reach deliberation and consensus, resolutions will be adopted by voting. Voting was conducted verbally and only shareholders or their proxies are entitled to vote. Each share entitles its holder to cast one vote. The Bank has appointed an independent party, namely, Notary, for the purpose of counting and validating votes as well as drafting the minutes of GMS. In 2015, the Bank held 2 GMS, namely, the Annual General Meeting of Shareholders on February 27, 2015, and an Extraordinary General Meeting of Shareholders on October 9, 2015.

Annual General Meeting Notification to Regulators Notice Letter to FSA dated January 14, 2015

AGM Announcement

Summons for AGM

Announced on January 21, 2015 through an advertisement on Investor daily newspaper and Kontan daily newspaper as well as website of Bank QNB Indonesia

Announced on February 5, 2015 through an advertisement on Investor daily newspaper and Kontan daily newspaper as well as website of Bank QNB Indonesia

AGM Implementation Annual General Meeting of Shareholders was held on February 27, 2015 at 14.00Finish, located in di QNB Tower 3rd Floor, 18 Parc SCBD, Jl. Jend. Sudirman Kav. 52-53, Jakarta

AGM Results Announced on March 3, 2015 through an advertisement on Investor daily newspaper and Kontan daily newspaper as well as website of Bank QNB Indonesia

Chaired by Suroto Moehadji, Independent Commissioner based on appointment from Board of Commissioners of the Bank

No. 1.

Agenda

Resolution

Approval of Annual Report including Board of Directors’ Report, Board of Commissioners’ Report and Accountability on Use of Rights Issue II & IV Proceeds as well as approval of financial statements for financial year ended December 31, 2014

»

Accepted and approved the Bank’s Annual Report for the financial year ended December 31, 2014, including Board of Directors Report, Board of Commissioners Supervisory Report, and Accountability on Use of Limited Public Offering II & IV Proceeds

»

Accepted and approved the Bank’s Annual Financial Statement for the financial year ended December 31, 2014, audited by the Public Accounting Firm “Purwantono, Suherman & Surja” affiliated with Ernst & Young Public Accounting Firm pursuant to Report No. RPC-6613/PSS/2015 dated January 27, 2015, with “unqualified opinion”, and granted full release and discharge for all members of the Board of Directors and the Board of Commissioners of any responsibilities and obligations (acquit et de charge) for the management and supervision performed in 2014, provided that such actions are reflected in the Financial Statements of 2014

2.

Approval for the use of net profit for the financial year ended December 31, 2014

Approved the use of Bank’s net profit in financial year 2014 amounting to Rp120,836,590,909 to strengthen Bank’s CAR, and thus no dividend distribution

3.

Appointment of Public Accounting Firm for financial year 2015 and provide authorization to the Board of Directors to determine honorarium and other requirements

Approved the appointment of Public Accounting Firm Purwantono, Suherman & Surja, affiliated with Public Accounting Firm Ernst & Young as the Bank’s Public Accounting Firm, to audit the Bank’s financial statements for the financial year ended December 31, 2015, and authorized Board of Directors to determine the amount of honorarium for the Public Accountant and other requirements

Annual Report 2015


129


No. 4.

5.

6.

Agenda Changes in the composition of the Board of Commissioners and Board of Directors

Approve tasks, authorities, honorarium/ salary and other allowances for member of the Board of Commissioners and Board of Directors

Approval of the amendment to Article 4 of the Bank’s Articles of Association by increasing Authorized Capital and changes in order to adapt FSA Regulation

Resolution »

Approved changes in composition of the Bank’s Board of Commissioners and Board of Directors effective from the adjournment of meeting until the adjournment of AGM held in 2018 with the composition of Board of Commissioners and Board of Directors as follow:

Board of Commissioners President Commissioner Commissioner Commissioner Independent Commissioner Independent Commissioner

: Ali Ahmed Z A Al-Kuwari : Grant Eric Lowen : Muthu Chidambaram : Suroto Moehadji : Muhammad Anas Malla

Board of Directors President Director Director Director Director Director Director

: Andrew McGregor Duff : Azhar bin Abdul Wahab : Lloyd Rolston : Rusli : Windiartono Tabingin : Hery Syafril

»

Approved the appointment of Novi Mayasari as Director which will be effective after obtained approval from FSA

»

Approved to authorize the Bank’s Board of Directors to state the change in the Board of Commissioners and Board of Directors’ composition in a separate Notarial Deed and affirmed the meeting resolution after appointment of Novi Mayasari as the Bank’s Director approved by FSA which will be conducted at the same time or separately in line with the FSA’s approval, including to notify/report to the authorities and to register as well as take all necessary action in relation to the decision

»

Approved the granting of power and authorities to Qatar National Bank as the Bank’s major shareholder which has 82.59% of the Bank’s shares to determine and distribute the amount of salary or honorarium and allowance for financial year 2015 for each member of the Board of Commissioners, and

»

Approved the granting of power and authority to Qatar National Bank as the major shareholder of the Company to determine the amount of salary, fees and allowances for the financial year 2015 to each member of the Board of Directors of the Bank and to grant the power and authority to the Board of Commissioners to determine the division of duties and authorities to each Director of the Bank

»

Approved the amendment to Article 4 of the Bank’s Articles of Association in relation to the increase in the Bank’s authorized capital from 10,000,000,000 shares with nominal price of Rp250 per share or with total nominal price of Rp2,500,000,000,000 to 32,000,000,000 shares with nominal price of Rp250 per share and total nominal price of Rp8,000,000,000,000

»

Approved the amendment to articles in the Bank’s Article of Association, among other, to adapt prevailing provision in accordance with Financial Services Authority Regulation Number 32/POJK.04/2014 dated December 8, 2014 concerning Planning and Conducting General Meeting of Shareholders of Public Company and Financial Services Authority Regulation Number 33/POJK.04/2014 dated December 8, 2014 concerning the Board of Directors and Board of Commissioners of Issuers or Public Company and other changes as well as recomposition of the Bank’s entire Articles of Association

»

Authorized the Board of Directors of the Bank to: 1. State the resolution of this Meeting’s agenda in Notarial Deed and take all necessary actions in relation to this Meeting’s resolution 2.


130

Apply for approval and/or inform the Ministry of Law and Human Rights of the Republic of Indonesia, register and announce the amendement of the Articles of Association so that the amendment is legally in force including to make changes or addition on the amendment of this Article of Association if required by authorities and take all action needed and required by the applicable regulation

Annual Report 2015


Resolution Making and Follow-Up of the Resolution All of the resolutions of the Bank’s AGM were resolved based on an amicable deliberation to reach a mutual consensus and all of the resolutions have been realized. Attendance in 2015 AGM The shareholders who entitled to attend the AGM are the shareholders who registered in the Register of Shareholders as of February 4, 2015. The Meeting was attended by the shareholders and/or their proxies who represented

7,262,346,327 shares or approximately 82.93% of the total shares issued by the Bank. More than 50% or half of the total shares were in attendance, thus it met the quorum requirements of AGM, so as valid and entitled to make legal and binding resolutions. The AGM was attended by several members of the Board of Commissioners, namely Suroto Moehadji, Muhammad Anas Malla and Nasrul Husin as well as all members of the Board of Directors. In addition, Notary, representative from Share Registrar and Public Accountant also attended the AGM.

Extraordinary General Meeting Notification to Regulators Notice Letter to FSA and dated September 2, 2015

EGM Announcement Announced on September 2, 2015 through an advertisement on Kontan daily newspaper as well as website of Bank QNB Indonesia

EGM Invitation Announced on September 17, 2015 through an advertisement on Kontan daily newspaper as well as website of Bank QNB Indonesia

EGM Implementation Extraordinary General Meeting of Shareholders was held on October 9, 2015 at 10.00 - Finish, located in di QNB Tower 3rd Floor, 18 Parc SCBD, Jl. Jend. Sudirman Kav. 52-53, Jakarta

EGM Results Announced on October 13, 2015 through an advertisement on Kontan daily newspaper as well as website of Bank QNB Indonesia

Chaired by Suroto Moehadji, Independent Commissioner based on appointment from Board of Commissioners of the Bank

No. 1.

Annual Report 2015

Agenda Changes in the composition of the Board of Commissioners and Board of Directors

Resolution »

Received the resignation of Hery Syafril as a Director of the Bank. The resignation became effective since the adjournment of the Meeting. The Bank thanked Hery Syafril for his contribution to the Bank during his tenure as a Director of the Bank

»

Approved the appointment of Djoko Sarwono as an Independent Commissioner of the Bank. The appointment shall become effective upon FSA’ fit and proper test approval

»

Approved the appointment of Windiartono Tabingin as an Independent Director of the Bank. The appointment became effective since the adjournment of Annual General Meeting of Shareholders of the Bank held on February 27, 2015 up to the adjournment of Annual General Meeting of Shareholders of the Bank to be convened in 2018.

The appointment of Djoko Sarwono as the Bank’s Independent Commissioner shall become effective upon fit and proper test approval from FSA, thus the composition of the Board of Commissioners and Board of Directors of the Bank from the adjournment of the Meeting before Djoko Sarwono received approval from FSA on Fit and Proper Test are as follows:

Board of Commissioners President Commissioner Commissioner Commissioner Independent Commissioner Independent Commissioner

: Ali Ahmed Z A Al-Kuwari : Grant Eric Lowen : Muthu Chidambaram : Suroto Moehadji : Muhammad Anas Malla


131


No.

Agenda

Resolution

Board of Directors President Director Director Director Director Director Independent Director

Furthermore, the composition of the Board of Commissioners and the Board of Directors of the Bank after Djoko Sarwono received approval from FSA on fit and proper test are as follows:

Board of Commissioners President Commissioner Commissioner Commissioner Independent Commissioner Independent Commissioner Independent Commissioner

: Ali Ahmed Z A Al-Kuwari : Grant Eric Lowen : Muthu Chidambaram : Suroto Moehadji : Muhammad Anas Malla : Djoko Sarwono

Board of Directors President Director Director Director Director Director Independent Director

: Andrew McGregor Duff : Azhar bin Abdul Wahab : Lloyd Rolston : Rusli : Novi Mayasari : Windiartono Tabingin

The tenure of all members of the Board of Commissioners and the Board of Directors as mentioned above are up to the adjournment of the Annual General Meeting of the Shareholders of the Bank to be convened in 2018, without prejudice to the rights of the General Meeting of Shareholders to dismiss at any time.

»

Authorize the Board of Directors to state the change in composition of Board of Commissioners and Board of Directors in a separate Notarial Deed (if necessary) notify/inform the Ministry of Law and Human Rights of the Republic of Indonesia

Resolution Making and Follow-Up of the Resolution All of the resolution from the Bank’s EGMS were resolved based on an amicable deliberation to reach a mutual consensus and all of the resolutions have been realized. Attendance in 2015 EGM The shareholders who entitled to attend the EGM are the shareholders who registered in the Register of Shareholders as of September 16, 2015. The meeting was attended by the shareholders and/or their proxies who represented


132

: Andrew McGregor Duff : Azhar bin Abdul Wahab : Lloyd Rolston : Rusli : Novi Mayasari : Windiartono Tabingin

7,299,946,780 shares or approximately 83.36% of the total shares issued by the Bank. More than 50% or half of the total shares were in attendance, thus it met the quorum requirements of EGM, so as valid and entitled to make legal and binding resolutions. The EGM was attended by several members of the Board of Commissioners, namely Suroto Moehadji and Muhammad Anas Malla as well as all the members of Board of Directors. In addition, Notary, representative from Share Registrar and Public Accountant were also attended the EGM.

Annual Report 2015


Board of Commissioners As stipulated in the Indonesia Corporate Governance Code, the management of a limited liability company in Indonesia is adopting a two board system, namely the Board of Commissioners and the Board of Directors, each of which has a clear authority and responsibility based on their respective functions as mandated by the articles of association and laws and regulations. Yet, they both have the responsibility to maintain the company sustainability in the long term. Accordingly, the Board of Commissioners and the Board of Directors shall have the same perception regarding the company’s vision, mission and values. The Board of Commissioners as an organ of the Bank shall function and be responsible collectively for overseeing over the management policy, the implementation of the management in general, either regarding the Company or its business, and providing advices to the Board of Directors and ensuring that the Bank implements the GCG. In performing its supervisory duties, the Board of Commissioners is assisted by an Audit Committee, Remuneration & Nominations Committee, and Risk Oversight Committee, which consists one or more of the Board of Commissioners members.

Criteria and Procedures for Appointment of Member of Board of Commissioners Appointment Criteria In compliance with Bank Indonesia Regulation (PBI) No. 8/4/PBI/2006 dated January 30, 2006 regarding the implementation of Good Corporate Governance for Commercial Banks, as amended by PBI No. 8/14/PBI/2006 dated October 5, 2006, and the Financial Services Authority (FSA) Regulation No. 33/POJK.04/2014 regarding the Board of Directors and Commissioners of Issuers and Public Companies, the Board of Commissioners are obliged to meet the requirement of integrity, competence, and financial reputation while passing the Fit and Proper Test as inquired by PBI No. 23/12/PBI/2010 dated December 29, 2010 on Fit and Proper Test. In order to meet the requirement of integrity, a candidate member of the Board of Commissioners shall have (1) good character and morals; (2) commitment to comply with the prevailing law and regulations; (3) commitment on the development of the Bank’s sound operational (4) is not included in the Register of Disqualified Person; (5) have never been a member of the Board of Directors and/or Board of Commissioners who have not organize the Annual GMS;

Annual Report 2015

(6) his/her accountability as the Board of Directors and/or the Board of Commissioners was not accepted by the GMS; (7) have not declared accountability as a member of Board of Directors and/or Board of Commissioners to GMS; (8) have caused a company that obtained a license, approval, or registration from FSA did not meet the obligation to deliver annual report and/or financial report to FSA. Meanwhile, to meet the competence requirement, a member of the Board of Commissioners shall have (1) adequate knowledge and/or expertise in banking; (2) experience in banking and/or finance; and; (3) capability to take legal action. Apart from posessing required competencies in relation to knowledge, experience, and expertise in banking and/or finance industry, all member of Board of Commissioners has to meet the requirement regarding financial reputation as follows: 1. Has no bad debt; 2. Never been declared bankrupt; 3. Never being a member of Board of Directors and/or Board of Commissioners that convicted guilty causing the bankruptcy at any company; 4. Never been convicted of a criminal offense that harm the country financial and/or related to the financial sector; in 5 (five) years before nomination. Appointment Procedure The candidate members of the Board of Commissioners are appointed provided that they have met the aforementioned criteria including passing the Fit and Proper Test with the following procedure: 1. Members of the Board of Commissioners are appointed by GMS. 2. Members of the Board of Commissioners shall meet the requirements to pass the Fit and Proper Test in accordance with Bank Indonesia and/or FSA regarding Fit and Proper Test as well as provision of Bank Indonesia and/or FSA regarding Implementation of GCG for Commercial Banks. 3. Members of the Board of Commissioners who have been approved on Fit and Proper Test from FSA must be appointed by GMS within 6 (six) months after the approval. If the period of 6 (six) months has ended and the candidate has not yet been appointed, the FSA’s approval is marked invalid.


133


4.

5.

6.

7.

Members of the Board of Commissioners who are appointed in the Bank’s GMS prior to FSA’s approval will take effect after FSA’s approval. Corporate Secretary Division is responsible for submitting the application including the documents required, to get FSA’s approval. Term of office for members of the Board of Commissioners starts since the date defined in GMS in which they are appointed and ends for 1 (one) term. 1 (one) term of office for Board of Commissioners is 3 (three) years or until the adjournment of Annual GMS at the end of 1 (one) service term except defined otherwise by GMS. Independent Commissioners who have served for 2 (two) term of office can be reappointed for the next term provided that the Independent Commissioners affirm their independence before GMS. Members of the Board of Commissioners whose term of office have ended can be reappointed, by considering the prevailing provisions.

Dismissal Procedure Members of the Board of Commissioners are dismissed by GMS with the following condition: 1. The term of office has ended; 2. Declared bankrupt or placed under custody based on a court ruling; 3. Tender resignation; 4. No longer meet the prevailing regulations; 5. Passed away; 6. Dismissed based on GMS resolution. Name

Total and Composition of Board of Commissioners Composition and total members of Board of Commissioners are generally established by taking into account Bank’s vision, mission, and strategic plans to allow a more effective, accurate, and faster decision making as well as independent actions. In the AGM held on February 27, 2015, the service tenure of Nasrul Husin as Independent Commissioner has ended. Based on the resolution of the EGM held on October 9, 2015, Djoko Sarwono appointed as a new member in Board of Commissioners. The appointment became effective after obtained approval from FSA regarding Fit and Proper Test based on FSA letter No. SR-216/D.03/2015 dated November 11, 2015. As of December 31, 2015, the composition and independency of Bank’s Board of Commissioners consist of 6 (six) Commissioners. The total member of Board of Commissioners are not exceed the total member of Board of Directors. 50% (fifty percent) of the member of Board of Commissioners are Independent Commissioners, Indonesian citizens and domiciled in Indonesia. Thus the composition of the Board of Commissioners are in accordance with the Bank Indonesia regulation regarding implementation of GCG for Commercial Banks.

Terms of Office

Position

Basis of Appointment

BI or FSA’s Approval

Ali Ahmed Z A Al-Kuwari


EGM, January 27, 2012

May 10, 2012

2012-2015 2015-2018

Bank Indonesia

Muthu Chidambaram

Commissioner

AGM, May 29, 2012

September 24, 2012

2012-2015 2015-2018

Bank Indonesia

Grant Eric Lowen

Commissioner

EGM, March 4, 2013

January 16, 2014

2014-2015 2015-2018

Financial Services Authority

Suroto Moehadji


AGM, March 31, 2010

June 7, 2010

2010-2011

Bank Indonesia


AGM June 24, 2011

Muhammad Anas Malla


EGM, September 16, 2011

November 24, 2011

2011-2012 2012-2015 2015-2018

Bank Indonesia

Djoko Sarwono


EGMS October 9, 2015

November 11, 2015

2015-2018



134

Fit and Proper Test by

2011–2012 2012-2015 2015-2018

Annual Report 2015


Diversity In the Composition of Members of the Board of Commissioners The composition of the Board of Commissioners of the Bank demonstrates sufficient diversity in the form of a combination of independence and expertise, education, work experience, and age. Detail explanation/disclosure on the background and experience of each member of Board of Commissioners can be found in the Commissioners Profiles section of the Annual Report. All members of the Board of Commissioners have integrity, competence, and sound financial reputation, which are evident by obtaining fit and proper test approval from Bank Indonesia or FSA. The composition of Board of Commissioners was determined by considering the need and complexity of the Bank and to support the effectiveness of the implementation of duty of Board of Commissioners.

Independence of Board of Commissioners PBI No. 8/4/PBI/2006 dated January 30, 2006 on the implementation of Good Corporate Governance of Commercial Banks, as amended by PBI No. 8/14/ PBI/2006 dated October 5, 2006 and FSA Regulation No. 33/POJK.04/2014 regarding the Board of Directors and Commissioners of Issuers or Public Companies, stipulates that banks shall have Independent Commissioners at least 50% of the Board of Commissioners’ members. To ensure the Board of Commissioners’ Independence, the shareholders through the General Shareholders Meetings, have appointed 3 (three) Independent Commissioners out of the total 6 (six) members of the Board of Commissioners.

Independent Commissioners are members of the Board of Commissioners that are devoid of any financial, management, share ownership and/or family relations up to the second degree with other members of the Board of Commissioners, the Board of Directors, and/or controlling shareholders, or any other relationships that might influence their capability of acting independently. The appointment of Independent Commissioners will encourage an impartial working environment that values fairness and equality above all other interests including the interests of minority shareholders and other stakeholders. In addition to act independently, the Bank’s Independent Commissioners shall avoid conflicts of interest that could interfere their ability to perform their tasks. All of the Independent Commissioners shall meet the following requirements: 1. Do not have authorization and responsibilities in planning, leading, controlling, or supervising the Bank’s activities within the last 1 (one) year, except for the reappointment as the Bank’s Independent Commissioner for the next term; 2. Do not have direct and/or indirect share ownership in the Bank; 3. Are not affiliated with the Bank, members of the Board of Commissioners, members of the Board of Directors, or the Bank’s major shareholder, and; 4. Do not have direct and/or indirect business relationship which is related to the Bank’s main activities; 5. Meet independence criteria as regulated in the prevailing provision.

Statement of Independence of Independent Commissioners Statement of Independence

Suroto Moehadji

Muhammad Anas Malla

Djoko Sarwono

Do not have authorization and responsibilities in planning, leading, controlling, or supervising the Bank’s activities within the last 1 (one) year, except for the reappointment as the Bank’s Independent Commissioner for the next term;

√

√

√

Do not have direct and/or indirect share ownership in the Bank

√

√

√

Are not affiliated with the Bank, members of the Board of Commissioners, members of the Board of Directors, or the Bank’s major shareholder

√

√

√

Do not have direct and/or indirect business relationship which is related to the Bank’s main activities

√

√

√

Meet independence criteria as regulated in the prevailing provision

√

√

√

Annual Report 2015


135


Financial or Familial Relations of Members of the Board of Commissioners

and at the same time, all the members of the Board of Commissioners also do not have financial relationship with other members of the Board of Commissioners and Directors’ members.

None of the members of the Board of Commissioners have familial relationship up to the second degree with other member of Board of Commissioners, Board of Directors’ members, and/or Major Shareholders. In addition, the majority of the Board of Commissioners do not have financial relationship with the controlling shareholder;

With such status, the members of the Board of Commissioners of the Bank shall act independently in the implementation of their duties and responsibilities.

Family Relationship with Name


Board of Directors

Financial Relationship with Controlling Shareholder


Board of Directors

Controlling Shareholder

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No


-

√

-

√

-

√

-

√

-

√

√

-

Muthu Chidambaram

-

√

-

√

-

√

-

√

-

√

√

-

Grant Eric Lowen

-

√

-

√

-

√

-

√

-

√

√

-

Suroto Moehadji

-

√

-

√

-

√

-

√

-

√

-

√

Muhammad Anas Malla

-

√

-

√

-

√

-

√

-

√

-

√

Djoko Sarwono

-

√

-

√

-

√

-

√

-

√

-

√

Share Ownership by Board of Commissioners

Commissioners did not own more than 5% (five percent) or more of the paid-up capital of the Bank, other banks, non-bank financial institution, and any other companies in Indonesia and abroad.

The Bank requires the members of Board of Commissioners to disclose their share ownership amounting to 5% or more, both in PT Bank QNB Indonesia and other companies, which are domiciled in Indonesia or abroad, in a report which should be updated every year. As of December 31, 2015, all the members of Board of

Name

Share Ownership Bank QNB Indonesia

Other Bank

Non-Bank Financial Institution

Other Companies

Ahmed Z A Al-Kuwari

-

-

-

-

Grant Eric Lowen

-

-

-

-

Muthu Chidambaram

-

-

-

-

Suroto Moehadji

-

-

-

-

Muhammad Anas Malla

-

-

-

-

Djoko Sarwono

-

-

-

-


136

Annual Report 2015


Concurrent Position of Board of Commissioners

Not included as holding concurrent position when nonindependent members of the Board of Commissioners conduct functional duties of legal entities shareholders in the group business, and/or members of the Board of Commissioners holding positions in non-profit organizations or institutions, as long as he/she does not neglect his/her duties and responsibilities as a member of the Bank’s Board of Commissioners.

All members of the Board of Commissioners do not hold concurrent positions that are prohibited by Bank Indonesia Regulation on the implementation of Good Corporate Governance. The Bank Indonesia Regulation stipulates that Board of Commissioners’ members may only hold 1 (one) concurrent position as a member of the Board of Commissioners, Board of Directors, or Executive Officer in a non-financial company, or as a member of the Board of Commissioners, Board of Directors or Executive Officer that undertakes a supervisory role in a non-bank subsidiary company controlled by the Bank.

All members of the Board of Commissioners have signed statement letter stating that they do not hold any concurrent position prohibited by prevailing regulations. Currently, all members of the Board of Commissioners did not have concurrent position other than permitted by the prevailing regulations.

Concurrent Positions of Board of Commissioners as of December 31, 2015 Board of Commissioners

Position

Company


Vice Chairman Chairman Chairman Group CEO Chairman of Advisory Board Vice Chairman

Commercial Bank International QNB Banquee Privée QNB Capital Qatar National Bank MasterCard Middle East and North Africa Qatar Exchange

Grant Eric Lowen

Board Member Group CRO

QNB AL Ahli Qatar National Bank

Muthu Chidambaram

Regional General Manager Asia Board Member

Qatar National Bank QNB India Private Limited

Suroto Moehadji

-

-

Muhammad Anas Malla


PT Swadarma Sarana Informatiika

Djoko Sarwono


Pefindo Credit Bureau

Relationship Between Board of Commissioners and Board of Directors

1. 2.

Essentially, the Board of Commissioners primarily serves as supervisor and advisor to the Board of Directors. While, the main function of the Board of Directors is to execute GMS resolution, carry out the Board of Commissioners’ direction and perform day-to-day operational activities. However, both Board constantly coordinates and collaborates to achieve the Bank’s goals, vision, and mission. Good coordination and teamwork between the Board of Commissioners and Directors is reflected in:

3.

Annual Report 2015

4. 5.

The business growth of the Bank The Bank’s soundness level is kept at sound condition in accordance with the prevailing provisions Risk management and internal control system is carried out adequately The stakeholders’ interest is protected fairly Implementation of Good Corporate Governance principles.


137


Board of Commissioners Charter In order to ensure implementation of its supervisory and advisory duties, the Board of Commissioners has formulated the Board of Commissioners’ Manual, which is established in the Board Charter No. 01.08.00 dated August 3, 2015. The Charter contains accountability; structure and membership; criteria and independency; term of office; duties and responsibilities; authorities; work ethics; work value; meeting arrangement; as well as reporting and responsibilities of the Board of Commissioners. This Board Manual is formulated by referring to the prevailing regulations from Bank Indonesia and Financial Services Authority as well as best practices, and being reviewed regularly. Work Ethics of the Board of Commissioners As stipulated in the Board of Commissioners’ Charter, all members of the Board of Commissioners: 1. Shall have good moral 2. Shall be able to take legal action 3. Shall keep confidentiality of all of the Bank's documents, data, and information 4. Are prohibited to misuse the Bank for personal, family and/or other party's interest which can result in the Bank's loss or reduced profits 5. Are prohibited to take and/or receive personal benefit from the Bank, other than remuneration and other facilities established in GMS 6. Are prohibited to directly and indirectly make a wrong statement or hide facts about the Bank's condition at the time the statement is made which can results in misleading statement. Transparency of the Board of Commissioners The Board of Commissioners Charter also regulates transparency aspect in which all of the Bank’s Commissioners shall disclose the following matters in the Bank’s Report on Good Corporate Governance Implementation: 1. Share ownership of 5% (five percent) or more, both in the Bank and other banks as well as companies which domiciled in Indonesia or abroad 2. Financial and familial relationship with members of the Board of Commissioners, other member of Board of Directors, and/or the Bank’s controlling shareholder 3. Remuneration and facilities received from the Bank 4. Position in other companies.


138

Duties and Responsibilities of Board of Commissioners Duties, responsibilities, and authorities of Board of Commissioners are clearly stipulated in the Bank’s Articles of Association, Board of Commissioners Charter in accordance with the prevailing law and regulations: Duties and Responsibilities of the Board of Commissioners 1. To perform its duties and responsibilities independently 2. To ensure the implementation of GCG principles in any business activities of the Bank at all level of the organization 3. To supervise and responsible on the supervision of the management policies, the management of the Bank and its business in general and to provide advice to the Board of Directors 4. To perform it duties and responsibilities as stipulated in point 3 with good will, sense of responsibility, and prudent banking principles in accordance with the Bank’s Articles of Association, law and regulation, and the Bank’s GMS resolution 5. Under certain condition, to hold Annual GMS and other GMS in accordance with its authorities as stipulated in the law and the Bank’s Articles of Association 6. In oversight function, to direct, monitor, and evaluate the implementation of the Bank’s strategic policies 7. In monitoring function, is prohibited to involve in the decision-making of the Bank’s operational activities, except: » Provision of funds to related parties as regulated in the Bank Indonesia provision on Legal Lending Limit; and » Other matters established in the Bank’s Articles of Association or prevailing regulations 8. In decision-making of operational activities as stipulated in point 7, it is part of oversight by the Board of Commissioners. The Board of Commissioners’ involvement or approval did not negate the Board of Directors’ responsibilities in the Bank’s management 9. To ensure that the Board of Directors has taken followup actions on audit findings and recommendations of the Internal Audit Division, External Auditor, and monitoring reports of the Financial Services Authority, Bank Indonesia, and/or other authorities

Annual Report 2015


10. To inform the Financial Services Authority no later than 7 (seven) working days since the discovery of: » violations of the finance and banking laws and regulation, and » condition or potential condition which may harm the Bank’s business continuity, among others, based on the recommendations of the Committees which assist the effectiveness of the duties of the Board of Commissioners. Matters that must be reported as mentioned above are matters that have not been or are not being reported to the FSA by the Bank and/or by the Compliance Director 11. In order to support the effectiveness of their duties and responsibilities, to establish: » Audit Committee » Risk Oversight Committee » Remuneration and Nomination Committee 12. To ensure that the Committees established as stipulated in point 11, performs its duties effectively

Annual Report 2015

13. To evaluate on the Committees’ performance every year end 14. Are collectively responsible for the Bank’s loss which caused by the mistake or negligence of the Board of Commissioners members in performing their duties 15. Will not be held accountable for the Bank’s loss if they can prove that: » The loss is not due to their mistakes or negligence » Has conduct supervision with good will, high sense of responsibility, and prudent banking principles for the interest and in accordance with the Bank’s goals and objectives » Do not have any conflict of interest either directly or indirectly on the oversight which leads to loss, and » Has taken action to prevent the loss or the continuing of loss 16. To improve their competences by continuously participating in trainings, understanding banking regulation and general knowledge particularly regarding economy.


139


Authorities of the Board of Commissioners 1. To access documents, data, and information about the Bank’s employees, fund, assets, and resources which are deemed necessary 2. In relation to the implementation of its duties and responsibilities, to communicate directly with the Board of Directors, employees, and other parties 3. If required, to involve independent party other than members of the Board of Commissioners to help Board of Commissioners in performing their duties 4. May temporarily dismiss a member of the Board of Directors from his/her position by stating the reasons therefore 5. In certain circumstance, to manage the Bank temporarily by following prevailing laws and regulations 6. To perform other authorities in accordance with the Bank’s Articles of Association and the prevailing law and regulations.

Duties Implementation of Board of Commissioners Throughout 2015, the Board of Commissioners have fulfilled their supervisory duties and responsibilities including to advise the Board of Directors concerning the Bank’s operational activities for the benefit of the Bank in accordance to its purposes and objectives. The Board of Commissioners also provide recommendation to the Board of Directors, conduct Induction Program, and participates in both training and competence development program.


140

Recommendation of the Board of Commissioners 1. Revision of Bank’s Business Plan for 2015-2017 2. Bank’s Business Plan for 2016-2018 3. Supervise, evaluate, and provide inputs to actual results of the Bank’s Business Plan 4. Monitor the implementation of work plan carried out by Committees under the Board of Commissioners 5. Approve the schedule and agenda of Annual and Extraordinary GMS 6. Renew the Board of Commissioners Charter 7. Approve the Bank’s policies on Nomination, Appointment, Replacement and/or Dismissal of Members of the Board of Commissioners, Directors, and Committees under the Board of Commissioners 8. Recommend the Bank’s Independent Director to the GMS, etc. Board of Commissioners Induction Program Due to the appointment of new Independent Commissioner in October 2015, the Bank conducted an induction program for the new Commissioner by sharing Annual Report, Quarterly Financial Report, Bank’s Business Plan, and Board of Commissioner Charter as a reference and overview of the Bank’s business activities so as to support him in carrying out supervisory function of the Board of Commissioners. The new Commissioner also had discussion with other Independent Commissioners, members of Committees and attended the meeting with Board of Directors. Training and Competence Development Program The Board of Commissioners are enrolled in training programs to enhance the knowledge of members of the Board of Commissioners on current developments in the banking industry and other knowledge related to the implementation of the duties and responsibilities of the Board of Commissioners.

Annual Report 2015


Training programs provided to Commissioners in 2015

Name

Position

Date

Program

Place



March 1, 2015

Institute of International Finance (IIF) and Emerging Market Advisory Council (EMAC), CEO’s and Spring Membership Meetings

Doha, Qatar



June 1, 2015

United Arab Banks Summit

Budapest, Hungary

Grant Eric Lowen

Commissioner

March 14, 2015

IIF Mena CRO Forum – Global and Regional Issues Impacting Banking

Doha, Qatar

Grant Eric Lowen

Commissioner

March 15, 2015

IIF Spring Membership Meeting – Global Energy at a turning Point

Doha, Qatar

Grant Eric Lowen

Commissioner

May 4, 2015

QNB Group Leadership Development Program

Doha, Qatar

Grant Eric Lowen

Commissioner

May 12, 2015

QNB Global Risk Conference

Grant Eric Lowen

Commissioner

May 31, 2015

IIA Qatar Conference Global and Regional Issues Impacting Internal Audit and Risk

Doha, Qatar

Muthu Chidambaran

Commissioner

October 2, 2015

Internal Compliance Training

Singapore

Muthu Chidambaran

Commissioner

October 2, 2015

Internal KYC Training

Singapore

Muthu Chidambaran

Commissioner

September 28, 2015

Risk Management Refreshment Program

Jakarta, Indonesia

Suroto Moehadji


August 6, 2015

Refreshment BSMR “Liquidity Risk Management in Banks

Jakarta, Indonesia

Muhammad Anas Malla


November 10, 2015

Become an effective and responsible Commissioner

Jakarta, Indonesia

Djoko Sarwono


July 4, 2015

Risk Management Certification Level 1

Jakarta, Indonesia

July 11, 2015


Jakarta, Indonesia

Annual Report 2015


141


Evaluation on Board of Commissioners Performance Assessment of performance of the Board of Commissioners is held once every year, using the method of selfassessment. The success of the performance of the Board of Commissioners is the result of the collegial work of the entire Board of Commissioners which is reflected in the realization of the Bank’s Business Plan. The performance of the Board of Commissioners is assessed based on Bank’s risk profile, GCG, profitability and capital. The organs that evaluate the performance of the Board of Commissioners is the GMS. Assessments of the performance of the Board of Commissioners has been conducted based on the self-assessment report submitted to FSA regularly, in compliance with Bank Indonesia Circular Letter number 15/15/DPNP dated April 29, 2013, on the Implementation of Good Corporate Governance for Commercial Banks, in which the parameters of the Board of Commissioners’ performance are related to the implementation of its supervisory function to the management of the Bank. In addition to self-assessment, assessment of the Board of Commissioners is conducted during the presentation of annual report to the GMS. At the GMS, the shareholders approved the annual report of the Bank for financial year 2014 the results achieved during that year. Furthermore, the GMS granted full discharge and acquittal (aquit et decharge) to the Board of Commissioners for 2014 fiscal year.

In general, the Bank determines remuneration package by referring to the Bank’s internal policies, prevailing laws and regulations, industry comparison, and by taking into account the Bank’s performance in current year. The amount of remuneration for the Board of Commissioners members is set based on their performance. Board of Commissioners Remuneration Procedure Board of Commissioners Remuneration procedure consists of several phases which include formulation, analysis, proposal, and establishment. The formulation of remuneration policy and proposal is carried out by the Remuneration and Nomination Committee by gathering information about remuneration standard for the position and the similar industry in the market and taking account of the Bank’s performance. In 2015, the Annual GMS held on February 27, 2015 approved the granting authority to Qatar National Bank, as the majority Shareholders of the Bank to determine the 2015 salary or honorarium and other allowances for each member of the Board Commissioners. The determination of salary or honorarium and other allowances for each member of the Board Commissioners by considering the recommendation from Remuneration and Nomination Committee of the Bank. The Board of Commissioners’ remuneration package comprised of: 1. Gross Remuneration (Salary, Allowances, Bonuses); 2. Other Facilities (Health Insurance).

Policy and Procedure of Board of Commissioners Remuneration Board of Commissioners Remuneration Policy In accordance with the Bank’s Articles of Association, salary or honorarium and other allowances for the Board Commissioners are established by the General Meeting of Shareholders.


142

Annual Report 2015


The Board of Commissioners’ remuneration structure and amount in 2015 Amount Received in a Year Position

Type of Remuneration


Remuneration (Gross salary, bonuses, routine allowances, and other facilities in the form of non-in kind) Other Facilities in the form of in kind (housing, transportation, health insurance, and others) 1. may be owned 2. may not be owned

Total

Number of People

Millions of Rupiah

4

2,168

4

37

4

2,205

note: - One Commissioner left the Bank on February 27, 2015 - One Commissioner joint the Bank since October 9, 2015 Total Remuneration per Person in 1 (one) year*)

Total Board of Commissioners

Above Rp 2 billion

-

Above Rp 1 billion – Rp 2 billion

2

Above Rp 500 million – Rp 1 billion

2

Rp 500 million and below

-

*) received in cash

Ratio of Highest and Lowest Salary The compared salaries in this ratio are those received by members of the Board of Commissioners, Board of Directors and employees each month.

Ratio Type

Ratio

Employee’s Highest and Lowest Salary Ratio

1 : 64.4

Director’s Highest and Lowest Salary Ratio

1 : 4.3

Commissioner’s Highest and Lowest Salary Ratio

1 : 1.7

Director’s Highest and Employee’s Highest Salary Ratio

1 : 4.0

Director’s Highest and Commissioner’s Highest Salary Ratio

1 : 10.6

Director’s Lowest and Commissioner’s Lowest Salary Ratio

1 : 4.2

Annual Report 2015


143


Meetings of the Board of Commissioners

6.

Call for the Board of Commissioners Meetings is not required if all members of the Board of Commissioners are present and/or represented in the Board of Commissioners Meetings or if the Meetings has been scheduled based on the decision of the previous Board of Commissioners Meeting which attended or represented by majority of member of Board of Commissioners.

7.

Call for Meeting shall include information on agenda, date, time and place of the Meeting.

8.

In the scheduled Board of Commissioners Meetings, the meeting material shall be shared to the participants no later than 5 (five) days before the meeting.

9.

In the un-scheduled meeting, the meeting material is shared to the participants before the meeting is convened, at the latest.

Meetings of the Board of Commissioners are held regularly, in accordance with the Bank’s Article of Association and other prevailing regulations, with the provision and procedure as follows: 1.

2.

The Board of Commissioners Meetings shall be held at least 1 (one) time in 3 (three) months and can be held any time whenever deemed necessary by one of the Commissioners or upon written request from the Board of Directors or upon request from 1 (one) shareholder or more which collectively represent 1/10 (one tenth) part of total shares issued by the Bank with valid vote. The Board of Commissioners Meetings shall be physically attended by all members of the Board of Commissioners at least 2 (two) times a year. Physical attendance by all members of the Board of Commissioners, is primarily essential for evaluation or establishment of strategic policies as well as evaluation on the Bank’s business plan results.

3.

The Board of Commissioners shall schedule the Board of Commissioners Meetings for the following year before the financial year ends.

4.

Call for the Board of Commissioners Meetings is done by the President Commissioner or one of the member of the Board of Commissioners.

5.

Call for the Board of Commissioners Meetings shall be given in written or delivered or handed directly with adequate receipt or with registered mail or with courier service or with telex, facsimile, or through other means of communication. The call should be sent to members of the Board of Commissioners no later than 5 (five) days before the Board of Commissioners Meeting or in urgent situation no later than 1 (one) day prior. The urgent situation is defined by the President Commissioner or the majority of Commissioners.


144

10. The Board of Commissioners Meetings are held in the territory of the Republic of Indonesia area, particularly at: » Where the Bank is domiciled » Where the Bank conducts its main business activities » Capital Province where the Bank is domiciled or conduct its main business activities, or » Domicile Province where the Stock Exchange where the Bank’s shares are listed

If all members of the Board of Commissioners is present of represented, the Board of Commissioners Meeting can be held anywhere in the territory of Republic of Indonesia and are entitled to make a legitimate and binding decision.

11. The President Commissioner shall chair the Board of Commissioners Meeting. In case that the President Commissioner is absent or unavailable to attend the Meeting which no need to be proven to other parties, the Meeting shall be chaired by one of the Commissioners appointed by and from members of the Board of Commissioners who is present in the Meeting.

Annual Report 2015


12. A Commissioner can only be represented by other member of the Board of Commissioners in the Board of Commissioners Meeting with Proxy Letter. 13. The Board of Commissioners Meeting is valid and entitled to make a binding decision if more than ½ (half) members of the Board of Commissioners are present or represented in the meeting.

Decision in the Board of Commissioners Meeting shall be made by means of deliberations to reach a consensus. If no resolution can be reached by means of deliberations to reach a consensus, then the resolution is made by way of simple majority of votes based on the agree votes more than ½ (half) of total legitimate votes in the Meeting. In the event of a tie, the chairman of the meeting shall be entitled to cast the deciding vote.

14. a. Every member of the Board of Commissioners in attendance is entitled for 1 (one) vote and additional 1 (one) vote for every Commissioner being represented. b. Every member of the Board of Commissioners which direct or indirectly has a conflict of interest in a transaction, contract, or proposed contract related to the Bank, such member of the Board of Commissioners is not entitled to join the voting about matters related to the aforementioned transaction or contract except decided otherwise by the Meeting. c. Voting related to someone is carried out through secretly ballot without signature while voting on other matters is carried out verbally except decided otherwise by the Chairman of Meeting without any objection from the meeting’s participants in attendance. 15. The results of Board of Commissioners Meeting shall be stipulated in a minutes of the meeting, signed by all members of the Board of Commissioners in attendance, shared to all members of the Board of Commissioners, and well-documented.

Annual Report 2015

16. In case there are any Commissioners who did not sign the minutes of the meeting, the concerned Commissioner should state their reasons in writing in a separate letter and shall be attached to the minutes of meeting. 17. Dissenting opinions occurred in the Board of Commissioners Meeting shall be disclosed clearly in the minutes of the meeting including the reason of such dissenting opinion. 18. Minutes of the Board of Commissioners Meeting is a valid proof on the decisions made in the Board of Commissioners Meeting, both for the members of the Board of Commissioners and third parties. 19. The Board of Commissioners can also make a valid and binding decision without holding a meeting provided that all members of the Board of Commissioners have been informed in written about the proposal and all member of Board of Commissioners have approved and signed the proposal. That kind of decision has a similar power with the valid decision taken in the Board of Commissioners Meeting. 20. The Board of Commissioners Meeting can also be convened through teleconference, video conference, and other electronic media which enable all participants to directly see and/or hear each other and participate in the Meeting. The Meeting should be convened in accordance to the prevailing provisions and minutes of the Meeting should be prepared and distributed to all meeting participants to be signed. The decision taken has a similar power with the valid decision taken in the Board of Commissioners Meeting.


145


In 2015, the Board of Commissioners have held 4 (four) meetings with the agenda, including: 1. Strategy Map Review 2. Business Update 3. Update on QVA 4. Financial Report including liquidity Update 5. CEO Report 6. BI Health Check 7. Update from Compliance, AML & Audit Reports 8. Policies Review 9. Delegation & Limits Review 10. Report from Committees under Board of Commissioners 11. Proposal of Annual GMS Schedule and Agenda 12. Major Correspondence & Contracts 13. Performance Management 14. Board of Commissioners Declaration of Interest

Frequency of Meetings of Board of Commissioners and Attendance Record In 2015, the Board of Commissioners have conducted 4 (four) meetings. The following table shows the attendance frequency of each Commissioner in the meetings.

Board of Commissioners’ Meetings Name

Position

Physical Attendance

Video Conference

% Attendance

Ali Ahmed ZA Al Kuwari


2

2

100%

Grant Eric Lowen

Commissioner

3

1

100%

Muthu Chidambaram

Commissioner

4

-

100%

Suroto Moehadji


4

-

100%

Nasrul Husin*


1

-

25%

Muhammad Anas Malla


4

-

100%

Djoko Sarwono**


1

-

25%

* Served as member of the Board of Commissioners up to February 27, 2015 ** appointed in Extraordinary GMS dated October 9, 2015 and effective on November 11, 2015


146

Annual Report 2015


Committees under Board of Commissioners

To support the implementation of good corporate governance and the implementation of Board of Commissioners’ duties and responsibilities, the Bank's Board of Commissioners is assisted by 3 (three) Committees namely Audit Committee, Remuneration and Nomination Committee, and Risk Oversight Committee, which all work independently.

Annual Report 2015

These committees are established through resolution in the Board of Commissioners Meeting while the members are appointed by the Board of Directors in accordance to the resolution. Each Committee is required to perform their duties and responsibilities by referring to Committee Charter which is formulated and reviewed regularly bases on the applicable regulation in Indonesia.


147


Audit Committee Legal Reference for Audit Committee Establishment The establishment of Audit Committee refers to Audit Committee Charter No. 2-00 dated June 12, 2013 as lastly amended with Audit Committee Charter No. 01. 09.00 dated November 16, 2015 as well as Bank Indonesia Regulation (PBI) No. 8/4/PBI/2006 dated January 30, 2006 regarding Implementation of Good Corporate Governance For Commercial Bank, as amended with PBI No. 8/14/ PBI/2006 dated October 5, 2006 and Decree of Capital Market and Financial Institution Supervisory Board No. Kep-643/ BL/2012 dated December 7, 2012 regarding Establishment and Guideline of Audit Committee Work Implementation and FSA regulation No. 33/POJK.04/2014 dated December 8, 2014 regarding the Board of Directors and Board of Commissioners of Issuers or Public Company. The Audit Committee is particularly established to support the Board of Commissioners in fulfilling its supervisory duties and responsibilities by monitoring and evaluating the planning and implementation of audit as well as monitoring the follow-up to audit findings in order to assess the adequacy of internal control, including the adequacy of financial reporting process.

Appointment of Audit Committee

Appraiser or any other parties providing assurance, non-assurance, appraisal services and/or other consulting services to the Bank for the past 6 months. 5.

Audit Committee members shall not be individuals working for or having authority and responsibility for planning, leading, controlling or supervising the Bank's activities for the past 6 months, except in the event of reappointment of the Independent Commissioner who concurrently assumes the position of Audit Committee Chairman.

6.

Audit Committee members do not, directly or indirectly, own shares in the Bank.

7.

In the event that any member of the Audit Committee obtains shares in the Bank either directly or indirectly as a result of a legal event, such shares must be transferred to another party within no later than 6 months upon obtainment.

8.

Audit Committee members are not affiliated to the Bank, any member of the Board of Commissioners, the Board of Directors or Ultimate Shareholder of the Bank.

9.

Audit Committee members do not have direct or indirect business relations pertaining to the Bank’s business activities.

As stipulated in the Audit Committee Charter, members of the Audit Committee are required to meet the competence and experience requirements, as well as the requirement of independence and integrity, namely:

10. Independent Party who is the member of Audit Committee should fulfill all the independency criteria as set out in the prevailing law and regulations

1.

Structure and Composition of Audit Committee

Audit Committee members shall have high integrity, skills, knowledge, experience relevant to their profession, and good communication skills.

2.

Audit Committee members shall have good understanding of financial statements, company business, particularly those related to the business activities of the Bank, audit process, risk management and laws and regulations on Capital Market as well as other relevant laws and regulations.

3.

Audit Committee members shall be willing to continuously enhance their competencies through education and training.

4.

Audit Committee members shall not be a person from a Public Accounting Firm, Legal Consulting Firm, Public


148

The Bank’s Audit Committee consists of 3 (three) members and reports directly to Board of Commissioners. The Audit Committee comprises of 1 (one) member who is an Independent Commissioner whom also serves as the Chairman of the Committee while the other 2 (two) members are independent parties to the Bank. All members of the Audit Committee are professional individuals with extensive experience and high competences. Concurrent positions of Audit Committee have taken into consideration of competences, independency, discretion, and code of conduct, as well as respective duties and responsibilities implementation in accordance with applicable regulations. Annual Report 2015


Due to the completion of tenure of Nasrul Husin as Independent Committee of the Bank, based on resolution of the Annual GMS which held on February 27, 2015, hence the composition of Audit Committee member also changed. The position of Nasrul Husin as Audit Committee

Name Muhammad Anas Malla

Chairman was replaced by Muhammad Anas Malla as Acting Chairman of Audit Committee. As such, the Audit Committee members as of December 31 2015, are as follows:

Position

Legal Basis of Appointment

Acting Chairman and also member

Irzal Zaini

Member

Wayan Suryadarma

Member

Profiles of Audit Committee

Decree of BOD No. 002/SK-Dir/III/2015 dated March 10, 2015

Muhammad Anas Malla Acting Chairman of Audit Committee Profile of Muhammad Anas Malla could be found in the Board of Commissioners’ Profile section of this Annual Report

Wayan Suryadarma Member of Audit Committee Citizen of Indonesia, 61 years old. He is lastly appointed as member of Audit Committee in the Bank through Decree of Board of Directors No. 002/SK-DIR/III/2015 dated March 10, 2015. Earned his Bachelor degree in Economy from Padjajaran University, Bandung in 1981.

Irzal Zaini Member of Audit Committee Profile of Muhammad Anas Malla could be found in the Board of Commissioners’ Profile section of this Annual Report

Prior to joining the Bank, he took up several posts in PT Bank Niaga Tbk (1984-2008), included in Sharia Project Team (2002 – 2004), and Support & Services Division Head in Head Office – Sharia Business Unit (2004 – 2008). He also member of Risk Oversight Committee of the Bank. In 2015, he actively attended competence development programs, among others “Role of Integrated Risk Management Committee to Achieve the Effectiveness of Implementation of Integrated Risk Management” panel discussion. Citizen of Indonesia, 62 years old. He is lastly appointed as member of Audit Committee through Decree of Board of Directors No. 002/SK-DIR/III/20015 dated March 10, 2015. Earned his Bachelor degree in Economy from UNIBA, Balikpapan in 1992. Prior to joining the Bank, he took up several posts in PT Bank Negara Indonesia (Persero) Tbk such as Auditor for Banjarmasin Regional Office (1981 – 1986), Credit Staff, Acting Head of Internal Control, Coordinator for Foreign Section (1986 – 1993), Auditor Central Office Jakarta (1993 – 2004), Head of Credit Risk at Jember Branch Office (2004). In addition, he also served a number of positions in subsidiaries and affiliated companies of BNI such as PT BNI Life Insurance (2009 – 2012) and PT Swadharma Griyasatya (Building Management BNI) (2012)

Annual Report 2015


149


Independence of Audit Committee

2.

In accordance with Bank Indonesia Regulation No. 8/4 / PBI / 2006 dated January 30, 2006 regarding the implementation of Good Corporate Governance for Commercial Banks, as amended by Regulation No. 8/14/ PBI/2006 dated October 5, 2006, members of Audit Committee should meet the independence criteria.

Total Independent Commissioners and independent parties as members of Audit Committee shall at least 51% of the total members of the Audit Committee. The member of the Audit Committee who is an Independent Commissioner shall be appointed as Chairman of the Audit Committee.

3.

Moreover, in accordance with the Audit Committee Charter, there are also some additional independence criteria required for Audit Committee’s members, among others are: 1. Not the Bank's employees 2. Do not have any shares in the Bank 3. Has an independent behavior and perspective 4. Do not have any conflict of interest with the Bank

All members of Audit Committee of the Bank are independent in which they have no management relationship, share ownership, and/or family relationship with the Board of Commissioners, the Board of Directors, the Controlling Shareholder or the Bank which can affect their capabilities to act independently.

Financial or Familial Relations of Members of the Audit Committee

Independence of Audit Committee members is also reflected in its structure and membership as follows: 1. The membership of the Audit Committee shall consist of at least 1 (one) Independent Commissioner as Chairman and member, and 1 (one) independent party who has expertise in finance or accounting, and 1 (one) independent party who has expertise in the field of law or banking.

All members of the Audit Committee has no affiliation with the Board of Commissioners, Board of Directors, members of other committees as well as the controlling shareholder. Thus, in carrying out their duties, members of the Audit Committee does not have a conflict of interest that may occur, so as ensuring the highest level of independence in performing its duties and responsibilities

Financial or Familial Relations of Members of the Audit Committee Family Relationship with Name

Other Committee Members


Board of Directors




Board of Directors


Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Muhammad Anas Malla

-

√

-

√

-

√

-

√

-

√

-

√

-

√

-

√

Irzal Zaini

-

√

-

√

-

√

-

√

-

√

-

√

-

√

-

√

Wayan Suryadarma

-

√

-

√

-

√

-

√

-

√

-

√

-

√

-

√


150

Annual Report 2015


Audit Committee Charter The Audit Committee has Audit Committee Charter which contains work guideline and procedure as a foundation for Audit Committee to carry out its function and role. The Charter particularly regulates matters related to organization, requirement of membership, duties and responsibilities, authorities, and meeting as well as term of office. The Audit Committee Charter is reviewed regularly.

Duties and Responsibilities of Audit Committee The function of Audit Committee is to assist and facilitate the Board of Commissioners in performing its monitoring function. Furthermore, the Audit Committee focuses on improving the effectiveness of internal control system of the Bank, including the effectiveness of implementation of duties of External Auditor and Internal Audit related to the Internal Control System. In details, the duties and responsibilities of Audit Committee are stated in the Audit Committee Charter. The Audit Committee provides the Board of Commissioners with independent professional opinions on the reports of the Board of Directors, and identifies the matters that need attention from the Board of Commissioners, namely: 1. 2.

3. 4. 5.

6.

7.

Preparing the Annual Work Program to be approved by the Board of Commissioners Reviewing the financial information to be issued by the Bank to the public and/or other authorities, financial statements, projections and other reports pertaining to the Bank’s financial information. Analysing the Bank’s level of compliance towards laws and regulations pertaining to the Bank’s activities. Providing input on appointment, resignation, or dismissal of the Head of Audit Division. Monitoring, analysing and evaluating audit planning and implementation as well as monitoring followup actions to the internal audit results in order to assess the adequacy of internal control, including the adequacy of financial reporting process. Providing recommendation to the Board of Commissioners pertaining to the appointment of Public Accountant and Public Accounting Firm on the basis of its independency, scope of work, and fee to be submitted to the General Meeting of Shareholders. Providing an independent opinion in the event of disagreement between the management and the Public Accountant for services rendered.

Annual Report 2015

8.

Monitoring and evaluating: » The implementation of tasks of the Internal Audit; » Consistency between audit implementation by the Public Accounting Firm and the prevailing auditing standards; » Consistency between the financial reports and the prevailing accounting standards; and » Implementation of follow-up actions by the Board of Directors on findings made by the Internal Audit Work Unit, Public Accountant, and the results of supervision by Bank Indonesia and/or the Financial Services Authority, in order to provide recommendations to the Board of Commissioners. 9. Maintaining strict confidentiality of documents, data and information of the Bank. 10. Analyzing complaints received by the Audit Committee about the Bank’s accounting and financial reporting processes, as well as ensuring the follow-up to such complaints. 11. Analyzing and providing recommendations to the Board of Commissioners concerning the existence of potential conflicts of interest of the Bank Authorities of Audit Committee The Audit Committee is authorized to: 1. Access all of the Bank’s documents, data and information pertaining to the Bank’s employees, funds, assets and resources required. 2. Directly communicate with employees, including the BOD and parties performing the internal audit function, risk management, and Accountant in relation to the duties and responsibilities of the Audit Committee. 3. Involve independent parties outside the Audit Committee required to assist the Audit Committee in implementing its duties (where necessary) 4. Executing other functions and authority as given by the Board of Commissioners Through the approval of the Board of Commissioners, the Audit Committee is authorized to ask the internal and external auditors to review and investigate the problems that may arise and impact on the Bank’s performance.

Meetings of the Audit Committee To support its duties and responsibilities implementation as mandated in Charter of Audit Committee, Audit Committee


151


Meetings are held regularly with the following provision: 1. Meeting of the Audit Committee must be conducted on a periodical basis, at least once in every three months. 2. Meeting of the Audit Committee can only be held when attended by at least 51 % (fifty-one percent) of the total members, including an Independent Commissioner and an Independent Party. 3. The Audit Division Head is always present in the meetings of the Audit Committee and when he/she is in absence, it can be delegated to officials from the Audit Division. 4. If necessary, the Audit Committee may invite the Board of Directors and/or Executive Officers of the Bank to discuss issues in the Audit Committee meetings. 5. Issues arising at any meeting of the Audit Committee must be resolved by means of deliberations to reach a consensus. If no resolution can be reached by means of deliberations to reach a consensus, then the issues arising are to be decided by way of simple majority of votes.

6.

7.

8.

Every member of the Audit Committee shall have one vote. In the event of conflict of interest on a particular issue, the member of the Audit Committee having an interest in the subject matter under deliberation shall not be entitled to vote on that issue. In the event of a tie, the chairman of the meeting shall be entitled to cast the deciding vote. Agenda of the Audit Committee meeting is based on the Annual Work Plan and other matters that are important to be discussed. The result of Audit Committee Meeting must be summarized into minutes of meeting and signed by all members of the Audit Committee present at the meeting and be properly documented. Dissenting opinions in the Audit Committee Meeting must be clearly stated in the minutes of meeting, including the reasons for the dissenting opinions. Minutes of Audit Committee meetings are to be reported to the Board of Commissioners.

The Meetings and Agenda of the Meetings of Audit Committee No.

Meeting Date

Meeting Agenda

1.

January 27, 2015

1. 2.

Recommendation on the appointment of external auditor for the financial year of 2015 2014 Audit Report

2.

April 7, 2015

1. 2. 3.

Preparation of Audit Committee’s Work Plan Realization Report for the period of Q1/2015 Evaluation on Balance Sheet and Profit/Loss as of March 2015 Meeting with Internal Audit and Finance & Accounting

3.

April 21, 2015

1. 2.

Publication of Financial Report as of Q1 2015 Update from Internal Audit

4.

June 23, 2015

1. 2.

Update from Compliance Function Report of Audit Implementation for the period of Semester I/2015

5.

July 28, 2015

Publication of Financial Report as of Q2 2015

6.

October 20, 2015

1. 2. 3.

7.

November 3, 2015

Audit Committee Charter Review

8.

November 19, 2015

2016 Audit Committee Meeting Schedule

9.

November 24, 2015

1. 2.

10.

December 15, 2015


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Publication of Financial Report as of Q3 2015 Update from Internal Audit Update from Compliance Function

Recommendation on the appointment of Public Accountant Firm Purwantono, Sungkoro & Surja (E & Y) as the external auditor for 2016 2016 Internal Audit Plan

Update on progress of audit by Public Accountant Firm for financial year 2015

Annual Report 2015


Frequency of Audit Committee Meetings and Attendance Record In 2015, the Audit Committee has conducted 10 (ten) meetings. The following table shows the attendance frequency of each member of the Audit Committee in the meetings. Audit Committee Meetings Name

Position

Attendance

Attendance Level

Nasrul Husin

Chairman of Audit Committee

1*

10%

Muhammad Anas Malla

Acting Chairman of Audit Committee

9**

90%

Irzal Zaini

Member of Audit Committee

10

100%

Wayan Suryadarma


10

100%

* Served as member of the Board of Commissioners up to February 27, 2015 **Appointed as Acting Chairman of the Audit Committee since March 10, 2015

Duties Implementation of Audit Committee Throughout 2015, the Audit Committee has carried out a series of activities to assist Board of Commissioners in performing supervisory function over the Bank's activities and operation. The implementation of Audit Committee work program in 2015 is as follows: 1. Discussed Internal Audit’s findings in 2014 which were significant and require follow up and supervision from related division 2. Submitted the report on the realization of Audit Committee duties in 2014 3. Discussed financial reports with Finance & Accounting division 4. Updated on the monitoring performed by Internal Audit on the follow up of Internal Audit and External Audit findings 5. Performed discussion with Compliance Directorate to assure the compliance of the Bank to the prevailing regulations

Annual Report 2015

6.

Reviewed the supervisory report of the Board of Commissioners on the Realization of Bank’s Business Plan for Semester 1/2015 7. Discussed and prepared the reports on the realization of Audit Committee Work Plan on quarterly and semiannually basis 8. Evaluated the Bank’s Financial Statements 9. Review and update the Audit Committee Charter 10. Prepare 2016 Workplan and meeting schedule 11. Provide recommendation on the appointment of 2016 Public Accountant Firm 12. Review the 2016 Internal Audit Plan

Audit Committee Findings and Its Follow-Up In 2015, the Audit Committee did not find any findings which could provide significantly impact to financial and non-financial performance of the Bank.


153


Remuneration and Nomination Committee Legal Reference for Remuneration and Nomination Committee Establishment The establishment of Remuneration and Nomination Committee refers to Remuneration and Nomination Charter No. 4-00 dated June 12, 2013 which lastly amended with Remuneration and Nomination Committee Charter No. 01.10.00 dated November 26, 2015 as well as PBI No. 8/4/ PBI/2006 dated January 30, 2006 regarding Implementation of Good Corporate Governance for Commercial Banks, as amended with PBI No. 8/14/ PBI/2006 dated October 5, 2006 and OJK Regulation No. 34/POJK.04/2014 dated December 8, 2014 regarding Nomination and Remuneration of Issuers or Public Company. The Remuneration and Nomination Committee is particularly established to support the implementation of function and duties of the Board of Commissioners related to nomination and remuneration of Board of Directors and Board of Commissioners.

Appointment of Remuneration and Nomination Committee As stipulated in the Remuneration and Nomination Committee Charter, members of the Remuneration and Nomination Committee are required to meet the following criteria: 1. a. 1 (one) Chairman concurrently member, who is Independent Commissioner. b. Others member who may originate from: » Member of the Board of Commissioners; » Executive officer who supervises human resources or 1 (one) employee representative who has knowledge in remuneration and or nomination system and bank succession plan. 2. The majority members of the Remuneration and Nomination Committee cannot be from managerial officers under Director who supervises human resources. 3. Members of the Remuneration and Nomination Committee from external parties of the Bank shall meet the following requirements:


154

Has no affiliation with the Bank, any members of the Board of Directors, Board of Commissioners or Ultimate Shareholder of the Bank; » Has experience related to Nomination and/or Remuneration; and » Does not hold double position as members of other committees of the Bank. 4. Member of Board of Directors of the Bank cannot serve as member of Remuneration and Nomination Committee. 5. In the event the member of the Committee is set for more than 3 (three) people, the Independent Commissioner, at the minimum must be 2 (two) people. 6. Chairman of the Committee can only serve as chairman of 1 (one) other committee in the Bank. 7. Members of Remuneration and Nomination Committee are appointed and dismissed according to resolution of Board of Commissioners’ meeting for certain period of service and may be reappointed. 8. The period of service of member of Remuneration and Nomination Committee shall be no longer than period of service of Board of Commissioners as regulated in the Bank’s article of association. 9. Replacement of member of Remuneration and Nomination Committee who is not from Board of Commissioners shall be done no later than 60 (sixty) days from the date in which the said member of the Remuneration and Nomination Committee no longer hold the position. 10. Members of the Remuneration and Nomination Committee can no longer perform their function if they are dismissed based on the resolution of Board of Commissioners meeting, for any of the following reasons: » Demise; » Resignation; or » Permanently unavailable thus cause them unable to perform their duties or have been medically diagnosed to be unable to perform their duties for more than 6 (six) consecutive months. »

Annual Report 2015


Structure and Composition of Remuneration and Nomination Committee

Based on the resolution of Annual GMS held on February 27, 2015, Novi Mayasari was appointed as the Director of the Bank. With this change in the composition of the Board of Directors, the composition of Remuneration and Nomination Committee member also changed. The position of Novi Mayasari as member of Remuneration and Nomination Committee is replaced by Steven Stevanus. As such, the Remuneration and Nomination Committee members as of December 31 2015, are as follows:

Remuneration and Nomination Committee of the Bank consists of 3 (three) members which report directly to the Board of Commissioners. The Remuneration and Nomination Committee comprises of an Independent Commissioner serving as Chairman of Committee and 2 (two) members.

Name Muhammad Anas Malla

Position


Chairman and also member

Grant Eric Lowen

Member

Steven Stevanus

Member

Decree of BOD No. 001/SK-Dir/III/2015 dated March 10, 2015

Profiles of Remuneration and Nomination Committee Muhammad Anas Malla Chairman of Remuneration and Nomination Committee Profile of Muhammad Anas Malla could be found in the Board of Commissioners’ Profile section of this Annual Report. Grant Eric Lowen Member of Remuneration and Nomination Committee Profile of Grant Eric Lowen could be found in the Board of Commissioners’ Profile section of this Annual Report.

Steven Stevanus Member of Remuneration and Nomination Committee Citizen of Indonesia, 31 years old. He is lastly appointed as member of Remuneration and Nomination Committee of the Bank through Decree of Board of Directors No. 001/SK-Dir/III/2015 dated March 10, 2015. Earned his Bachelor degree in Computer Science from Bina Nusantara University, Jakarta in 2006. Prior to joining the Bank as Rewards Manager in 2013, he took up several posts in various companies such as Management Trainee in Lion Super Indo (2006 – 2007), Research and Consulting in PT Spire Indonesia (2007 – 2011), Rewards Portfolio & Annual Review Manager and Incentive Manager in PT Bank CIMB Niaga Tbk (2011 – 2013). In 2015, he actively attended competence development programs, among others Strategic Reward Concept training.

Annual Report 2015


155


Independence of Remuneration and Nomination Committee

policies taken by the Remuneration and Nomination Committee is an objective results which is not intervened by any parties with any reason and other actions which may have potential to cause conflict of interest.

Remuneration and Nomination Committee performs its duties and responsibilities independently. Decisions and

Financial or Familial Relations of Members of the Remuneration and Nomination Committee Family Relationship with Name



Board of Directors




Board of Directors


Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Muhammad Anas Malla

-

√

-

√

-

√

-

√

-

√

-

√

-

√

-

√

Grant Eric Lowen

-

√

-

√

-

√

-

√

-

√

-

√

-

√

√

-

Steven Stevanus

-

√

-

√

-

√

-

√

-

√

-

√

-

√

-

√

Remuneration and Nomination Committee Charter The Remuneration and Nomination Committee Charter contains work guideline and procedure as a foundation for Remuneration and Nomination Committee to carry out its function and role. The Charter is continuously improved and renewed in accordance with the development/changes of prevailing regulations as well as latest condition. The last renewal of Remuneration and Nomination Charter took place in 2015 which is affirmed in the Charter No. 01.10.00 dated November 26, 2015 regarding the Remuneration


156

and Nomination Committee Charter. Among the matters regulated are about membership, duties and responsibilities, work ethics, work mechanism and procedure, meeting and resolution, working mechanism, reporting system, as well as facilities and support.

Duties and Responsibilities of Remuneration and Nomination Committee Duties and responsibilities of Remuneration Committee as stipulated in Charter of Remuneration and Nomination Committee are as follows:

Annual Report 2015


1.

Related to Remuneration Function A. Duties and responsibilities of Remuneration and Nomination Committee are: 1) Provide recommendation to Board of Commissioners concerning: » Remuneration structure; » Remuneration policy; and » Remuneration amount 2) Assist the Board of Commissioners in conducting performance appraisal in accordance with remuneration received by each member of the Board of Directors and/or the Board of Commissioners. B. In performing the function of remuneration, the Remuneration and Nomination Committee must follow the following procedure: 1) Formulating a remuneration structure for members of the Board of Directors and/or the Board of Commissioners; 2) Formulating and recommending the Board of Commissioners on remuneration policy for members of the Board of Directors and/or the Board of Commissioners to be delivered to the General Meeting; 3) Providing the Board of Commissioners with recommendation in remuneration policy of Executive Officers and emplopyees in general to be delivered to Board of Directors; and 4) Formulating remuneration amount for Board of Directors and/or Board of Commissioners. C. Formulation of structure, policy and amount of remuneration must consider: 1) Financial performance and fulfillment of reserve as provided for in prevailing laws and regulations; 2) Remuneration applicable in the banking industry and within the business scale of the Bank; 3) Duties, responsibilities and authority of members of the Board of Directors and/or Board of Commissioners which are associated with the achievement of objectives and performance of the Bank; 4) Performance target of each member of the Board of Directors and/or the Board of Commissioners; and 5) Balance of allowance between fixed allowance and variable allowance. 6) Consideration of Bank’s long term target and strategy.

Annual Report 2015

D. 2.

Remuneration structure, policy, and amount, have to be evaluated by Remuneration and Nomination Committee at least once in a year.

Related to Nomination Function. A. Provide recommendation to Board of Commissioners on: 1) Composition of positions of members of the Board of Directors and/or the Board of Commissioners; 2) Policies and criteria required in the Nomination process; and 3) Performance evaluation policy for members of Board of Directors and/or members of Board of Commissioners. B. Assist the Board of Commissioners in conducting performance appraisal of member of Board of Directors and/or member of Board of Commissioners based on the benchmark determined as evaluation material; C. Provide recommendation to the Board of Commissioners on personal development programs for members of Board of Directors and/ or members of Board of Commissioners; and D. Provide recommendation of qualified candidates as member of Board of Directors and/or Board of Commissioners to the Board of Commissioners to be submitted to General Meeting of Shareholders. E. Provide recommendation on Independent Party who will be member of Audit Committee and Risk Oversight Committee to the Board of Commissioners. F. In performing nomination function, the Remuneration and Nomination Committee must follow the following procedure: 1) Formulating the composition and nomination process of member of Board of Directors and/or Board of Commissioners; 2) Formulating required policies and criteria in the nomination process of candidate of member of Board of Directors and/or Board of Commissioners; 3) Assisting the implementation of evaluation on the performance of member of Board of Directors and/or Board of Commissioners; 4) Formulating personal development programs for member of the Board of Directors and/or Board of Commissioners; and


157


G. Review and propose eligible candidates to become member of the Board of Directors and/or Board of Commissioners to Board of Commissioners, to be submitted to General Meeting of Shareholders.

Meetings of Remuneration and Nomination Committee

2.

4.

5.

To support its duties and responsibilities implementation as mandated in Charter of Remuneration and Nomination Committee, Remuneration and Nomination Committee Meetings are held regularly with the following provision: 1.

3.

The Remuneration and Nomination Committee meeting is held periodically with at least once in 4 (four) months. The Remuneration and Nomination Committee meeting will only be held if attended at least by 51% (fifty one percent) of number of committee member including one Independent Commissioner and Executive Officer from Human Resources.

6.

7.

8.

Resolution of Remuneration and Nomination Committee is taken based on deliberation to achieve consensus. In the event that the consensus is not reached, decision making shall be held based on majority votes with principle of 1 (one) person 1 (one) voice. In the event of draw during decision making by voting, decision shall be made by the Chairman of the Remuneration and Nomination Committee. In the event that decision making process finds dispute, the dispute must be set forth in the minutes of meeting complete with the reasons. Result of the meeting of Remuneration and Nomination Committee must be set forth in the minutes of meeting and documented by the Bank. Minutes of Remuneration and Nomination Committee meeting must be submitted in writing to Board of Commissioners.

The Meetings and Agenda of the Meetings of Remuneration and Nomination Committee No.

Meeting Date

Meeting Agenda

1.

August 11, 2015

1. 2. 3. 4.

Candidate of Commissioner Candidate of Head of QVA Ratification of Appointment of Independent Director Additional of Audit Committee member

2.

September 8, 2015

1. 2.

Ratification fo Appointment of Independent Director Recommendation on Nomination Procedure for members of Board of Commissioners, Board of Directors and Committees under Board of Commissioners

3.

November 3, 2015

Renewal of Remuneration and Nomination Commitee

4.

November 26, 2015

1. 2. 3.

2016 Performance Appraisal Board of Directors and Board of Commissioners Remuneration Organisation Changes

Frequency of Remuneration and Nomination Meetings and Attendance Record In 2015, the Remuneration and Nomination Committee has conducted internal meetings for 4 (four) times. The following table shows the attendance frequency of each member of the Remuneration and Nomination Committee in the meetings. Remuneration and Nomination Committee Meetings Name

Position

Attendance

Attendance Level 100%

Muhammad Anas Malla

Chairman of Audit Committee

4

Grant Eric Lowen


3

75%

Steven Stevanus


4

100%


158

Annual Report 2015


In addition, the Remuneration and Nomination Committee also generates some important decision though circulation and approved by all members of the Committee.

Duties Implementation of Remuneration and Nomination Committee Throughout 2015, the Remuneration and Nomination Committee has carried out a series of activities to assist Board of Commissioners. The implementation of Remuneration and Nomination Committee work program in 2015 is as follows: 1. Provided recommendation on 2014 performance assessment, 2014 performance bonus, 2015 salary increase, and composition of the remuneration for Board of Commissioners, Directors, and Committees under the Board of Commissioners. 2. Provided recommendation on the nomination of new Board of Directors member and Independent Commissioner

3.

Provided recommendation on the nomination of member of Remuneration and Nomination Committee 4. Provided recommendation on the nomination of Chairman of Audit Committee 5. Provided recommendation on the re-appointment of member of Audit Committee 6. Provided recommendation on the Mortgage scheme for Board of Directors member 7. Provided recommendation on the remuneration scheme for Director 8. Provided recommendation on the appointment of the Bank’s Independent Director 9. Provided recommendation on 2016 Board of Commissioners and Board of Directors remuneration 10. Provided recommendation on renewal of Charter of Remuneration and Nomination Committee 11. Provided recommendation on renewal of Nomination Procedure for members of Board of Commissioners, Board of Directors and Committees under Board of Commissioners 12. Provided recommendation on 2016 Performance Appraisal

Risk Oversight Committee Legal Reference for Risk Oversight Committee Establishment The establishment of Risk Oversight Committee refers to Risk Oversight Committee Charter No. 3-00 dated June 12, 2013 as well as PBI No. 8/4/PBI/2006 dated January 30, 2006 regarding Implementation of Good Corporate Governance for Commercial Banks, as amended with PBI No. 8/14/ PBI/2006 dated October 5, 2006. The Risk Oversight Committee is particularly established to support the Board of Commissioners’ supervisory function in conducting necessary risk oversight functions on the duties performed by the Board of Directors in managing the Bank while implementing GCG in the Bank. Annual Report 2015

Appointment of Risk Oversight Committee As stipulated in the Risk Oversight Committee Charter, members of the Risk Oversight Committee are required to meet the competence and experience requirements, as well as the requirement of independence and integrity, namely: 1. Have a high integrity, capability, knowledge, and experience with adequate educational background, as well as effective communication 2. Members of Risk Oversight Committee from Independent Parties have capability in finance if they meet the criteria of: » Has knowledge in economy, finance, and/or banking; and


159


Structure and Composition of Risk Oversight Committee

Has work experience in economy, finance and/or banking less than 5 (five) years in accordance with regulation in force Members of Risk Oversight Committee from Independent Parties have capability in risk management if they meet the criteria of: » Has knowledge in risk management risk, and/or » Has work experience in risk management for less than 2 (two) years in accordance with the prevailing regulation Has a good knowledge to analyze and interpret financial statement Has an adequate knowledge about law and regulation including Financial Services Authority and/or Bank Indonesia Regulation as well as other related regulation

»

3.

4. 5.

The Risk Oversight Committee consists of 4 (four) members and reports directly to Board of Commissioners. The Risk Oversight Committee comprises of 1 (one) member which is an Independent Commissioner and also serves as the Chairman of Committee and 3 (three) members. The majority members of the Risk Oversight Committee are independent parties who have adequate level of professionalism to review, measure, and evaluate risks and Bank's effort to mitigate risks. Concurrent positions of Risk Oversight Committee have taken into consideration of competences, independency, discretion, and code of conduct, as well as respective duties and responsibilities implementation in accordance with applicable regulations. As of December 31 2015, the Risk Oversight Committee are as follows:

Name Suroto Moehadji

Position Chairman and also member

Muthu Chidambaram

Member

Irzal Zaini

Member

Ani Hadi Setyowati

Member

Profiles of Risk Oversight Committee Suroto Moehadji Chairman of Risk Oversight Committee Profile of Soeroto Moehadji could be found in the Board of Commissioners’ Profile section of this Annual Report. Muthu Chidambaram Member of Risk Oversight Committee Profle of Muthu Chidambaram could be found in the Board of Commissioners’ Profile section of this Annual Report. Irzal Zaini Member of Risk Oversight Committee Profle of Irzal Zaini could be found in Audit Committee Profile section of this Annual Report.


160


Decree of BOD No. 048/SK-DIR/XI/2011 dated November 28, 2011

Ani Hadi Setyowati Member of Risk Oversight Committee Citizen of Indonesia, 60 years old. She is appointed as member of Risk Oversight Committee of the Bank through Decree of Board of Directors No. 048/SK-Dir/XI/2011 dated November 28, 2011. Received her Bachelor degree in Economy from Brawijaya University, Malang in 1981 and Master degree in Management in Labora Management College, Jakarta in 1996 as well as Master in Administration from University of Indonesia in 2001. Prior to joining the Bank, she took up several posts in PT Bank Negara Indonesia (Persero) Tbk such as Auditor in Head Office (1981 – 1986), Finance Control Division (1986 – 2001), Human Resources Division (2001 – 2004), Compliance Division (2004 – 2009), Network and Services Division (2009 – 2010).

Annual Report 2015


In 2015, she actively attended competence development programs, among others “Role of Integrated Risk Management Committee to Achieve the Effectiveness of Implementation of Integrated Risk Management” panel discussion.

2.

Independence of Risk Oversight Committee

3.

In accordance with Bank Indonesia Regulation No. 8/4 / PBI / 2006 dated January 30, 2006, regarding the implementation of Good Corporate Governance for Commercial Banks, as amended by Regulation No. 8/14 / PBI / 2006 dated October 5, 2006 as well as Risk Oversight Committee Charter, members of Risk Oversight Committee should act independently as reflected in the following criteria: 1. Former members of the Bank’s Board of Directors or Executive Officer or other parties who have relationship with the Bank which can affect their capabilities to act independently, cannot be appointed as Independent Parties as the Bank’s Risk Oversight Committee member before having cooling-off for 6 (six) months. Such provision refers to Bank Indonesia’s circular letter No. 15/15/DPNP dated 29 April 2013 (except for the Board of Directors or Executive Officer who perform supervisory function).

Do not have direct or indirect relationship with the Bank. Provided that the members of Risk Oversight Committee has acquired shares from a legal action, they should transfer the shares to other people no later than 6 (six) months after the obtainment. Are not affiliated with the Bank, the Board of Commissioners, the Board of Directors and the Controlling Shareholder. Do not have a direct or indirect business relationship with the Bank.

4.

Financial or Familial Relations of Members of the Risk Oversight Committee Majority members of the Risk Oversight Committee has no affiliation with the Board of Commissioners, Board of Directors, members of other committees as well as the controlling shareholder. Thus, in carrying out their duties, members of the Risk Oversight Committee does not have a conflict of interest that may occur, so as ensuring the highest level of independence in performing its duties and responsibilities.

Financial or Familial Relations of Members of the Risk Oversight Committee Family Relationship with Name



Board of Directors




Board of Directors

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Suroto Moehadji

-

√

-

√

-

√

-

√

-

√

-

√

-

Muthu Chidambaram

-

√

-

√

-

√

-

√

-

√

-

√

-

Irzal Zaini

-

√

-

√

-

√

-

√

-

√

-

√

Ani Hadi Setyowati

-

√

-

√

-

√

-

√

-

√

-

√

Duties and Responsibilities of Risk Oversight Committee Duties and responsibilities of Risk Oversight Committee as stipulated in Risk Oversight Committee Charter of the Bank are as follows: 1. Prepare the annual general working plan of the Committee and submit it for the Board of Commissioners’ approval 2. Evaluate risk appetite and limits approved by the Board of Commissioners Annual Report 2015

3. 4.

5. 6. 7.

Controlling Shareholder Yes

No

√

-

√

√

√

-

-

√

-

√

-

√

-

√

Evaluate the suitability of the Bank’s risk management policies and their implementation Monitor and evaluate the performance of Risk Management Committee and Risk Management unit in order to provide recommendations to the Board Evaluate the Bank’s risk management policy at least 1 (once) a year Review the Charter at least 1 (once) a year and perform the proposed amendments if necessary Conduct self-assessment on effectiveness of the Committee at least 1 (once) a year PT Bank QNB Indonesia Tbk

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8.

Evaluate accountability of the risk management policy of the Board of Directors at least on quarterly basis 9. Cooperate with external consultants, accountants, or other external parties, if necessary 10. Perform other tasks, in addition to the above, are given by the Board of Commissioners to the Committee when necessary

Risk Oversight Committee Charter The Risk Oversight Committee Charter contains work guideline and procedure as a foundation for Risk Oversight Committee to carry out its function and role. The Charter is continuously improved and renewed in accordance with the development/changes of prevailing regulation as well as latest condition. The last renewal of Risk Oversight Committee Charter took place in 2013 which is affirmed in the Charter No. 3-00 dated June 12, 2013 regarding the Risk Oversight Committee Charter. Among the matters regulated about organization, quorum, Risk Oversight Committee meetings, duties, procedures, reports and term of office.

Meetings of Risk Oversight Committee To support its duties and responsibilities implementation as mandated in Charter of Risk Oversight Committee, Risk

Oversight Committee Meetings are held regularly with the following provision: 1. The Risk Oversight Committee’s meetings should be held at least 4 (four) times a year, additional meetings can be held at any time if necessary, in accordance with the policy of the Risk Oversight Committee. 2. The members of Board of Directors, Board of Commissioners, and Bank’s employees attend Risk Oversight Committee meeting by invitation from the Risk Oversight Committee. 3. External parties can be invited to attend the meeting if deemed necessary. 4. The meeting is chaired by the Chairman or the most senior member of Risk Oversight Committee in the event the Chairman was absent. 5. In case of dissenting opinions in the Risk Oversight Committee meetings, the dissenting opinions should be stated in the minutes of the meeting as well as its reason. 6. The minutes of the meeting should be signed by all members of Risk Oversight Committee in attendance. All minutes of the meeting should be shared all members of Risk Oversight Committee, the Board of Directors, and the Board of Commissioners. 7. The Risk Oversight Meeting can only be held if attended by at least 51% (fifty one percent) from total members.

The Meetings and Agenda of the Meetings of the Risk Oversight Committee No.

Meeting Date

Meeting Agenda

1.

January 22, 2015

1. 2. 3.

Report from Risk Director Bank’s Soundness Level and Risk Profile 2015 Risk Appetite Statement & Industry Limit

2.

April 20, 2015

1. 2. 3. 4. 5.

Report from Risk Director Bank’s Soundness Level Credit Risk Market and Liquidity Risk Operational Risk and Other Risks

3.

June 25, 2015

1. 2. 3. 4.

TOP QNB Indonesia Risk Review of Industry Sector Limit Credit Risk Market and Liquidity Risk, Operational Risk, and Other Risks

4.

September 28, 2015

1. 2. 3. 4.

Peer Bank Analysis Stress Test Credit Risk Market and Liquidity Risk, Operational Risk, and Other Risks

5.

November 23, 2015

1. 2. 3. 4. 5. 6. 7.

Risk Profile at Q3-2015 and Risk Appetite Back Testing Q3-2015 USD Loan Portfolio Limit Peer Bank Analysis Credit Risk Market and Liquidity Risk, Operational Risk, and Other Risks New Regulations update 2016 Risk Oversight Committee Calendar


162

Annual Report 2015


Frequency of Risk Oversight Committee Meetings and Attendance Record In 2015, the Risk Oversight Committee has conducted meetings for 5 (five) times. The following table shows the attendance frequency of each member of the Risk Oversight Committee in the meetings. Risk Oversight Committee Meetings Name

Position

Physical Attendance

Video Conference

% Attendance

Suroto Moehadji


4

-

80%

Muthu Chidambaram

Member

3

1

80%

Irzal Zaini

Member

5

-

100%

Ani Hadi Setyowati

Member

5

-

100%

Implementation of Duties of Risk Oversight Committee Throughout 2015, the Risk Oversight Committee has carried out many activities to assist Board of Commissioners in performing supervisory function over the Bank's activities and operation. The implementation of Risk Oversight Committee work program in 2015 are as follows: 1. 2.

3.

Formulate report on the results of Risk Oversight Committee activities, periodically. Evaluate the implementation of duties of Risk Management division and Risk Management Committee on semi-annually basis. Evaluate the implementation of risk management as a base of Risk Profile report and evaluate the risk management potential which covers credit risk, market risk, liquidity risk, operation risk, legal risk, reputation risk, strategic risk, and compliance risk.

Annual Report 2015

4.

5. 6.

7.

Evaluate several matters such as reports of Risk Director, the Bank’s soundness level, top 30 obligor, loan portfolio, RCSA update, business continuity management update, risk dashboard, risk register and risk oversight committee calendar Update on fine or sanctions imposed on the Bank by regulators. Supervise procedure and policies of Treasury and ALMA as well as Circular Letter on procedure of industry limit for lending. Evaluate the realization of the Risk Oversight Committee’s work plan in 2015.


163


Board of Directors The Board of Directors is one of the company’s organ which authorized and fully responsible on the management for the interest of the company. Each member of the Board of Directors could carry out its duty and take decisions in accordance with their respective assignments and authorities. However, the execution of tasks by each member of the Board of Directors remains to be a collective responsibility. The position of each member of the Board of Directors including President Director is equal. The duty of the President Director as primus inter pares is to coordinate the activities of the Board of Directors.

b. c.

Able to perform legal acts In 5 (five) years before appointment and during the service: 1) Never been declared bankrupt. 2) Never been a member of Board of Directors and/or Board of Commissioners that convicted guilty causing the bankrupcy at any company. 3) Never been convicted of a criminal offense that harm the country financial and/or related to the financial sector, and 4) Never being a member of Board of Directors and/or Board of Commissioners that during the services: » Have not organize the Annual GMS » His/Her responsibility as a member of Board of Directors and/or Board of Commissioners was not accepted by the GMS or have not declared responsibility as a member of Board of Directors and/or Board of Commissioners to the GMS, and » Have caused a company that obtained a license, approval, or registration from FSA did not meet the obligation to deliver annual report and/or financial report to FSA. 5) Have a commitment to comply with the prevailing law and regulation, and 6) Have knowledge and/or skills need by the Bank as a public company. 7) Meet the requirement of integrity, competency and financial reputation as determined.

In addition, the Board of Directors is also responsible to represent the Bank inside and outside the court in accordance with the Articles of Association and Limited Liability Company No. 40 Year 2007. Duties and responsibilities of the Board of Directors are regulated in the Bord of Directors Charter which is also in compliance with the prevailing laws and regulations. In performing its duties, the Board of Directors is responsible to the GMS. Members of the Board of Directors are appointed and dimissed by the GMS by considering the recommendation from Remuneration and Nomination Committee.

Criteria and Procedures for the Appointment of Members of Board of Directors Pursuant to the BI Regulation No. 8/4/PBI/2006 dated January 30, 2006 regarding the implementation of Good Corporate Governance for Commercial Banks, as amended by PBI No. 8/14/PBI/2006 dated October 5, 2006 and FSA Regulation No. 33/POJK.04/2014 dated December 8, 2014 regarding the Board of Directors and Board of Commissioners of Issuers or Public Companies, the members of Board of Directors should meet the requirements of integrity, competency, financial reputation as well as passing the Fit and Proper Test as required by Bank Indonesia Regulation No. 12/23/PBI/2010 dated December 29, 2010 regarding Fit and Proper Test. Appointment Criteria With reference to the Board of Directors Charter, a candidate member of the Board of Directors must meet the criteria and independence requirements as follows: 1. Person who meets the requirements upon appointment and during his/her tenure: a. Have a good character, morale, and integrity PT Bank QNB Indonesia Tbk

164

2.

3.

4.

5.

The majority of members of the Board of Directors shall have at least 5 (five) years of experience as an Executive Officer in a Bank. Any proposal to replace and/or appoint member of the Board of Directors by the Board of Commissioners to the GMS, must consider the Remuneration and Nomination Committee’s recommendation. Each member of the Board of Directors must meet the requirement of having passed the Fit and Proper Test pursuant to FSA regulation concerning Fit and Proper Tes Each member of the Board of Directors is prohibited from holding another position as a member of the Board of Commissioners, the Board of Directors or Executive Officer at any other Bank, company and/or institution. Annual Report 2015


6.

7.

Excluded from the double position is when the member of the Board of Directors responsible for supervising the Bank’s investment in its subsidiary, performs functional duty as a member of the Board of Commissioners at a non-Bank or company controlled by the Bank, insofar that he/she does not forsake the implementation of their duties and responsibilities as a member of the Board of Directors of the Bank. Each member of the Board of Directors both individually or jointly is prohibited from owning shares of more than 25% (twenty-five percent) of paid-in capital in any other company. The majority of members of the Board of Directors is prohibited from having family relationship up to the second degree with any other members of the Board of Directors and/or members of the Board of Commissioners.

Appointment Procedure The candidate members of the Board of Directors are appointed provided that they have met the aforementioned criteria including passing the Fit and Proper Test with the following procedure: 1. Members of the Board of Directors shall be appointed by the Bank’s GMS. 2. Members of the Board of Directors must meet the requirement of successful completion of Fit and Proper Test in accordance with the provisions of Bank Indonesia and/or FSA regarding Fit and Proper Test and must fulfill the provisions of Bank Indonesia and/or FSA regarding the Implementation of Good Corporate Governance for Commercial Banks 3. Members of the Board of Directors who have obtained approval for Fit and Proper Test from the FSA shall be appointed by the GMS no later than 6 (six) months after the date of approval of the FSA. If the 6 (six) month period has expired and the appointment has not been made by the GMS, the approval from FSA will not applicable. 4. The appointment of members of the Board of Directors by the Bank’s GMS shall be deemed effective after the relevant member of the Board of Directors has obtained the approval of FSA. Corporate Secretary Division shall be responsible for submitting applications, including the documentations required, in order to obtain the approval of Financial Services Authority.

Annual Report 2015

5.

6.

7. 8.

The term of office of the Board of Directors shall commence as of the date determined by the GMS in which she/he (they) is/are appointed, and shall expire in 1 (one) term of office. 1 (one) term of office of the Board of Directors is 3 (three) years or at the adjournment of the Annual GMS at the end of 1 (one) term of office, unless otherwise decided by the GMS. The Bank is obligated to submit the report on the appointment of members of the Bank’s Board of Directors to FSA by no later than 10 (ten) workdays following the effective appointment date, along with the minutes of the GMS. The report will be submitted by Corporate Secretary Division. Members of the Board of Directors whose term of office expires may be reappointed Term of office for Independent Directors is 2 (two) consecutive terms at most

Dismissal Procedure Dismissal of the member of Board of Directors shall be performed by GMS. The tenure of the members of the Board of Directors shall expire if such member of the Board of Directors: 1. The term of office expires 2. Is declared bankrupt or placed under custody based on a court ruling; or 3. Resigns pursuant to the prevailing provisions; or 4. No longer complies with the requirements of prevailing laws and regulations; or 5. Is deceased; or 6. Is dismissed by the decision of GMS

Total and Composition of Board of Directors Composition and total members of the Bank’s Board of Directors are generally established by taking into account its vision, mission, and strategic plans to allow a more effective, accurate, and faster decision making as well as independent actions. Based on the resolution of the Annual GMS held on February 27, 2015, Novi Mayasari was appointed as the Bank’s Director. This appointment was being effective on October 2, 2015 based on approval from FSA No. SR182/D.03/2015 on fit and propert test. In addition, the Extraordinary of GMS held on October 9, 2015 received the resignation of Hery Syafril as Director of the Bank.


165


As of December 31, 2015, the Board of Directors consists of 1 (one) President Director and 5 (five) Directors, with the composition as follows: Name

Position

First Appointment

BI or FSA’s Approval

Terms of Office

Fit and Proper Test by

President Director

EGM March 4, 2013

October 25, 2013

2013-2015 2015-2018

Bank Indonesia


Director

AGM, June 24, 2011

July 5, 2011

2011-2012 2012-2015 2015-2018

Bank Indonesia

Lloyd Rolston

Director

EGM, September 16, 2011

May 10, 2012

2011-2012 2012-2015 2015-2018

Bank Indonesia

Rusli

Director

EGM, April 15, 2002

November 29, 2001

2002-2003 2003-2006 2006-2009 2009-2012 2012-2015 2015-2018

Bank Indonesia


Director

EGM, November 29, 2012

February 25, 2013

2012-2015 2015-2018

Bank Indonesia

Novi Mayasari

Director

AGM February 27, 2015

October 2, 2015

2015-2018


Andrew Duff

All members of the Board of Directors has passed fit and proper test, fulfilled the prevailing regulations, and has integrity, competency and good financial reputation.

2.

Diversity in the Composition of Members of the Board of Directors

4.

Composition of the Board of Directors is established by taking consideration of the need and complexity of the Bank. In general, the composition is based on banking knowledge, capability, professional experience as well as experience in order to support the effectiveness of the Board of Directors’ duties implementation. The nomination of candidate is carried out with reference to the aforementioned criteria regardless of gender, race, ethnic, or religion, and initial recommendation source.

Independence of Board of Directors Independent Director In accordance with Indonesia Stock Exchange regulation, the Bank must have at least 1 (one) Independent Director, which fulfilled the requirements as follows: 1. Not affiliated with the Bank’s controlling Shareholders at least 6 (six) months prior to the appointment as Independent Director;


166

3.

Not affiliated with the Board of Commissioners or Board of Directors of the Bank; Not having concurrent position as member of the Board of Directors in other companies; Not affiliated with institutions or professionals supporting the capital markets where its services are used by the Bank 6 (six) months prior to the appointment as Director.

The term of office of an Independent Director is at most 2 (two) consecutive terms. In the event an Independent Director’s position is vacant, then the Bank must fill such vacant position at the latest by the next GMS or within 6 (six) months after such vacancy occurs. The appointment of Independent Director was based on recommendation of Remuneration and Nomination Committee which approved by Board of Commissioner and appointed by the GMS. The Extraordinary of GMS held on October 9, 2015 approved the appointment of Windiartono Tabingin as an Independent Director of the Bank. The appointment became effective since the adjournment of Annual General Meeting of Shareholders of the Bank held on February 27, 2015 up to the adjournment of Annual General Meeting of Shareholders of the Bank to be convened in 2018.

Annual Report 2015


Financial or Familial Relations of Members of the Board of Directors

of Commissioners, Board of Directors or Executive Officer at the Bank or other institution as governed in the regulation on the implementation of good corporate governance for commercial banks.

All members of the Bank’s Board of Directors are independent, do not have financial, management, share ownership, and familial relationship with any other member of Board of Directors, Board of Commissioners and Ultimate Shareholders. All members of the Board of Directors are not having dual position as member of Board

The members of the Board of Directors of the Bank shall act independently, so there is no conflict of interest in the execution of their duties and responsibilities. The familial and financial relationship between members of the Board of Directors, Board of Commissioners and Ultimate Shareholders are as follows:

Financial or Familial Relations of Members of the Risk Oversight Committee Family Relationship with Name


Board of Directors



Board of Directors


Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Andrew Duff

-

√

-

√

-

√

-

√

-

√


-

√

-

√

-

√

-

√

-

√

Lloyd Rolston

-

√

-

√

-

√

-

√

-

√

Rusli

-

√

-

√

-

√

-

√

-

√


-

√

-

√

-

√

-

√

-

√

Novi Mayasari

-

√

-

√

-

√

-

√

-

√

Share Ownership by Board of Directors

No √

-

√

-

√

-

√

-

√

-

√

Each member of the Board of Directors both individually or jointly is prohibited from owning shares of more than 25% (twenty-five percent) of paid-in capital in any other company.

The Bank requires the members of Board of Directors to disclose their share ownership, both in PT Bank QNB Indonesia Tbk and other companies, which are located in Indonesia and abroad. Such disclosure should be updated every year.

Board of Directors

Yes -

In 2015, all the members of Board of Directors did not own share of more than 5% (five percet) or more than the paidup capital in the Bank, other banks, non-bank financial institution, and any other companies in Indonesia and abroad. Share Ownership >5%

Bank QNB Indonesia

Other Bank

Non-Bank Financial Institution

Other Companies

Andrew Duff

-

-

-

-


-

-

-

-

Lloyd Rolston

-

-

-

-

Rusli

-

-

-

-


-

-

-

-

Novi Mayasari

-

-

-

-

Annual Report 2015


167


Concurrent Position of Board of Directors

4.

In performing duties and responsibilities of management function, the Board of Directors must organize Annual GMS and other GMS as stipulated in the prevailing law, regulations, and Article of Association of the Bank.

5.

Each member of the Board of Directors shall carry out their duties and responsibilities in good faith, full of responsibility and prudence and with due regard to the law regulations and the Articles of Association of the Bank.

6.

In the event the Bank has conflict of interest with members of the Board of Directors and/or other parties related to the Bank, the members of Board of Directors are prohibited from taking actions that may harm the Bank or reduce the profits of the Bank and must disclose the conflicts of interest referred to in any decision.

7.

Duties and Responsibilities of Board of Directors

Disclosure of conflict of interest shall be set forth in minutes of meeting which must at least include the name of the party having a conflict of interest, principal issue of the conflict of interest and the underlying consideration of the decision made.

8.

The Board of Directors is an internal organ that is responsible for controlling and managing the Bank’s performance. Thus, the duties and responsibilities of the Board of Directors are stipulated in the Bank’s Articles of Association, the Board of Directors Charter, and in accordance with the prevailing laws and regulations. In general, the duties and responsibilities of the Board of Directors are as follows:

The members of Board of Directors are prohibited from granting general authority to other parties resulting in the transfer of duties and functions of the Board of Directors. Granting general authority means granting authority to one or more employees or another person resulting in the transfer of duties, authorities and responsibilities of the Board of Directors in entirety, namely without limitation of scope and time.

9.

Without prejudice to their responsibilities, the Board of Directors have the right to appoint one or more authorized representatives to act on behalf of the Board of Directors, and for that purpose should provide authorization letter. In the authorization letter, the representatives are authorized to carry out specific actions within certain financial limit and expiry date for the authorisation. Such authorization cannot be transferred to other party.

Each member of the Board of Directors is prohibited from holding another position as a member of the Board of Commissioners, the Board of Directors or Executive Officer at any other Bank, company and/or institution. Excluded from the double position is when the member of the Board of Directors responsible for supervising the Bank’s investment in its subsidiary, performs functional duty as a member of the Board of Commissioners at a non-Bank or company controlled by the Bank, insofar that he/she does not forsake the implementation of their duties and responsibilities as a member of the Board of Directors of the Bank. The Board of Directors must disclose their concurrent positions in a statement which is then signed by the concerned Director. All members of the Bank’s Board of Directors do not have concurrent position prohibited by the Bank Indonesia regulation No. 8/4/PBI/2006 as amended by Bank Indonesia regulation No.8/14/PBI/2006 on the implementation of Good Corporate Governance for Commercial Banks.

1.

Carry out management the Bank for the interest and in accordance with the purposes and objectives of the Bank act as a leader in the management.

2.

Maintain and manage the asset of the Bank.

3.

The Board of Directors are fully responsible for carrying out their duties for the Bank's interest in reaching its goals and objectives.


168

10. In carrying out their function, the Board of Directors should refer to the Good Corporate Governance implementation standards, including but not limited to the following:

Annual Report 2015


a.

The Board of Directors are required to implement Good Corporate Governance principles in all Bank's business activities in all organizational level, which should at least be implemented in: 1) Implementation of duties and responsibilities of the Bank's Board of Directors. 2) Completeness and implementation of committees' and business units' duties in carrying out bank internal control function. 3) Implementation of compliance, internal, and external audit function. 4) Implementation of risk management, including internal control system 5) Implementation of prudent banking principles in provisioning of fund to the related party, and provisioning of large fund. 6) Implementation of prudent banking principles in establishing Bank's strategic plans. 7) Transparency of financial and non-financial conditions of the Bank not yet disclosed in any other report. 8) Other information related to Good Corporate Governance of the Bank among others in the form of owner’s intervention, internal dispute or problems arising as the impact of remuneration policy on the Bank. b.

The Board of Directors are required to establish: 1) Internal Audit function unit 2) Risk Management function unit and Risk Management Committee; and 3) Compliance function unit.

c.

The Board of Directors are required to followup audit finding and recommendation from the Bank’s internal audit, external auditor, Bank Indonesia’s audit finding and/or supervisory result from other authority agency

d.

The Board of Directors are obligated to communicate the Bank’s strategic Human Resource policies to the employees, among others policies on recruitment system, promotion system, remuneration system as well as the Bank’s plan to perform efficiency by reducing the number of employees, subject to confidentiality. Such disclosure must be conducted through known methods or easily accessible by employees.

Annual Report 2015

e.

f.

The Board of Directors are required to provide complete, accurate, relevant, and timely data and information to the Board of Commissioners The Board of Directors are required to report the implementation of their duties to the shareholders in the GMS

11. In order to support the effectiveness of the implementation of duties and responsibilities, the Board of Directors may establish committees. 12. In the event that the committee was formed, the Board of Directors shall evaluate the performance of the committee at the end of fiscal year. 13. Each member of the Board of Directors are jointly and severally liable for the Bank’s losses caused by mistakes or negligence members of Board of Directors in carrying out their duties. 14. Members of Board of Directors cannot be held responsible for Bank’s losses if it can be proved that: a. The loss was not due to his/her mistakes or negligence. b. Has conducted management in good faith, full of responsibility and prudence for the Bank’s interest and in accordance with the Bank’s purposes and objectives c. Does not have conflict of interest both directly or indirectly over the management action which resulted in losses, and d. Has taken measures to prevent such losses arising or continuing. 15. The Board of Directors is prohibited to use the advice of any personal and/or professional consulting service except under the following conditions: a. The project is special in nature. b. Based on a clear contract, which at least includes the work scope, responsibility, period and cost. c. The consultant is an independent party and posses the quality to handle special project as referred to in point a.


169


16. Members of the Board of Directors must improve competencies through education and training continuously, be familiar with banking regulations and have general knowledge, especially on economy In regard to the Bank’s management, each member of Board of Directors also has a scope of work and responsibilities as follows:

Scope and Description of Duties of Individual Directors President Director 1. Coordinate the implementation of the management of the Bank and together with Board of Directors establish the Company’s strategic plan. 2. Lead the business network development for the benefit of the Bank 3. Coordinate, direct and supervise each Directorate in the Bank continually in order to operate smoothly, effectively, efficiently and keep on track to the Bank’s long term strategies. 4. Direct the business performance of the Bank and maximizing revenue in accordance with short-term and long-term targets of the Bank. 5. Promote the Bank’s image and to participate in building good relations with customers, monetary authorities and other stakeholders. 6. Direct the contribution from each Directorate to the competitiveness and achievement of the Bank’s business profits through effective planning and control over the management of the Company’s resources as well as the performance and risk. 7. Supervise the Board of Directors and Divisions under his/her responsibility directly, in accordance with Bank’s organization structure. 8. Lead and direct the human resources empowerment policy to be in line with the Bank’s strategies and in order to achieve the Bank’s goal Chief Business Director 1. Lead and direct the development and implementation of policies and strategies in business area, in line with the Bank’s goals and strategies. 2. Support the President Director to build business network for the benefit of the Bank


170

3.

4. 5.

6.

Lead, direct and coordinate the development products and service launched by the Bank to ensure achievement of growth, profitability and competitive products. Ensure the fulfillment of customer-oriented approach and strategic relationship approach. Contribute to the competitiveness and achievement of the Bank’s business profits through effective planning and control over the management of the resources under business directorate as well as the performance and risk Supervise directly the Divisions under his/her responsibility, in accordance with Bank’s organization structure

Risk Director 1. Lead and direct the development and implementation of policies and strategies in risk management for all risk categories including, credit review in line with the Bank’s goals and strategies. 2. Responsible for ensuring the credit review process operates independently and implement prudence principles 3. Responsible for asset quality monitoring and credit portfolio oversight 4. Facilitate, coordinate, and advise on the identification, analysis, measurement, and mitigation of all risks on a sustainable basis 5. Contribute to the competitiveness and achievement of the Bank’s business profits through effective planning and control over the management of the resources under Risk directorate as well as the performance and risk 6. Supervise the Divisions under his/her responsibility directly, in accordance with Bank’s organization structure Operations Director 1. Lead and direct the development and implementation of policies and strategies in the areas of operations, information technology, internal control and general services, in line with the Bank’s objectives and strategy 2. Responsible for leading and managing systems and processing units in order to provide cost efficiency, centralized technology and operations support, and to ensure that the support meets the latest business requirements and that the maximum contribution has been given to meet the strategic and business objectives

Annual Report 2015


3.

4.

5.

6.

Improve the standard and process of operational activities by sponsoring the transformational adoption of the standard core process to delivering the best result in terms of end-to-end performance, cost management, and customer service. Sharing the best practices in each field by providing expertise and advice in order to achieve efficiency, scale of economy, and quality. Coordinate and direct the development of the Bank’s services strategy, communication consolidation, and programs to enhance customer service quality. Contribute to the competitiveness and achievement of the Bank’s business profits through effective planning and control over the management of the resources under Operations directorate as well as performance and risk Supervise the Divisions under his/her responsibility directly, in accordance with Bank’s organization structure.

Compliance Director 1. Lead and direct the development and implementation of policies and strategies in compliance, legal and corporate secretary areas, in line with the Bank’s goals and strategies 2. Formulate strategies to encourage compliance culture, establish compliance systems and procedures that will be used to develop the Bank’s internal policies and guidelines 3. Ensure that all policies, internal rules, systems, and procedures as well as the Bank’s business activities are conducted in accordance with the prevailing law and regulations to minimize the Bank’s Compliance Risk. 4. Coordinate, direct and implement the principles of good corporate governance. 5. Ensure that the fulfillment of reporting has been conducted as stipulated by regulators. 6. Ensure the fulfillment of action plans and commitments of the Bank to regulators. 7. Coordinate, direct and monitor the handling of complex bank-wide legal matters through legal advice. 8. Coordinate, direct and monitor the implementation process of corporate action. 9. Contribute to the competitiveness and achievement of the Bank’s business profits through effective planning and control over the management of the resources under Compliance directorate as well as the performance and risk.

Annual Report 2015

10. Supervise the Divisions under his/her responsibility directly, in accordance with Bank’s organization structure. Human Resources Director 1. Lead and direct the development and implementation of policies and strategies in human resources area, in line with the Bank’s goals and strategies 2. Responsible to manage the empowerment of human resources, such as ensuring the growing of performance driven culture and maintaining harmonious relationship within the Bank 3. Ensure the Bank’s ability to attract, develop, motivate, and maintain the human resource needed by the Bank to achieve its vision 4. Coordinate and ensure the implementation of good industrial relationship 5. Ensure that human resource management operations run in accordance with the prevailing legislation 6. Contribute to the competitiveness and achievement of the Bank’s business profits through effective planning and control over the management of the resources under Human Resources directorate as well as the performance and risk 7. Supervise Divisions under his/her responsibility directly, in accordance with Bank’s organization structure.

Board of Directors Charter In order to ensure the effectiveness of the implementation of its role and functions, the Board of Directors has formulated the Board of Directors Manual which established in the Board of Directors Charter No. 01.07.00 dated July 30, 2015. The Charter contains accountability; structure and membership; criteria and independence; term of office; duties and responsibilites; authorities; work ethics; work value; Board of Directors meeting; as well as reporting and responsibility of the Board of Directors. This Board of Directors Manual is established by referring to the prevailing regulations as well as best practices and being reviewed regularly


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Work Ethics of the Board of Directors As stipulated in the Board of Directors Charter, all members of the Board of Directors: 1. Shall comply with the code of conduct of the Bank and all provisions set by the Bank including the Bank's Articles of Association and its amendments in the future. 2. Are prohibited to make use of the Bank for personal, familial and/or other party's interest, which can harm or reduce the Bank's profit.Are prohibted to take and/ or receive personal benefit from the Bank, other than remuneration and other facilities established in GMS. 3. In the event of any incident/action which has the possibility adverse impact the Bank’s operational, financial and/or reputation, the members of the Board of Directors must escalate it to all other members of Board of Directors 4. Must not directly or indirectly, make false statement concerning material fact or conceal material fact which would make a statement concerning Bank’s condition at the time of the statement, misleading. Transparency of the Board of Directors The Board of Directors Charter also regulates transparency aspect, in which all of the members of the Board of Directors must disclose the following matters in the Bank’s Implementation of Good Corporate Governance Report: 1. His/her share ownerships which reached a total of 5% of the paid-up capital or more, both in the Bank and other Banks or companies, domiciled in Indonesia or overseas. 2. Financial and familial relation with members of the Board of Commissioners, other member of the Board of Directors and/or Bank’s controlling shareholders. 3. Other remuneration and facilities package provided by the Bank. 4. His/her positions at other companies


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In addition, the Board of Directors is obliged to disclose Bank’s strategic policies in human resouces to the Bank’s employees.

Duties Implementation of Board of Directors Throughout 2015, the Board of Directors have fulfilled their duties and responsibilities for the interest of the Bank in accordance to its purposes and objectives. Among others, the Board of Directors have made strategic decisions and taken necessary actions in the following matter: 1. Formulate the Bank’s Business Plan for 2015-2017. 2. Formulate Bank’s strategic map. 3. Formulate strategic policies in human resources management. 4. Formulate strategic policies in funding and lending. Board of Directors Orientation Program In the Annual GMS held on February 27, 2015, Novi Mayasari was appointed as Director of the Bank. The Bank conducted orientation program for her by sharing Annual Report, Quarterly Financial Report, Bank’s Business Plan and Board of Directors Manual as well as risk management trainings and discussion with Board of Directors as a reference and overview of the Bank’s business activities to support the implementation of her function as a Director. Training and Competence Development Program The Board of Directors also took part in training programs to enhance their knowledge on the latest developments in the banking industry and other knowledge related to the implementation of the duties and responsibilties of the Board of Directors.

Annual Report 2015


The training programs provided to the Board of Directors in 2015 Name Andrew Duff


Novi Mayasari

Lloyd Rolston

Rusli

Annual Report 2015

Position President Director


Director

Director

Director

Date

Type

Program

Place

June 3, 2015

Inhouse

Developing Great Talent

Jakarta

September 21, 2015

Inhouse

QNB Values for Leader

Jakarta

March 30, 2015

External

Branchless Banking as an enhancement of E-Channels product & services in order to increase profit of financial services institution

Jakarta

June 3, 2015

Inhouse


Jakarta

August 26-27, 2015

External

Global Payment Summit

Singapore

September 21, 2015

Inhouse


Jakarta

January 27, 2015

Inhouse

Training for Risk Management LSPP Level 5 Certification

Jakarta

May 6-8, 2015

External

The 3rd Industrial Relations Convention 2015

Bandung

June 3, 2015

Inhouse


Jakarta

June 16, 2015

External

Draft of Government Rules

Jakarta

September 21, 2015

Inhouse


Jakarta

E-Learning

Anti Money Laundering and Combating the Financing of Terrorism

Jakarta

January 2, 2015

June 3, 2015

Inhouse


Jakarta

June 3, 2015

Inhouse


Jakarta

August 26, 2015

External

Refreshment of Risk Management Certification “Liquidity Risk Management in Banks“

Jakarta

September 21, 2015

Inhouse


Jakarta

September 17-18, 2015

External

Revamping the capability in loan analysis Workshop by BaRa Risk forum

Yogyakarta


173


Name Windiartono Tabingin

Position Director

Date

Place

External

7th IFSB Public Lecture on Financial Policy and Stability : IFSB Seminar on Enhancing Financial Inclusion Through Islamic Finance

Jakarta

June 9, 2015

Inhouse


Jakarta

June 3, 2015

External

International Seminar on Financial Literacy to Support Financial Inclusion

Bali

August 20-24, 2015

External

Workshop for Banking Assessor Candidate

Jakarta

September 21, 2015

Inhouse


Jakarta

November 17, 2015

External

Risk & Governance Summit 2015

Jakarta

November 23, 2015

External

Sustainable Finance to Support Sustainable Development Goals

Jakarta

The performance evaluation of the Board of Directors is conducted through self-assessment which is then reviewed by the Board of Commissioners. In general, the basic foundation of the Board of Directors’ assessment is the performance of the Board of Directors in implementing the vision and mission of the Bank in the current year as well as the implementation of GCG. Moreover, the Board of Commissioners monitors the Board of Directors regarding the achievement of targets set by the Bank, especially the implementation of the Bank’s Long-Term Plan, the Bank’s Business Plan and Budget, as well as the resolutions of GMS.

174

Program

March 31-April 1, 2015

Evaluation of the Board of Directors Performance


Type

The assessment of the Board of Directors is also supported by the recommendations from the Remuneration and Nomination Committee. The recommendations serve as the second opinion related to the assessment criteria on remuneration for members of the Board of Directors, both individually and collectively. The Board of Commissioners accounts for its assessment result as a consideration in the GMS which will then be decided by all shareholders

Policy concerning the Succession of the Board of Directors The Board of Directors succession is determined by GMS. In selecting and appointing new Director, GMS also takes into account the recommendation on candidate members proposed by the Remuneration and Nomination Committees in accordance with the Articles of Association and provisions set forth by the shareholders. In addition, the Bank has also currently developed internal talent and succession management program.

Annual Report 2015


Policy and Procedure of Board of Directors Remuneration System Board of Directors Remuneration Policy In accordance with the Bank’s Articles of Association, salary or honorarium and other allowances for the Board of Directors are established by the GMS. In general, the Bank determines remuneration package by referring to the Bank’s internal policies, prevailing laws and regulations, industry comparison, and with taking into account the Bank’s performance in current year. The amount of remuneration for the Board of Directors’ members is set based on their performance. Board of Directors Remuneration Procedure Board of Directors Remuneration procedure consists of several phases which include formulation, analysis, proposal, and establishment. The formulation of remuneration policy and proposal is carried out by the Remuneration and Nomination

Position

Board of Directors

Type of Remuneration

Committee by gathering information about remuneration standard for the position and the similar industry in the market and taking into account the Bank’s performance as well as the assessment results of the Board of Directors and inflation growth rate. In 2015, the Annual GMS held on February 27, 2015 approved the granting authority to Qatar National Bank, as the majority Shareholders of the Bank to determine the 2015 salary or honorarium and other allowances for each member of the Board of Directors. The determination of salary or honorarium and other allowances for each member of the Board of Directors by considering the recommendation from Remuneration and Nomination Committee of the Bank. The Board of Directors’ remuneration package comprised of: 1. Gross Remuneration (Salary, Allowances, Bonus/ Tantiem and Other facilities in Non-Natura Form); 2. Other facilities (health insurance and others) The Board of Directors’ remuneration structure and amount in 2015 are as follows:

Amount Received in a Year Number of People

Million of Rupiah

Remuneration (Gross salary, bonuses, routine allowances, and other facilities in the form of non-in kind)

7

37,706

Other Facilities in the form of in kind (housing, transportation, health insurance, and others) 1. may be owned 2. may not be owned

7

99

Total

37,805

Note: - One Director left the Bank on October 9, 2015 - One Director joined the Bank since October 2, 2015

Total Remuneration per Person in 1 (one) year*)

Total Board of Directors

Above Rp 2 billion

7

Above Rp 1 billion – Rp 2 billion

-

Above Rp 500 million – Rp 1 billion

-

Rp 500 million and below

-

*) received in cash

Annual Report 2015


175


Meetings of the Board of Directors

8.

In accordance with Bank’s Articles of Association and other prevailing regulations, meetings of the Board of Directors are held regularly with the provision and procedure as follows:

At the scheduled Board of Directors meeting, the meeting material should be distributed to the participants of the meeting no later than five (5) days before the meeting.

9.

In the event there’s an unscheduled Board of Directors meeting, the material of the meeting should be distributed to the participants before the meeting is held, at the latest.

1.

Board of Directors meeting is to be held at least once a month, unless deemed necessary by one of the members of the Board of Directors, or through written request from one or more of the members of the Board of Commissioners, or through written request from one or more of the shareholders representing 1/10 (one tenth) of the total shares issued by the Bank with valid voting right.

2.

The Board of Directors must prepare the next year BoC meeting schedule before the end of the fiscal year.

3.

The Board of Directors sets strategic policies and decisions through the mechanism of Board of Directors meeting

4.

The call of Board of Directors meeting is carried out by members of the BoD authorized to represent the Bank’s Board of Directors.

5.

The call for the meeting of Board of Directors shall be delivered in written or submitted directly with proper receipt or by way of Registered mail or courier, telex or facsimile or any other communication tools. The invitation should be delivered to members of Board of Directors no less than 5 (five) calendar days before the Board of Directors meeting or in a shorter period of time in urgency no later than one (1) calendar day in advance. Urgent circumstances established by the President Director or a majority of members of Board of Directors.

6.

7.

Meeting call in advance is not required if all members of the Board of Directors are present and/or represented in the Board of Directors meeting or if the Board of Directors meeting has been scheduled based on the decision of the previous Board of Directors Meeting which attended or represented by majority of members of the Board of Directors. The Board of Directors meeting’ call shall contain the agenda, date, time and venue of the meeting


176

10. The Board of Directors meeting is convened in the office of the Bank or office where the Bank conducts its main business or in the capital of province where the Bank conducts its main business or in the province of Stock Exchange domicile where Bank shares is listed, as long as within the territory of Republic of Indonesia.

In the event that all members of the Board of Directors present and/or represented, the Board of Directors meeting may be held anywhere within the territory of Republic of Indonesia and has the right to make valid and binding decisions

11. President Director presides over the Board of Directors Meeting. In case the President Director was not present or not able to attend the Board of Directors meeting, which does not have to be proven to the third party, therefore the Deputy President Director shall preside over the Board of Directors meeting. In case the Deputy President Director were not present or not able to attend the Board of Directors Meeting, that does not have to be proven to the third party, therefore one of the members of the Board of Directors, that were present and nominated in the Meeting, shall preside over the Board of Directors meeting. 12. A member of the Board of Directors that unable to attend the Board of Directors meeting, may nominate other member of Board of Directors to represent him in the Board of Directors meeting based on proxy. However, he/she must inform the Corporate Secretary prior to the Board of Directors meeting. 13. The Board of Directors Meeting is valid and authorized to make binding decision if more than 1/2 (one half) of the total members of the Board of Directors were present in the Meeting. 14. The attendance of Board of Directors members in the meeting must be disclosed in the Bank’s Annual Report Annual Report 2015


15. Decisions of the Board of Directors meeting should be based on deliberation to reach agreement. If decision could not be reached through deliberation, decision will be made through voting based on supporting votes of more than 1/2 (one half) of the total valid votes from Board of Directors collected in the Meeting. 16. If the opposing and supporting votes were the same, the Chairman of the Board of Directors Meeting shall decide. 17. Every member of the Board of Directors present in the meeting has the right to 1 (one) vote and additional 1 (one) vote for other member of Board of Directors represented by him/her. 18. Any member of the Board of Directors, who has, either directly or indirectly, conflict of interest in a transaction, contract, or proposed contract, shall declare the nature of the interest in the Board of Directors Meeting and shall not have the right to participate in voting concerning matters related to the transaction or contract, unless declared otherwise by the Board of Directors meeting. 19. Voting concerning a particular person or staff shall be carried out with closed ballots without signature. Voting for other matters shall be carried out verbally, unless decided otherwise by the Chairman of the meeting without any objection from other present members. 20. Proceeds of the Board of Directors meeting is required to be summarized into minutes of the meeting, to be signed by all members of Board of Directors present and well documented. 21. In the event of a member of the Board of Directors did not sign the results of the meeting, the respective Board of Directors member shall specify the reasons in writing in a separate letter attached to the minutes of meetings.

Annual Report 2015

22. Dissenting opinions in the Board of Directors meeting is required to be stated clearly in the minutes of the meeting, along with the reason of the dissenting opinions 23. All decisions set out in the Board of Directors meeting, which was decided in accordance with the applicable provisions of the Bank, binding and become the responsibility of the Board of Directors. 24. All the decisions that have been established in the Board of Directors meeting, which decided in accordance with the applicable Bank’s provisions, binding and being the responsibility of the Board of Directors. 25. The Board of Directors can also make valid and binding decisions without organizing Board of Directors Meeting, provided that all members of the Board of Directors have been notified in writing concerning related proposals, and all the members of the Board of Directors have given their approval concerning the written proposal and signed the approval. Decisions made in this procedure have similar authority as decision legitimately made in the Board of Directors meeting 26. Board of Directors meeting may also be conducted through teleconference, video conference or other electronic tools where all Board of Directors meeting participant can see and/or hear each other and participate in the Board of Directors Meeting. Such meeting should be organized according to the prevailing regulations and the minutes of meeting should be prepared and circulated to all Board of Directors members who attended the meeting for signing. Decisions made in this procedure have similar authority as decision legitimately made in the Board of Directors Meeting


177


In 2015, the Board of Directors have held 23 meetings with the agenda, including: 1. Bankwide Performance update and review 2. Business Performance update and review 3. Update on Strategic Map 4. Capital Plan 5. Credit Authorities 6. Follow up audit findings 7. Follow up FSA findings and recommendations 8. Land & buildings sale & acquisition 9. Update on new regulator regulations 10. Bank’s rating 11. Risk Based Bank Rating Result

12. 13. 14. 15. 16. 17.

Update on peer banks performance Proposed new initiatives & projects Operational update Revised 2015 budget Renewal of Board of Directors Charter Budget 2016

Frequency of Meetings of Board of Directors and Attendance Record In 2015, the Board of Directors have conducted 23 (twentythree) meetings. The following table shows the attendance frequency of each Director in the meetings.

Board of Directors Meetings Name

Position

Physical Attendance

% Attendance

Andrew Duff

President Director

20

86.96%


Director

20

86.96%

Lloyd Rolston

Director

20

86.96%

Rusli

Director

20

86.96%


Director

21

91.30%

Hery Syafril*

Director

18

78.26%

Novi Mayasari**

Director

5

21.74%

* Effectively resigned as the Bank’s Director as of October 9, 2015 ** Effectively served as the Bank’s Director as of October 2, 2015


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Annual Report 2015


Committees Under the Board of Directors The Board of Directors is assisted by 8 (eight) Committees which have task to provide advice and recommendations to the Board of Directors, to support the effectiveness of the implementation of duties and responsibilities of the Board of Directors. Members of these Committees are appointed by the Board of Directors in accordance with the size and complexity of the Bank’s business as well as prevailing regulations.

As of December 31, 2015, the committees under the Bank's Board of Directors are: 1. 2. 3. 4. 5. 6. 7. 8.

Asset & Liability Committee (ALCO) Credit Committee Risk Management Committee Procurement Committee New Products and Activities Commitee Information Technology Committee Human Resources Committee Fraud Oversight Committee

Asset and Liability Committee Asset and Liability Committee (ALCO) was established by Board of Directors with last amendement by Policy and Regulation No. 2/04/002.00/II/2014 to assist the Board of Directors in managing assets and liabilities in integrated manner, establish balance sheet structure and capital, and provide recommendations to the Board of Directors to determine policies established in ALCO meetings.

Structure, Composition, and Meeting Attendance of Asset and Liability Committee The selection of members of ALCO Committee have taken into consideration of competences, independency, discretion, and code of conduct, as well as respective duties and responsibilities implementation in accordance with applicable regulations. As of December 31, 2015, the ALCO Committee have conducted 10 (ten) meetings. The following table shows the attendance frequency of each member of ALCO Committee in the meetings.

Annual Report 2015


179


Committee Position

Name

Position

Meeting Attendance (10 meetings)

% Attendance

Chairman

Hery Syafril*

Finance Director

6

60%

Member (Alternate Chairman)



7

70%

Member (Acting Chairman)

Rusli

Operation Director

9

90%

Member (Secretary)

Tomi Parisianto Wibowo

Head of Finance & Accounting

10

100%

Member

Andrew Duff

President Director

4

40%

Member

Lloyd Rolston

Risk Director

6

60%

Member

Novy Angela Andow

Head of Treasury

5

50%

*Effectively resign from the Bank on October 9, 2015

Duties and Responsibilities of Asset and Liability Committee

Duties Implementation of Asset and Liability Committee

The duties and responsibilities of ALCO Committee, including: 1. To monitor the current asset of the Bank. 2. To develop, monitor, review and manage the Bank’s Assets & Liabilities Strategies, and policies related to interest rate risk, currency risk and liquidity risk. 3. To determine transfer pricing as the best reference for the different business units in applying market rates.

In 2015, ALCO Committee conducted meetings which cover agenda, including: 1. Economy outlook review 2. Prime Lending Rate management 3. Loan to Deposit Ratio management 4. Liquidity management, including funding strategy 5. Fund Transfer Pricing management 6. Balance Sheet management


180

Annual Report 2015


Credit Committee Credit Committee was established by Board of Directors with last amendement by Policy and Regulation No. 2/04/002.00/II/2014 to assist the Board of Directors in formulating credit policies and provide decision with respect to credit proposal in accordance with the limit authority.

Structure, Composition, and Meeting Attendance of Credit Committee The selection of members of Credit Committee have taken into consideration of competences, independency, discretion, and code of conduct, as well as respective duties and responsibilities implementation in accordance with applicable regulations. As of December 31, 2015, the Credit Committee have conducted 78 (seventy eight) meetings. The following table shows the attendance frequency of each member of Credit Committee in the meetings.

Committee Position

Name

Position


% Attendance

Chairman

Andrew Duff

President Director

60

77%

Alternate Chairman and Non Voting member

Lloyd Rolston

Risk Director

71

91%

Member



66

85%

Member

Rusli

Operations Director

67

86%

Member

Agus Meliala


59

76%

Secretary

Wendriani Lukito

Head of Commercial Credit Support

27

35%

Duties and Responsibilities of Credit Committee The duties and responsibilities of Credit Committee, including: 1. Provide approval or rejection of credit proposal in accordance with the limits of authority/ type of credit established by the Board of Directors and reviewing credit proposals that exceed established limits. 2. Coordinate with ALCO Committee in the aspect of credit financing. 3. Monitor the implementation of credit policies. 4. Develop lending policies and submit to the Policy Sub Committee for approval. 5. Evaluate the performance of working units which responsible on credit proposals and credit review.

Annual Report 2015

Duties Implementation of Credit Committee In 2015, Credit Committee has fulfilled its duties with the following details: 1. Review and approved credit proposals in accordance to the limit set. 2. Evaluated the performance of the working units that responsible on credit proposals and credit review.


181


Risk Management Committee Risk Management Committee was established by Board of Directors with last amendement by Policy and Regulation No. 2/04/002.00/II/2014 to provide recommendations to the Board of Directors concerning risk management including the formulation of policies, enhancements of policy implementation, evaluation of risk profile condition and progress, and other recommendations for improvements

Structure, Composition, and Meeting Attendance of Risk Management Committee The selection of members of Risk Management Committee have taken into consideration of competences, independency, discretion, and code of conduct, as well as respective duties and responsibilities implementation in accordance with applicable regulations. As of December 31, 2015, the Risk Management Committee have conducted 6 (six) meetings. The following table shows the attendance frequency of each member of Risk Management Committee in the meetings.

Committee Position

Name

Position


% Attendance

Chairman

Lloyd Rolston

Risk Director

6

100%




4

67%

Member (Secretary)

Caroline Halim

Risk Management Head

5

83%

Member

Hery Syafril*

Finance Director

4

67%

Member

Rusli

Operations Director

6

100%

Member


Compliance Director

5

83%

Member

Tota Loembantobing

Head of Internal Audit

4

67%

Member

Indra Utama Nasution

Head of Corporate Banking & Financial Inst.

5

83%

Member

Tenny Juniawarman

Head of Structured Finance & Advisory

4

67%

Member

Agus Meliala


-

-

Member

Rasmoro P Aji

Head of Network and Distribution

5

83%

Member

Titis Satriyo Utomo

Head of Alternate Channel

5

83%

Secretary for Sub Committee Policy

Rr. Utami Tjipto


4

67%

Alternate Secretary for Sub Committee Policy

Harsha Indradewa

Policy & Procedure Head

-

-



182

Annual Report 2015


Duties and Responsibilities of Risk Management Committee

Duties Implementation of Risk Management Committee

The duties and responsibilities of Risk Management Committee, including: 1. Establish the framework and governance of risk management. 2. Establish the direction, strategy, and programs of risk management. 3. Evaluate risk profile and analyze capital adequacy. 4. Establish the risk management policies and improve the risk management process periodically. 5. Establish the methodology of risk measurement. 6. Monitor loan diversification and portfolio as well as determine credit risk indicator profile and the methodology of credit risk measurement. 7. Establish the contingency plan. 8. Establish other matters related to the activites of risk management.

In 2015, Risk Management Committee has conducted meetings which cover agenda, including: 1. Risk Based Bank Rating 2. Risk Appetite Statement 3. Industry Sector Limit review 4. Market & Liquidity Limit review 5. Portfolio review 6. Risk Dashbord 7. Update on New Regulations 8. Update on New Policies and Procedures 9. Update on Economic Indicator 10. Credit Risk review 11. Operation Risk & other risks review 12. Limit review 13. Stress Test 14. Liquidity Coverage Ratio review 15. Peer Bank Analysis

In addition, under the Risk Management Committee, there is Sub Committee Policy which has functions and responsibilities to conducts review and delivers the policies and procedures related to the Bank’s activiities and operations.

Annual Report 2015


183


Procurement Committee Structure and Composition of Procurement Committee

Procurement Committee was established by Board of Directors with last amendement by Policy and Regulation No. 2/04/002.00/II/2014 to provide inputs to the Board of Directors on the goods and services procurement policies and provide approval for goods and services procurement.

The selection of members of Procurement Committee have taken into consideration of competences, independency, discretion, and code of conduct, as well as respective duties and responsibilities implementation in accordance with applicable regulations. In 2015, resolutions of Procurement Committee was conducted by circulation. The following table shows composition of membership of Procurement Committee.

Committee Position

Name

Position


Andrew Duff

President Director




Member (Secretary)

Denny Soedharmo

Head of General Services

Member

Rusli

Operations Director

Member

Hery Syafril*

Finance Director


Duties and Responsibilities of Procurement Committee

Duties Implementation of Procurement Committee

The duties and responsibilities of Procurement Committee, including: 1. Conduct review and approve the proposal of Capital Expenditure and Operational Expenditure according to the limit set. 2. Formulate the guidelines and policies on the procurement of goods and services. 3. Determine the priority and budget allocation for the procurement of goods and services in line with the decision of the Board of Directors. 4. Ensure that the procurement of goods and services is conducted based on the principles of procurement, namely efficient, effective, transparent, fair, and accountable. 5. Ensure that the procurement of goods and services is conducted in accordance with the ethics of procurement. 6. Ensure that the plans for the procurement of goods and services is consistent and in line with the Bank’s strategic objectives

In 2015, Procurement Committee has approved the procurement made by the Bank and reviewed the realization of total purchased against budget.


184

Annual Report 2015


New Product and Activities Committee New Products and Activities Committee was established by Board of Directors with last amendement by Policy and Regulation No. 2/04/002.00/II/2014 to provide recommendations to the Board of Directors regarding the development of new product and services as well as evaluation and enhancement of existing products, services and activities of the Bank.

Structure, Composition, and Meeting Attendance of New Products and Activities Committee The selection of members of New Products and Activities Committee have taken into consideration of competences, independency, discretion, and code of conduct, as well as respective duties and responsibilities implementation in accordance with applicable regulations. As of December 31, 2015, the New Products and Activities Committee have conducted 5 (five) meetings. The following table shows the attendance frequency of each member of New Products and Activities Committee in the meetings.

Name

Position


% Attendance

Chairman



4

80%


Lloyd Rolston

Risk Director

4

80%

Member (Secretary)

Edwin Tanu Teintang

Head of Retail Product Development

5

100%

Member

Andrew Duff

President Director

3

60%

Member

Hery Syafril*

Finance Director

5

100%

Member

Rusli

Operations Director

5

100%

Committee Position


Duties and Responsibilities of New Products and Activities Committee

Duties Implementation of New Products and Activities Committee

The duties and responsibilities of New Products and Activities Committee, including: 1. Monitor the development process of new products, services and activities. 2. Evaluate and approve the proposals of new products, services and activities. 3. Monitor the Bank’s activities related to the implementation of new products, services and activities. 4. Establish and determine the plan to issue new products and services, to be in line with the Bank’s business strategies and plans. 5. Evaluate the existing products and activities related to their benefits and risk to the Bank.

In 2015, New Products and Activities Committee has fulfilled its duties with the following details: 1. Evaluated and approved product programs, such as Mutual Fund, Q Optima Link Assurance, Q Health Care, Q Health Protection, etc 2. Monitored the Bank's activities related to the implementation of new products, services and activities 3. Evaluated the existing products and activities related to their benefits and risk to the Bank, such as QBL and QPL

Annual Report 2015


185


Information Technology Committee Information Technology Committee was established by Board of Directors with last amendement by Policy and Regulation No. 2/04/002.00/II/2014 to assist the Board of Directors by providing directives and recommendations on Information Technology strategies, development, and implementation.

Structure, Composition, and Meeting Attendance of Information Technology Committee The selection of members of Information Technology Committee have taken into consideration of competences, independency, discretion, and code of conduct, as well as respective duties and responsibilities implementation in accordance with applicable regulations. As of December 31 2015, the Information Technology Committee have conducted 6 (six) meetings. The following table shows the attendance frequency of each member of Information Technology Committee in the meetings.

Committee Position

Name

Position


% Attendance

Chairman

Rusli

Operations Director

6

100%


Hery Syafril*

Finance Director

3

50%

Member (Secretary)

Darwinsyah

IT Development Head

6

100%

Member

Lloyd Rolston

Risk Director

6

100%

Member



3

50%


Duties and Responsibilities of New Duties and Responsibilities of Information Technology Committee Duties and Responsibilities of Information Technology Committee, including: 1. Establish the strategic framework as a reference in managing technology information resources. 2. Monitor the performance and improvement of the information technology. 3. Ensure that information technology development plan is consistent/in line with the Bank’s strategic objective. 4. Ensure that implementation of information technology projects are in accordance with the information technology plan and approve the “Project Charter”. 5. Establish the priorities and allocation of information technology budget.


186

Duties Implementation of Information Technology Committee In 2015, Information Technology Committee has conducted meetings which cover agenda, including: 1. Information Technology System and Network Performance review 2. Information Technology Projects review and approval 3. Information Technology Architecture 4. Information Technology Audit Findings follow up

Annual Report 2015


Human Resources Committee Human Resources Committee was established by Board of Directors with last amendement by Policy and Regulation No. 2/04/002.00/II/2014 to assist the Board of Directors to improve effectiveness, efficiency, objectivity, and transparency of decision-nmaking relating to Human Resources matters and to provide assurance for stakeholders that all Human Resources-related decisions are in compliance to Good Corporate Governance principles.

Structure, Composition, and Meeting Attendance of Human Resources Committee The selection of members of Human Resources Committee have taken into consideration of competences, independency, discretion, and code of conduct, as well as respective duties and responsibilities implementation in accordance with applicable regulations. As of December 31, 2015, the Human Resources Committee have conducted 10 (ten) meetings. The following table shows the attendance frequency of each member of Human Resources Committee in the meetings.

Committee Position

Name

Position


% Attendance

Chairman

Andrew Duff

President Director

10

100%


Rusli

Operations Director

9

90%

Member (Secretary)

Novi Mayasari


10

100%

Member



10

100%

Member

Lloyd Rolston

Risk Director

9

90%

Member

Hery Syafril*

Finance Director

9

90%

Member (Non Voting)


Compliance Director

10

100%


Duties and Responsibilities of Human Resources Committee

Duties Implementation of Human Resources Committee

The duties and responsibilities of Human Resources Committee, including: 1. Establish Human Resources strategic plans. 2. Establish the suitability between the Human Resources projects and Human Resources strategic plans. 3. Establish the effective steps used to minimize Human Resources risk 4. Monitor the performance of Human Resources and its development. 5. Resolve various problems occurred in the Human Resources aspects. 6. Approve the development plan for the key staff and potential key staff at second level and below. 7. Review and ensure that fair assessment has been conducted in line with the prevailing regulations.

In 2015, Human Resources Committee has conducted meeting which cover agenda, including: 1. Resolved Human Resources related issues 2. Determined Human Resources strategic plans 3. Evaluation on the suitability between Human Resources projects and Human Resources strategic plans 4. Approved the development plan for key and/or potential employees 5. Established training programs in accordance with Bank’s need

Annual Report 2015


187


Fraud Oversight Committee Fraud Oversight Committee was established by Board of Directors with Compliance Policy and Procedure No. 1.301 dated June 5, 2012 to assist the Board of Directors in the improvement of effectiveness and efficiency of fraud prevention and handling.

Structure and Composition of Fraud Oversight Committee The selection of members of Fraud Oversight Committee have taken into consideration of competences, independency, discretion, and code of conduct, as well as respective duties and responsibilities implementation in accordance with applicable regulations. In 2015, there are no fraud reported to the Fraud Oversight Committee. The following table shows composition of membership of Fraud Oversight Committee.

Committee Position

Name

Position

Chairman

Andrew Duff

President Director

Member


Compliance Director

Member

Lloyd Rolston

Risk Director

Member

Rusli

Operations Director

Duties and Responsibilities of Member of Fraud Oversight Committee

Duties Implementation of Fraud Oversight Committee

The duties and responsibilities of Fraud Oversight Committee, including: 1. Provide supervision and guidance on risk management of fraud program 2. Manage and coordinate the actions and responses on the fraud that occurred in Bank 3. Reviewing lessons learned and next action plans 4. Provide approval on the fraud report to be submitted to external, if necessary 5. Determine the sanctions to be taken and decide whether legal action needs to be taken, and endorsed by President Director 6. Decide the sanctions for perpetrators of Fraud

In 2015, Fraud Oversight Committee has fulfilled its duties, including approved the content of fraud report and provided supervision and guidance on risk management of fraud to the related divisions.


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Annual Report 2015


Compliance Function Compliance Function in QNB Indonesia refers to the Regulation of Bank Indonesia No. 13/2/ PBI/2011. It is carried out by Compliance Division which is under the supervision of Compliance Director. In performing its duties, Compliance Division cooperates with other organizational units as an independent partner, both in the process of policy planning and evaluation of compliance towards operational activities. Compliance Division has a significant role in strengthening the Bank’s structure towards each risk exposure that may occur in line with the advance of information technology, globalization, and integration of financial market. Generally, the implementation of duties of Compliance Division encompasses a series of ex-ante (preventive) actions or steps to ensure that the policy, regulation, system, procedure, and business activity conducted by the Bank are in line with the rules and regulations of regulators and the prevailing law and legislation.

In particular, the Compliance Division has the following function: 1. Establishing and implementing Compliance Culture in all levels of organization and the Bank’s business activity; 2. Managing Compliance Risks faced by the Bank; 3. Ensuring that the policies, regulations, systems and procedures, as well as the Bank’s business activities are in line with the provisions of regulators and the prevailing laws and legislations; and 4. Ensuring that the Bank is in compliance with the commitments made by the Bank to Bank Indonesia, Financial Service Authorities and/or other regulatory authorities.

Organizational Structure of Compliance Function

President Director

Compliance Director


Compliance Reviewer Head

Annual Report 2015

Policies & Procedures Head

Compliance Head

AML Head


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Profile of the Head of Compliance & Procedure Function Rr. Utami Tjipto Head of Compliance Procedure Function As of December 31, 2015, the position of the Head of Compliance and Procedure Division is held by Rr. Utami Tjipto. Citizen of Indonesia, 53 years old. She was appointed based on the Decree of the Board of Directors No. 571/SKDIR/ VIII/2012 dated August 28, 2012, which lastly amended with the Decree of the Board of Directors No. 122/SK-DIR/ VI/2014 dated June 24, 2014 and responsible directly to the Director of Compliance. Earned her Bachelor Degree in Law from Airlangga University, Surabaya, in 1986. Previously, she held the position of Compliance & Legal Group Head PT. Bank ICB Bumiputera Tbk (2010-2011) and Recovery Litigation Group Head PT Bank CIMB Niaga Tbk (2008-2010). As Head of Compliance, she had a certification on Compliance and she is also a Certified Assessor by National Board of Professional Certification (BNSP). In 2015, she actively attended several competence development programs, among others, Developing Great Talent, QNB Values for Leader and Risk Based Bank Rating workshop The Head of Compliance & Procedure Division is directly responsible to the Director of Compliance. The Compliance Division leads sub-divisions of Compliance, Anti Money Laundering, Compliance Reviewer as well as Policies and Procedures, and assists the Director of Compliance in the implementation of his duties and responsibilities.

Qualification of Head of Compliance 1. 2. 3. 4. 5.

Meets the independency requirement. Understands and masters the regulations of regulators and the applicable laws. Do not conduct other duties outside the Compliance Function. Possess high commitment to implement and improve the Compliance Culture. Possess knowledge abilities of: interpersonal skill, compliance with the regulations of each field, banking products and services; computer skill in the related field, technical skill in the related field, analysis skill in the related field, communication skill.


190

6.

Has character and skill of integrity, excellent performance, leadership, decision-making, planning, and problem solving.

Compliance Function Duties and Responsibilities In implementing its Function, the Compliance Division conducts its duties and responsibilites, which are, among others: 1. Taking steps to support the establishment of Compliance Culture in all activities of the Bank and within all levels of organization. 2. Identifying, measuring, monitoring, and controlling the Compliance Risk by referring to the regulations of Bank Indonesia and/or Financial Services Authority regarding the Implementation of Risk Management in Commercial Banks. 3. Assessing and evaluating the effectiveness, adequacy, and compatibility of the policies, regulations, systems, or procedures of the Bank to be in line with the prevailing laws and regulations. 4. Reviewing and/or recommending update and improvement on policies, provisions, systems, or procedures of the Bank so as to be in line with the regulations of Bank Indonesia, Financial Services Authority, and other prevailing rules and regulations. 5. Ensuring that the policies, provisions, systems and procedures, as well as the activities of the Bank are in line with the regulations of Bank Indonesia, Financial Services Authority, and other prevailing rules and regulations. 6. Conducting other duties related to the Compliance Function. In conducting its duties and responsibilities, Compliance Division has 4 (four) subdivisions with functions as follows: 1. Compliance Function: » Develops Bank’s compliance program as one of an effort to encourage the establishment of Compliance Culture in the entire Bank’s business activities and in all related working units. » Measures, monitors, and provides reviews and suggestion regarding the Compliance Risk of the implementation of new products and activities by referring to the regulations of Bank Indonesia, Financial Services Authorities, and any other relevant regulators.

Annual Report 2015


»

»

»

»

2.

3.

Makes efforts to ensure the bank’s compliance to the commitment to Bank Indonesia, or Financial Services Authorities, and any other relevant regulators. Ensures that the new provisions and regulations have been disseminated to the related units, through coordination meetings such as Governance of Risk and Compliance (GRC) meetings, email blasts, or periodic and continuous training dissemination. Ensures that the policies, regulations, systems and procedures, as well as the Bank’s business activities are in line with the provisions of Regulators and the prevailing laws and legislations. Conducts other duties related to the compliance function.

Anti-Money Laundering (AML) and Combating of Terrorism Financing (CFT) Function: » Composes strategies, steps, and/or plans to implement the AML/CFT programs. » Ensures that the AML/CFT Program are able to be implemented based on the prevailing regulations, as well as provides reviews and suggestions for the problems faced by the related working units and internal control working unit in the process of AML/CFT implementation. » Assesses and evaluates the effectiveness and development of the AML systems related to the information technology in order to improve the data updating program, single Customer Information File (CIF) and Risk Based Approach classification of customers. » Ensures that the systems and submissions of report to the third parties (Bank Indonesia, Financial Services Authority, Indonesian Financial Transaction Reports and Analysis Center (PPATK), Corruption Eradication Commission (KPK), Tax Office, Correspondent Bank, and National Narcotics Agency (BNN) are in timely manner and in line with the prevailing rules and regulations. Policies and Procedures Function: » Standardizes policies and procedures » Re checks the conformity between internal policy and procedure with the applied regulations.

Annual Report 2015

» »

4.

Reviews existing policies and procedures and its conformity with external regulations, periodically. Ensure the Bank’s policies and procedures are always up to date.

Compliance Reviewer Function: » Together with Internal Audit and Internal Control perform combined assurance in order to ensure operational transaction in working units are comply with existing policies and procedures » In line with Complliance & AML Sub Division conduct socialization regarding external regulations and internal policy. » Conduct coordination, communication and propose action plan/ recommendation that must be conducted by related unit in order to support Bank’s business activities » Monitor and remind all related units in fulfilling their commitments to regulators (Bank Indonesia, Financial Services Authority, and other regulators)

In addition, Compliance sub division is also responsible on other duties, as follows: 1. Composes reports to related parties, such as PPATK, Tax Office, KPK, and other institutions; 2. Evaluation of Good Corporate Governance (GCG) principles implementation. 3. Performs other relevant duties given by the Director of Compliance and other members of the Board of Directors.

Update on the Achievement of Compliance Strategy Map The Compliance Division has built a Strategy Map which will be implemented until year 2017 in order to support the duties and responsibilities of the Compliance Directorate. In implementing the Strategy Map, the Compliance Directorate, Legal Division, and Corporate Secretary have been conducted the following activities in 2015: 1. Supporting the Financial Target Achievement Prudently a. To be a Bank with the Soundness Level of 1 in 2017 1) Assessing and ensuring that the Compliance checklist of the new products and activities has been fulfilled in accordance with the rules.


191


b.

2) Assessing and ensuring that the Compliance checklist of the opening/relocation/closing of office network is in accordance with the prevailing regulations. 3) Estabilishing a good relationship/ communication between the shareholders and management, as well as employees and customers, through a public expose. 4) Resolving the negative information related to the public/customer complaints timely in accordance with the prevailing regulations. 5) Monitoring penalties by regulator (Bank Indonesia, Financial Services Authority, PPATK) regarding updates and late submission in reporting and conduct improvement to minimize potential fault risk by making coordination meeting with related working units. Supporting the rapid business development by paying attention to the Bank’s prudential principles 1) Providing a review or recommendation on Bank’s activity related to the business, credit, and operational processes. 2) Issuing credit checklist. 3) Establishing a reminder system to ensure that the reports are submitted in a timely manner to the regulators in accordance with the prevailing regulations. 4) Coordinate with related divisions such as Legal Division, Corporate Secretary Division, and General Services Division in reviewing the legal documents periodically, such as licensing documents (of the Branch Offices) and agreements that involved the Bank and other vendors, consultants, or agents.

2. Improving the cooperation with other divisions a. A good Business Process and Customer Database 1) The Bank implements Compliance Monitoring System (CMS) and Compliance Assessment Procedure in order to identify, measure, monitor, and control the compliance risk as well as composing an implementation procedure for the branch offices. Such procedure will enable the Bank to analyze the compliance of the branch offices based on their self-assessment data. 2) Together with Internal Audit and Internal


192

b.

c.

Control ensures the branch compliance to internal and external regulations. 3) Determining the branches with high risk potentials based on the findings of Internal Audit, Internal Control, and Financial Services Authority, as well as monitoring the implementation of the action plan that has been determined. An adequate Management of the Information and Reporting Systems 1) Monitoring the administration of CIF periodically by: » Checking whether the CIF data filling conducted by the branch offices in the system is in accordance with the customer profile. » Checking whether the quality of CIF data is in accordance with the customer profile by examining the branches, coordinating with the Operations and IC Division to evaluate the filling of customer’s data form and the input of data in the system, and comparing the data with the supporting documents given by the customers (Quality Checking) 2) Developing the Anti Money Laundering system so as to comply with the provisions of the regulators. 3) Developing the intranet system to facilitate the employees in finding internal and external regulations from Financial Services Authority, Bank Indonesia, PPATK, and Tax Institution Supporting the Effectiveness of the Strategic Decision-Making 1) Organizing the Government Risk & Compliance (GRC) forum periodically with other related working units to discuss the new regulations issued by the Financial Services Authority and Bank Indonesia, so that the Bank may adjust and implement the new rules accordingly. 2) Composing a database which is related to the internal regulations and provisions from the regulators; documenting all compliance assessment results related to the business activities; and documenting the checklist of new activities, loans, and other compliance checklist so as to facilitate the working unit in searching for the required regulations. Annual Report 2015


3.

Establishing the effectiveness of Internal Process a. Reliable, strong, and disciplined working unit 1) The management culture of Compliance Risks is continued to be strengthened by improving the effectiveness of the implementation of compliance culture by enhancing the Operation Service Manager and Service Supervisor functions as Compliance Officers, and Internal Control as Anti Money Laudering – Combating the Financing of Terrorism (AML-CFT) officer. Furthermore, a dissemination in the form of email blast of new regulations, Compliance News, AML News and Procedure News, as well as AMLAFT trainings, are continuously conducted in addition to the periodic GRC meeting with the related working unit. 2) Required each working unit either in Head Office or branches to conduct morning briefing regarding internal policies as stated in Director Memo regarding Compliance on Regulation. 3) Performing compliance certifications to all employees of Compliance Division from time to time. 4) Evaluating internal policies and guidelines » Conducting evaluation and completing the management policy of the Bank’s regulation and procedures, in accordance with the prevailing laws and legislations. This evaluation encompasses the types of internal rules, hierarchy of internal rules, as well as mechanism and procedure of composition/amendment and repeal of internal rules. In addition, the Bank also prepares the procedure of distribution and dissemination of internal rules. » Conducting evaluation on the policy of internal control system with the related divisions. » Conducting evaluation on the implementation of GCG principles with the related divisions. » Conducting review and evaluation on the policy and procedure of Anti-Money Laundering and Prevention of Terrorism Financing.

Annual Report 2015

» »

»

4.

Reviewing the improvement of loans compliance checklist. Reviewing and evaluating the General Policy on Loans and formulating Loans Implementation Guidelines for each business segment. Reviewing and evaluating the accounting policy and procedure.

Strengthening the Organization Capacity a. A leader that is able to manage and direct the team effectively in: 1) Establishing the culture of sharing in each division, particularly in the branch offices, over the operational activities in the branch in accordance with the applicable regulations. 2) Issuing Compliance Certificate to the Branch Managers who has accomplished risk mitigation proof prudently and obliged operational implementation. b. Employees who are able to detect disobedience to the regulations and/or transcation or business or other suspicious operational activities 1) Providing e-learning and e-library facilities for the employees so as the operational activities are conducted in line with the applicable rules. 2) Following-up the findings of Internal Control/ Internal Audit/Regulators immediately and ensuring the operational activities are conducted in line with the applicable rules. 3) Issuing Compliance Certificate for the employees who passed the Compliance test c. Compliance reviewer shall ensure the policies and procedures, as well as the bank’s business activities have complied to the Regulator’s policies and other laws d. Proposing a plan to encourage and/or preserving the Compliance Culture, including the plan for the dissemination of provisions: 1) Providing information of the new regulations to the Board of Commissioners, Board of Directors, related Divisions and/or branches, either directly or in cascading manner, from the head of division to all personnel of the division.


193


2) Conducting dissemination of the hierarchy and procedure of the internal rules or new regulations. 3) Conducting dissemination of the policy of internal control system. 4) Conducting dissemination of loans compliance checklist. 5) Continuing the dissemination of the policy and procedure of AML and CFT Programs. 6) Conducting dissemination of GCG and the Bank's Code of Conduct. 7) Ensuring the compliance self-assessment in every change of regulations.

Compliance Function Implementation During 2015, the Compliance Subdivision conducted its duties and responsibilities, as follows: 1. Continued improving the reporting system of several reports delivered to Regulators (by sending reporting reminders to the related working units periodically). 2. Continued strengthening the management culture of Compliance Risk through the enhancement of compliance culture implementation by enlarging the function of Operation Service Manager and Service Supervisor functions as Compliance Officer and Internal Control as AML-CFT officer. In addition, the Bank conducts continuous dissemination in the form of email blasts of new regulations which were stated in the Compliance News, AML News and Procedure News, AML & CFT trainings, as well as conducts GRC meetings periodically with the related working units. Other activities to improve compliance implementation are: Compliance Campaign 100% Complied! via weekly email blasts and also stickers, and Compliance Quiz which was held to enhance employee’s compliance knowledge and awareness. 3. Issued Compliance Certificates to Branch Managers who have been prudent and obliged operational implementation. 4. Prepared Annual Work Plan of Compliance and AML as well as Annual Work Plan of Policies and Procedure in order to ensure that the Bank’s business activities are in line with the prevailing regulations of Bank Indonesia, Financial Services Authority, and legislations.


194

5.

6.

7.

8.

Reviewed the plan for the implementation of new products and activities to ensure the Bank’s compliance with the regulations in the form of compliance checklist which also functions as a selfassessment. Continued implementing high compliance rate in all aspects, such as by conducting direct monitoring the quality of account opening procedure and updating data Monitored the penalties from regulators (i.e Bank Indonesia, Financial Services Authority, and PPATK) and conduct improvements based on the applied regulations, i.e making coordination meeting with related working units making mistakes. Conducted compliance socialization to related working units and branches continuously, such as socialization of: new external regulations from Bank Indonesia and Financial Services Authority, new internal hierarchies and procedures, policy and procedures regarding AML – CFT, etc.

While, Policy and Procedures subdivision has conducted: 1. Formalization 117 new provisions, which consists of 5 Charters, 18 Policies, 68 Procedures, 11 Board of Directors Decree and 15 Director’s Internal Memos. 2. In addition to standardize a number of internal regulations, in 3rd Quarter of 2015, Policy and Procedure (in cooperation with Operation Division) has also completed the simplification and codification of several Bank's operational policies, which originally scattered to several policies and procedures, and became Bank's General Operation Policy. 3. Mapped policies and procedures that must be understood and implemented by every employee based on the type of work at branch level. Compliance Reviewer subdivision has performed: Identification, measurement, monitoring, and controlling on the compliance risk by implementing Compliance Monitoring System (CMS) and Compliance Assessment Procedure, as well as Report Submission Policy. With these procedures, the Compliance Division was able to analyze the compliance conducted by the branch offices based on the branch’s data (self-assessment)

Annual Report 2015


Training and Competency Development of Compliance Function No.

Date

Program

Type pf Program

Location

1.

March 10-17, 2015

FATCA

Training

Jakarta

2.

March 25, 2015

Risk Management Certification Refreshment

Training

Jakarta

3.

April 6-10, 2015

Developing Microsoft Sharepoint Server 2013

Training

Jakarta

4.

May 4, 2015

Induction Program

Training

Jakarta

5.

May 7-8, 2015


Training

Jakarta

6.

May 12-13, 2015

Letter of Credit Training

Training

Jakarta

7.

May 27-28, 2015

Compliance Certification Level 1

Training

Jakarta

8.

June 3, 2015


Training

Jakarta

9.

June 18, 2015

Anti Fraud Awareness

Training

Jakarta

10.

July 9-10, 2015

Train The Trainer - Facilitating Skills for Internal Trainer

Training

Jakarta

11.

August 3-4, 2015

Train The Trainer - Facilitating Skills for Internal Trainer

Training

Jakarta

12.

August 20, 2015

Lunch Engagement with CEO

Sharing Session

Jakarta

13.

September 14-15, 2015

AML/CFT Workshop

Training

Jakarta

14.

September 21, 2015


Training

Jakarta

Activities Related to the Application of Anti-Money Laundering and Combating the Financing of Terrorism (AML and CFT) In accordance to the commitment of the Bank to avoid money laundering and terrorism financing, the KYC and AML subdivision conducted several duties in 2015, as follows: 1. Reviewed the internal policy regarding Service User Category that are Potentially to Conduct Money Laundering and review several internal policies regarding the implementation of Anti Money Laundering and Combating the Financing of Terrorism. 2. Drafted and submitted Cash Transaction Report (CTR), Suspicious Transaction Report (STR), report of International Fund Transfer Instruction (IFTI), and report of Information System of the Integrated Service Users (SIPJT) to the PPATK.

Annual Report 2015

3.

4.

Delivered continuous training programs with topics: » Implementation of rules and regulations related to the AML and CFT Programs; » Technique, method, and typology of money laundering or terrorism financing; and » Policy and procedure of the implementation of AML-CFT Program, and the duties of each employee in eliminating money laundering and terrorism financing systems. » Foreign Account Tax Compliance Act (FATCA) Distributed the Database containing terrorist lists, which comprise of National Blacklist (DHN) List, United Nation List, and Office of Foreign Assets Control (OFAC) List, to the Branch/Sub-branch Offices to be monitored periodically in accordance with the regulations of Bank Indonesia and/or Financial Services Authority regarding AML and CFT through AML web.


195


5.

6. 7. 8.

Monitored the implementation of data update using the Risk-based Approach and adjusting the Information Technology for the Implementation of Customer’s Data Update Program, as well as reviewing the quality of the document of CIF and Customer’s Account opening at the Branch Office. Submitted the Action Plan report on the Data Update Plan to Regulators. Established the AML system as a part of the implementation of AML/CFT regulations. Developed AML system regarding the implementation of AML-CFT. The development so far has achieved autoscoring (reminder review date and time and risk profiling alert) and notification of negative list

»

Anti-Fraud Awareness To increase the awareness on fraud prevention importance, PT Bank QNB Indonesia implement a good leadership supported by high anti-fraud awareness thus all employees are also aware of to contribution in fraud prevention. This prevention developed through preparation and dissemination of AntiFraud Statement, employee awareness program, and customer awareness program.

»

Fraud Identification Fraud identification is a part of risk management process to identify and analyze the fraud risk potential in all activities. The identification must be recorded and informed to the investigator, especially for the high risk fraud activity.

»

Know Your Employee Know Your Employee is the control in Human Resources aspect to prevent fraud. This policy is implemented through effective recruitment system and procedure, selection system with risk consideration in employees’ placement, and knowing employee’s character, personality, lifestyle, and working hour.

Indicators of Compliance As of December 31, 2015, the Compliance Risk of PT Bank QNB Indonesia Tbk was ranked 2 (two) at the level of Low to Moderate on Inherent Compliance Risk and rank 2 (two) at the level of Satisfactory on the Quality of the Implementation of Risk Compliance Management. These achievements encourage the Compliance Directorate to always implement the compliance aspect in all working units of the Bank.

Anti-Fraud Strategy Bank QNB Indonesia has formulated the anti-fraud strategy in compliance with Bank Indonesia Circular Letter No. 8/4/ PBI/2006 dated January 30, 2006, and as amended with Bank Indonesia Circular Letter No. 8/14/2006 dated October 5, 2006 on Good Corporate Governance Implementation for Commercial Bank, as well as Bank Indonesia Circular Letter No. 13/28/DPNP Dated December 9, 2011 on Anti-Fraud Strategy Implementation for Commercial Bank. This guideline is mandatory for all working unit with the aim to monitor and set the anti-fraud strategy to prevent, detect, investigate, and follow up the fraud. Fraud Prevention It is the responsibility of the Bank’s management to raise awareness and take actions before the occurrence of fraud. The actions are described in several strategies, namely:


196

Fraud Detection Fraud detection aims to identify and discover the fraud through several strategies, namely: » Whistleblower Mechanism and Policy This strategy focused on the whistleblowing report disclosure. Thus, the whistleblowing system in the Bank is clear, easy to understand, secure, and effectively implemented to encourage employees in monitoring and reporting the fraud. »

Surprise Audit Surprise audit conducted by the head of each working unit or by Internal Control Unit to certain business units which have high potential risk of fraud. This surprise audit aims to increase the employees’ awareness in implementing their duties and responsibilities.

Annual Report 2015


»

Surveillance System Surveillance system is a test or investigation conducted by independent party or the Bank’s internal without the awareness of the auditee. Surveillance is conducted through actions such as security camera placement, control access to rooms, or computer activities and communication data investigation. Surveillance system aims to monitor and tests the effectiveness of antifraud policy.

Investigation, Reporting and Sanction Fraud Investigation aims to identify any needed actions to save the Bank from potential loss caused by fraud. Lead by competent Internal Audit member appointed by Anti-Fraud Task Force, fraud investigation aims to collect evidence related to the fraud and establish actions to prevent losses potentials. In the context of Internal Audit cannot do the investigation, then Internal Audit must appeal to related Director or Division Head to conduct the investigation.

The findings must be reported on timely manner through prevailing mechanism to Fraud Oversight Committee, Compliance & Procedure Division, related Director, and Financial Services Authority. Monitoring, Evaluation and Follow-up Monitoring, evaluation and follow up aim to monitor the fraud follow up actions in accordance with the Bank’s internal regulations and in compliance with the prevailing legislations. To support the whole evaluation process, fraud profiling is important to identify the weakness and the cause of occurred fraud, thus Internal Audit can review the fraud effect and prepare the relevant, preventive action needed toward the fraud reoccurrence in the future.

Internal Fraud The following table lists details of internal fraud which occurred in 2015:

Number of Cases Involving Internal Fraud

Board of Commissioners & Board of Directors

Permanent Employee

Contract Employee

2014

2015

2014

2015

2014

2015

Total internal fraud cases

-

-

1

-

-

-

Settled

-

-

1

-

-

-

Under internal process

-

-

-

-

-

-

Pending

-

-

-

-

-

-

Followed up by law suit

-

-

-

-

-

-

In 2015, there was no internal fraud act by management, permanent or non-permanent employees which significantly impact the Bank’s condition. Significant

Annual Report 2015

impact to the Bank’s condition is defined as impact greater than Rp100 million.


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Internal Audit Bank has established the Internal Audit Division as an independent, objective assurance and consulting activity designed to add value and improve the Bank’s operations. It helps the Bank accomplish its objectives by bringing a systematic discipline approach to evaluate and improve the effectiveness of risk management, control and governance processes.

The head of Internal Audit report directly to the President Director. The Head of Internal Audit Unit shall be appointed and dismissed by the President Director with the approval of the Board of Commissioners, and whose appointment is reported to Financial Services Authority.

Internal Audit Structure and Position

Audit Committee

President Director

Chief Auditor

Operation & Treasury Audit

Head Office Function Audit

Tota Melanie Loembantobing Chief Auditor The Internal Audit Division is led by Tota Melanie Loembantobing since 2014. Citizen of Indonesia, 48 years old. She was appointed as the Chief Auditor since March 26, 2014 based on Decree of Board of Directors No. 181/SK-DIR/ VII/2014 dated July 10, 2014. Earned her B.A in Educational Psychology from Institut Keguruan dan Ilmu Pendidikan, Jakarta in 1990, and MBA in Finance from University of the District of Columbia, Washington, D.C. in 1994.

Credit Audit

IT Audit

Anti Fraud & Investigation

Insurance Group - formerly PT Chartis Insurance Indonesia) (2004-2011). Developed her career in Citibank (1996-2003) with last assignment as Customer Relationship Manager, In 2015, participated in several competence development programs, among others, Developing Great Talent and QNB Values for Leader, Credit Skill Assesment (CSA), Managing Team - Performance Coaching.

Prior to joining the Bank, she served as Regional Operations Head of PT Bank CIMB Niaga Tbk (2013-2014), Area Operations and Services Manager of Citibank (2012-2013), Branch Services Region Head of Citibank (2011-2012) and Consumer Services Group Head of AIG (American


198

Annual Report 2015


Internal Audit Qualification and Certification

Duties and Responsibilities of Internal Audit

1.

Having a professional integrity and behavior, independent, honest, and objective in implementing the duties. Having knowledge and experiences on audit system, management principles, auditee’s activites, and other knowedge relevant to their scope of works. Having comprehensive knowledge regarding the rules and regulations in the banking industry and capital market, as well as other related rules and regulations. Having the skills to interact and communicate, either in speaking or writing, effectively. Keeping the confidentiality of information and/or company data related to the implementation of Audit Division’s duties and responsibilities, unless obliged based on the prevailing regulations or court’s decisions. Understanding the Good Corporate Governance principles and Risk Management. Improving knowledge, skills and professionalism continuously. Keeping no concurrent duties and positions neither conducting operational activities at PT Bank QNB Indonesia Tbk except the operational activities of Audit Division.

1.

To improve the competence of resources and objectivity of audit results, Audit Division enrolls its auditors in training program, pertaining to external and internal ones, seminar/ workshop while preparing these auditors to join internal auditor sustainable training program.

8. 9.

Currently, Audit Division has experienced and competent auditors in the area such as Bank Operational, Treasury, Credit, and IT Operations Core Banking. Several auditors have International Certifications such as CFSA, CIS, COBIT 5 and National Audit Certification.

11.

2.

3.

4. 5.

6. 7. 8.

2.

3.

4.

5. 6.

7.

10.

12.

13. 14. 15. 16.

Annual Report 2015

To compose and implement Annual Audit Plan and consultation. Annual Audit plan is approved by President Director and is reported to Board of Commissioners. To report the realization of Annual Audit Plan and Consultation for every semester to the President Director and Board of Commissioners. To review and assess the efficiency and effectiveness rate in finance, accounting, operations, human resources, marketing, information techonology and other activities. To examine and evaluate the implementation of internal audit and risk management system in accordance with the policy of the Bank To provide objective suggestions and information on all activities assessed in all management levels. To compose examination reports and submit them to the President Director and Board of Commissioners along with the carbon copies directed to Compliance Director. To provide consultation service for internal parties in order to gain added value and improvement on controlling, risk management and good corporate governance quality. To perform necessary investigation audit. To monitor audit follow-up and report it to the President Director and Board of Commissioners. To immediately report all audit findings that are estimated to hinder business activities of the Bank to the President Director and Board of Commissioners. To prepare Implementation Report and Audit Result Principles to be submitted to FSA. To submit Annual Budget Plan for the following year and report its realization for every semester to the President Director. To compose written policy and procedures as duty implementation guidelines for Audit division. To compose a program that is aimed to evaluate audit quality. To implement continuous education in line with the Auditor’s competency. To cooperate with Audit Committee.


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17. To comply with the Bank’s policy & procedures and to utilize the best practice standard and guidelines by professional institutions, such as Institute of Internal Auditor (IIA), Information System Audit and Control Association (ISACA), Committee of Sponsoring organizations of the Treadway Commission (COSO) etc. as references. 18. To contribute in company risk management process, including Anti-Money Laundring (AML) and AntiTerrorist Financing (AFT), Information Techology and information security, as well as other risk management function to ensure proper risk identification and management.

Internal Audit Activities Several Audit projects as per 2015 Audit Plan have been conducted such as: 28 audits related to Branch Operations, 4 audits related to Head Office Function, 7 audits related to Information & Technology, 4 Credit Audits and 3 special audits.

Audit Findings In 2015, Internal Audit Division did not discover any audit findings with significant impact to the Bank’s financial and operational performances.

Update on Follow up of Audit Findings Auditor

Total Audit Findings

Done (%)

In Progress (%)

Internal

313

82%

18%

External (FSA)

192

97%

3%


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Annual Report 2015


External Audit The Bank is supervised by Financial Services Authority and Bank Indonesia in conducting its business and operations. In addition, the Bank’s financial statement are audited by a Public Accountant’s Firm.

Appointment of External Auditor The Bank appointed Public Accountant’s Firm Purwantono, Suherman & Surja (a member of Ernst & Young Global Limited) (which then changed its name to Purwantono, Sungkoro & Surja (a member of Ernst & Young Global Limited)) to audit Bank’s financial statements for 2015 in accordance with the resolution of the Annual GMS on February 27, 2015. The appointment was made in accordance with Bank Indonesia, Financial Services Authority and other relevant regulations. The appointment was made after verification that the External Auditor complies with the principles of professional ethics, which include professional responsibility, integrity, objectivy, confidentiality, technical standards as well as professional competence and care. The appointment of Public Accountant’s Firm Purwantono, Sungkoro & Surja (a member of Ernst & Young Global Limited) to audit Bank’s financial statements for 2015 has received recommendation from Audit Committee of the Bank. The recommendation submitted to Board of Commissioners who then propose to Annual GMS. Annual GMS held on February 27, 2015 approved the appointment and provide authority to the Board of Directors to determine the honorarium and other requirements.

Year

Annual Report 2015

Audit Implementation During audit process by public accountant firm, the Bank always improve the communication and coordination with the external auditor. Finance and Accounting Division responsible to do the coordination and communication with external auditor, which done by coordination meetings, close monitoring and intensive communication. With this arrangement, it is expected that comprehensive, fast and optimal audit result can be achieved. In addition, in implementing audit of Bank’s financial statement, Public Accountant’s Firm Purwantono, Sungkoro & Surja (a member of Ernst & Young Global Limited): 1. Conduct the investigation on all material accounts, based on applicable Professional Public Accountant Standards and ensure its compliance with applicable Indonesia Accounting Standards. 2. Communicate the audit findings to the Bank’s management and Financial Services Authority 3. Maintain independence during the implementation of its duty. The Public Accountant Firm of the Bank for the financial year 2015 is Purwantono, Sungkoro & Surja (a member of Ernst & Young Global Limited) with scope of work limited review, interim audit and year end audit. This is the first year assignment from Bank to Public Accountant Firm Purwantono, Sungkoro & Surja (a member of Ernst & Young Global Limited). Public Accountant Firm and Public Accountants which provide financial audit services to the Bank can be seen in the following table:

Public Accountant Firm

Accountant’s Name

2015

Purwantono, Sungkoro & Surja (a member of Ernst & Young Global)

Peter Surja, CPA

2014

Purwantono, Suherman & Surja (a member of Ernst & Young Global)

Peter Surja, CPA

2013

Purwantono, Suherman & Surja (a member of Ernst & Young Global)

Peter Surja, CPA

2012

Siddharta & Widjaja (a member of KPMG)

Liana Lim, SE., CPA

2011

Siddharta & Widjaja (a member of KPMG)

Liana Lim, SE., CPA

2010

Aryanto, Amir Jusuf, Mawar & Saptoto

Ferdinand Agung


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Public Accountant’s Firm Purwantono, Sungkoro & Surja (a member of Ernst & Young Global Limited) is in the opinion that the financial statement of the Bank which ended on December 31, 2015 have been presented in an unqualified opinion and free from material misstatement based on accounting principles that generally accepted in Indonesia Relationship Between Bank, Public Accountants and Financial Services Authority During the audit implementation in 2015, the Bank has exercised transparent communication and provided complete information and data to the external auditor for the audit purposes. Communication and cooperation with the external auditors was conducted on the latest accounting policy issues, including tax development, in order to present a fair financial report. The Directors have taken into account the Management Letter from the Independent Auditor for further follow-up.


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Audit Fee Audit fee paid by the Bank for 2015 financial year was amounted to US$66,000 including VAT and other related taxes. The fee has also included out of pocket expenses.

Other Services In addition to financial audit services, Public Accountant Firm Purwantono, Sungkoro & Surja (Ernst & Young) did not provide other services to the Bank.

Annual Report 2015


Corporate Secretary Legal Basis of the Appointment , Structure, Position of Corporate Secretary To elevate its services to shareholders, the Bank as public company has appointed Corporate Secretary which functions as a liaison officer between the Bank and investors, capital market participants, regulators and analysts as well as the general public. The Corporate Secretary has a vital role in creating a good and effective communication between the Bank and shareholders as well as other stakeholders while ensuring the availability of material information in timely and accurate manner for related parties. Corporate Secretary is responsible for matters relating to the disclosure of information including availability of information on the website, the submission of a report to the Financial Services Authority capital markets

supervisory, implementations and documentations of the GMS, Board of Commissioners meetings and Board of Directors meetings, monitor and ensure compliance with prevailing laws and regulations of capital market. The establishment of Corporate Secretary is pursuant to the Financial Services Authority Regulation No. 35/ POJK.04/2014 dated December 8, 2014 on Corporate Secretary of Issuers or Public Companies. Qualification and Certification of Corporate Secretary 1. Have legal competence 2. Possess adequates knowledge and understanding in legal, finance, and corporate governance 3. Understand the Bank’s business activities 4. Have a good communication skill 5. Domicile in Indonesia

Corporate Secretary Organizational Structure

President Director

Compliance Director

Directors

Head of Corporate Secretary

Corporate Action & Stakeholder Mgt. Officer

Annual Report 2015

Liason Officer

Secretary/ Personal Assistant


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Appointment and Profile of Corporate Secretary The Corporate Secretary is appointed and reports to Compliance Director. Change of Corporate Secretary of the Bank has been reported to Financial Services Authority on June 29, 2015 based on Decree of Board of Directors No. 417/SK-HR-Service/VI/2015 dated June 25, 2015 regarding Establishment of Lina as Head of Corporate Secretary PT Bank QNB Indonesia Tbk. Lina Head of Corporate Secretary Citizen of Indonesia, 39 years old. Lina was appointed as the Head of Corporate Secretary since June 25, 2015 based on Decree of Board of Directors No. 417/SK-HR-Service/ VI/2015 dated June 25, 2015 . Earned her Bachelor Degree in Economy from Tarumanagara University, Indonesia in 1998. Previously, she held the position of Corporate Services Head PT Bank UOB Indonesia, Corporate Secretary PT Bank Victoria International Tbk and was an Auditor at Public Accountant Firm Hans Tuanakota & Mustofa (Member of Deloitte Touche Tohmatsu). In 2015, she actively attended several competence development programs, among others, QNB Values for Leader, Economy Globalization and Its Impacts on Indonesia Economy Seminar and Corporate Governance training.

Duties and Responsibilities of Corporate Secretary Duties and Responsibilities of the Corporate Secretary refers to the Financial Services Authority Regulation No. 35/POJK.04/2014 dated December 8, 2014 on Corporate Secretary of Issuers or Public Companie as follows.: 1. Follow the developments of the Capital Market, particularly the prevailing regulations in the field of Capital Market 2. Provide inputs to the Board of Commissoners and Board of Directors to comply with capital market laws and regulations


204

3.

Assist the Board of Directors and Board of Commissioners in the implementation of corporate governance which include: » Information disclosure to public including availabiity of information on website of the Bank » Submission of reports to Financial Services Authority and other capital market regulators accurately and in a timely manner » Holding and documentation of General Meeting of Shareholders, » Holding and documentation of the Board of Commissioners and Board of Directors Meetings » Implementation of orientation program for new member of the Board of Directors and/or the Commissioners 4. Act as a liaison officer between the Bank, shareholders, Financial Services Authority and other stakeholders

Duties Implementation of Corporate Secretary Activities regarding Corporate Secretary functions throughout 2015 are summarized in the following: 1. Submit regular and incidental reports to FSA and Indonesia Stock Exchange (IDX), including information disclosure report as well as response to inquiries from Financial Services Authority and IDX 2. Submit reports related of Shareholders, Board of Commissioners and Board of Directors to Financial Services Authority, the Indonesian Central Securities Depository and the Deposit Insurance Agency (LPS). 3. Provide the Board of Directors with information on capital market regulation and provision on which the Bank shall comply as well as provide inputs to the Board of Directors on responses and comments from the investors 4. Attend the Board of Directors and Board of Commissioners’ Meetings and compose the minutes of the Meeting 5. Compose special list for the Board of Directors and Board of Commissioners related to share ownership as well as business relationship which may cause conflict of interest with the Bank 6. Conduct Annual Public Expose in compliance with IDX Regulation No. I-E dated July 19, 2004 regarding the Obligation of Information Disclosure, the Bank has conducted annual public expose on October 9, 2015 at Bank’s Head Office

Annual Report 2015


7.

Conduct GMS in compliance with the Financial Services Authority Regulation No. 32/POJK.04/2014 dated December 8, 2014 regarding Planning and Conducting of GMS for Public Companies, the Banks held Annual GMS on February 27, 2015 and Extraordinary GMS on October 9, 2015 8. Maintain Bank’s documents related to licensing, including Company license, the Articles of Association and the approval letter from the relevant institutions, the data of Shareholders, the data of the Board of Commissioners and Board of Directors. 9. Maintan good communication and relationship between the Bank and capital market regulators, investors and public. 10. Together with other work units strive to enhance the implementation of good corporate governance of the Bank Date July 30, 2015

In order to keep abreast of the latest developments regarding the implementation of the functions and duties of the Corporate Secretary, the Bank facilitates the staff of the Corporate Secretary to participate in various forms of training. During 2015, the Corporate Secretary participate in:

Training/Seminar Seminar “Economy Globalization and Its Impacts on Indonesia Economy

August 18-19, 2015

Corporate Governance Training

September 21, 2015


Annual Report 2015

Development of Corporate Secretary Competence

Organizer IDX FSA Internal


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Risk Management The foundation of Risk Management in Bank QNB Indonesia is set based on the philosophy that the Bank recognizes the importance of effective Risk Management for its business and financial success as well as its corporate reputation. Hence, the development of the Bank’s business plan is based on the view point that proper balance between risks and benefits need to be maintained in order to achieve sustainable long term growth for shareholders. In support of the Bank’s business plan, reliable Risk Management is not only essential, but also needs to be implemented effectively. Risk Management implementation is conducted via the guidelines of Bank Indonesia Regulation (PBI) concerning the Implementation of Risk Management for Commercial Banks No. 5/8/ PBI/2003 dated May 19, 2003 as amended with PBI No. 11/25/PBI/2009 and Bank Indonesia Circular Letter No. 13/23/DPNP dated October 25, 2011 concerning the Amendment to Circular Letter No. 5/21/DPNP regarding the Implementation of Risk Management for Commercial Banks. Effective implementation of risk management needs to be supported by an integrated Risk Management Framework which covers Risk Management Governance, Risk Management Process and Risk Management Tools. The RMF is in line with the Bank’s vision, mission and business strategy.

Risk Management Governance A robust governance structure is essential to ensure the effectiveness and consistency of Risk Management Framework implementation of the framework for Enterprise Wide Risk Management. The Board of Commissioners and the Board of Directors of the Bank, in accordance with their responsibilities, continuously oversees, monitors and manages the risks faced by the Bank. As well as developing a Risk Management culture at all levels of the organization to ensure that all working units understand the strategy, the level of risks taken, and the Bank’s Risk Management framework. In implementation, the Board of Commissioners is assisted by the Risk Oversight Committee (ROC) which is one of the Committees of the Board of Commissioners with responsibility to review all risk areas and analyse other areas related to risk, its mitigating controls and as well as potential losses.


206

The Board of Commissioners delegates authority to Board of Directors to implement Risk Management Framework. To support the implementation of effective Risk Management, Board of Directors formed various Committees, including the Risk Management Committee (RMC).

Risk Management Process The Bank has implemented the Three Lines of Defense Approach in monitoring, controlling, and managing risks. First Line of Defence Business Units serve as the first line of defence and are responsible for identifying, evaluating, controlling, and mitigating the risks in business. Senior Management and the Risk Management Committee play an important role in ensuring the overall business units effectively functions as the “First Line of Defence” to develop a risk and control environment as part of routine operational activities. Second Line of Defence An independent Risk Management Division and Compliance Division act as key units in constructing the second line of defence as an independent monitoring function. Generally, the second line of defence is responsible for setting the limits, guidance and directions through development of policies, review and approval of risk limits, as well as ensuring compliance with all regulations of Bank Indonesia and other authorities. Third Line of Defence Internal Audit serves as the third line of defence by providing assurance and independent consultation activities to supervise the performance of the Bank and to ensure that the Bank’s operational activities are conducted in a safe, sound, and fair manner. It is also designed to provide added value and improve the Bank's operations as well as to assist the Bank in achieving its objectives.

Risk Management Tools Risk Management Tools in form of guideline for the application of Risk Management Framework are stated in a Risk Appetite Statement as well as policies and procedures. The Risk Appetite Statement elaborates the level and characteristics of risks taken by the Bank in order to realize its mission for its stakeholders. The Board of Directors and senior management are responsible to define Risk Appetite Statement while ensuring that Risk Management Framework has included detailed policies Annual Report 2015


pertaining to limitations for the organization towards the Bank’s activities, which are consistent with Risk Appetite Statement and the capability of the Bank. The purpose of the Risk Appetite Statement is to support the Bank in implementing its strategy and fulfill the

Risk

expectations of the shareholders. Risk Appetite Statement does not aim to prevent risk-taking, but rather to ensure that the process of risk taking is: 1. In line with the objectives; 2. Comprehended at the appropriate level in the organization; and 3. Implementation of optimum risk return basis within the Group Risk Appetite limits.

Appetite

Approach

Credit

Medium

Based on Business Plans and Risk and Reward Criteria

Market

Very Low

Very low tolerance for Treasury losses

Liquidity

-

No tolerance for liquidity shortfalls

Operational

Low

Low tolerance for Operational Risk losses

Legal

Very Low

Low tolerance for Legal Risk

Reputation

-

Ensure that the highest ethical and performance standards are followed by all staff all the time

Strategic

Medium

Willingness to commit capital to strategic initiatives

Compliance

-

Zero tolerance for Regulatory breaches

The Bank sets the risk limits by taking into account the capability of the Bank’s capital to absorb risk exposures, manage previous losses, improve the skills of its human resources and comply with the prevailing rules and regulations. The procedures and determination of risk limits include accountability and clear levels of authority, adequate documentation of procedures and limit determination according to the Bank’s growth and development. In accordance with the implementation of Pillar II of Basel II in Indonesia, the Bank has developed a method to implement the Internal Capital Adequacy Assessment Process (ICAAP). The purpose of this process is to ensure capital adequacy is appropriate to the Bank's risk profile, outside of the risks included in Pillar I. The execution of ICAAP in the Bank is based on the belief that the calculation of capital adequacy has to be able to absorb potential losses from material risks. Thus, the determination of capital adequacy through the use of ICAAP method, aside from performing an assessment on the 3 (three) major risks included in Pillar I (Credit Risk, Market Risk and Operational Risk), also includes 7 (seven) other risks, namely Credit Concentration Risk, Interest Rate Risk in the Banking Book, Liquidity Risk, Compliance Risk, Strategic risk, Legal Risk and Reputation Risk.

Annual Report 2015

Risk Management Focus in 2015 In 2015, Risk Management focused on: 1. Improvement of human resources via on the job training and formal courses. The most notable is Credit Risk Accreditation program via Omega training. 2. Availability of data, as well as the ability to understand a variety of new products and activities. 3. Improvement of Operational Risk Management process through periodic review of policies and procedures, development of Risk Control and Self-Assessment and review on Incident Reports and Loss Event Database (LED). Currently, Risk Control and Self-Assessment have been developed for 18 units, covering units in branches and head office, as well as front line and back office units. 4. Supporting sound loan growth to be in line with the Banks’s strategy, specifically the establishment of personal credit program and revamp & streaming of new SME program. Also the establishment of Retail Collection System, QPM & QCD for Credit Administration and improvement in the QPL & QBL business processes. 5. Improvement in credit concentration risk management through refinement of Industry Limit and Foreign Currency Loan Limit.


207


6.

7. 8. 9.

Strengthening controls for Technology Information through implementation of Technology Risk and Information Security governance. Improvement of Business Continuity Management process to support business resilience. Establishment of foundation in preparation for Basel III liquidity requirement in 2016. Enhancement of Liquidity Cash Flow Projection Report to better reflect the actual condition

Risks and Mitigation Measures Credit Risk Credit Risk is managed through the establishment of a series of policies and processes encompassing credit acceptance criteria, origination and credit approval, pricing, monitoring, management of non-performing loans and portfolio management. Every credit is approved by an authorised credit authority. Authorised personnel are appointed based on their personal and professional qualifications as well as experience and competence. The Bank continuously monitors developments which may affect the Bank’s credit portfolio. Thus, precautions can be taken properly and quickly in the event of decreased credit quality. The review on exposure for large debtors, as well as stress tests on the foreign currency portfolio and the changes of interest has also been carried out. These processes are conducted periodically to anticipate the possibility of the deterioration in the quality of all credit portfolios as a result of changes in economic conditions. The Bank also determines guidelines for Client Acceptance Criteria, Economy Sectors, and other limits to avoid risk concentration on certain sectors. After implementation, the Bank continues to review and improve the process and method of credit risk management, including carrying out refinement of main credit policies and program product structure. Market Risk Market Risk Management aims to identify, control, and manage the market risk exposures within acceptable parameters, as well as obtain an acceptable risk return.


208

Market risk is managed through comprehensive policies and work procedures which include structural restrictions or limits or guidelines that are designed to control exposures in accordance with the Bank’s risk appetite. These limits or guidelines include notional, DV01, and Net Interest Income (NII) Sensitivity. Market risk limits are allocated on a bank-wide basis and are monitored and reported by the Risk Management Division on daily basis. Management Action Triggers (MAT) help to prompt Management when the risk level increases and enable continuous reviews. The Risk Management Division is responsible for the identification, measurement, supervision, and control of the Bank’s market risk based on the framework approved by Asset and Liability Committee (ALCO). The Committee serves as the highest forum of senior management to determine the policies and decisions related to the management of market and liquidity risk. In addition, the Risk Management Committee (RMC) reviews and approves the decisions of ALCO, which are expressed in the form of policies or procedures. The Bank faces two categories of market risks, which are: a.

b.

Exchange Rate Risk The Exchange Rate Risk appears in the balance sheet, commitments and contingencies (off-balance sheet), in both the assets and liabilities, arising from foreign currency transactions. The Bank measures the exchange rate risk to observe the impacts of exchange rate changes on the Bank’s earnings and capital. To manage and mitigate the exchange rate risk, a more conservative limit of net foreign exchange position is determined in addition to the 20% limit of capital set by the regulators. Interest Rate Risk Interest Rate Risk is the potential loss that occurs as the result of the movement of market interest rate opposite of the Bank’s transactions or positions that contain interest rate risk. In managing interest rate risk, the Bank has developed the DV01 approach and NII Sensitivity approaches to be in line with the International Best Practice. The Bank manages its interest rate risk by utilising the NII Sensitivity approach and Repricing Gap analysis for overall bank portfolio and DV01 in the level of Bonds portfolio.

Annual Report 2015


Liquidity Risk Asset and Liability Committee (ALCO) acts as the highest forum of senior management to monitor the Bank’s liquidity conditions. ALCO is responsible for determining the policies and strategies related to the Bank’s assets and liabilities to be in line with the risk management principles of prudence and the prevailing regulations. The limit framework and other assumptions used to measure risks have been approved by the Risk Management Committee (RMC) and reported periodically in ALCO.

The implementation of Operational Risk Management Framework is comprehensively conducted to ensure that operational risk control is balanced. All business lines and supporting functions must identify factors which cause operational risks over product activities, process, services, organization, and information systems. Furthermore, all business lines and supporting functions must acknowledge, measure, analyze, monitor, and report operational risks through the documentation of all operational risk incidents periodically and in a timely manner.

The Bank manages liquidity risk daily through analysis on the difference of liquidity maturity and liquidity ratios. A liquidity gap analysis is used to provide insights related to the differences in cash inflows and outflows each day. It is managed centrally by the Treasury Unit which has direct access to and authorisation for interbank, large customer (institutional) and other market professional in the effort of assisting lending and funding activities.

Risk Management Division is also responsible for providing detailed descriptions of Operational Risk to Risk Committees at both the Board of Commissioners and the Board of Directors levels. In addition, each working unit head has to support the operational risk monitoring process in order to provide an effective working performance.

To complement the framework, both market risk and liquidity risk are well measured and controlled in the normal as well as abnormal (stress) scenarios. Aside from improving the performance of work scheme of liquidity risk management, the Bank developed Contingency Funding Plans which function as guidelines on funding scenarios in case of crisis. The Liquidity Cash Flow Projection report has been enhanced in order to better reflect the actual condition. The development of this report involves all related units, hence the report can be used to manage dayto-day liquidity. Operational Risk In managing Operational Risk, the Bank determines the most appropriate mitigation approach and strategy in order to optimally balance the Operational Risk exposure, effectiveness of control mechanisms, and the level of risk acceptable to the Bank. This is conducted through comprehensive and consistent implementation of the Operational Risk Management Framework as well as the adjustment to the specific risks of all existing business processes.

Annual Report 2015

To identify and mitigate Operational Risk, Bank has developed several Operational Risk tools, such as Risk Control and Self-Assessment, Corporate Loss Database and Key Risk Indicators. Risk Control and Self-Assessment have been developed and applied of 18 units across the Bank and will be further developed for all units in the Bank. Development and improvement process of Business Continuity Management is a critical for business resilience. In order to archive that, the Bank continuously improve and conduct periodic test for Business Continuity Management activities, including fire drill, alternate site test, disaster recovery test for critical applications, and others. Strategic and Reputation Risk The management of Strategic Risk covers each risk caused by the formulation and inadequate implementation of strategies; whereas the management of Reputation Risk involves managing matters that are related to the trust between the Bank and its customers and society. During 2015, Strategic Risk has improved by realising several strategic directions/plan and profit at the end of the year. The Bank continues to review its strategic plans to be in line with the Bank’s vision and mission, as well as the dynamic development of economy.


209


On the other hand, the reputation risk of the Bank also improved in 2015 due to the changes in institution and products and services, the improvement in Company’s name or rebranding, as well as the relocation of the main and operational offices. The frequency of negative publicity against the Bank was minimal and did not impact materially. In addition, the Bank’s reputation is also supported by the strong reputation of the parent company which has sound rating from reputable Credit Rating companies. Legal and Compliance Risk Legal Risk occurs as the result of inadequate juridical aspects, which among others caused by lawsuit and the absence of supporting laws and regulations, whereas Compliance Risk arises as the result of the failure in complying with the Laws and regulations applied in Republic of Indonesia as well as Bank's Internal regulations. Legal and Compliance Risks are managed by the Legal Division and Compliance Division; and important findings regarding the two risks are reported to the Board of Commissioners and Board of Directors through the Risk Oversight Committee and Risk Management Committee.

Evaluation on Risk Management Effectiveness An evaluation of the effectiveness of Risk Management Framework, especially in the implementation of the Three Lines of Defence, is essential to keep the Risk Management Framework in line with the Banks' vision, mission and strategy. Evaluation and reviews of the Risk Management Framework are conducted both internally and externally. Risk Oversight Committee, as the highest risk committee, and Audit Committee serve as the internal reviews which responsible in the review of policies and implementation of Risk Management Framework. The Committees also provide input and recommendations to the Board of Commissioners as part of the oversight functions. Internal audit, on a regular basis, reviews and audits the implementation of Risk Management based on the principle of risk-based auditing, with the aim not only to ensure internal control, but also to continuously improve Risk Management. Externally, the evaluation of Risk Management is performed by the external auditor and Regulator.

During 2015, Legal Risk has improved. Legal decisions that have been received by the Bank did not significantly affect the Bank’s capital and performance. In addition, the Bank also utilizes an external law firms to provide legal advice on various agreements including credit agreements and collateral arrangments.


210

Annual Report 2015

Annual Report 2015


211


Table 1.a. Quantitative Disclosure on the Capital Structure of Public Bank (In Million Rp) Capital Component

December 31, 2015 Consolidated

Bank

December 31, 2014 Consolidated

Bank

Capital ComPONENT I

Core Capital

2,086,745

2,060,336

2,189,287

2,189,287

(56,872)

(128,951)

-

-

(45,670)

-

-

-

1,138,543

143,241

1,138,543

143,241

-

-

3 Factors Reducing Supplementary Capital

-

-

Factors Reducing Core Capital and Supplementary Capital

-

-

Securitization Exposure

-

-

D

Additional Supplementary Capital that Satisfies

-

-

E

Additional Supplementary Capital Allocated to Anticipate Market Risks

-

-

A

1 Paid-up Capital 2 Additional Capital Reserves 3 Innovative Capital 4 Factors Reducing Core Capital 5 Non-Controlling Interests

B

Supplementary Capital 1 Upper Tier 2 2 Lower Tier 2 Maximum 50% of Core Capital

C

II

Total Core Capital and Supplementary Capital (A+B-C)

3,225,288

2,203,577

III

Total Core Capital, Supplementary Capital, and Additional Supplementary Capital Allocated to Anticipate Market Risk (A+B-C+E)

3,225,288

2,203,577

IV

Risk Weighted Assets (RWA) for Credit Risks

19,203,194

14,130,136

V

Risk Weighted Assets (RWA) for Operational Risks

719,834

461,610

8,534

4,769

16.18%

15.10%

VI

Risk Weighted Assets (RWA) for Market Risks A B

VIII

Standardized Approach Internal Model

Ratio of Minimum Capital Allocations for Credit Risks, Operational Risks and Market Risks [III : (IV+V+VI)]


212

Annual Report 2015


Table 1.b. Quantitative Disclosure on the Capital Structure of Foreign Bank Capital Component I

A

December 31, 2015

December 31, 2014

Capital Component

Operational Funds

1 Operational Funds 2 Paid-up Capital B

2,189,287

4,395

4,395

Reserves 1 General Reserves 2 Appropriated Reserves Income (Loss) Calculated from the Previous Years (100%)

-

-

115,469

(24,443)

Income (Loss) Calculated for the Current Year (50%)

156,045

60,419

C

Capital Paid in Advance Securitization Exposure

964,950

-

D

Other comprehensive income : losses from equity investment for available for sale category (100%)

-

(58)

E

Other comprehensive income : Gain from equity investment for available for sale category (45%)

-

-

F

Revaluation of Fixed Assets (45%)

-

6,965

G

Differences between allowance for losses and impairment losses of productive assets

(308,212)

(144,693)

H

Allowance for Losses of NonProductive Assets

-

-

I

Differences on Adjustment of Fair Value of Financial Instruments in the Trading Book

-

-

J

General Reserves of Productive Assets (max. 1.25% from RWA)

173,593

136,276

K

Capital Reduction Factors Securitization Exposure

(70,239)

(24,570)

3,225,288

2,203,577

19,203,194

14,130,136

719,834

461,610

8,534

4,788

-

-

-

-

16.18%

15.10%

II

Foreign Bank Capital (Total Of A Up To J - K)

III

Risk Weighted Assets (Rwa) For Credit Risks

IV

Risk Weighted Assets (Rwa) For Operational Risks

V

Risk Weighted Assets (Rwa) For Market Risks A B

VI

2,189,287

Standardized Approach Internal Model

Ratio Of Minimum Capital Allocations For Credit Risks, Operational Risk And Market Risks [Ii : (Iii + Iv + V)]

Annual Report 2015


213


Table 2.1.a Disclosure of Net Claims per Region - Bank Unconsolidated (In Million Rp) December 31, 2015 No

Capital Component

Net Claims per Region Jakarta

Sumatra

East Region

Java

Total

Claims against Government

4,408,820

-

-

-

4,408,820

2

Claims against Public Sector Entities

231

-

-

-

231

3

Claims against Multilateral Development

-

-

-

-

-

4

Claims against Banks

72,605

6,559

-

24,995

104,159

Collateralized Housing Loans

13,845

8,124

3,372

8,986

34,327

1,420,430

1,310

-

530,903

1,952,642

1

5 6

Collateralized Commercial Property Loans

7

Loans to Employees/Pensioners

-

-

-

-

-

8

Claims agaist MSMEs and Retail Portfolio

673,042

124,212

210,982

162,549

1,170,785

9

Claims against Corporations

12,446,225

1,463,079

1,252,163

2,582,331

17,743,798

-

-

-

-

-

229,783

50,857

22,145

40,102

342,887

19,264,981

1,654,141

1,488,663

3,349,866

25,757,649

10 Mature Claims 11 Other Assets Total

Table 2.2.a. Disclosure of Net Claims by Remaining Contract Time - Bank Unconsolidated No

December 31, 2015

Capital Component

Net Claims per Region ≤ 1 year

1


2


3

Claims against Multilateral Development Banks and International Institutions

4


5


6


7

Loans to Employees/ Pensioners

8


9


10 Mature Claims 11 Other Assets Total


214

> 1 - 3 years

> 3 . 5years

> 5 years

Non-Contractual

Total

4,408,820

-

-

-

-

4,408,820

69

-

69

93

-

231

-

-

-

-

-

104,159

104,159

-

-

-

-

2,564

8,590

9,907

13,266

-

34,327

220,715

360,886

215,300

1,155,741

-

1,952,642

-

-

-

-

-

-

406,750

340,202

200,153

223,680

-

1,170,785

8,035,210

1,558,270

3,968,785

4,181,533

-

17,743,798

-

-

-

-

-

-

282,201

175

1,381

59,130

-

342,887

13,460,488

2,268,123

4,395,595

5,633,443

-

25,757,649

Annual Report 2015


December 31, 2014 Net Claims per Region Jakarta

Sumatra

East Region

Java

Total

4,710,687

-

-

-

4,710,687

231

-

-

-

231

-

-

-

-

-

638,926

6,734

-

-

18,102

11,944

1,338

1,897

468,328

2,087

2,036

223,347

645,660 33,281 695,798

-

-

-

-

577,949

137,211

13,396

28,542

757,098

8,599,406

1,531,582

2,659,504

914,779

13,705,271

-

-

-

-

-

270,459

2,532

16,343

1,658

290,992

15,284,088

1,692,090

2,692,617

1,170,223

20,839,018

-

December 31, 2014 Net Claims per Region ≤ 1 year

> 1 - 3 years

> 3 . 5years

> 5 years

Non-Contractual

Total

4,710,687

-

-

-

-

4,710,687

-

69

69

93

-

231

-

-

-

-

-

-

105,660

500,000

645,660

561

15,733

6,026

1,157

-

40,000

-

7,190

9,797

-

33,281

302,401

386,214

-

695,798

-

-

-

-

-

-

62,635

552,076

90,639

51,748

-

757,098

6,608,655

1,037,896

2,821,191

3,237,529

-

13,705,271

-

-

-

-

-

-

248,676

122

963

41,231

-

290,992

11,742,900

2,107,053

3,222,453

3,766,612

-

20,839,018

Annual Report 2015


215


Table 2.3.a. Disclosure of Net Claims based on Economic Sector - Bank Unconsolidated (In Million Rp)

Capital Component

No


Report Date Position in 2015


Claims against Public Sector Entity



Agriculture, Menial Labor and Forestry

-

-

-

-

-

2

Fisheries

-

-

-

-

-

3

Mining and Extractive Industries

-

-

-

-

-

4

Processing Industry

-

-

-

-

-

5

Power, Gas and Water

-

-

-

-

-

6

Construction

-

-

-

-

2,226

7

Large Scale Trading and Retailing

-

-

-

-

1,327

8


-

-

-

-

-

9

Real Estate, Leasing, and Corporate Services

-

231

-

-

7,920

4,408,820

-

-

104,159

-

-

-

-

-

233

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

22,621

4,408,820

231

-

104,159

34,327

1

10 Financial Intermediaries 11 Transportation, Warehousing and Communications 12 Hospitality 13 Government Administration, Defense and Mandatory Social Security 14 Education 15 Health and Social Activities 16 Social, Cultural, Entertainment, and Other Personal Services 17 International Organizations and Other Extra International Organizations 18 Indeterminate Activities 19 Non Business Field 20 Miscellanous Total

Table 2.4.a. Disclosure of Claims and Reserves by Region - Bank Unconsolidated (In Million Rp) No

1 2

Portofolio Activity Claims Impaired Claims a. Outstanding b. Mature

3

Reserves for Impairments (CKPN) Unconsolidated

4

Reserves for Impairments (CKPN) Consolidated

5

Written-off Claims


216

December 31, 2015 Region Jakarta

Sumatra

East Region

Java

Total

1,796,725

1,466,517

3,284,768

20,830,044

1,172,178

8,458

165,693

294,246

1,640,575

535,750

29,835

3,391

10,548

579,524

27,112

4,457

293

824

32,686

5,932

906

608

1,608

9,054

49

-

-

-

49

14,282,034

Annual Report 2015





-

-

-

-

-

21,205

476,884

-

-

-

-

-

-

-

-

-

-

-

-

-

-

4,243,491

-

831,334

89,265

1,069,442

172,051

4,535,963

-

-

-

-

70,798

1,504,470

-

-

-

-

-

144,666

-

-

-

-

-

612,404

-

839,882

-

Other Assets

108,490

-

-

-

Mature Claims

11,330

-

171,182


-

-

-

342,887

690,639

-

110,825

4,094,168

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

62,771

516,557

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

342,887

-

1,533

-

487,873

-

1,952,642

-

1,170,785

17,743,798

December 31, 2014 Net Claims per Region Jakarta

Annual Report 2015

Sumatra

East Region

Java

Total

1,149,774

2,605,904

15,106,120

140,227

110

3,016

831,752

15,699

3,170

2,059

47,290

3,277

892

-

-

4,168

5 ,119

1,539

494

1,141

8,293

28

-

-

-

28

9,721,898

1,628,544

688,398 26,362


217


Table 2.5.a. Disclosure of Claims and Reserves by Economic Sector (In Million Rp) No

Capital Component

Reserves for Impairments (CKPN) Unconsolidated

Claims

Claims

Outstanding

Mature

Reserves for Impairments (CKPN) Consolidated

Written-off Claims

Report Date Position in 2015 1

Agriculture, Menial Labor and Forestry

2

Fisheries

3

Mining and Quarrying

4

Processing Industry

5

Electricity, Gas, and Water

6

129,695

2,724

7,939

6

1,423

-

-

-

-

-

-

-

851,213

-

3,246

29

389

-

4,659,340

187,340

181,063

643

19,606

-

831,334

144,773

-

26

-

-

Construction

1,637,817

131,648

229,364

137

2,483

-

7

Wholesale and Retail Trade

5,160,049

850,143

51,929

947

8,019

-

8

Hotels and Restaurants

-

-

8,334

-

-

-

9

Transportation, Warehousing and Communications

1,583,045

120,198

-

155

9

-

10 Financial Intermediaries

-

-

-

-

-

-

11 Real Estate, Leasing, and Corporate Services

4,886,168

67,934

-

185

-

-

12 Government Administration, Defense, and Compulsory Social Security

-

-

-

-

-

-

13 Education

-

-

-

-

-

-

14 Health and Social Activities

-

-

-

-

-

-

579,328

94,344

4,951

1,014

757

-

16 Private Households Employment

-

-

-

-

-

-

17 International Organizations and Other Extra International Organizations

-

-

-

-

-

-

18 Indeterminate Activities

-

-

-

-

-

-

19 Not classifiable by economic activity

-

-

-

-

-

-

512,055

41,473

92,697

5,912

-

-

20,830,044

1,640,575

579,524

9,054

32,686

-

15 Social, Cultural, Entertainment, and Other Personal Services

20 Miscellaneous Total


218

Annual Report 2015


Table 2.6.a. Disclosure of Changes in Impairment Reserves - Bank Unconsolidated In million Rupiah (In Million Rp) No

Portfolio Category

1

Opening Impairment Reserves Balance

2

December 31, 2015 CKPN Individual

December 31, 2014

CKPN Collective

CKPN Individual

CKPN Collective

4,168

8,179

6,352

8,281

Allocation (Recovery) of Impairment Reserves in the Current Period - Net

28,518

21,538

(2,666)

(1,107)

a.

Allocation of Impairment Reserves in Current Period

28,528

21,983

1,016

10,082

b.

Recovery of Impairment Reserves in Current Period

(10)

(445)

(3,682)

(11,189)

3

Impairment Reserves used to Cover Write-Offs in Current Period

-

(20,663)

-

-

4

Other Allocation (Recovery) in Current Period

-

-

-

-

32,686

9,054

3,686

7,174

Closing Impairment Reserves Balance

Annual Report 2015


219


Table 3.1.a. Diclosure of Net Claims based on Portfolio Category and Rating - Bank Unconsolidated (In Million Rp) December 31, 2015 Rating Agencies

Long-Term Rating

Standard and Poor’s Fitch Rating No

Portfolio Category

Moody’s PT Fitch Ratings Indonesia

AAA

AA+ s.d AA-

A+ s.d A-

BBB+ s.d BBB-

BB+ s.d BB-

PT ICRA Indonesia PT Pemeringkat Efek Indonesia 1


-

-

-

-

-

2


231

-

-

-

-

3


-

-

-

-

-

4


172

43,847

54,211

498

-

5


-

-

-

-

-

6


-

-

-

-

-

7


-

-

-

-

-

8


-

-

-

-

-

9


-

-

-

-

-

10

Mature Claims

-

-

-

-

-

11

Other Assets

-

-

-

-

-

403

43,847

54,211

498

-

Total


220

Annual Report 2015


December 31, 2015 Net Claims Short Term Rating

B+ s.d B-

Less than B-

A-1

A-2

A-3

Less than A-3

Unrated

Total

-

-

-

-

-

-

4,408,820

4,408,820

-

-

-

-

-

-

-

231

-

-

-

-

-

-

-

-

-

-

-

-

-

-

5,431

104,159

-

-

-

-

-

-

34,327

34,327

-

-

-

-

-

-

1,952,642

1,952,642

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1,170,785

1,170,785

-

-

-

-

-

-

17,743,798

17,743,798

-

-

-

-

-

-

-

-

-

-

-

-

-

-

342,887

342,887

-

-

-

-

-

-

25,658,690

25,757,649

Annual Report 2015


221


(In Million Rp) December 31, 2014 Rating Agencies

Long-Term Rating

Standard and Poor’s Fitch Rating No

Portfolio Category

Moody’s PT Fitch Ratings Indonesia

AAA

AA+ s.d AA-

A+ s.d A-

BBB+ s.d BBB-

BB+ s.d BB-

PT ICRA Indonesia PT Pemeringkat Efek Indonesia 1


-

-

-

-

-

2


231

-

-

-

-

3


-

-

-

33,655

2,936

4


-

-

-

-

-

5


-

-

-

-

-

6


-

-

-

-

-

7


-

-

-

-

-

8


-

-

-

-

-

9


-

-

-

-

-

10

Mature Claims

-

-

-

-

-

11

Other Assets

-

-

-

-

-

231

-

-

33,655

2,936

Total


222

Annual Report 2015


December 31, 2014 Net Claims Short Term Rating

B+ s.d B-

Less than B-

A-1

A-2

A-3

Less than A-3

Unrated

Total

-

-

-

-

-

-

4,442,363

4,442,363

-

-

-

-

-

-

-

231

-

-

-

-

-

-

546,733

583,324

-

-

-

-

-

-

-

-

-

-

-

-

-

-

33,008

33,008

-

-

-

-

-

-

691,517

691,517

-

-

-

-

-

-

-

-

-

-

-

-

-

-

701,167

701,167

-

-

-

-

-

-

13,741,035

13,741,035

-

-

-

-

-

-

-

-

-

-

-

-

-

-

646,374

646,374

-

-

-

-

-

-

20,802,197

20,839,018

Annual Report 2015


223


Table 3.2.a. Disclosure of Counterparty Credit Risk: Derivative Transactions (In Million Rp) December 31, 2015

No Notional Amount

Portofolio Activity ≤ 1 year

> 1 year ≤ 5 year

Derivative Claims

> 5 year

Net Claims Before MR

Derivative Obligations


MRK

Bank Unconsolidated 1 2 3

-

-

-

-

-

-

-

-

543,353

-

-

2,921

661

2,890

-

2,890

-

-

-

-

-

-

-

-

543,353

-

-

2,921

661

2,890

-

2,890

Interest Rate Foreign Exchange Others Total

Table 3.2.b.1 Disclosure of Counterparty Credit Risk: Repo Transactions - Bank Unconsolidated (In Million Rp) No

Portofolio Activity

December 31, 2015 Fair Repo SSB Value

Repo Obligations

RWA Before MR

Net Claims

Bank Unconsolidated 1 2 3 4 5 6


-

-

-

-


-

-

-

-


-

-

-

-

-

-

-

-

-

-

-

-


-

-

-

-

Total

-

-

-

-

Claims against Bank Claims agaist MSMEs and Retail Portfolio

Table 3.2.c.1. Disclosure of Counterparty Credit Risk: Repo Transactions - Bank Unconsolidated (In Million Rp) No

Portofolio Activity

December 31, 2015 Net Claims

Net Claims After MRK

MRK Scores

RWA After MRK

Bank Unconsolidated 1 2 3 4 5 6

269,117

-

269,117

-


-

-

-

-


-

-

-

-

Claims against Bank

-

-

-

-


-

-

-

-


-

-

-

-

269,117

-

269,117

-


Total


224

Annual Report 2015


December 31, 2014 Notional Amount > 1 year ≤ 5 year

≤ 1 year

Derivative Claims

> 5 year

Derivative Obligations


MRK


-

-

-

-

-

-

-

540,221

-

-

282,330

257,891

4,788

4,788

-

-

-

-

-

-

-

540,221

-

-

282,330

257,891

4,788

4,788

December 31, 2014 Repo Obligations

Fair Repo SSB Value

RWA Before MR

Net Claims

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

December 31, 2014 Net Claims

Annual Report 2015

Net Claims After MRK

MRK Scores

RWA After MRK

268,324

-

268,324

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

268,324

-

268,324

-


225


Table 4.1.a. Disclosure of Net Claims by Risk Weighting after Calculating Effect of Credit Risk Mitigation - Bank Unconsolidated (In Million Rp) December 31, 2015 Portfolio Category

No

Net Claims after Calculating Effect of Credit Risk Mitigation 0%

20%

40%

35%

A

Balance Sheet Exposure

4,408,820

-

-

2


-

231

-

3


-

-

-

4


-

104,159

-

5


-

-

34,327

6


-

-

7


8


1

9



10 Mature Claims 11 Other Assets

Total Balance Sheet Exposure

B

Commitment/Contingency Exposure in Administrative Account Transactions

1


2

Claims against Public Sectors Entities

3


4


5


6


7


8


9


10 Mature Claims C 1

Total Exposure of TRA

Counterparty Credit Risk Claims against Government

2

Claims against Public Sectors Entities

3


4


5


6


Total Exposure of Counterparty Credit Risk


226

50%

45% -

-

-

-

-

-

75% -

-

-

-

-

-

-

-

-

1,952,642

-

-

-

-

-

-

1,170,785

-

-

-

- 17,743,798

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

342,887

-

-

4,751,707

104,390

-

-

-

-

-

-

-

-

34,327

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

3,008,449

-

-

-

-

-

-

-

-

-

-

-

-

-

112,550

2,596,237

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1,170,785 19,696,440

721

298,941

-

-

-

-

-

-

-

-

-

Others

150%

-

-

-

-

100%

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

2,921

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

2,921

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Annual Report 2015


December 31, 2014 Capital Charge

RWA

0%

20%

40%

35%

50%

45%

75% -

-

-

-

-

231

-

-

-

-

-

-

-

-

-

1,666

-

645,660

-

-

-

-

961

-

-

33,281

-

-

156,211

-

-

-

-

-

-

-

-

46

4,710,687

4

-

-

-

20,831 12,014 1,952,642 -

-

-

-

-

-

-

878,089

70,247

-

-

-

-

-

16,041,531

1,283,322

1,080,525

-

-

-

-

-

-

-

-

-

-

297,457

-

23,797

-

-

-

-

19,202,610

290,992

1,536,209

6,082,204

645,891

33,281

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

394

-

362

-

-

-

-

-

-

185,217

-

-

-

1,874,178

-

-

-

-

-

-

-

-

100%

Others

150%

-

-

-

-

-

-

-

-

-

-

-

695,798

-

-

757,098

-

- 12,624,932 -

-

-

-

757,098 13,320,730

Capital Charge

RWA

Net Claims after Calculating Effect of Credit Risk Mitigation

-

-

-

-

-

-

46

4

-

-

-

-

-

-

129,132

10,331

-

-

11,648

932

-

-

695,794

55,664

-

-

-

-

-

-

567,824

45,426

-

- 13,705,457

1,096,437

-

-

-

-

-

-

-

-

- 15,109,905

1,208,792

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

43,452

-

-

-

-

-

32,022

2,562

-

-

-

-

-

-

-

-

2,060,151

43,452

-

-

-

-

-

32,022

2,562

-

268,324

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

584

47

-

-

-

-

-

-

-

-

-

-

153

584

-

47

268,324

Annual Report 2015

153

-

-

-

-

-

-

-

46,664

-

-

-

-

46,664

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

31

2

31

2

-

-

-

-

-

-

-

-

-

-

-


227


Table 4.2.a. Disclosure of Net Claims and Credit Risk Mitigation Techniques Bank Unconsolidated (In Million Rp)

December 31, 2015 Portfolio Category

No

Net Claims

2 3 4 5 6 7 8 9

Collateral

Guarantee

4,408,820

-

-

-

-

231

-

-

-

-

-

-

-

-

-

104,159

-

-

-

-

34,327

-

-

-

-

1,952,642

-

-

-

-


-

-

-

-

-


1,170,785

-

-

-

-

1,170,785

17,743,798

1,702,267

-

-

-

-

-

-

-

16,041,531

342,887

-

-

-

-

25,757,649

1,702,267

-

-

-

24,055,382

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


Claims against Public Sector Entities Claims against Multilateral Development Banks and International Institutions Claims against Banks Collateralized Housing Loans Collateralized Commercial Property Loans


10 Mature Claims 11 Other Assets

Total Balance Sheet Exposure

B 1 2 3 4 5 6 7 8 9


Claims against Public Sectors Entities Claims against Multilateral Development Banks and International Institutions Claims against Banks Collateralized Housing Loans Collateralized Commercial Property Loans

2 3 4 5 6

4,408,820 231 104,159 34,327 1,952,642 -

342,887

-

-

-

-

-

721

-

-

-

-

112,550

-

-

-

-

721 112,550

-

-

-

-

-

298,941

-

-

-

-

298,941

2,596,237

-

-

-

-

-

-

-

-

2,596,237

3,008,449

-

-

-

-

3,008,449


-

-

-

-

-

-

-

-

-

-

-

Claims against Public Sectors Entities Claims against Multilateral Development Banks and International Institutions

-

-

-

-

-

-

2,921

-

-

-

-

-

-

-

-

2,921

-

-

-

-

-

2,921

-

-

-

-

2,921

28,769,019

1,702,267

-

-

-

27,066,752

Loans to Employees/Pensioners Claims agaist MSMEs and Retail Portfolio Claims against Corporations Total Exposure of TRA

1

Others

Commitment/Contingency Exposure in Administrative Account Transactions

10 Mature Claims C

Portion Unsecured

Credit Insurance

A Balance Sheet Exposure 1

Portion Secured by

Counterparty Credit Risk

Claims against Banks Claims agaist MSMEs and Retail Portfolio Claims against Corporations

Total Exposure of Counterparty Credit Risk Total (A+B+C) PT Bank QNB Indonesia Tbk

228

-

-

-

-

Annual Report 2015


December 31, 2014 Portion Secured by Net Claims

Collateral

4,710,687 231 -

Credit Insurance

Guarantee

Portion Unsecured

Others

-

-

-

-

-

-

-

-

-

-

-

-

4,710,687 231 -

-

-

-

-

67

-

-

-

695,798

-

-

-

-

-

-

-

-

-

-

-

703,227 12,624,832

645,660 33,281

645,660 33,214 695,798 -

757,098

53,871

-

13,705,457

1,080,625

-

-

-

-

-

-

-

-

-

-

20,839,018

1,134,563

-

-

-

19,704,455

-

-

290,806

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

362

-

-

-

-

-

394

290,806

2,527 106

-

-

-

-

185,217

-

-

-

-

183,877

1,964,294

-

-

-

-

-

-

-

4,631,691

-

-

-

-

2,150,267

-

-

-

-

2,150,267

268,324

73,881

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

5,055

-

-

-

-

-

-

-

-

153

-

-

-

-

268,477

-

-

-

-

78,936

23,257,762

1,134,563

-

-

-

21,933,658

-

Annual Report 2015

-


229


Table 6.1.1. Disclosure of Assets on Bank Balance Sheet Exposure (In Million Rp) December 31, 2015

No

Portfolio Category

1


2

laims against Public Sector Entities

3


4


5


6


7


8


9


10

Mature Claims

11

Other Assets Total


230

RWA Before MRK

Net Claims

December 31, 2014 RWA After MRK

RWA Before MRK

Net Claims

RWA After MRK

4,408,820

-

-

4,710,687

-

-

231

46

46

231

46

-

-

-

-

-

-

-

104,159

129,132

129,132

645,660

129,132

-

34,327

11,648

11,648

33,281

11,648

11,625

1,952,642

695,798

695,798

695,798

695,798

695,798

-

-

-

-

-

-

1,170,785

878,089

878,089

757,098

567,824

527,420

17,743,798

17,743,498

16,041,531

13,705,457

13,705,457

12,624,932

-

-

-

-

-

-

342,887

-

297,457

290,806

-

238,339

25,757,649

20,607,121

19,202,611

20,839,018

15,109,905

14,098,114

Annual Report 2015


Table 6.1.2. Disclosure of Exposure to Commitment/Contingency from Adminstrative Account Transactions - Bank Unconsolidated (In Million Rp) December 31, 2015

No

Portfolio Category

RWA Before MRK

Net Claims


RWA Before MRK

Net Claims

RWA After MRK

1


-

-

-

-

-

-

2


-

-

-

-

-

-

3


-

-

-

-

-

-

4


-

-

-

-

-

-

5


-

-

-

-

-

-

6


-

-

-

-

-

-

7


-

-

-

-

-

-

8


-

-

-

-

-

-

9


-

-

-

32,022

32,022

32,022

10

Mature Claims

-

-

-

-

-

-

Total

-

-

-

32,022

32,022

32,022

Annual Report 2015


231


Table 6.1.3. Disclosure of Exposure Arising from Counterparty Credit Risk - Bank Unconsolidated (In Million Rp) December 31, 2015

No

Portfolio Category

RWA Before MRK

Net Claims


RWA Before MRK

Net Claims

RWA After MRK

1


-

-

-

268,324

-

-

2

Publik Claims against Public Sector Entities

-

-

-

-

-

-

3


-

-

-

-

-

-

4

Claims against Bank

2,921

584

584

-

-

-

5


-

-

-

-

-

-

6


-

-

-

153

31

-

2,921

584

584

268,477

31

-

Total

Table 6.1.4. Disclosure of Exposure to Settlement Risk (In Million Rp) December 31, 2015

No

1

Portfolio Category

RWA Before MRK

Net Claims


RWA Before MRK

Net Claims

RWA After MRK

-

-

-

-

-

-

2

a. Capital Charge 8% (5-15 days)

-

-

-

-

-

-

3

b. Capital Charge 50% (16- 30 days)

-

-

-

-

-

-

4

c. Capital Charge 75% (31-45 days)

-

-

-

-

-

-

d. Capital Charge 100% (more than 45 days)

Delivery versus payment

5 6

-

-

-

-

-

-

Non-delivery versus payment

-

-

-

-

-

-

Total

-

-

-

-

-

-


232

Annual Report 2015


Table 6.1.5. Disclosure of Securitization Exposure (In Million Rp) December 31, 2015

No

Portfolio Category

RWA Before MRK

Net Claims


RWA Before MRK

Net Claims

RWA After MRK

1

Supporting Credit Facilites that Meet the Requirements

-

-

-

-

-

-

2

Supporting Credit Facilites that do not Meet Requirements

-

-

-

-

-

-

3

Liquidity Facilities that Meet the Requirements

-

-

-

-

-

-

4

Liquidity Facilities that do not Meet the Requirements

-

-

-

-

-

-

5

Purchase of Asset-backed that Meet the Requirements

-

-

-

-

-

-

6

Purchase of Asset-backed that do not Meet the Requirements

-

-

-

-

-

-

7

Securitization exposure not covered by Bank Indonesia regulations on the application of prudent principles to asset securitization by commercial banks

-

-

-

-

-

-

Total

-

-

-

-

-

-

Table 6.1.7. Disclosure of Total Credit Risks (In Million Rp) December 31, 2015 Supporting Credit Facilites that Meet the Requirements Supporting Credit Facilites that do not Meet Requirements

Annual Report 2015

December 31, 2014

19,203,194

14,130,136

(70,238)

(24,570)


233


Table 7.1. Disclosure of Market Risk using Standardized Method - Bank Unconsolidated (In Million Rp) December 31, 2015 Bank

Risk Type

No

Consolidation

Capital Charge 1

RWA

Capital Charge

RWA

Interest Rate Risks a. Specific Risks

-

-

-

-

b. General Risks

-

-

-

-

682

8,534

-

-

2

Exchange Rate Risks

3

Equity Risks *)

-

-

-

-

4

Commodity Risks *)

-

-

-

-

5

Option Risks

-

-

-

-

Total

-

-

-

-

Table 7.2.a. Disclosure of Market Risk using Internal Model (Value at Risk/VaR) Bank Unconsolidated (In Million Rp) December 31, 2015

Risk Type

No

Average VaR 1

Interest Rate Risks

2

Exchange Rate Risks

3

Option Risks Total

Maximum VaR

Minimum VaR

Var at End Period

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Table 8.1.a. Disclosure of Quantitative Operational Risk - Bank Unconsolidated (In Million Rp) December 31, 2015 Risk Type

No

1

Gross Income (Average of the Last 3 Years)

Capital Charge

RWA

Base Indicator Approach

383,911

57,587

719,834

Total

383,911

57,587

719,834


234

Annual Report 2015


December 31, 2014 Bank

Consolidation

Capital Charge

RWA

Capital Charge

RWA

-

-

-

-

-

-

-

-

226

2,826

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

December 31, 2014 Average VaR

Minimum VaR

Maximum VaR

Var at End Period

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

December 31, 2014 Gross Income (Average of the Last 3 Years)

Annual Report 2015

Capital Charge

RWA

246,192

36,929

461,610

246,192

36,929

461,610


235


Table 9.1.a. Disclosure of Rupiah Maturities Profile - Bank Unconsolidated (In Million Rp) December 31, 2015 No

Post

Maturity Balance ≤ 1 month

I

> 1 - 3 months

> 3 - 6 months

> 6 - 12 months

> 12 months

BALANCE SHEET

A. Assets 1 Cash

2 Placements with Bank Indonesia 3 Placements with Other Banks 4 Securities 5 Loans 6 Other Receivables 7 Others

Total assets

5,194

5,194

-

-

-

-

2,143,568

2,143,568

-

-

-

-

38,501

38,501

-

-

-

-

-

-

-

-

-

-

7,314,325

629,772

331,122

655,074

981,271

4,717,086 -

-

-

-

-

-

74,946

74,946

-

-

-

-

9,576,534

2,891,981

331,122

655,074

981,271

4,717,086

5,900,355

4,744,949

1,064,321

90,110

-

976

-

-

-

-

-

-

2,798,355

1,792,050

454,905

551,400

-

-

-

-

-

-

-

-

964,950

-

-

-

-

964,950 -

B. Liabilities 1 Third-Party Funds 2 Funds from Bank Indonesia 3 Funds from Other Banks 4 Securities Issued 5 Fund Borrowings 6 Other Liabilities

-

-

-

-

-

257,169

257,169

-

-

-

-

9,920,830

6,794,168

1,519,226

641,510

-

965,926

(344,296)

(3,902,188)

(3,902,188)

13,564

981,271

3,751,160

543,201

541,064

2,137

-

-

-

-

-

-

-

-

-

543,201

541,064

2,137

-

-

-

1,931,135

1,926,494

2,132

2,510

-

-

3,308

-

-

3,308

-

-

1,934,444

1,926,494

2,132

5,818

-

-

Difference Between Administrative Account Claims and Liabilities

(1,391,243)

(1,385,430)

5

(5,818)

-

-

Difference (IA-IB)+(IIA-IIB)

(1,735,538)

(5,287,618)

(1,188,099)

7,746

981,271

3,751,160

-

(5,287,618)

(6,475,716)

(6,467,970)

(5,486,698)

(1,735,538)

7 Miscellanous

Total Liabilities

Difference Between Assets and Liabilities on Balance Sheets II

ADMINISTRATIVE ACCOUNT

A. Administrative Account Claims 1 Commitments

2 Contingencies

Total Administrative Account Claims

B. Administrative Account Liabilities 1 Commitments

2 Contingencies Total Administrative Account Liabilities

Cumulative Difference


236

Annual Report 2015


December 31, 2014 Maturity Balance > 3 - 6 months

> 1 - 3 months

≤ 1 month

> 12 months

> 6 - 12 months

53,849

48,596

-

-

-

-

662,723

2,014,092

136,139

-

47,695

-

353

540,456

-

-

-

-

105,231

-

-

48,577

-

231

10,381,512

309,793

976,576

968,901

2,190,240

5,936,002

73,881

268,324

-

-

-

-

87,026

87,026

-

-

-

-

11,364,575

3,268,287

1,112,715

1,017,478

2,237,935

5,936,233

4,963,623

8,141,276

2,608,310

388,278

49,554

-

-

-

-

-

-

-

27,500

5,580

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

258,509

258,509

-

-

-

5,249,632

8,405,365

2,608,310

388,278

49,554

-

2,121,141

(5,137,078)

(1,495,595)

629,200

2,188,381

5,936,233

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1,193,149

2,464

16,775

-

-

3,714

1,065

32,000

738

230

-

1,196,863

3,529

48,775

738

230

-

(1,196,863)

(3,529)

(48,775)

(738)

(230)

3,751,160

(6,333,941)

(1,499,124)

580,425

2,187,643

5,936,003

(1,735,538)

(6,333,941)

(7,833,065)

(7,252,640)

(5,064,997)

871,006

Annual Report 2015

-


237


Table 9.2.a. Disclosure of Foreign Exchange Maturities Profile - Bank Unconsolidated (In Million Rp) December 31, 2015 No

Post

Maturity Balance ≤ 1 month

I

> 1 - 3 months

> 3 - 6 months

> 6 - 12 months

> 12 months

BALANCE SHEET

A. Assets 1 Cash

2 Placements with Bank Indonesia 3 Placements with Other Banks 4 Securities 5 Loans 6 Other Receivables 7 Others

Total assets

377

377

-

-

-

-

155,500

155,500

-

-

-

-

2,793

2,793

-

-

-

-

-

-

-

-

-

-

530,600

45,685

24,020

47,521

71,184

342,190

-

-

-

-

-

-

5,437

5,437

-

-

-

-

694,707

209,792

24,020

47,521

71,184

342,190

428,027

344,211

77,209

6,537

-

71

-

-

-

-

-

-

203,000

130,000

33,000

40,000

-

-

-

-

-

-

-

-

70,000

-

-

-

-

70,000 -

B. Liabilities 1 Third-Party Funds 2 Funds from Bank Indonesia 3 Funds from Other Banks 4 Securities Issued 5 Fund Borrowings 6 Other Liabilities

-

-

-

-

-

18,656

18,656

-

-

-

-

719,683

492,867

110,209

46,537

-

70,071

(24,976)

(283,075)

(86,188)

984

71,184

272,119

39,405

39,250

155

-

-

-

-

-

-

-

-

-

39,405

39,250

155

-

-

-

140,090

139,753

155

182

-

-

240

-

-

240

-

-

140,330

139,753

155

422

-

-

Difference Between Administrative Account Claims and Liabilities

(100,924)

(100,503)

-

(422)

-

-

Difference (IA-IB)+(IIA-IIB)

(125,901)

(383,578)

(86,188)

562

71,184

272,119

-

(383,578)

(469,765)

(469,203)

(398,019)

(125,901)

7 Miscellanous

Total Liabilities

Difference Between Assets and Liabilities on Balance Sheets II

ADMINISTRATIVE ACCOUNT

A. Administrative Account Claims 1 Commitments 2 Contingencies

Total Administrative Account Claims

B. Administrative Account Liabilities 1 Commitments 2 Contingencies Total Administrative Account Liabilities

Cumulative Difference


238

Annual Report 2015


December 31, 2014 Maturity Balance > 1 - 3 months

≤ 1 month

> 3 - 6 months

> 12 months

> 6 - 12 months

4,056

4,056

-

-

-

-

2,195,861

2,195,861

-

-

-

-

42,864

42,864

-

-

-

-

-

-

-

-

-

-

4,724,608

24,699

297,773

378,164

1,666,885

2,357,088 -

-

-

-

-

-

72,440

72,440

-

-

-

-

7,039,829

2,339,920

297,773

378,164

1,666,885

2,357,088

4,974,293

4,735,318

147,908

91,067

-

-

-

-

-

-

-

-

1,857,750

-

-

1,857,750

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

240,442

240,442

-

-

-

7,072,485

4,975,760

147,908

1,948,817

-

-

(32,657)

(2,635,841)

149,865

(1,570,653)

1,666,885

2,357,088

282,328

282,328

-

-

-

-

-

-

-

-

-

282,328

282,328

-

-

-

-

1,149,105

1,139,507

-

9,598

-

8,917

8,917

-

-

-

1,158,022

1,148,424

-

9,598

-

-

(875,694)

866,095)

-

(9,598)

-

-

(908,350)

(3,501,936)

149,865

(1,580,252)

1,666,885

2,357,088

-

(3,501,936)

(3,352,072)

(4,932,324)

3,265,439)

(908,350)

-

Annual Report 2015

-


239


Internal Control System The Bank has implemented an internal control system through the separation of function, implementation of four eyes principles, Know Your Employee program, inherent monitoring in related units, as well as rotation system and implementation of block leave.

3.

Internal Control System Implementation

5.

In managing and controlling the financial and operational risks to be in line with the applicable regulations, the Internal Division conducts several activities, such as: 1. Visiting branch offices by utilizing the Checklist Branch Visit which includes cash count, monitoring on the implementation of dual custody, examining the security system, etc. 2. Inspecting the Bank’s compliance with the implementation of operation transaction in the branch offices that are included in the scope of operational Checklist End of Day, including conducting examination on account opening transaction and foreign exchange transaction on a daily basis.

4.

Examining the activation of dormant account, balanced Sundry Account, and over draft balance in a centralized manner and in the scope of daily basis. Conducting examination on the payment of of interest income tax from deposits, current account, and savings to State Treasury Office The result of the examination will be stated in the form of findings recapitulation and may also be used as review material for branch offices that need to improve its performance regarding the operational transactions.

Evaluation on Internal Control System Effectiveness Based on the activities implemented by Internal Division, the Bank performs evaluation and uses the results as guidelines to improve performance efficiency and effectiveness of the Bank and its branch offices. Implementation results are studied by the Bank in order to perform organized and systematic improvement and to provide the best solutions for any problems encountered.

Legal Disputes and Administrative Sanctions Throughout 2015, the Bank, the Board of Directors and Board of Commissioners were not facing any lawsuit or legal case in the courts and/or arbitration agencies or any potential cases, both in criminal, civil, taxation, arbitration, industrial relations, state administrative agencies in the


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face of bankruptcy of Indonesian courts, which have a material effect on the Bank’s business continuity along with its assets. Below are the legal cases faced by the Bank in 2015:

Annual Report 2015


Legal Disputes

Description Civil

Criminal

Completed (Has Legal Standing)

1

-

In the Process of Settlement/Ongoing

6

-

Total

7

-

Material Cases Involving Serving Directors and Commissioners During 2015, no serving Directors or Commissioners of the Bank were involved in legal problems, whether civil or criminal.

Legal Disputes Throughout 2015, the Bank was involved in a total of 7 (seven) legal cases, of which 6 (six) cases were low risk and 1 (one) was medium risk. All cases has no significant impact to the Bank as well as to the operational of the Bank.

Administrative Sanctions In 2015, there was no administrative sanctions were imposed by any parties in connection with the handling of legal cases by the Bank. There also was no material administrative sanctions from Financial Services Authority that affected the business continuity of the Bank, nor was there any administrative sanctions imposed on members of the Board of Directors or the Board of Commissioners.

Impact on the Bank The civil legal cases in which the Bank was involved during the reporting period did not have an insignificant impact as necessary mitigation measures have been taken.

Annual Report 2015


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Code of Conducts and Corporate Culture For the development and improvement of GCG practice, the Company has formulated policies related to the code of conduct in the Employee’s Code of Ethics (Code of Conduct) which serves as a guideline of attitude and conduct standards in the implementation of all business activities as well as the Bank’s vision and mission achievement. In particular, the code of conduct is established as one of the soft-structures owned by the Bank in implementing their corporate governance practices. As a guidelines of attitudes and conducts, the Bank’s Code of Conduct refers to the best industry practices by considering the conformity with the applicable law and regulations in Indonesia. Through comprehensive application of Code of Conduct at all organization level, the Company expects to be able to boost awareness of all employees to behave in accordance with the principles and moral values that reflect the Bank’s integrity and reputation.

Universality of Code of Conduct The code of conduct applies universally, which means that all values encompassed in the Code of Conduct are applied to all personnel of PT Bank QNB Indonesia Tbk, including the Board of Commissioners, Board of Directors, and all Management levels.

Code of Conducts Core Values All employees of the Bank are responsible to uphold the Code of Conduct in their day-to-day activities; strongly embedded business ethics are expected to maintain favourable environment for individuals and for the Bank. The elements of Bank’s Code of Conduct are:


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Conduct 1. Teamwork 2. Relationship Based on Trust 3. Protection of Bank’s and Customers’ Assets and Interests 4. Supplier Relationship 5. Social Responsibility 6. Adherence to the Law 7. Adherence to All Policies and Procedures of PT Bank QNB Indonesia Tbk 8. Disclosure of Confidential Information 9. Our Word is Our Bond 10. Restriction on Working Elsewhere 11. Dealing with the Media 12. Avoidance of Inducement 13. Avoidance of Conflict of Interest 14. Proper Management of Staff Account 15. Personal Indebtedness 16. Personal Transactions 17. Attention to Personal Matters 18. Personal Development 19. Integrity in Inter-personal Relationships 20. Personal Conduct 21. Personal Appearance 22. Dealing with QNB Shares 23. Intellectual Property Security 1. Safety & Security 2. Continuation of Business in Times of Troubles Compliance 1. Whistleblowing 2. Politics 3. Fraud, Money Laundering & Terrorist Financing

Annual Report 2015


Code of Conducts Socialization and Enforcement in 2015 To support the comprehensive implementation of Code of Conduct, the Bank actively conducts dissemination and publication of that ethics. In addition, the Bank also conducts observation and evaluation on the implementation of the Code of Conduct, as well as revision if deemed necessary. The revision is conducted as a form of compliance with the regulations and legislations applicable in Indonesia. Among the socialization and reinforcement of Code of Conduct the dissemination of Code of Conduct on regular basis to all employees through the distribution of Code of Conduct e-book which is to be signed by all employees. The principles defined in the Code of Conduct are continuously and sustainably applied in the daily attitude, practice, commitment, and formal policies to support the corporate culture that promotes highest moral and integrity standards when carrying out the operational duties.

To support the implementation of work culture and strengthen human resources, in 2015, the Bank decided to rename and renew its core values as stipulated in the Decree of Directors No. 074/SK-Direksi/VI/2015 dated June 1, 2015. As such, the core values which are also the Bank corproate cultures currently known as QNB Values includes the following: 1.

2. Innovative We shall be adaptive to change and value creative thinking to continuously attain superior benefits. 3.

Synergistic Team We shall effectively harness our strength to achieve our common goals with pride.

4.

Responsible Citizenship We shall respects with dignity and be concerned for the well-being of people and environment in which we operates

5.

Professionalism with Integrity We shall continuously develop our competencies and behavior to reliably deliver what is expected from us. We shall be honest, fair, and accountable.

Corporate Culture Core values which shape the Bank's corporate culture are especially essential in that it functions as most important foundation and at the same time, guidelines for employees’ behaviour and conduct in their relationship with customers, fellow employee members, the management, and other external parties.

Passion for Excellence We strive to go the extra-mile to achieve the highest professional standards.

Tax Compliance Throughout 2015, PT Bank QNB Indonesia Tbk had adhered to all regulations and fulfilled tax obligations in accordance with the prevailing laws and regulations. The Bank

Annual Report 2015

continues to abide by the regulation, in which the Bank does not receive any warning frequently nor significant penalties related to taxation as of December 31, 2015.


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Whistleblowing System The whistleblowing system is a program for the employees and management to actively participate in reporting any violations that occur within the Bank so as to create a harmonious and conducive condition as well as implement the practices of good corporate governance. The Bank realizes that in the effort of conducting a sound and good governance practice, particularly in implementing the principles of transparency and fairness, a mechanism is needed to manage and follow-up any acts that violate the rules and values of the Company. This mechanism shall prioritize the principle of high confidentiality so that the anonymity of the whistleblower is fully guaranteed. With the encouragement for the employees to report the violations that they find, the Bank is able to detect and minimize both the financial and non-financial losses early.

Whistleblowing Legal Reference The legal reference of the Bank’s whistleblowing system refers to: 1. The Regulation of Bank Indonesia No. 8/4/PBI/2006 dated January 30, 2006, amended with the Regulation of Bank Indonesia No. 8/114/2006 dated October 5, 2006, on the Implementation of Good Corporate Governance for Commercial Banks. 2. Code of Conduct of the Employees of PT Bank QNB Indonesia Tbk. 3. Regulation and Compliance Policy No. 1.301.00 dated June 5, 2012, on the Anti-Fraud Strategies and Guidelines.


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Each individual is willing to create a comfortable and healthy work atmosphere

Maintaining the Company's reputation

Bank is able to anticipate and follow-up the problems before greater loss can occure

Creating a conductive work atmosphere

Whistleblowing Objectives and Policy Scope of Whistleblowing System This system applies universally and fairly to all individuals of the Bank and on all levels of employment, including the Board of Directors, Board of Commissioners, and Committees under the Board of Commissioners, as well as external parties that may provide information related to the violation acts. General Provision of Whistleblowing System 1. The ones classified as Whistleblowers are internal and external parties. The internal parties include employees (permanent, in probation, contract, and outsources), Management (including the Board of Directors), and the Board of Commissioners. External parties may report the violation by including the correct and valid proof (in the form of recordings, photos, etc.) as the evidence of disobedience conducted by the Violator. 2. The ones classified as violators are the parties that are suspected and deserved to be suspected to conduct violations or to act against the law, to conduct unethical/immoral actions, or other actions that may harm the Bank either financially or non-financially. 3. Fraud or violations are actions conducted deliberately and consciously with the intention of generating benefit for personal and/or other related parties. The act of fraud violates the regulations as well as internal and external values and culture so as to result in loss for the Bank, financially and non-financially.

Minimizing the employee's disappoinment

Keeping the confidentiality of the events within the Bank so that problems or rumors will not arise

Conducting improvement and early control

Bank can avoid any work climate that is less conductive within the Company

Annual Report 2015


Whistleblowing Mechanism

Complaint Handling

As of one the supporting elements in the Bank’s anti-fraud strategy, whistleblowing mechanism enables reports of breach to be lodged directly to Fraud Oversight Committee which include President Director himself. In the reporting process, the whistleblower has to maintain the truth and accuracy of the information that has been conveyed as well as provide adequate information for the continuation of investigation. The information that has to be conveyed is the violator’s identity, the chronology, and the violation acts.

The reporting system is handled by Fraud Oversight Committee (FOC), which consists of the President, Risk Director, Legal and Compliance Director and Director of Operations. The reports must be submitted to FOC and in case of audit matters included in the report, the report shall also be submitted to Head of Audit Committee along with the work plan to handle the complaints. If the reported one is a member of the FOC, the report receiver shall not submit the report to member of FOC who is involved. Any follow up action taken by FOC related to the internal improvements are submitted to the related Division Head.

Whistleblower Protection

Incoming Whistleblowing Report

The Bank guarantees the confidentiality of whistleblowers in case of the whistleblower does not gain any benefit from the reports or the matters reported. The Bank shall not dismiss, delegate, delay, threaten, disturb, or treat the whistleblower unfairly in any kind of form in accordance with the Employment Rules and Regulations or Employment Contract.

In 2015, there was 1 (one) whistleblowing report submitted. The case have been investigated and necessary actions have been taken as part of the Bank's corrective actions.

Annual Report 2015


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Information Disclosure & Access to Bank's Information In order to facilitate communication and access by all stakeholders including to the latest information on financial, non-financial and other corporate reports related to the its transparency and accountability, the Bank also consistently updates its facilities on information delivery facilities. In addition, the Company also endeavors to enhance its information technology to maintain and

Description

improve reliability in providing information in integrated, timely, and accurate manner through public expose, press release, website, and other medium. The press releases, in particular, are also published in both nation-wide print and electronic media. Here below are the recap of information disclosure conducted by the Bank in 2015:

Criminal

Public Expose

1

Mass media review

5

Advertising billboard and outdoor media

8

Mass media promotion

4

GMS

2

Press Release

7

Customer Gathering Event

5

2015 Public Expose In compliance with Indonesia Stock Exchange Regulation No. I-E dated July 19, 2004 concerning Obligation to Disclose Information, the Bank has conducted annual public expose on October 9, 2015 in its head office. In the public expose, the Bank disclosed its profile and other important information including milestones, shareholders structure, vision and mission, office network, products and services, awards, corporate action and event highlights, the composition of the recent Board of Commissioners and Board of Directors, as well as performance as of June 2015.

2015 Press Release The press releases stated in this Annual Report is only related to PT Bank QNB Indonesia Tbk and not related to companies within the scope of the Bank’s group as a whole. As such, analysis on impact of press release to the Bank is reviewed based on the press releases which only published about the Bank.


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With reference to the regular and intensive media monitoring activities, the Bank concluded that there was no press releases that adversely affect the Bank in terms of financial and non-financial performance throughout 2015. News media that published the latest development on the Bank’s activities under the Bank’s permission and acknowledgement. Report on press releases is submitted to the Financial Authority Service on quarterly basis. In addition, public can also contact the Bank through: 1. Contact Center at (+62 21) 300 553 00 2. Corporate Communication via email at [email protected]

Annual Report 2015


List of Press Release issued in 2015 No.

Activities

Date

Press Release Title

1.

February 23, 2015

Medan Branch was relocated

Bank QNB Indonesia relocated its Medan branch

2.

Februay 27, 2015

Annual GMS

Annual General Meeting of Shareholders of Bank QNB Indonesia

3.

March 5, 2015

Opening of Balikpapan branch

Bank QNB Indonesia inaugurated first branch in Balikpapan

4.

March 18, 2015

Syndication loan

Bank QNB Indonesia signed MoU with PT Bekasi Fajar Industrial Estate Tbk for syndication loan of US$100 million

5.

April 2, 2015

QNB League

QNB Group to exclusively title sponsor Indonesian league Indonesia Super League (ISL) until 2017 season

6.

April 20, 2015

Opening of Jababeka, Cikarang branch

Bank QNB Indonesia inaugurated Sub Branch Office in Jababeka Cikarang

7.

October 9, 2015

Extraordinary GMS

Bank QNB Indonesia appointed new Independent Commissioners to strengthen its management

Internal Communication

Investor Relation

The Bank owns media of communication to share information and/or activate employees to engage some activities held by the Bank. The media of communications including email blast, newsletter and corporate news; these media helped employees to keep up to date on the news, the Banks’ achievements, fun activities, promotion and others. In addition, the Bank also provide help desk for employees to be able to ask for assistance according to their needs. Once employees log in to help desk, they need to issue a ticket specifying the problem or inquiry that is attention to appointed division. The appointed division will observe and provide solution in accordance to each division’s SLA.

Corporate Communication division together with Corporate Secretary division and other related divisions are responsible to provide accurate, reliable and timely information to internal and external parties including shareholders, potential investors, rating agencies, regulators, etc. The Bank also conducts periodical activities to update the performance and current condition of the Bank such as quarterly performance report, customer gathering, public expose, etc.

Annual Report 2015


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Provision of Funds to Related Parties and Large Fund Exposure In 2015, the Bank provided funds to several related parties by referring to the stipulations of Bank Indonesia regarding

Fund Provision To Related Parties

Debtor

the Legal Lending Limit. Provision of Funds to related parties and individual/group core debtors is as follows:

(Million Rp)

16

207,557

To Core Debtors 1.

Individual

13

3,766,740

2.

Group

50

5,431,812

Provision of Funds for Political Activities The Bank is prohibited to involve in political activities, including donation of any kind for political purposes.


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Accordingly, in 2015 there were no funds provision to any political related.

Annual Report 2015


Bank Strategic Plan Pursuant to Bank Indonesia Regulation No. 12/21/PBI/2010 dated October 19, 2010 2010 regarding Bank Business Plan and Bank Indonesia Circular Letter No. 12/27/DPNP dated October 25, 2010 on Bank Business Plan.

4.

Asset quality Bank will maintain its NPL ratio at the sufficient level. In order to anticipate the market/economic conditions which predicted to remain unfavourable, the Bank will further tighthening the monitoring on the existing customers’ business. So as, the Bank will immediately take precautionary action and mitigate the potential risk. In addition, the Bank will keep implementing prudential principles in during fund provisioning activities while avoiding loan disbursement to the industry sectors that are not included in the Bank’s risk appetite.

5.

To increase cost efficiency continuously During current growing and transformation period, investment on infrastructure, IT system and people is non-avoidable for the Bank. Those investment will affect to the increase of operating expense of the Bank. To manage its cost to income ratio, the Bank will continuously increase cost efficiency while increasing its income. Cost efficiency will be done through deep review and tight monitoring on realization of expenses.

Short Term Strategic Plan in 2016 Several key strategic plan established by the Bank for next 1 year consists of: 1. Asset growth The Bank targeted the business growth which covered total asset and profit growth. To achieve the target set, the Bank will have several comprehensive initiatives business development while keep implementing the prudential principles. The Bank will enhance its business by launching new products and services as well as optimalized the existing business inisiatives, such as BPR Connect, Internet Banking, Mobile Banking, E-Money, Q-Virtual Account, Supply Chain Lending, etc. 2.

Liquidity management & increase low cost fund To support the loans growth, the Bank will ensure its liquidity readiness as well as improve its funding structure and maintain its LDR at sufficient level. In addition to the funding growth through conventional Third Party Fund products, the Bank will also explore to grow & improve the structure of its liquidity through the issuance of capital market instrument such as NCD/MTN.

In growing its Third Party Fund, the Bank will focus to increase giro and savings portfolio which has lower cost and more stable compared to the term deposits.

3.

To increase Fee based income The Bank is aware that the competitiveness in the current market is very tight, which resulted the Bank’s margin are dwindling. In order to achieve the profit target set, the Bank will continue to focus increasing its fee based income by enhancing Q-Virtual Account.

Annual Report 2015

Medium and Long Term Plans For next 3-5 years, the Bank will : 1. Optimalise resources of the Bank to increase its business performance. 2. Enhance its products and services to compete in the market 3. Optimalise and develop business and operating model in order to meet customer expectation and achieve service excellence 4. Accelerate the growth of the bank through strategic alliances as well as organic and inorganic growth Capital increase to support Bank’s business development and as the preparation of long-term business framework


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Transparency of Bank Financial and Non Financial Performances Pursuant to Financial Services Authority Regulation No. 6/POJK.03/2015 dated 31 March 2015 concerning Transparency and Publication Report of the Banks, Financial Services Authority Regulation No. 8/POJK.04/ 2015 dated 25 June 2015 regarding website of Issuers or Public Companies, Indonesia Stock Exchange regulation No I-E regarding the Responsibility on Information Submission, attachment of the Decision of the Board of Directors of IDX No. Kep-306/BEJ/07-2004 dated July 19, 2004, the Bank has prepared and present financial reports in the framework of financial transparency periodically, which comprise of Annual Report, Quarterly Published Financial Report, Monthly Published Financial Report, Annual GMS and Public Expose. Annual Report, which among others covers: 1. Financial Highlights including stock performance, reports of the Board of Commissioners, and Board of Directors, company profile, management analysis and discussion on business and financial performance, corporate governance, and corporate social responsibility 2. Annual Financial Statements that have been audited by a Public Accountant and Public Accounting Firm that is registered at Financial Services Authority. The annual Financial Statements cover a period of 1 (one) fiscal year with comparison to the previous fiscal year 3. Statement of responsibilities of the Board of Commissioners and Board of Directors regarding the accuracy of the annual report. The statatements are set forth in the statement letter, which signed by all members of the Board of Commissioners and Board of Directors.


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Quarterly Published Financial Reports The Bank releases Quarterly Published Financial Reports in accordance with the prevailing regulations. The Published Financial Reports are signed by 2 (two) members of the Board of Directors. Monthly Published Financial Report The Bank prepares and submits monthly financial report in the Commercial Bank Monthly Report format in accordance with prevailing regulations. The report also published in the Bank’s website. Annual General Meeting of Shareholders During the Annual GMS, the Bank through the Board of Directors presents a number of significant documents including Annual Report and Annual Financial Statements to the shareholders. Public Expose The Bank also organize of a public expose as one of the medium for the Bank to disclose its financial and operation performance, achievement, challenges, etc to investors, analyst, fund managers, stock exchange member reprsentatives, as well mass media. In the meantime, non-financial reports including the provision of clear information regarding the Bank’s products and services can be obtained easily by customers, such as in leaflets and brochures, in all of the branch offices of the Bank. The Bank also provides information on the financial and non-financial information on the Bank’s website which can be accessed by all stakeholders.

Annual Report 2015


Conflict of Interests Transaction The policy governing transaction with affiliated parties, related parties and transaction containing conflict of interest was stated in the Board of Commissioners Charter, Board of Directors Charter and Code of Ethic, and other Bank’s internal procedurs and policies.

In the event that there were a transaction with conflict of interest, the related member of Board of Directors and Board of Commissioner must abstain from approval process on such transaction. In 2015, the Bank has no conflict of interest transaction.

Name & Position with Conflict of Interest

Name & Position of Decision Maker

Type of Transaction

Transaction Value (Rp)

Remarks

-

-

-

-

-

Shares Option During 2015, the Bank did not have any program of stock options for Board of Directors, Board of Commissioners, or employees.

Shares and Bond Buy Back During 2015, there was no Bank’s activity to buy back either stocks or bonds.

Annual Report 2015


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Co rp Re or sp at on e S si oc bi ia lit l y

Corporate Social Responsibility

Creating value that benefits the Bank itself, the local community, and the society in general is at the heart of what QNB Indonesia does. QNB Indonesia believes that innovative business endeavors, promotion of good corporate governance and business ethics to all stakeholders, and development of strong workforce are essential for enabling sustainable development that will result in scalable impacts in the society welfare. With such understanding in mind, the Bank's definition of Social and Environmental Responsibility (SER) encompasses obligation to preserve environment, to respect human rights, to provide comfortable working conditions, to maintain good working relations with the employees, to prioritize health and safety in the workplace as well as to play a role in local economic and community development.

Legal Reference CSR implementation in the Bank refers to the provisions of various laws and regulation as follows: 1. Republic of Indonesia Law No 8 of 1999 on Consumer Protection 2. Republic of Indonesia Law No 13 of 2003 on Labor 3. Republic of Indonesia Law No 40 of 2007 on Limited Liability Company 4. Financial Services Authority Regulation No 1/ POJK.07/2013 on Consumer Protection in Financial Services Sector In addition, the Bank also formulates and carries out its CSR activities in accordance to ISO 26000 which contains guidelines for social responsibility practices in the aspect of accountability, transparency, ethical behavior, and respect to stakeholders’ interest, compliance with law, respect for international behavioral norms, and respect for human rights.

On the planning stage, the Bank has set a continuous planning process which is based on the actual needs of the community, previously researched to determine the company’s policy and approaches concerning the adoption of societal approach of social responsibility, the factors related to it, and the accompanying effects on society. Next, implementing stage see the Bank set objectives and measurable targets, and draft plans and programs aiming to realizes such objectives and targets. The effectiveness of CSR programs also plays a significant role in the implementation on the Bank's social commitment. Thus, continuous monitoring and assessment are indispensable to ensure that the programs are carried out as previously intended. Lastly, the Bank should take findings of such revisions to assist in identify opportunities for improvement in those CSR programs. These improvements may comprise amending objectives to reflect changing conditions, or aspirations for more achievements.

Scope The Bank's CSR activities are related to the day-to-day activities of each work unit, which are regulated by the Bank's system operating procedure, in that it is the implementation of various provisions and regulations, including laws on the environment, labor, banking, consumer protection, and so on. These activities include environmental responsibility, labor practices, occupational health and safety, and product responsibility. To further extent, the programs also include social contribution. Hence, the Bank's CSR concerns four pillars: (1) Environmental Management and Preservation; (2) Social and Community Development; (3) Labor, Occupational Health, and Safety; (4) Product and Consumer.

General Framework The framework of applying social responsibility in the Bank generally follows the familiar “plan, do, check and improve” model that underlies such well-known initiatives as those of the International Organization for Standardization (ISO) in the areas of quality and environmental management systems.


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Annual Report 2015


CSR Realisation In 2015, the Bank's CSR activities highlighted on catalyzing social inclusion, facilitating financial education, and poverty alleviation in light of improving quality of life in

No.

Date

general community. The budget realization dan detailed activities which summarized the implementation of the Bank's CSR program in 2015 are as follow:

Activities

1.

May 25, 2015

QNB Donor Darah with 66 volunteers in QNB Tower 3rd Floor, SCBD, Jakarta

2.

June 26, 2015

Joint CSR Program with IBI: Break-fasting with 1,500 orphans of IBI, Jakarta

3.

June 29, 2015

Joint CSR activity with OJK: Donation to 7.871 market vendors which suffered from fire broke out in Johar market, Semarang

4.

July 7, 2015

QNB Indonesia Peduli: Sharing Arts with children from Al Hasyim Foundation

5.

July 10, 2015

Break-fasting with 1,000 congregation of of Grand Sunda Kelapa Mosque

6.

October 1, 2015

QNB Palembang Branch partners with daily newspaper Sumatera Ekspres to distribute 1,500 mask

7.

November 10 & 19, 2015

Financial Literacy Tarsisius 2 High School in Kebon Jeruk, and Al Izhar Pondok Labu High School in Jakarta

Total

Annual Report 2015

Rp112,811,875


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Environmental Responsibility: Driving Sustainability Environmental Management and Preservation Policies The Bank's commitment to environmental responsibility is fulfilled through implementing environmentally-friendly policies which aim to minimize potential adverse impacts and altogether maximize positive outcome for the Bank's business

during the peak hours, employees are also expected to try setting the temperature above 200 Celsius and refrain from using especially during 9 am to 8 pm on weekdays as much as possible. 2.

Paper Efficiency Paper is among the most essential office necessity for the Bank and at the same, the most environmental cost. As such, the Bank also promotes paper saving by reducing office paper waste, advocating paper reuse & recycle, and going paperless in full measure. Internally, the staffs are continuously encouraged to cut down internal document by utilizing digital document archiving such as PDF to convert document or compressing documents to save data storage. In terms of collaboration projects, employees within the same division can easily share documents with one another in real time using a shared document on the network.

3.

Improved Productivity For the Bank, working efficiently means good time management meets high productivity. As such, the Bank constantly strives to implement a time management strategy for its team. Among others are to encourage employee the schedule their tasks for specific times and keep distractions to minimum when working on tasks. In addition, the Bank also supports the employees to taking regular breaks whenever necessary and finish working on time in order to keep them on top of their game.

4.

Resource Conservation The Bank are committed to reduce the impact of our operations on the environment. To meet the goal, the Bank continues to promote efficient use of water. Using water efficiently not only protect freshwater resources but also lower greenhouse gas emissions as public water systems require a lot of energy to purify and distribute water for public use.

Energy efficiency has long been central to the Bank's sustainability efforts as also stipulated in its 3D Program, which stands for Commitment to Time, Efficiency, and Services in accordance with the approval memo of the Board of Directors No. 017/MI-SQ/II/2013

Environmental Management and Preservation Activities A particular highlight of 2015's Bank environment strategy was focused on help addressing challenge of climate change and reflect best practices toward driving sustainability. Among the initiatives took place in this regard were reducing energy use, cutting emissions from office and branches, and making a positive contribution to the environment through its own actions and instilling the efficiency culture within the organization. The tangible manifestation of the Bank's commitment to efforts of the energy conservation are the following activities: 1.

Efficient Use of Electricity To foster a more effective energy management, the Bank consistently strives to instill and nurture energysaving culture both in head office and branch offices. In the first, every staff is required to use the lights when and where necessary and turn off lighting when not using or after finished working. As the air conditioners also account for the biggest energy consumption


256

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Labor, Occupational Safety, and Health: Creating a Strong Workforce Labor, Occupational Safety, and Health Policies As a bank with global support, QNB Indonesia needs a workforce which is not only competent in their field and qualified to the standards required by the Bank but also has a diverse background to reflect gender equality and equal employment opportunities. A highly skillful and diverse team helps the Bank to create innovations and better compete in a rapidly changing environment. Moreover, the Bank also focuses on workplace safety through various programs to raise employees’ awareness of occupational safety and health.

Labor, Occupational Safety, and Health Activities Equality The Bank ensure equality of opportunity in all aspects of employment opportunities for everyone regardless of their gender, race, color, religion, physical condition, or national origin. Recruitment is based on the selection process, the evaluation of the probationary period and an orientation. Likewise, the Bank provides its employees with equal opportunities for training and development programs which are based on their talents or strengths (strength based) of each employee. By doing so, the Bank expects that its employees will not only be able to enhance their competencies but also stay on the right track of their career development. In summary, people are definitely at the heart of the Bank's business process and that it remains strongly committed to building a meritocracy in which everyone has the opportunity to succeed. Industrial Relations The Bank realizes that successful human resource management always begin with a harmonious employeremployee relationship. At the same time, the Bank also strongly believes that employees are its partners in profit, partners in responsibility, and partners in production. As such, the Bank perpetually sets out to foster and maintain good cooperation in an environment of mutual appreciation, mutual trust, and mutual respect.

Annual Report 2015

To further extent, the Bank actually elevate the impacts of industrial relations for the benefit of environment and community. Through an internal organization known as QNB Club that serves as a platform to build talent pool, the Bank engages all of its employees, from staff to the management level to actively maintain harmonious atmosphere in the workplace and bond togetherness outside the workplace. In addition, the Bank always seek to comply with all labor rules and regulations to minimize the occurrence of human rights and industrial relations violations. 1.

Freedom of Association Pursuant to the employment mandate in Act No.21 of 2000 and Act No. 13 of 2003 of Ministry of Manpower and Transmigration Decree regarding the Labor Union, the Bank guarantees employees' rights to establish and become members of unions; unions’ rights to function in order to protect, defend and improve the welfare of workers and their families, and; the protection for employees against acts of anti-union discrimination and interference. The mechanism and details of the labor union establishment is stipulated in the Bank’s Collective Labor Agreement (CLA).

2.

Working Hours To avoid over-exploitation of employees, the Bank has set limits on regular working hours. If an employee works beyond the time specified, overtime will be paid in accordance with the law.

3.

Holidays and Leave In addition to the provisions on break times during work days, annual leave and long leave, the Bank also compensates employees with paid leave for various purposes, such as to perform a pilgrimage or other religious obligation, and maternity and menstrual leave for female employees.


257


Occupational Health and Safety Employees’ health and safety also among the Bank’s main priorities. In day-to-day operational activities, the health and work safety practices are particularly focused on more on the implementation of basic guidance and work procedures for employees to mitigate the risk of workplace accidents and to protect the employees’ health conditions. For the Bank, proper handling of work safety is demonstrated through emergency drill called BCM (Business Continuity Management) which aims to prepare employees for the possibly occurring accidents such as fire. The simulation are held in both Head Office and the majority of Branch Offices on regular basis. In addition, the Bank also provides appropriate fire-fighting/prevention facilities such as the fire extinguisher and sprinkle (smoke detection device).


258

Similarly, the Bank equips their work units with adequate facilities to promote physical and mental soundness which include medicine and first aid equipment as well as prayer room. To ensure workplace cleanliness and hygiene the Bank also sets out regular removal of waste and rubbish as well maintain the supplies of sanitary conveniences. In conclusion, the Bank believes that efforts to protect employees from work-related hazards, the achievement of a high standard of safety and health and a conducive work environment will ultimately have a positive influence on improving productivity.

Annual Report 2015


Social and Community Development: Investing in Communities

Social and Community Development Policies The Bank works with both internal partner (in this case QNB Club which consists of employees) and external partners such as regulators, social-oriented foundations, and educational institutions to make a real difference to national challenges: poverty and financial literacy awareness. In enacting social responsibility, the Bank's approach is particularly focused on empowering and to bringing benefit for communities in general and underprivileged community in particular.

Annual Report 2015

Social and Community Development Activities The social and community development effort is wide-ranging, encompassing financial contributions, collaborations on major events and initiatives, employee volunteering and partnership with education institutions to improve financial literacy. While the programs may vary from time to time, the Bank took also part of the OJK's program in order boost economic participation and social inclusion, drive competition and market efficiency in the financial services sector, as well as contributing to the economic health of society.


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Product and Consumer Responsibility Product and Consumer Responsibility Policies The Bank takes an active interest in customer satisfaction and safety. For the Bank, customer satisfaction and safety are the key to its business growth and thus become the most fundamental part of our service. The Bank is committed to carry out various activities to ensure that customer expectations and needs are met with regard to both technical and service excellence. On the safety front, the Bank also has complied with rules and regulation on consumer protection and complaint handling as follows: 1. 2. 3.

4.

5.

6. 7.

Republic of Indonesia Law No 7 of 1992 on Banking, as amended by Law No. 10 of 1998 Republic of Indonesia Law No 8 of 1999 on Consumer Protection Financial Services Authority Regulation No 1/ POJK.07/2013 on Consumer Protection in Financial Services Sector Bank Indonesia Regulation No 7/7/PBI/2005 on Customer Complaint Handling, as amended by BI Regulation No. 10/10/PBI/2008 Bank Indonesia Regulation No 7/6/PBI/2005 on Banking Products Information Transparency and Utilization of Customers’ Personal Data Bank Indonesia Circular Letter No 15/1/DPNP on Prime Lending Rate Information Transparency Republic of Indonesia Law No 8 of 1999 on Consumer Protection and latest financial Services Authority Regulation No 1/POJK.07/2013 on Consumer Protection in Financial Services Sector

The Bank's commitment to product and consumer responsibility is particularly reflected in the establishment of Contact Center service in 2013. First introduced in January 2013 in response to core banking system migration process, it initially serves as hotline to handle customer complaints and to reply to information inquiries. This


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service is available around the clock at (+62 21) 300 55300. Furthermore, the Bank has formulated and implemented other mechanism regarding consumer protection such as description on the follow-up of the complaints, settlement rate of the accepted complaints, and Customer Service Improvement Program. Additionally, to support and protect the interests of the customers, the Bank provides various channels of communication for the customers, among others, e-mail at [email protected] and face-to-face meeting with our front liner staffs. Apart from these communication channels, the Bank also has Mitra Bisnis service at (+62 21) 300 553 05 to provide optimal banking service for Wholesale Banking customers including to reply to any inquiries related to accounts and loan facilities.

Product and Consumer Responsibility Activities QNB Indonesia Contact Center Through QNB Indonesia Contact Center which operates around the clock, the Bank seeks to facilitate easier and faster interaction with customers who may have inquiry about banking products and services. This service also welcome inputs and handles complaint from customers. Especially for complaints, the Contact Centers will accommodate the inputs and then forward them to the related work functions or branches in order to provide proper and accurate solution. In 2015, the total number of incoming calls to the Contact Center is 16,785, comprising of both product/services inquiries, inputs and feedbacks, as well as complaints of Network (ATM Bersama) dan QPL respectively. All inquiries have been managed well in accordance to the Service Level Agreement (SLA) determined by the Bank and the customers have been able to receive timely and accurate responses they expected.

Annual Report 2015


Data of Incoming Call to Contact Center in 2015 Calls

Total Calls in 2015

Info Banking Complaint Banking Others Total

Management of Customer’s Complaints To maintain the customer satisfaction, the Bank constantly review and evaluate its complaint handling and management accordingly to each customer’s needs and interests. The complaints received by the Bank through the available communication media are followed up immediately in order to provide the best solution for the customers’ problems. Meanwhile, the advice given to the Bank is utilized to enhance and improve our service quality to the customers. In 2015, the Bank received 286 complaints consisting of 281 settled cases. Service Improvement Program through Network Expansion The Bank also take accessibility into account for service improvement. Therefore, it has been continuously made selective, strategic network expansion. In 2015, the Bank has open up some new branches to increase the service network, relocate a number of branch offices to better sites, and establish more ATM network; either on site or off site. Through this development of office and service network, the Bank expects to reach more customers across various cities in Indonesia. Financial Literacy Program Contributing to the economic empowerment and general society welfare through banking services and financial literacy program is one key component of the Bank's CSR goals and program. The Bank strongly believes that by improve ability and understanding of general public and customers in banking and finance will allow them to make smarter financial choices. To support the financial literacy program, the Bank has published various educational material while also organized activities such as workshops and sharing programs in collaboration with educational institutions as follow:

Annual Report 2015

12,679

Completed 12,679

286

281

3,820

3,820

16,785

16,780

1.

2.

3.

Bank of Indonesia Socialization, “The Use of Rupiah Currency in Republic of Indonesia” The Bank supports the socialization program initiated by Bank Indonesia. The program took place on August 19, 2015 in Entrada resturant, Jakarta. Activities include socialization and direct Q & A session of "The Use of Rupiah Currency in Republic of Indonesia" to 82 customers of the Bank, comprising of Corporate and Commercial Banking. Through this program, the Bank expects that its customers will have greater understanding of financial knowledge to in terms of how Rupiah currency is used in business/contracts with local or foreign entities in accordance with the prevailing regulations. QNB Indonesia visit High Schools – Tarsisius 2 and Al Izhar Pondok Labu "Mari Menabung" is a financial literary program designed by the Bank to provide banking education for students in the hope that the students will recognize the importance of financial management since early age. In 2015, the Bank made a visit to two high schools in Jakarta, Tarsisius 2 and Al Izhar Pondok Labu to communicate and educate the high school students on financial management and banking solutions. The program which took place on November 10 and 19, 2015 was attended by 212 students and 30 teachers of Tarsisius 2 High School as well as 60 students and 10 teachers of Al Izhar Pondok Labu High School. QNB Indonesia Supports Financial Literacy through Guest Lecture at Jenderal Soedirman University QNB Indonesia continued to supports financial literacy in general public, among others by collaborating with national educational institution. In 2015, the Bank through its Compliance Director, delivered guest lecture on "Improvement in Banking Competitiveness in Facing 2016's AEC in Jenderal Soedirman University. The lecture was attended by 70 participants.


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th

St at em

en

Re t e Co of sp Bo m t o ar m he ns d iss Bo ib of io a ili Di ne rd ty re rs of ct & or s

Responsibility Statement of Annual Report 2015


262

Annual Report 2015


Annual Report 2015


263


Responsibility Statement of the Board of Commissioners & the Board of Directors We, the undersigned, hereby declare that all information in the 2015 Annual Report of PT Bank QNB Indonesia Tbk has been presented in its entirety, and assume full responsibility for the accuracy of the contents of the Company’s Annual Report. This statement is hereby made in all truthfulness.

The undersigned

Ali Ahmed Z A Al-Kuwari President Commissioner

Grant Eric Lowen Commissioner

Suroto Moehadji



264

Muthu Chidambaram

Muhammad Anas Malla Independent Commissioner

Commissioner

Djoko Sarwono


Annual Report 2015


Andrew McGregor Duff President Director

Azhar bin Abdul Wahab Chief Business Director

Rusli

Operations Director

Annual Report 2015

Lloyd William Rolston

Windiartono Tabingin Compliance Director

Risk Director

Novi Mayasari



265

In A fo ux rm ili at ary io n

Auxiliary Information

Profile of Executive Officers Bambang Wijayanto - Head of Legal An Indonesian citizen, he was appointed as the Head of Legal Division on November 21, 2014. Previously, he held the position of Legal Policy, Advisory & Special Transaction Head at PT Bank UOB Indonesia and Legal Policy and Procedure Support Department Head at PT Bank International Indonesia Tbk (BII). He obtained his bachelor’s degree in Law from Satya Wacana Christian University, Salatiga, in 1996 and master’s degree in Law from University of Indonesia in 2014. Caroline Halim - Head of Risk Management Citizen of Indonesia. She was appointed as the Head of Risk Management Division on February 20, 2012. Earned her bachelor’s degree in Accounting from University of Indonesia in 1986. Previously, she held the position of VP Risk Management Group Head at PT Bank ICB Bumiputera Tbk and VP Credit Risk & Analytic Management Group Head at PT Bank CIMB Niaga Tbk. Denny Soedharmo - Head of General Services Citizen of Indonesia. He was appointed as the Head of General Services Division on May 12, 2014. Earned his bachelor’s degree in Architecture from Tarumanagara University in 1998 and master’s degree in Management from Trisakti University in 2010. Previously, he held the position of GM Facility & General Services at BAT/Bentoel Group; Head of Facility Management – Corporate Real Estate at Bank Ekonomi (member of HSBC Group); Head of Property and Facility Management Services at Bank ABN Amro/RBS; and Project Manager - HR & General Affairs at Astra International. Edwin Tanu Teintang - Head of Retail Product Development Citizen of Indonesia. He was appointed as the Head of Retail Product Development Division on March 12, 2012. Earned his bachelor’s degree in Accounting from Tarumanegara University, Jakarta in 1992 and master’s degree from the National University of San Diego in 1994. Previously, he held the position of Liabilities and Banking Services Business Head PT Bank Danamon Tbk; Director marketing Distribution and Product Management at Syailendra Capital; Business and Product Development Head at PT Mandiri Manajemen Investasi.


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Elquino Simanjuntak - Head of Corporate Credit Risk & Credit Administration Citizen of Indonesia. He was appointed as the Head of Corporate Credit Risk & Credit Administration since July 6, 2015. Earned his bachelor’s degree in Accounting from Adventist University of the Philippines in 2000 and master’s degree with major in Finance from Ateneo de Manila University, Philippines in 2003. Previously, he held the position of Syndication & Distribution Head at PT Bank QNB Indonesia Tbk since November 1, 2013; Head Structured Debt, Metals & Mining at PT Bank BNP Paribas Indonesia, Senior Manager – Coverage Indonesia at Standard Bank, Singapore, and several other posts at Standard Chartered Bank, Bank of Tokyo-Mitsubishi UFJ, and PT Bank Danamon Indonesia Tbk. Ervin Gumilar - Head of SME Credit Review Citizen of Indonesia. He was appointed as the Head of SME Credit Review on July 1, 2015. Earned his bachelor’s degree in Finance from California State University Fresno in 1992. Previously, he held the position of Head of Commercial Credit Support at PT Bank QNB Indonesia Tbk since July 1, 2012. He has also had position as Commercial Credit Review Group Head at PT Bank CIMB Niaga Tbk. Glenn Ranti - Head of Corporate Communication Citizen of Indonesia. He was appointed as the Head of Corporate Communication since March 4, 2013. Earned his bachelor’s degree in Hospitality Industry from International Hotel School, United Kingdom in 1995. Previously, he held the position of Marketing Communication Head at PT Bank QNB Indonesia Tbk since January 2, 2012; VP – Regular Savings & Segmentation Group Head at PT CIMB Niaga Tbk. Indra Utama Nasution - Head of Corporate Banking & Financial Institution Citizen of Indonesia. He was appointed as the Head of Corporate Banking & Financial Institution Division on June 7, 2013. Earned his bachelor’s degree in Accounting from Southern Illinois University at Carbondale in 1990. Previously, he held several position at Bank of Tokyo Mitsubishi UFJ; Corporate Banking Team Leader at PT Bank Danamon Indonesia Tbk; HSBC, ABN AMRO, and Standard Chartered Bank in Indonesia.

Annual Report 2015


Joseph Puradi Wirakotan - Head of Retail Banking Credit Review Citizen of Indonesia. He was appointed as the Head of Retail Banking Credit Review Division on February 1, 2013. Earned his bachelor’s degree in Applied Science from Swinburne University of Technology in 1991. Previously, he held the position of SVP Customer Relationship Management System at HSBC; Group Head of Consumer Risk at PT Bank ICB Bumiputera Tbk; Deputy Head of Card Center Division at PT Bank Internasional Indonesia Tbk (BII); and AVP Consumer Banking at ABN AMRO Bank. He graduated from the management trainee of Citibank in 1994. Joyce Puspa Chandrayani – Head of QNB First Citizen of Indonesia. She was appointed as the Head of QNB First Division on August 11, 2014. Earned her bachelor’s degree in Management from Widya Karya Catholic University Malang in 1987. Previously, she held the position of Regional Head for Consumer Banking at Standard Chartered Bank; Regional Head of Priority Banking, Consumer Banking - Head of ETB New Business, Usage & Acquisition Manager; and CC Product & CCPL Portfolio Manager at Standard Chartered Bank. Lina - Head of Corporate Secretary Profile of Lina could be found in the Head of Corporate Secretary section of this Annual Report. M. Agus S. Meliala - Head of Commercial Banking Citizen of Indonesia. He was appointed as the Head of Commercial Banking Division on June 2, 2014. Earned his bachelor’s degree from Bogor Institute of Agriculture in 1996. Previously, he held the position of Regional Head since January 9, 2012 at PT Bank QNB Indonesia Tbk; Regional Commercial Banking for East Indonesia and Commercial Area Manager for Jakarta at PT Bank UOB Indonesia; and Deputy Business Head of Corporate Banking at PT UOB Buana Tbk. Monica Riesanty Wahyudi- Head of Client Service Citizen of Indonesia. She was appointed as the Head of Client Services Division on June 1, 2012. Earned her bachelor’s degree in Industrial Engineering from Trisakti University, Jakarta in 1992. Previously, she held the position of Commercial Banking Middle Office Division Head at PT Bank UOB Indonesia; Commercial Banking Business Development at the Royal Bank of Scotland; and Branch Manager at ABN AMRO Bank NV.

Annual Report 2015

Novy Angela Andow - Head of Treasury Citizen of Indonesia. She was appointed as the Head of Treasury Division on April 1, 2015. Earned her bachelor’s degree in Management from Atmajaya Catholic University in 1994. Previously, she held the position of Treasury Sales Head since February 3, 2014; Director of Corporate Risk Solution at Royal Bank of Scotland Indonesia; Team Leader at ABN AMRO Bank; and Treasury Sales at American Express Bank. Rasmoro Pramono Aji - Head of Network & Distribution Citizen of Indonesia. He was appointed as the Head of Network and Distribution Division on June 24, 2013. Earned his bachelor’s degree from Bogor Institute of Agriculture in 1989. He is also a graduate of the Officer Development Bank (ODP) from Bank Bali in 1991. Previously, he held the position of the Head of Customer Acquisition TeamPrivilege Banking at UOB Indonesia; Head of Integration Retail Indonesia at Royal Bank of Scotland; Head of Islamic Bank Royal Bank of Scotland Indonesia; and Head of National Sales, Consumer Finance, and Head of Distribution - Van Gogh Preferred Banking at ABN AMRO Indonesia R. Andi Kartiko Utomo – Head of E-Banking & Non Traditional Channel Citizen of Indonesia. He was appointed as the Head of E Banking & Non Traditional Channel since October 5, 2015. Earned his bachelor’s degree in Marketing from Brawijaya University, Malang, and master’s degree in Management from IPMI Business School in 2009. Previously, he held the position of Vice President Digital Payment & Mobile Banking at PT Telkomsel Indonesia; Director of Sales & Distribution at PT Blackberry Indonesia, Senior Country Manager at Western Union Company, General Manager Mobile Division at Samsung Coproration, and several posts at PT Philip Morris Indonesia as well as Mead Johnson Indonesia. Rr. Utami Tjipto - Head of Compliance & Procedure Profile of Rr. Utami Tjipto could be found in the Head of Compliance & Procedure Profile section of this Annual Report.


269


Slamet Riyadi - Head of IT Citizen of Indonesia. He was appointed as the Head of IT Division since October 5, 2015. Earned his bachelor’s degree in Economy from Pasundan University, Bandung in 1995, and master’s degree in Economy from Padjajaran University, Bandung in 2002. Previously, he held the position of Head of E-Financial Services at PT Bank QNB Indonesia Tbk since July 1, 2015; Business Development Head at PT Bank QNB Indonesia Tbk, Assistant Vice President Product & Solution Management as well as several other posts at PT Bank BNI (Persero) Tbk. Tenny Prasetya WJ - Head of Structured Finance & Advisory Citizen of Indonesia. He was appointed as the Head of Structured Finance and Advisory Division on February 1, 2013. Earned his bachelor’s degree in Business Management from University of Maryland, USA in 1994 and master’s degree in International Management from United Business of Institute, Brussels, Belgium in 1995. Previously, he held the position of Head of Indonesia Coverage at Standard Bank, Singapore; Senior Banker, Corporate Banking at PT Bank Danamon Indonesia Tbk; Director of Local Corporate Team at Standard Chartered Bank. Thomas Hartono Tulus – Head of Transaction Services Citizen of Indonesia. He was appointed as the Head of Transaction Services since July 1, 2015. Earned his bachelor’s degree from Parahyangan Catholic University in 1994 and master’s degree in International Management from Gadjah Mada University in 1998. Previously, he held the position of Strategic Planning Head since joining PT Bank QNB Indonesia Tbk since 2012. He also has had the position of Strategic Planning, Product Development, and Marketing in Bank UOB Indonesia, ABN AMRO Bank NV, Bank Danamon Indonesia, and Lippobank.

Tomi Parisianto Wibowo - Head of Finance & Accounting Citizen of Indonesia. He was appointed as the Head of Finance and Accounting Division on June 3, 2013. Earned his bachelor’s degree in Accounting from University of Indonesia in 1997 and is certified as a public accountant from the Indonesian Institute of Accountants in 2002 and certified as Indonesian Chartered Accountant in 2014. Previously, he held the position of Vice President of Financial Control Group Head at PT Bank ICB Bumiputera Tbk, Jakarta. He also had led several financial audit engagements at Financial Assurance Division at PricewaterhouseCoopers (PwC), Jakarta and Ernst & Young (EY), Jakarta. Tota Melanie Loembantobing - Chief Auditor Profile of Tota Melanie Loembantobing could be found in the Chief Auditor section of this Annual Report. Wendriani Ika Lukito - Head of Commercial Credit Support Citizen of Indonesia. She was appointed as the Head of Commercial Credit Support since July 1, 2015. Earned her bachelor’s degree in Finance from California State University of Fullerton, United States in 2005. Previously, she held the position of Area Manager Commercial Banking at PT Bank QNB Indonesia Tbk since March 4, 2013; Relationship Manager for Large Commercial Division and Business Manager for Commercial Banking Division at PT Bank UOB Buana.

Titis Satryo Utomo - Head of Alternate Channel Citizen of Indonesia. He was appointed as the Head of Alternate Channel Division on January 10, 2014. Earned his bachelor’s degree in Industrial Engineering from Bandung Institute of Technology in 1996. Previously, he held the position of Vice President 2 (VP 2) of Business Development & Acquisition for Retail Unsecure Business at Bank UOB Indonesia; Vice President (VP) for consumer Finance Acquisition at Bank ANZ Indonesia; AVP for Consumer Finance Acquisition at Bank ABN Amro Indonesia; and Personal Lending Product Manager at Citibank N.A.


270

Annual Report 2015


Capital Market Supporting Profession and Institutions Stock Administration Bureau

Indonesia Stock Exchange

Public Accountant’s Office

KSEI

PT Adimitra Jasa Korpora Plaza Property 2nd Floor Jl. Perintis Kemerdekaan Kompleks Pertokoan Pulomas Blok VIII No. 1 Jakarta Timur 13210 Tel: (+62 21) 478 815 15 Fax: (+62 21) 470 969 7

Purwantono, Sungkoro & Surja, a member Firm of Ernst & Young Global Limited Indonesia Stock Exchange Building Tower 2, 7th Floor Jl. Jendral Sudirman Kav 52-53 Jakarta 12190 Indonesia Tel: (+62 21) 528 950 00 Fax: (+62 21) 528 941 00

Notary

Notary Fathiah Helmi, SH Graha Irama Lt. 6 Jl. HR. Rasuna Said Blok X-1 Kav. 1&2 Kuningan, Jakarta Selatan 12950 Tel: (+62 21) 529 073 04-6 Fax.: (+62 21) 526 113 6

Rating Agency

PT Pemeringkat Efek Indonesia Panin Tower - Senayan City 17th Floor Jl.Asia Afrika Lot.19, Jakarta 10270 INDONESIA Tel: (+62 21) 727 823 80 Fax: (+62-21) 727 823 70

Annual Report 2015

PT Bursa Efek Indonesia Indonesia Stock Exchange Building 1st Tower, Jl. Jend. Sudirman Kav. 52-53 - Jakarta 12190 Tel: (+62 21) 515 051 5 Fax: (+62 21) 515 415 3 Email: [email protected] Website: www.idx.co.id

PT Kustodian Sentral Efek Indonesia Indonesia Stock Exchange Building 1st Tower Lantai 5 Jl. Jend. Sudirman Kav. 52-53, Jakarta 12190 Indonesia Tel: (+62 21) 515 285 5 Fax: (+62 21) 529 911 99 Toll Free : 080 018 657 34 Email : [email protected] Website : www.ksei.co.id For more information, contact us at:

Corporate Communication

PT Bank QNB Indonesia Tbk QNB Tower, 18 Parc SCBD Jl. Jendral Sudirman Kav. 52 – 53 Jakarta 12190 Tel: (+62 21) 515 515 5 Fax: (+62 21) 515 538 8 Email: [email protected]


271


Branch Office Addresses JAKARTA Bank QNB Indonesia KC SCBD QNB Tower Lantai Dasar, 18 Parc SCBD, Jl. Jenderal Sudirman Kav 52 - 53 Jakarta 12190 Tel: (+62 21) 515 505 8 Fax: (+62 21) 515 538 8 Bank QNB Indonesia KCP Central Park Komplek Central Park Ruko Garden Shopping Arcade Blok Beaufort 8 No.8 EJ Jl. Tanjung Duren Raya Kav. 5-9 Jakarta 11470 Tel: (+62 21) 292 064 00 Fax: (+62 21) 292 064 01 Bank QNB Indonesia KCP Green Garden Rukan Golden Green No.7 Jl.Kedoya Raya, Kedoya Utara Jakarta 11520 Tel: (+62 21) 581 913 3 Fax: (+62 21) 582 912 6 Bank QNB Indonesia KCP Kapuk Komplek Duta Harapan Indah Jl. Kapuk Muara Blok A/6 No. 7 Jakarta 14460 Tel: (+62 21) 668 342 9 Fax: (+62 21) 662 696 1 Bank QNB Indonesia KCP Menara Jamsostek Gedung Menara Jamsostek Lantai Dasar, Menara Selatan Jl. Jend Gatot Subroto Kav. 38 Jakarta 12710 Tel: (+62 21) 252 548 0 Fax: (+62 21) 252 547 0


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Bank QNB Indonesia KCP Muara Karang Jl. Muara Karang Blok B VIII Timur no. 75 Jakarta 14450 Tel: (+62 21) 662 630 8 Fax: (+62 21) 667 805 0

Bank QNB Indonesia KCP Mangga Dua Mangga Dua Blok E IV No. 4 Jakarta 14430 Tel: (+62 21) 600 987 0 Fax: (+62 21) 600 987 1

Bank QNB Indonesia KCP Permata Hijau The Belleza Shopping Arcade Apart. Belleza Arteri Permata Hijau Jl. Letnan Jenderal Soepono No.34, Blok Sa-06, Kebayoran lama Jakarta 12240 Tel: (+62 21) 299 160 22 Fax: (+62 21) 299 161 60

Bank QNB Indonesia KCP Sunter Jl. Danau Sunter Utara Blok G7 Kav. 1 No. 7 Sunter Podomoro Jakarta 14350 Tel: (+62 21) 653 030 66 Fax: (+62 21) 653 031 10

Bank QNB Indonesia KCP Pluit Ruko Sentra Bisnis Pluit Jl. Pluit Sakti Raya No. 28 Blok A.12 Jakarta 14450 Tel: (+62 21) 668 172 2 Fax: (+62 21) 668 122 6

Bank QNB Indonesia KC Tanah Abang Jl. KH. Fachrudin 36 Blok BB No. 2 Tn. Abang Bukit Jakarta 10250 Tel: (+62 21) 398 317 08 Fax: (+62 21) 344 046 8

Bank QNB Indonesia KCP Pondok Indah Jl. Sultan Iskandar Muda no. 28L Jakarta 12240 Tel: (+62 21) 728 953 77 Fax: (+62 21) 723 803 6

Bank QNB Indonesia KCP Kelapa Gading Jl. Boulevard Blok LB-3 No. 22 Jakarta 14240 Tel: (+62 21) 453 303 3 Fax: (+62 21) 453 305 5

Bank QNB Indonesia KCP Puri Indah Jl. Puri Indah Raya Blok I No. 19 Jakarta 11610 Tel: (+62 21) 583 546 66 Fax: (+62 21) 583 576 66

Bank QNB Indonesia KC Kebayoran Jl. Panglima Polim No. 9 - 10 Jakarta 12160 Tel: (+62 21) 727 973 23 Fax: (+62 21) 723 411 1

Bank QNB Indonesia KCP Mega Kuningan Gedung Kantor Taman A9 Blok A9/B9 unit A1 Kawasan Mega Kuningan Jakarta 12950 Tel: (+62 21) 576 108 8 Fax: (+62 21) 576 107 7

Bank QNB Indonesia KCP Pulo Gadung Pulo Gadung Trade Center Jl Raya Bekasi KM 21, Ruko A2/20 Kawasan Industri Pulo Gadung Jakarta 13920 Tel: (+62 21) 468 002 22 Fax: (+62 21) 468 003 00

Annual Report 2015


Bank QNB Indonesia KC Gajah Mada Mediterania Gajah Mada Tower Alpha No. TUD16 Lt. UG Jl. Gajah Mada No. 174 Jakarta 11130 Tel: (+62 21) 630 215 1 Fax: (+62 21) 630 215 2 Bank QNB Indonesia KCP Roxy Komp. Ruko Roxy Mas Jl. K. H. Hasyim Ashari Blok E1 No.6 Kel. Cideng Jakarta Pusat 10150 Tel: (+62 21) 638 595 55 Fax: (+62 21) 6385 225 5

BEKASI

SEMARANG

Bank QNB Indonesia KCP Bekasi Jl. Margonda Raya No.197 A Depok 16423 Tel: (+62 21) 772 189 99 (+62 21) 7721 898 9

Bank QNB Indonesia KC Semarang Gajah Mada Jl. Gajah Mada No.101 B Semarang 50134 Tel: (+62 24) 865 690 99 Fax: (+62 24) 865 690 88

Bank QNB Indonesia KCP Jababeka Cikarang Komplek Ruko Capitol Business Park Blok 2A, Jl. Niaga Raya, Desa Pasir Sari, Kecamatan Cikarang Selatan, Kabupaten Bekasi, Jawa Barat 17530 Tel: (+62 21) 898 358 90 Fax: (+62 21) 898 358 95

Bank QNB Indonesia KCP Semarang MT. Haryono Jl. MT. Haryono No. 729 Semarang 50242 Tel: (+62 24) 844 899 9 Fax: (+62 24) 844 399 9

SURABAYA

TANGERANG Bank QNB Indonesia KCP Alam Sutera Perumahan Alam Sutera Komp. Pertokoan Sutera Niaga I No. 35, Jl. Raya Serpong Tangerang 15310 Tel: (+62 21) 539 933 2 Fax: (+62 021) 539 933 8

DEPOK Bank QNB Indonesia KCP Depok Jl. Margonda Raya No.197 A Depok 16423 Tel: (+62 21) 772 189 99 Fax: (+62 21) 772 189 89

Annual Report 2015

BANDUNG Bank QNB Indonesia KC Bandung Dago Jl. Ir. H. Juanda No. 11 (Dago) Bandung 40116 Tel: (+62 22) 842 810 91 Fax: (+62 22) 422 286 0 Bank QNB Indonesia KCP Bandung BKR Jl. BKR No. 100 Bandung 40254 Tel: (+62 22) 522 586 8 Fax: (+62 22) 522 288 3

Bank QNB Indonesia KC Surabaya Darmo Jl. Raya Darmo No. 108 Surabaya 60264 Tel: (+62 31) 568 753 0 Fax: (+62 31) 567 809 0 Bank QNB Indonesia KCP Surabaya Kembang Jepun Jl. Kembang Jepun No. 88 Surabaya 60161 Tel: (+62 31) 354 268 83 Fax: (+62 31) 354 263 1 Bank QNB Indonesia KCP Surabaya Ngagel Kom. Pertokoan RMI D1-D2 Jl. Ngagel Jaya Selatan Surabaya 60238 Tel: (+62 31) 501 324 2 Fax: (+62 31) 501 324 5


273


PASURUAN

MEDAN

Bank QNB Indonesia KCP Pasuruan Ruko Grand Parimas Blok A-6 Jl. Panglima Sudirman Pasuruan – 67115 Tel: (+62 343) 564 577 7 Fax: (+62 343) 564 566 6

Bank QNB Indonesia KC Medan Pemuda Jl. Pemuda no. 5 Medan 20151 Tel: (+62 61) 415 292 9 Fax: (+62 61) 415 565 6

PEMATANG SIANTAR Bank QNB Indonesia KC Pematang Siantar Jl. Sutomo No. 5L Pematang Siantar 21117 Tel: (+62 622) 296 66 Fax: (+62 622) 246 91

BATAM Bank QNB Indonesia KC Batam Komplek Jodoh Square Blok A No. 2 - 3 Jl. Raja Ali Haji Sei Jodoh Batam 29453 Tel: (+62 778) 456 126 Fax: (+62 778) 424 281

Bank QNB Indonesia KCP Medan Pusat Pasar Jl. Pusat Pasar No. 164 Medan 20212 Tel: (+62 61) 456 222 7 Fax: (+62 61) 453 119 6 Bank QNB Indonesia KCP Medan Sutomo Jl. Sutomo No. 128 Medan 20213 Tel: (+62 61) 736 250 0 Fax: (+62 61) 734 323 3 Bank QNB Indonesia KCP Medan Asia Jl. Asia No. 97P Medan 20212 Tel: (+62 61) 735 111 8 Fax: (+62 61) 735 295 7

MAKASSAR

Bank QNB Indonesia KCP Medan Petisah Jl. Rotan No. 65 Medan 20112 Tel: (+62 61) 453 761 6 Fax: (+62 61) 452 350 1

Bank QNB Indonesia KC Makassar Jl. Veteran No. 402 Makassar 90124 Tel: (+62 411) 853 422 Fax: (+62 411) 856 292

Bank QNB Indonesia KCP Medan Bogor Jl. Bogor No. 55 Medan 20212 Tel: (+62 61) 452 336 2 Fax: (+62 61) 453 611 6


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Bank QNB Indonesia KCP Krakatau Jl. Gunung Krakatau No. 88C Medan 20239 Tel: (+62 61) 664 103 1 Fax: (+62 61) 664 103 2 Bank QNB Indonesia KCP Medan Centre Point Komp. Ruko Centre Point Blok G No. 19, Kel. Gang Buntu, Kec. Medan Timur Kota Medan, Sumatera 20231 Tel: (+62 61) 805 108 78 Fax: (+62 61) 805 104 89

BALIKPAPAN Bank QNB Indonesia KC Balikpapan Jl. Jend Sudirman No. 353 Balikpapan 76114 Tel: (+62 542) 882 095 5 Fax: (+62 542) 882 095 6

PALEMBANG Bank QNB Indonesia KC Palembang Jl. Jenderal Sudirman No. 589-592 Kel. 20 Ilir III, Kec. Ilir Timur 1 Palembang 30128 Tel: (+62 711) 318 853 Fax: (+62 711) 318 854

Annual Report 2015


PEKANBARU

DENPASAR

Bank QNB Indonesia KCP Pekanbaru Riau Jl. Riau No. 149 G Pekanbaru 28282 Tel: (+62 761) 444 68 Fax: (+62 761) 444 70

Bank QNB Indonesia KC Renon Jl. Raya Puputan Renon No. 58A Denpasar 80234 Tel: (+62 361) 233 777 Fax: (+62 361) 239 779

Bank QNB Indonesia KC Pekanbaru Sudirman Jl. Jend. Sudirman No. 303 & 305 Pekanbaru 28112 Tel: (+62 761) 333 08 Fax: (+62 761) 333 98 Bank QNB Indonesia KCP Pekanbaru Nangka Jl. Tuanku Tambusai No. 305 Pekanbaru 28155 Tel: (+62 761) 429 91 Fax: (+62 761) 429 89 Bank QNB Indonesia KCP Mal Pekanbaru Lantai Dasar Blok A4/02 Jl. Jend. Sudirman Pekanbaru 28112 Tel: (+62 761) 850 188 Fax: (+62 761) 850 198

Annual Report 2015


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Reference of Annual Report Award Criteria


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Annual Report 2015


Subject & Explanation

Page

General 1.

Annual report is presented in good and correct Indonesian and it is also recommended to present the report in English.

√

2.

Annual report is printed in good quality and and use readable font type and size.

√

3.

Annual report should state clearly the identity of the company. Name of the company and year of the annual report is placed on: » The front cover; » Sides; » Back cover; and » Each page.

√

4.

Annual report is uploaded in the company’s website.

√

Summary of Key Financial Information 1. 2. 3.

Information of company’s operating results in comparative form over a period of 3 (three) financial years or since the commencement of business if the company has been running its business activities for less than 3 (three) years. The information contained includes: » Operating sales/revenue; » Profit (loss); » Total comprehensive profit (loss); » Profit (loss) per share.

9

Information of company’s financial position in comparative form over a period of 3 (three) financial years or since the commencement of business if the company has been running its business activities for less than 3 (three) years. The information contained includes: » Total investment in associates; » Total assets; » Total liabilities; » Total equity.

8

Financial ratios in comparative form over a period of 3 (three) financial years or since the commencement of business if the company has been running its business activities for less than 3 (three) years.

11

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277



4. Share price information in tables and charts. » Information in form of tables which contain: a. Total of outstanding shares; b. Market capitalization; c. Highest, lowest, and closing price; and d. Trading volume. » Information in form of charts which contain at least share closing price and trading volume. For every quater in the latest 2 (two) fiscal years. 5.

Information on outstanding bonds, sukuk or convertible bonds in the latest 2 (two) fiscal years. Information contains: » Total outstanding bonds/sukuk/convertible bonds; » Yield/interest rate; » Maturity date; and » Bonds/sukuk rating.

Page

12

N/A

The Board of Commissioners’ and Board of Directors’ Report 1.

The Board of Commissioners’ Report. Contains the following items: » Assessment on the performance of the Board of Directors in managing the company and the basis of assessment; » View over the prospects of the company’s business which set by the Board of Directors and its basis of consideration; » Assessment on the performance of committees under the Board of Commissioners; and » Changes in the composition of the Board of Commissioners (if any). The Board of Directors’ Report.

30-33

2. Contains the following items: » Analysis of company’s performance, which includes, among others, strategic policies, comparison between achievement of results and targets, and challenges faced by the company; » Analysis of business prospects; » Implementation of corporate governance; and » Changes in the composition of the Board of Directors (if any).

38-41


278

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Page

3. Signatures of the members of the Board of Directors and the Board of Commissioners. Contains the following items: » Signatures are appended in separated sheet; » Statemen that the Board of Directors and the Board of Commissioners are fully responsible for the authenticity of the annual report; » Signed by all members of the Board of Directors and the Board of Commissioners by stating name and position; and » Written statement in separate letter if there is member of the Board of Directors and the Board of Commissioners who do not sign the annual report, or: written statement in separate letter from other members if there is no written statement from the relevant member.

264-265

Company Profile 1.

Name and address of the company. Includes information on name and address, zip code, telephone and/or facsimile, email, and website.

48

2.

Brief history of the company. Includes among others: date/year of establishment, name and changes in the company name (if any).

50-51

3.

Business lines. The description includes: » Business activities of the company according to recent articles of association; » Conducted business activities; and » Products and/or services produced.

58-63

4.

Organizational structure. In form of chart, which includes names and titles at least up to the one level below the Board of Directors.

66-67

5.

Company’s Vision and Mission. Includes: » Company’s vision; » Company’s mission; and » Statement that the company’s vision and mission have been approved by the Board of Directors/Board of Commissioners.

Annual Report 2015

52


279



Page

6.

Brief identity and curriculum vitae of the members of the Board of Commissioners. The information should contain: » Name; » Position (including the position in other company or institution); » Age; » Education; » Work experience; » Date of first appointment as the member of the Board of Commissioners.

34-36

7.

Brief identity and curriculum vitae of the members of the Board of Directors. The information should contain: » Name; » Position (including the position in other company or institution); » Age; » Education; » Work experience; » Date of first appointment as the member of the Board of Directors.

42-44

8.

Number of employees (2 years comparatively) and description of competence building (such as: aspect of education and training of employees). The information should contain: » Total employees for each organization level; » Total employees for each level of education; » Total employees based on employment status; » Description and data of employee’s competency development which has been done by reflecting the equality of opportunity to all employees; and » The cost of employee’s competency development which has been incurred.

83-92

9.

Shareholders composition. Among others includes: » Details of shareholders name which include 20 majority shareholders and their ownership percentage; » Details of shareholders and their ownership percentage which include: a. Name of shareholders who have 5% or more shares; b. Name of Directors of Commissioners who have shares; and c. Group of public shareholders who each own less than 5% of shares. 10.

List of subsidiaries and/or associates. The information should contain: » Name of subsidiaries and/or associates; » Share ownership percentage; » Description of subsidiaries and/or associates business line; and » Description of subsidiaries and/or associates operation status (has operated or has not operated).


280

14

N/A

Annual Report 2015



11. Corporate group structure. Corporate group structure in form of chart which describes subsidiaries, associates, joint venture, and special purpose vehicle.

Page

N/A

12.

Share listing chronology. Among others, include: » Chronology of share listing; » Corporate action that cause changes in the number of shares; » Share volume changes from the beginning until the end of fiscal year; and » Name of stock exchange where the company’s share is listed (if any).

13.

Listing chronology of other securities. Among others, include: » Listing chronology of other securities; » Corporate action that cause changes in the number of other securities; » Changes of the number of other securities from the beginning until the end of fiscal year; and » Name of stock exchange where the other securities is listed; and » Securities rating.

N/A

14. Name and address of capital market institutions and/or supporting professions. The information should contain: » Name and address of Securities Administration Bureau/parties that administered the company’s share; » Name and address of Public Accounting Firm; and » Nama and address of securities rating agency.

271

15. Award received by the company in the latest fiscal year and/or valid certification in the latest fiscal year both on a national and international scale. The information should contain: » Name of award and/or certificate; » Year of acquisition; » Name of agency that give the award and/or certification; and » Validity period (for certification).

26

16.

Name and address of subsidiary and/or branch offices or representative offices (if any). The information should contain: » Name and address of subsidiaries; and » Name and address of branch/representative offices. Note: It requires a disclosure if the company has no subsidiaries/branch/ representative.

Annual Report 2015

15

272-275


281



Page

Management Discussion and Analysis 1. Operational review per business segment. Contains the description of: » Description of each business business segment. » Performance of Production/business activity; a. Production; b. Increase/decrease of production capacity; c. Operating sales/revenue; and d. Profitability.

74-77

2.

Description of company’s financial performance. Analysis of financial performance which includes a comparison between current fiscal year and the previous year and the cause of increase/decrease (in form of tables and charts), among others, concerning: » Current assets, non-current assets, and total assets; » Short-term liabilities, long-term liabilities, and total liabilities; » Equity; » Operating sales/revenue, expense and profit (loss), other comprehensive income, and total of comprehensive profit (loss); and » Cash flow.

93-103

103-104

Discussion and analysis of capacity to pay debts and the collectibility of account receivables, by presenting relevant ratio calculation in accordance with the type of company’s industry. Description of: » Ability to pay debts, both in short and long term; and » Collectibility of account receivables.

4.

Discussion of capital structure and management policy on capital structure policy. Description of: » Capital structure; and » Management policy on capital structure policies and the basis of the policies.

104

5.

Discussion on significant ties for the investment of capital goods. Description of: » The purpose of the ties; » Source of funds expected to fulfill the said ties; » Currency of denomination; and » Steps taken by the company to protect the position of related foreign currency against risks. Note: It requires a disclosure if the company has no significant ties for the investment of capital goods in the latest fiscal year.

105

3.


282

Annual Report 2015



Page

6.

Discussion of capital goods investment that was realized in the latest fiscal year. Description of: » Type of capital goods investment; » The purpose of capital goods investment; and » The value of capital goods investment in the latest fiscal year. Note: It requires a disclosure if there is no realization capital goods investment.

105

7.

Comparative information of target in the beginning of fiscal year and its realization, and target or projection to be achieved for the next year which include income, profit, capital structure, or others that considered important for the company. Information, among others, includes: » Comparison between target in the beginning of fiscal year and its realization; and » Target or projection to be achieved in the next 1 (one) year.

104

Significant information and fact subsequent to the accountant’s report date. Description of subsequent event including its impact to the business performance and risk in the future. Note: It requires a disclosure if there is no subsequent event.

105

8. 9.

Description of company’s business prospects. Description of the company’s prospects in regards with the industry and economy in general accompanied with supporting quantitative data from reliable data source.

116-117

10. Descrition of marketing aspects. Description of marketing aspect for the company’s products and/or services, such as marketing strategy and market segment.

114-115

11. Description of and total of cash dividend per share and total of dividend per year that announced or paid for the last 2 (two) fiscal years. Contains the description of : » Dividend distribution policy; » Total of distributed dividends; » Total of cash dividend per share; » Payout ratio; and » Announcement date and cash dividend payment for each year. Note: It requires a disclosure if there is no dividend distribution.

104

12. Employee Share Ownership Program and/or Management Share Ownership Program (ESOP/MSOP) which conducted by the company. Contains the description of: » Total of ESOP/MSOP shares and its realization; » Term; » The requirements for the employee and/or management; and » Exercise price. Note: It requires a disclosure if there is no referred program.

251

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283



Page

13. Realization of the use of proceeds from the public offering (in terms of the company still has the obligation to submit the report of proceeds realization). Contains the description of: » Total proceeds acquired; » Plan of proceeds utilization; » Detail of proceeds utilization; » Balance of proceeds; and » GMS approval date for the change of proceeds utilization (if any).

105

14. Significant information on investment, expansion, divestment, business merger/ consolidation, acquisition, restructuring of debt/capital. Contains the description of : » The purpose of transaction; » The value of transaction or the restructured amount; and » Source of fund. Note: It requires a disclosure if there is no referred transaction.

105

15. Information of significant transaction which contains conflict of interest and/or transaction with affiliated parties. Contains the description of: » Name of parties which conduct transaction and the nature of affiliation; » Explanation about the fairness of the transaction; » Reasons of transaction; » Realization of transaction in the latest fiscal year period; » Relevant company’s policy on the transaction review mechanism; and » Compliance toward relevant rules and regulations. Note: It requires a disclosure if there is no referred transaction.

105, 251

16. Description of changes in regulation which have a significant impact on the company. The description, among others, includes: changes in regulation and its impact toward the company. Note: It requires a disclosure if there is no changes in regulation which have a significant impact.

105-111

17. Description of changes in the accounting policy which implemented by the company in the latest fiscal year. The description,among others, includes: changes in accounting policy, reason and its impact on financial statements. Note: It requires a disclosure if there is no changes in accounting policy.

111-113


284

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Page

Good Corporate Governance 1.

Description of the Board of Commissioners. The description, among others, includes: » Description of the responsibility of the Board of Commissioners. » Disclosure of the procedure for determining remuneration; » Remuneration structure which shows the remuneration component and the total nominal of each component for every member of the Board of Commissioners; » Frequency of meetings and attendance of the Board of Commissioners in the meeting; » Training program in order to improve the competency of the Board of Commissioners or orientation program for the new Commissioner; and » Disclosure of Board Charter (guidelines and work order of the Board of Commissioners).

133-146

2.

Description of Independent Commissioner. Among others, includes: » Criteria for appointing Independent Commissioner; and » Statement about the independency of each Commissioner Independent.

3.

Description of the Board of Directors. The description, among others, includes: » Scope of work and responsibility of each member of the Board of Directors. » Frequency of meeting and attendance of the Board of Directors’ members in the Board of Directors meeting; » Frequency of meeting and attendance of the Board of Directors’ members in the joint meeting of the Board of Directors and the Board of Commissioners; » Training program in order to improve the competency of the Board of Directors or orientation program for the new Director; and » Disclosure of Board Charter (guidelines and work order of the Board of Directors).

164-178

Assessment of the Board of Commissioners and the Board of Directors. Among others, includes: » Procedure of assessment on the Board of Commissioners and the Board of Directors performance; » Criteria of assessment on the Board of Commissioners and the Board of Directors performance; and » Party that conducts the assessment.

142, 174

Description of the remuneration policy for the Board of Directors. Among others, includes: » Disclosure of remuneration stipulation procedure; » Remuneration structure that indicates the type and amount of short-term benefits, post-employment, and/or other long-term benefits for each member of the Board of Directors; and » Disclosure of remuneration stipulation indicators for the Board of Directors.

175

4. 5.

Annual Report 2015

135


285



6. 7.

Information of major and controlling shareholders, both direct or indirect, up to the individual owners. In form of scheme or chart, except for the SOE that is fully owned by the government.

Page

13

136, 167

Disclosure of affiliation relationship between the member of the Board of Directors, the Board of Commissioners, and Major and/or controlling Shareholders. Among others, includes: » Affiliation relationship between the member of the Board of Directors and other member of the Board of Directors; » Affiliation relationship between the member of the Board of Directors and the member of the Board of Commissioners; » Affiliation relationship between the member of the Board of Directors and Major and/or controlling Shareholders; » Affilitaion relationship between the member of the Board of Commissioners and other member of the Board of Commissioners;and » Affiliation relationship between the member of the Board of Commissioners and Major and/or controlling Shareholders. Note: It requires a disclosure if there is no referred affiliation relationship.

8.

Audit Committee. Among others, includes: » Name and position of the member of the audit committee; » Qualification of education and work experience of the member of the audit committee; » Independency of the member of the audit committee; » Description of task and responsibility; » Brief report on the activities carried out by the audit committee; and » Frequency of meetings and attendance of the audit committee.

148-153

9.

Nomination and Remuneration Committee/Function. Among others, includes: » Name, position, and brief curriculum vitae of the member of nomination and/or remuneration committee; » Independency of the member of nomination and/or remuneration committee; » Description of task and responsibility; » Description of activities carried out by the nomination and/or remuneration committee; and » Frequency of meetings and attendance of the nomination and/or remuneration committee/function. » Policy regarding the succession of the Board of Directors

154-159


286

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Page

10.

Other committees under the Board of Commissioners which owned by the company. Among others, includes: » Name, position, and brief curriculum vitae of the member of other committees; » Independency of the member of other committees; » Description of task and responsibility; » Description of activities carried out by other committees; and » Frequency of meetings and attendance of other committees.

159-163

11.

Description of task and function of corporate secretary. Among others, includes: » Name and brief curriculum vitae of corporate secretary; » Description of task implementation of corporate secretary; and » Training program in order to improve the competency of corporate secretary.

203-205

12.

Description of General Meeting of Shareholders (GMS) of previous year. Among others, includes: » GMS resolution of previous year; » Realization of GMS resolution in the fiscal year; and » Reasons in the event of any unrealized GMS resolution.

129-132

13.

Description of internal audit unit. Among others, includes: » Name of the chairman of internal audit unit; » Number of employees (internal auditor) in internal audit unit; » Certification as internal auditor; » Position of the internal audit unit in company’s structure; » Brief report of activities carried out by the internal audit unit; and » Party that appoints/dismisses the chairman of internal audit unit.

198-200

14.

Public accountant. Information should contain, among others: » The amount of period the public accountant has audited the annual financial statements; » The amount of period the Public Accounting Firm has audited the annual financial statements; » The amount of fee for each service provided by the public accountant; and » Other services provided by the accountant other than the audit of annual financial statements. Note: It requires disclosure if there is no referred services.

201-202

Description of company’s risk management. Among others, includes: » Description of risk management system implemented by the company: » Description of the evaluation implemented on the effectiveness of the risk management system; » Description of risks faced by the company; and » Attempt to manage those risks.

206-239

15.

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287



Page

16. Description of internal control system. Among others, includes: » Brief description of internal control system, among others, includes financial and operational control; » Description of the compliance of internal ontrol system toward the internationally acknowledged framework (COSO – internal control framework); and » Description of the evaluation implemented on the effectiveness of internal control system.

240

17.

Description of corporate social responsibility related to the environment. Information should contain, among others: » Policy set by the management; » Activities of environment program carried out in regards with the company’s operational, such as the use of material and energy that is environmentally friendly and can be recycled, waste treatment system, etc; and » Certificate on environmental.

256

18. Description of corporate social responsibility related to the employment, occupational health and safety. Information should contain, among others: » Policy set by the management; and » Activities that are carried out. In regards with the practice of employment, occupational health and safety, such as the equality of gender and work opportunity, occupational facility and safety, employee turnover rate, accident rate, training, etc.

257-258

19. Description of corporate social responsibility related to the community and social development. Information should contain, among others: » Policy set by the management; » Activities that are carried out; and » Costs incurred.

255, 259

20. In regards with the community and social development, such as local worker recruitment, community empowerment around the company, social facilities repairement, other donations, etc.

260-261

21. Legal disputes faced by the company, subsidiaries, member of the Board of Directors and/or the Board of Commissioners that served during the period of annual report. Among others, includes: » Subject of the case/lawsuit; » Settlement status of the case/lawsuit; » Potential impacts on the financial condition of the company; and » Administrative sanctions imposed on the entity, member of the Board of Commissioners and the Board of Directors, by the relevant authority (the capital market, banking and others) in the last fiscal year (or statement of no administrative

240-241


288

Annual Report 2015



Page

sanctions imposed on the company). Note: It requires a disclosure if there is no dispute.

22. Access to information and corporate data. Description of the availability of access to information and corporate data to the public, for example through the website (in Indonesian and English), mass media, mailing lists, newsletters, analyst meetings, etc.

246-247

23.

Discussion of code of conduct. Contains description of: » Contents of the code of conduct; » Disclosure of the code of conduct applies to all organization level; » Dissemination of code of conduct; » Attempt to uphold the code of conduct and the sanction to the violation of the code of conduct; and » Statement of corporate culture owned by the company.

242-243

Disclosure of whistleblowing system. Contains a description of the mechanism of whistleblowing system, among others: » Submission of violation reports; » Protection for the whistleblower; » Handling the complaint; » Party that manages the complaint; and » Amount of incoming complaints and processed in the last fiscal year as well as its follow-up.

244-245

24.

25. Diversity in the composition of the Board of Commissioners and Directors. Description of the Company’s policy regarding diversity in the composition of the Board of Commissioners and Directors in education (field of study), work experience, age, and gender. Note: It requires a disclosure of reason and consideration if there is no such policy.

135, 166

Financial Information 1.

Statement by the Board of Directors and/or the Board of Commissioners concerning the responsibility toward financial statements. Compliance with relevant regulations on the responsibility toward financial statements.

Financial Statements

2.

Opinion of independent auditor on the financial statements.


3.

Description of the independent auditor in the opinion. Description should contain: » Name and signature; » Date of audit report; and » License number of PAF and license number of public accountants.


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289



Page

4.

Comprehensive financial statements. Comprehensively contains the elements of financial statements: » Statement of financial position (balance sheet); » Statement of comprehensive income; » Statement of changes in equity; » Statement of cash flows: » Accompanying notes to the financial statements; and » Statement of financial position in the beginning of comparative period which presented when the entity applies an accounting policy retrospectively or restates its accounts of financial statements, or when entity reclassifies the accounts in its financial statements (if applicable).

5.

Comparison of profitability. Comparison of profit (loss) in the current year and previous year.

Financial StatementsStatement of Profit or Loss and Other Comprehensive Income Page 3-4

6.

Statement of cash flow. Meet the following requirements: » Clustered in three activity categories: operating, investing, and financing; » Use of direct method to report cash flows from the operating activity; » Separation of presentation between cash acceptance and/or disbursement during the current year in the operating, investing and financing activities; and » Disclosure of non cash transaction should be stated in the accompanying notes of financial statements.

Financial StatementsStatement of Profit or Loss and Other Comprehensive Income Page 7-8

7.

Overview of accounting policies. Includes at least: » Statement and compliance with FAS; » Basis of measurement and preparation of financial statements; » Acknowledgement of income and expenses; » Employee benefits; and » Financial instruments.

Financial StatementsNotes to the Financial Statements 2 Page 15-42

8.


Disclosure on transactions with related parties. Among others, includes: » Name of related party, as well as the nature and relationship with the related party; » Value of transaction and its percentage toward the relevant total income and expenses; and » Amount of balance and its percentage toward total assets or liabiliaties.

9.

Disclosure related to the taxation. Issues that should be disclosed: » Fiscal reconciliation of and calculation of current tax expenses; » Explanation on the relation between tax expenses (income) and accounting income;

Financial StatementsNotes to the Financial Statements 2k Page 30, 20, Page 90


290


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» » »

Page

Statement that Taxable Income from the result of reconciliation becomes the basis of filling the Annual Agency Income Tax Returns; Details of deferred tax assets and liabilities which acknowledged in the statement of financial position in every reporting period, and the amount of deferred tax expenses (income) acknowledged in the statement of income if the amount is not visible from the total deferred tax assets or liabilities which presented in the statement of financial position; and Disclosure of whether or not there is a tax dispute.

10.

Disclosure related to fixed assets. Issues that should be disclosed: » Depreciation method used; » Description of the selected accounting policies between the revaluation model and cost model; » The methods and significant assumptions used in estimating the fair value of fixed assets (revaluation model) or disclosure of the fair value of fixed assets (cost model);and » Reconciliation of the gross book value and accumulated depreciation of fixed assets at the beginning and end of the reporting period, showing any addition, reduction and reclassification.


11. Disclosure related to the operation segment. Issues that should be disclosed: » General information that includes the factors that are used to identify the reported segment; » Information of income, assets, and liabilities of reported segment; » Reconciliation from the total revenue, income, assets segment, liabilities, other significant elements of reported segment toward the relevant total in the entity; and » Disclosure on entity level, which includes information of products and/or services, geographic areas and major customers.


12.


Disclosures related to financial instruments. Issues that should be disclosed: » Details of financial instruments based on its classification; » The fair value of each class of financial instruments; » Policies of risk management; » Explanation of the risks associated with financial instruments: market risk, credit risk and liquidity risk; and » Quantitative risk analysis relevant to the financial instruments.

12.

Publication of financial statements. Issues that should be disclosed, among others: » The date that financial statements is authorized to be published; and » The party responsible to authorize the published financial statements.

Financial StatementsNotes to the Financial Statements 2b Page 16

Annual Report 2015


291

St Fi at na em nc en ial ts

PT Bank QNB Indonesia Tbk Laporan keuangan tanggal 31 Desember 2015 dan untuk tahun yang berakhir pada tanggal tersebut beserta laporan auditor independen/ Financial statements as of December 31, 2015 and for the year then ended with independent auditors’ report

The original financial statements included herein are in Indonesian language.

PT BANK QNB INDONESIA TBK LAPORAN KEUANGAN TANGGAL 31 DESEMBER 2015 DAN UNTUK TAHUN YANG BERAKHIR PADA TANGGAL TERSEBUT BESERTA LAPORAN AUDITOR INDEPENDEN

PT BANK QNB INDONESIA TBK FINANCIAL STATEMENTS AS OF DECEMBER 31, 2015 AND FOR THE YEAR THEN ENDED WITH INDEPENDENT AUDITORS’ REPORT

Daftar Isi

Table of Contents

Halaman/ Page Board Of Directors‘ Statement Regarding The Responsibility on The Financial Statements

Surat Pernyataan Direksi Tentang Tanggung Jawab atas Laporan Keuangan Laporan Auditor Independen

Independent Auditors’ Report

Laporan Posisi Keuangan ……………………………….

1-2

.………………………. Statement of Financial Position

Laporan Laba-Rugi dan Penghasilan Komprehensif Lain ………………………………….

3-4

Statement of Profit or Loss and ............................ Other Comprehensive Income

Laporan Perubahan Ekuitas ………………. ……………

5-6

..………………………Statement of Changes in Equity

Laporan Arus Kas…………………………………………

7-8

….…………………………… Statement of Cash Flows

Catatan atas Laporan Keuangan..................................

9-118

……………………..Notes to the Financial Statements

************************

QNB SURAT PERNYATAAN DIREKSI TENTANG TANGGUNG JAWAB ATAS LAPORAN KEUANGAN UNTUK TAHUN-TAHUN YANG BERAKHIR PADA TANGGAL 31 DESEMBER 2015 DAN 2014 PT BANK QNB INDONESIA Tbk ("BANK") BOARD OF DIRECTORS' STATEMENT REGARDING THE RESPONSIBILITY ON THE FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31,2015 AND 2014 PT BANK QNB INDONESIA Tbk

Kami yang bertanda tangan di bawah ini! We, the undersigned: 1.

. Andrew McGregor Duff Office Park Tower D Lot 18 SC BD JI. Jendral Sudirman Kavling 52-53 Jakarta The Oakwood Premier Cozmo Apartment JI. Dr. Ide Anak Agung Gde Agung, Blok E4.2 No.1 Mega Kuningan, Jakarta 12950 (021) 5155155 Direktur Utama/ President Director

Nama/Name Alamat Kantor/Office Address

Alamat Rumah/Residentia! Address

Nomor Telepon/Phone Number Jabatan/Position 2.

Rusli Office Park Tower D Lot 18 SCBD JI. Jendral Sudirman Kavling 52-53 Jakarta Muara karang Blok E 1 S NO.86 RT.020/RW.002 Pluit, Penjaringan, Jakarta Utara (021) 5155155 Direktur / Director

Nama/Name Alamat Kantor/Office Address

Alamat Rumah/Residential Address Nomor Telepon/Phone Number Jabatan/ Position

Declare that:

Menyatakan bahwa: 1.

Kami bertanggung jawab atas penyusunan penyajian laporan keuangan Bank;

dan

1.

We are responsible for the preparation and presentation of the Bank's financial statements;

2.

Laporan keuangan Bank telah disusun dan disajikan sesuai dengan Standar Akuntansi Keuangan di lndonesia;

2.

The Bank's financial statements have been prepared and presented in accordance with Indonesian Financial Accounting Standards;

3.

a. Semua informasi dalam laporan keuangan Bank telah dimuat secara lengkap dan benar;

3.

a. All information in the Bank's financial statements has been disclosed in a complete and truthful manner;

4.

b. Laporan keuangan Bank tidak mengandung informasi atau fakta material yang tidak benar, dan tidak menghilangkan informasi atau fakta material; Kami bertanggung jawab atas sistem pengendalian internal dalam Bank.

Demikian Pernyataan ini dibuat dengan sebenarnya.

4.

b. The Bank's financial statements do not contain misleading information or material facts nor do they omit information or material facts; We are responsible for the Bank's internal control system.

This Statement has been made truthfully.

Jakarta, 11 JanuarilJanuary 2016 Atas nama dan mewakili Direksi/For and on behalf of the Board of Directors

• Rusli Direktur / Director


Jl. Jend. Sudirman Kav. 52-53

Tel: (+6221) 515 5155

QNB Tower, 18 Pare SeBD

Jakarta 12190

Fax: (+6221) 515 5388

qnb.co.id


PT BANK QNB INDONESIA TBK LAPORAN POSISI KEUANGAN Tanggal 31 Desember 2015 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)

Catatan/ Notes

PT BANK QNB INDONESIA TBK STATEMENT OF FINANCIAL POSITION As of December 31, 2015 (Expressed in millions of Rupiah, unless otherwise stated)

31 Desember/ December 31 2015

1 Januari/ January 1, 2014/ 31 Desember/ December 31 ) 2013*

31 Desember/ December 31 ) 2014*

ASET Kas

2d,2f,5,32,36

45.432

52.653

56.633

ASSETS Cash

Giro pada Bank Indonesia

2d,2f,2g,6,32, 33,36

1.710.947

1.425.155

818.168

Current accounts with Bank Indonesia

Giro pada bank-bank lain Pihak berelasi Pihak ketiga

2d,2e,2f,2g 2o,7,32,33, 34,36

172 30.974

198 43.126

252 18.786

Current accounts with other banks Related party Third parties

2.111.813

3.324.797

1.242.652

Placements with Bank Indonesia and other banks

2.921

849

3.600

Derivatives receivable

24.995 36.826

60.744

-

Acceptances receivable Related parties Third parties

269.117

268.324

73.881

Securities purchased under agreement to resell

3.434 20.826.610

3.613 15.102.507

3.364 8.205.178

Loans Related parties Third parties

20.830.044

15.106.120

8.208.542

Sub-total

Penempatan pada Bank Indonesia dan bank-bank lain

Tagihan derivatif

2d,2f,2h,2o,8, 32,33,36 2d,2f,2i,9, 32,33

Tagihan akseptasi Pihak berelasi Pihak ketiga

2d,2f,2o,2q,10, 32,33,36

Efek-efek yang dibeli dengan janji dijual kembali

2f,2h,2o,11, 32,33

Kredit yang diberikan Pihak berelasi Pihak ketiga Sub-total Dikurangi: cadangan kerugian penurunan nilai

2d,2e,2f,2h, 2o,12,32,33, 34,36

Neto

Efek-efek Beban dibayar dimuka Aset pajak tangguhan, neto Aset tetap setelah dikurangi akumulasi penyusutan masing-masing sebesar Rp126.483, Rp97.826, dan Rp75.489 pada 31 Desember 2015, 2014, dan 1 Januari 2014/ 31 Desember 2013 Aset tak berwujud setelah dikurangi akumulasi amortisasi masing-masing sebesar Rp30.924, Rp22.803 dan Rp15.553 pada 31 Desember 2015, 2014, dan 1 Januari 2014/ 31 Desember 2013

Aset lain-lain, neto TOTAL ASET

(41.740)

(12.461)

(10.860)

Less: allowance for impairment losses

20.788.304

15.093.659

8.197.682

Net

325.444

232.642

367.681

Securities

108.443

57.114

43.881

Prepayments

-

11.867

Deferred tax assets, net

111.225

Fixed assets net of accumulated depreciation of Rp126,483, Rp97,826, and Rp75,489 as of December 31, 2015, 2014, and January 1, 2014/ December 31, 2013 respectively

2d,2f,2j,2o,13, 32,33,34,36 14 2k,20

-

2l,2o,15

110.577

114.631

2n,2o,16

45.670

42.370

34.192

Intangible assets net of accumulated amortization of Rp30,924, Rp22,803 and Rp15,553 as of December 31, 2015, 2014, and January 1, 2014/ December 31, 2013, respectively

2d,2f,2m,2o, 32,36

146.014

122.756

70.847

Other assets, net

25.757.649

20.839.018

11.051.347

TOTAL ASSETS

*) Setelah penyesuaian transisi PSAK No. 24 (Revisi 2013) (Catatan 40)

*) After the transition adjustment to SFAS No. 24 (Revised 2013) (Note 40)

Catatan atas laporan keuangan terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan secara keseluruhan.

The accompanying notes to the financial statements form an integral part of these financial statements.

1


PT BANK QNB INDONESIA TBK LAPORAN POSISI KEUANGAN (lanjutan) Tanggal 31 Desember 2015 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)

Catatan/ Notes

PT BANK QNB INDONESIA TBK STATEMENT OF FINANCIAL POSITION (continued) As of December 31, 2015 (Expressed in millions of Rupiah, unless otherwise stated)

31 Desember/ December 31 2015

1 Januari/ January 1, 2014/ 31 Desember/ December 31 ) 2013*

31 Desember/ December 31 ) 2014*

LIABILITAS DAN EKUITAS LIABILITAS Liabilitas segera

LIABILITIES AND EQUITY

337.357

252.785

178.304

LIABILITIES Liabilities payable on demand

1.040.738 17.468.270

260.199 15.901.511

44.342 7.200.592

Deposits from customers Related parties Third parties

2.688.691 490.420

1.858.368 4.962

1.825.500 27.500

Deposits from other banks Related parties Third parties

24.995 36.826

52.739 8.005

-

Acceptances payable Related parties Third parties

661

1.371

141.678

Derivatives payable

2d,17,36

Simpanan dari nasabah Pihak berelasi Pihak ketiga

2d,2e,2f,2p, 18,32,34,36

Simpanan dari bank-bank lain Pihak berelasi Pihak ketiga

2d,2e,2f,2p, 19,32,34,36

Liabilitas akseptasi Pihak berelasi Pihak ketiga

2d,2e,2f,2q, 10,32,34,36

Liabilitas derivatif

2d,2f,2i,9,32

Utang pajak penghasilan

2k,20

2.401

20.402

-

Income tax payable

Liabilitas imbalan pasca-kerja

2r,21

80.619

63.892

42.954

Obligation for post-employment benefits

Liabilitas pajak tangguhan, neto

2k,20

42.324

7.031

-

Deferred tax liabilities, net

Beban masih harus dibayar dan liabilitas lain-lain

2d,2f,2k,32,36

155.213

142.732

88.645

Accruals and other liabilities

Pinjaman Subordinasi

2d,2e,2s,22, 34,36

964.950

-

-

Subordinated loan

23.333.465

18.573.997

9.549.515

TOTAL LIABILITIES

TOTAL LIABILITAS EKUITAS Modal saham - nilai nominal Rp250 (Rupiah penuh) per saham Modal dasar - 32.000.000.000 (Nilai penuh) saham pada 31 Desember 2015, 2014, dan 1 Januari 2014/ Desember 31, 2013 Modal ditempatkan dan disetor penuh - 8.757.145.997 (nilai penuh) saham pada 31 Desember 2015 dan 2014, 6.158.330.518 (nilai penuh) saham pada 1 Januari 2014/ 31 Desember 2013 1b,2s,23 Tambahan modal disetor - neto Rugi yang belum direalisasi atas efek-efek dalam kelompok tersedia untuk dijual - setelah pajak tangguhan

2.189.287

2t,24

2.189.287

(24.570)

2j,13

(24.570)

-

(58)

EQUITY Share capital - par value of Rp250 (full amount) per share Authorized - 32,000,000,000 (full amount) shares as of December 31, 2015, 2014, and January 1, 2014/ December 31, 2013 Issued and fully paid 8,757,145,997 (full amount) shares as of December 31, 2015 and 2014, 6.158.330.518 (full amount) shares as of January 1, 2014/ 1.539.583 December 31, 2013 (21.983)

-

Additional paid-in capital - net

Unrealized loss on available for-sale securities net of deferred tax

Kerugian komprehensif lain

(16.444)

(19.503)

(14.108)

Other comprehensive loss

Saldo laba (defisit): Telah ditentukan penggunaannya Belum ditentukan penggunaannya

4.396 271.515

4.396 115.469

4.396 (6.056)

Retained earnings (deficit): Appropriated Unappropriated

2.424.184

2.265.021

25.757.649

20.839.018

EKUITAS, NETO TOTAL LIABILITAS DAN EKUITAS


1.501.832

EQUITY, NET

11.051.347 TOTAL LIABILITIES AND EQUITY




2


PT BANK QNB INDONESIA TBK LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN Untuk Tahun yang Berakhir pada Tanggal 31 Desember 2015 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT BANK QNB INDONESIA TBK STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the Year ended December 31, 2015 (Expressed in millions of Rupiah, unless otherwise stated)

Tahun yang Berakhir pada tanggal 31 Desember/Year ended December 31 Catatan/ Notes PENDAPATAN DAN BEBAN OPERASIONAL Pendapatan bunga Beban bunga

2e,2v,26,34 2e,2v,26, 34,37

PENDAPATAN BUNGA - NETO PENDAPATAN OPERASIONAL LAINNYA Provisi dan komisi Keuntungan transaksi mata uang asing - neto Lain-lain

Beban umum dan administrasi Penyisihan kerugian penurunan nilai aset keuangan Lain-lain

(1.351.331)

1.221.121 (814.499)

Interest expense

406.622

2w,27

194.258

174.801

2x

13.434 4.826

29.971 4.661

OTHER OPERATING INCOME Fees and commission Gain on foreign exchange transactions - net Others

212.518

209.433

Total other operating income

2e,2r,29,34

(375.743)

(292.603)

2l,2n,30

(225.106)

(149.612)

2o,28

(87.472) (8.175)

(1.626) (12.296)

Personnel expenses General and administrative expenses Provision for impairment losses on financial assets Others

(696.496)

(456.137)

Total other operating expenses

205.273

159.918

INCOME FROM OPERATIONS

3.662

2.910

NON-OPERATING INCOME - NET

208.935

162.828

INCOME BEFORE INCOME TAX EXPENSE

(52.889)

(41.303)

156.046

121.525

Total beban operasional lainnya LABA OPERASIONAL PENDAPATAN NONOPERASIONAL - NETO LABA SEBELUM BEBAN PAJAK PENGHASILAN Beban pajak penghasilan

2.040.582

OPERATING INCOME AND EXPENSE Interest income

689.251

Total pendapatan operasional lainnya BEBAN OPERASIONAL LAINNYA Beban karyawan

2014*)

2015

2k,20

LABA TAHUN BERJALAN


NET INTEREST INCOME

Income tax expense INCOME FOR THE YEAR




3


PT BANK QNB INDONESIA TBK LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN (lanjutan) Untuk Tahun yang Berakhir pada Tanggal 31 Desember 2015 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT BANK QNB INDONESIA TBK STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (continued) For the Year ended December 31, 2015 (Expressed in millions of Rupiah, unless otherwise stated)

Tahun yang Berakhir pada tanggal 31 Desember/Year ended December 31 Catatan/ Notes PENGHASILAN KOMPREHENSIF LAIN Pos-pos yang akan diklasifikasikan ke laba rugi: Perubahan nilai wajar efek-efek yang tersedia untuk dijual Pajak penghasilan terkait dengan pendapatan komprehensif lainnya

Pos-pos yang tidak akan diklasifikasikan ke laba rugi: Keuntungan (kerugian) aktuarial atas program manfaat pasti Pajak penghasilan terkait dengan komponen pendapatan komprehensif lainnya

2j,13

21

Keuntungan (kerugian) komprehensif, lain setelah pajak Total penghasilan komprehensif tahun berjalan LABA PER SAHAM - DASAR (dalam Rupiah penuh)

2014*)

2015

2u, 31

77

(77)

(19)

19

58

(58)

4.078

(7.193)

(1.019)

1.798

3.059

(5.395)

3.117

(5.453)

OTHER COMPREHENSIVE INCOME Items that will be classified to profit or loss: Fair value changes of available for sales securities Income tax relating to component of other comprehensive income

Items that will not be classified to profit or loss: Actuarial gain (loss) on defined benefit plan Income tax related to components of other comprehensive income

Other comprehensive gain (loss), net of tax

159.163

116.072

Total comprehensive income for the year

17,82

16,34

EARNINGS PER SHARE - BASIC (in full amount)





4


PT BANK QNB INDONESIA TBK LAPORAN PERUBAHAN EKUITAS Untuk Tahun yang Berakhir pada Tanggal 31 Desember 2015 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT BANK QNB INDONESIA TBK STATEMENT OF CHANGES IN EQUITY For the Year ended December 31, 2015 (Expressed in millions of Rupiah, unless otherwise stated)

Penghasilan (kerugian) komprehensif lain/ Other comprehensive income (loss)

Catatan/ Notes Saldo 1 Januari 2013*)

Laba (rugi) yang belum direalisasi atas efek - efek dalam kelompok tersedia untuk dijual setelah pajak tangguhan/ Unrealized loss on available for-sale securities net of deferred tax

Tambahan modal disetor neto/ Additional paidin capital - net

Modal saham/ Share capital

890.447

(19.458)

Kerugian aktuarial atas program manfaat pasti/ Actuarial losses on definedbenefit plan

8

Saldo laba (Defisit)/ Retained earnings (Deficit) Telah ditentukan penggunaannya/ Appropriated

(17.327)

Belum ditentukan penggunaannya/ Unappropriated

4.396

Total ekuitas/Total equity

(10.642)

847.424

Balance as of January 1, 2013*)

Laba tahun berjalan 2013

-

-

-

-

-

4.586

4.586

Income for the year 2013

Keuntungan aktuarial - neto setelah pajak

-

-

-

3.219

-

-

3.219

Actuarial gain - net of tax

-

-

(8)

-

-

-

-

-

(8)

3.219

-

4.586

7797

Total comprehensive income for the year 2013

-

-

-

646.611

Net Proceeds from Limited Public Offering III

4.396

(6.056)

1.501.832

Balance as of December 31, 2013*)

121.525


Rugi yang belum direalisasi atas efekefek dalam kelompok tersedia untuk dijual - setelah pajak tangguhan

2k,13

Total penghasilan komprehensif tahun berjalan 2013 Hasil emisi bersih dari Penawaran Umum Terbatas III

24

Saldo 31 Desember 2013*)

649.136

(2.525)

-

1.539.583

(21.983)

-


-

-

-

Rugi aktuarial - neto setelah pajak

-

-

-

-

-

Rugi yang belum direalisasi atas efekefek dalam kelompok tersedia untuk dijual - setelah pajak tangguhan

2k,13

(14.108)

(5.395)

(58)

-


(8)

Unrealized loss on available-for-sale securities - net of deferred tax

-

121.525

-

-

(5.395)

Actuarial loss - net of tax

-

-

(58)

Unrealized loss on available-for-sale securities - net of deferred tax




5


PT BANK QNB INDONESIA TBK LAPORAN PERUBAHAN EKUITAS(lanjutan) Untuk Tahun yang Berakhir pada Tanggal 31 Desember 2015 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT BANK QNB INDONESIA TBK STATEMENT OF CHANGES IN EQUITY (continued) For the Year ended December 31, 2015 (Expressed in millions of Rupiah, unless otherwise stated)

Penghasilan (kerugian) komprehensif lain/ Other comprehensive income (loss)

Catatan/ Notes

Tambahan modal disetor neto/ Additional paidin capital - net

Modal saham/ Share capital

Total penghasilan komprehensif tahun berjalan 2014 Hasil emisi bersih dari Penawaran Umum Terbatas IV

-

24

Saldo 31 Desember 2014*)

Laba (rugi) yang belum direalisasi atas efek - efek dalam kelompok tersedia untuk dijual setelah pajak tangguhan/ Unrealized loss on available for-sale securities net of deferred tax

-

649.704

(2.587)

2.189.287

(24.570)

Kerugian aktuarial atas program manfaat pasti/ Actuarial losses on definedbenefit plan

(58)

Saldo laba (Defisit)/ Retained earnings (Deficit) Telah ditentukan penggunaannya/ Appropriated

(5.395)

-

-

(58)

(19.503)

Belum ditentukan penggunaannya/ Unappropriated

Total ekuitas/Total equity

-

121.525

116.072


-

-

647.117

Net Proceeds from Limited Public Offering IV

4.396

115.469

2.265.021

Balance as of December 31, 2014*)

-

156.046

156.046


3.059

Actuarial gain - net of tax


-

-

-

Laba aktuarial - neto setelah pajak

-

-

-

3.059

-

-

58

-

-

-

58

Unrealized gain on available-for-sale securities - net of deferred tax

-

-

58

3.059

-

156.046

159.163


4.396

271.515

2.424.184

Balance as of December 31, 2015

Laba yang belum direalisasi atas efekefek dalam kelompok tersedia untuk dijual - setelah pajak tangguhan

2k,13

Total penghasilan komprehensif tahun berjalan 2015 Saldo 31 Desember 2015

2.189.287

(24.570)

-

(16.444)


-

-




6


PT BANK QNB INDONESIA TBK LAPORAN ARUS KAS Untuk Tahun yang Berakhir pada Tanggal 31 Desember 2015 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT BANK QNB INDONESIA TBK STATEMENT OF CASH FLOWS For the Year ended December 31, 2015 (Expressed in millions of Rupiah, unless otherwise stated)

Tahun yang Berakhir pada tanggal 31 Desember/Year ended December 31 Catatan/ Notes ARUS KAS DARI AKTIVITAS OPERASI Penerimaan bunga Pembayaran bunga Penerimaan provisi dan komisi Pembayaran provisi dan komisi Pembayaran beban karyawan Pembayaran imbalan pasca kerja Pembayaran beban lainnya Pembayaran pajak penghasilan

2w,27 2w,27 21

(Kenaikan) penurunan dalam aset operasi: Efek-efek yang dibeli dengan janji dijual kembali Tagihan akseptasi Kredit yang diberikan Beban dibayar dimuka Aset lain-lain

2014

1.148.062 (774.240) 177.231 (2.430) (258.560) (4.795) (266.328) (186)

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interest income Payments for interest expense Receipts from fees and commission Payments for fees and commission Payments for personnel expenses Payment for post employee benefit Payments for other expenses Payments for income tax

(194.443) (60.744) (6.905.935) (13.232) 5.213

(Increase) decrease in operating assets: Securites purchased under agreement to resell Aceptances receivable Loans Prepayments Other assets

84.571 2.347.497 1.315.781 1.077

74.481 8.916.777 10.330 60.744

Increase (decrease) in operating liabilities: Liabilities payable on demand Deposits from customers Deposits from other banks Acceptances payable

14.000

14.053


1.925.998

Net cash flows (used in) provided by operating activities

1.962.530 (1.352.619) 196.278 (2.020) (292.892) (3.661) (434.659) (36.635)

(794) (1.077) (5.749.537) (51.330) (13)

Kenaikan (penurunan) dalam liabilitas operasi: Liabilitas segera Simpanan dari nasabah Simpanan dari bank-bank lain Liabilitas akseptasi Beban masih harus dibayar dan liabilitas lain-lain Arus kas neto (digunakan untuk) diperoleh dari aktivitas operasi ARUS KAS DARI AKTIVITAS INVESTASI Penerimaan atas efek-efek yang telah jatuh tempo Penempatan pada efek-efek Hasil penjualan aset tetap Perolehan aset tetap Perolehan aset tak berwujud

2015

(2.003.503)

CASH FLOWS FROM INVESTING ACTIVITIES

15 15 16

Arus kas neto (digunakan untuk) diperoleh dari aktivitasi investasi

232.411 (325.213) 115 (25.673) (10.791)

370.008 (225.738) 73 (30.584) (15.428)

Proceeds of matured securities Placements in securities Proceeds from sale of fixed assets Acquisition of fixed assets Acquisition of intangible assets

(129.151)

98.331

Net cash flows (used in) provided by investing activities



7


PT BANK QNB INDONESIA TBK LAPORAN ARUS KAS (lanjutan) Untuk Tahun yang Berakhir pada Tanggal 31 Desember 2015 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT BANK QNB INDONESIA TBK STATEMENT OF CASH FLOWS (continued) For the Year ended December 31, 2015 (Expressed in millions of Rupiah, unless otherwise stated)

Tahun yang Berakhir pada tanggal 31 Desember/Year ended December 31 Catatan/ Notes ARUS KAS DARI AKTIVITAS PENDANAAN Penerimaan dari penerbitan Pinjaman Subordinasi Hasil emisi dari Penawaran Umum Terbatas IV Beban emisi saham

2015

2014

964.950 1b 24

Arus kas bersih diperoleh dari aktivitas pendanaan

964.950

(PENURUNAN) KENAIKAN NETO KAS DAN SETARA KAS

(1.167.704)

PENGARUH FLUKTUASI KURS VALUTA ASING PADA KAS DAN SETARA KAS

221.113

649.704 (2.587)

CASH FLOW FROM FINANCING ACTIVITIES Proceeds from issuance of Subordinated Loan Proceeds from Limited Public Offering IV Shares issuance costs

647.117

Net cash flows provided by financing activities

2.671.446

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

EFFECT OF FOREIGN EXCHANGE RATE FLUCTUATION ON CASH 37.992 AND CASH EQUIVALENTS

KAS DAN SETARA KAS, AWAL TAHUN

4.845.929

2.136.491

CASH AND CASH EQUIVALENTS, AT BEGINNING OF YEAR

KAS DAN SETARA KAS, AKHIR TAHUN

3.899.338

4.845.929

CASH AND CASH EQUIVALENTS, AT END OF YEAR

Kas dan setara kas terdiri dari: Kas Giro pada Bank Indonesia Giro pada bank-bank lain Penempatan pada Bank Indonesia dan bank-bank lain - jatuh tempo dalam 3 bulan sejak tanggal perolehan

2b,5

45.432

2b,6 2b,7

1.710.947 31.146

2b,8

2.111.813

Cash and cash equivalents consist of: Cash Current accounts with 1.425.155 Bank Indonesia 43.324 Current accounts with other banks Placements with Bank Indonesia and other banks - maturing within 3 months since the 3.324.797 acquisition date

3.899.338

4.845.929


52.653


8


PT BANK QNB INDONESIA TBK CATATAN ATAS LAPORAN KEUANGAN Tanggal 31 Desember 2015 dan untuk Tahun yang Berakhir pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 1.

PT BANK QNB INDONESIA TBK NOTES TO THE FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated)

UMUM a.

1.

Pendirian dan Informasi Umum

GENERAL a.

Establishment and General Information

PT Bank QNB Indonesia Tbk (“Bank”) didirikan pada tanggal 1 April 1913 dengan nama N.V Chunghwa Shangyeh Maatschappij (The Chinese Trading Company Limited) berdasarkan Akta No. 53 tanggal 28 April 1913 yang dibuat di hadapan Notaris Leonard Hendrik-Willem Van Sandick dan telah disetujui berdasarkan Besluit Gouverneur Generaal Hindia Belanda No. 58 tanggal 16 Juli 1913 dan diumumkan dalam Extra Bijvougsel der Javasche Courant No. 78 Tanggal 30 September 1913.

PT Bank QNB Indonesia Tbk (“the Bank”) was established on April 1, 1913 under the name of N.V Chunghwa Shangyeh Maatschappij (The Chinese Trading Company Limited) based on the Notarial Deed No. 53 dated April 28,.1913 of Notary Leonard Hendrik-Willem Van Sandick and was approved based on Besluit Gouverneur Generaal Hindia Belanda No. 58 dated July 16, 1913 and was published in the Extra Bijvougsel der Javasche Courant No. 78 dated September 30, 1913.

Berdasarkan Surat Keputusan Menteri Keuangan No. 191547/U.M.II tanggal 28 Oktober 1958, Bank memulai kegiatan operasionalnya sebagai bank umum.

Based on Decree of the Minister of Finance No. 191547/U.M.II dated October 28, 1958, the Bank started its operation as a commercial bank.

Nama Bank diubah menjadi PT Bank Kesawan berdasarkan Akta Perubahan Anggaran Dasar No..60 tanggal 10 Maret 1965 yang dibuat di hadapan Ong Kiem Lian, SH, notaris di Jakarta. Akta ini telah disahkan oleh Menteri Kehakiman Republik Indonesia (sekarang Menteri Hukum dan Hak Asasi Manusia) dalam Surat Keputusan No. J.A.5/68/15 tanggal 3 Juli 1965 dan telah diumumkan dalam Berita Negara Republik Indonesia No. 95 tanggal 26 Nopember 1965, Tambahan No. 95.

The Bank’s name was changed into PT Bank Kesawan based on the Deed of Articles of Association Amendment No. 60 dated March 10, .1965 of Ong Kiem Lian, SH, notary public in Jakarta. This deed was approved by the Minister of Justice of the Republic of Indonesia (currently the Minister of Laws and Human Rights) in his Decree No..J.A.5/68/15 dated July 3, 1965 and was published in to the State Gazette of the Republic of Indonesia No. 95 dated November 26,.1965, Addition No. 95.

Perubahan status Bank dari perseroan tertutup menjadi perseroan terbuka adalah berdasarkan Akta Pernyataan Keputusan Rapat Umum Pemegang Saham Luar Biasa No. 22 tanggal 25.Juli 2001 yang dibuat di hadapan Fathiah Helmi, SH, notaris di Jakarta. Akta ini telah memperoleh persetujuan dari Menteri Kehakiman Republik Indonesia tanggal 27.Desember 2001 dengan Surat Keputusan No. C-20973.HT.01.04.TH.2001 serta diumumkan dalam Berita Negara Republik Indonesia No. 75 tanggal 17 September 2002, Tambahan No. 11113.

The change of the Bank’s status from a private company to a public company was effected by the Deed of Extraordinary Shareholders’ General Meeting No. 22 dated July 25,.2001 of Fathiah Helmi, SH, notary public in Jakarta. This deed was approved by the Minister of Justice of the Republic of Indonesia dated December 27, 2001 in his Decree No. C20973.HT.01.04.TH.2001 and was published in to the State Gazette of the Republic of Indonesia No..75 dated September 17,.2002, Addition No. 11113.

Dengan akuisisi saham Bank oleh Qatar National Bank SAQ pada tanggal 26 Januari 2011, nama Bank diubah menjadi PT Bank QNB Kesawan Tbk berdasarkan Akta Pernyataan Keputusan Rapat Umum Pemegang Saham Luar Biasa No. 23 tanggal 16 September 2011 yang dibuat di hadapan Fathiah Helmi, SH, notaris di Jakarta. Akta ini telah memperoleh persetujuan dari Menteri Hukum dan Hak Asasi Manusia Republik Indonesia berdasarkan Surat Keputusan

Subsequently, following the acquisition of the Bank’s shares by Qatar National Bank SAQ on January 26,.2011, the Bank’s name was changed into PT Bank QNB Kesawan Tbk based on the Deed of Extraordinary Shareholders’ General Meeting No. 23 dated September 16, 2011 of Fathiah Helmi, SH, notary public in Jakarta. This deed was approved by the Minister of Laws and Human Rights of the Republic of Indonesia in his Decree

9




UMUM (lanjutan) a.

1.

Pendirian dan Informasi Umum (lanjutan)

GENERAL (continued) a.

Establishment and General Information (continued)

No. AHU-51180.AH.01.02 Tahun 2011 tanggal 21 Oktober 2011 dan telah diumumkan dalam Berita Negara Republik Indonesia No. 93 tanggal 20 November 2012, Tambahan No. 72137.

No. AHU-51180.AH.01.02 Year 2011 dated October 21, 2011 and was announced in Berita Negara Republik Indonesia No. 93 dated November 20, 2012, Addition No. 72137.

Selanjutnya nama bank berubah menjadi PT. Bank QNB Indonesia Tbk. berdasarkan Akta Pernyataan Keputusan Rapat Umum Pemegang Saham Tahunan No. 35 tanggal 23 Juli 2014. Akta ini telah mendapat persetujuan Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dengan keputusannya No. AHU-0613640.20.2014 tanggal 24 Juli 2014.

Subsequently, the bank’s name was changed into PT. Bank QNB Indonesia Tbk. Based on The deed of Minutes of Annual Shareholders’ General Meeting No. 35 dated July 23, 2014. This deed was approved by the Minister of Laws and Human Rights of the Republic of Indonesia with the Deed No. AHU0613640.20.2014 dated July 24, 2014.

Anggaran Dasar Bank telah mengalami beberapa kali perubahan. Perubahan terakhir dengan Akta Pernyataan Keputusan Rapat Umum Pemegang Saham Tahunan No. 37 tanggal 27 Februari 2015 dibuat dihadapan Fathiah Helmi, SH, notaris di Jakarta. Akta ini telah memperoleh persetujuan dari Menteri Hukum & Hak Asasi Manusia No. AHU0004611.AH.01.02.2015 tanggal 24 Maret 2015 dan penerimaan Perubahan Anggaran Dasar Perseroan telah diterima dan dicatat dalam Database Sisminbakum Kementrian Hukum dan Hak Asasi Manusia Republik Indonesia No. AHU-AH.01.03-0018662 tanggal 24 Maret 2015. Susunan Direksi dan Komisaris terakhir dimuat dalam Akta Pernyataan Keputusan Rapat Umum Pemegang Saham No. 17 tanggal 9 Oktober 2015 yang dibuat dihadapan Fathiah Helmi, SH. Notaris di Jakarta yang penerimaan Perubahan Data Perseroan telah diterima dan dicatat dalam Database Sisminbakum Kementrian Hukum dan Hak Asasi Manusia Republik Indonesia No. AHU-AH.01.03.0973678 tanggal 21 Oktober 2015.

The Bank’s Articles of Association has been amended several times. The latest amendment was effected by Notarial Deed of Minutes of Annual Shareholders’ General Meeting No. 37 dated February 27, 2015 of Fathiah Helmi, SH, notary public in Jakarta. This deed was approved by the Minister of Laws and Human Rights of the Republic of Indonesia in his Decree No. AHU0004611.AH.01.02.2015 dated March 24, 2015 and The change of Articles of Association Amendment company was received and recorded into Database Sisminbakum of The Minister of Laws and Human Rights of the Republic of Indonesia No. AHU-AH.01.030018662 dated March 24, 2015. The latest composition of the Board of Directors and Commissioners is stated in deed of Minutes of Shareholders’ General Meeting No. 17 dated October 9, 2015 of Fathiah Helmi, SH, notary public in Jakarta which changes of Articles of Association Amendment company was received and recorded into Database Sisminbakum of The Minister of Laws and Human Rights of the Republic of Indonesia No. AHUAH.01.03.0973678 dated October 21, 2015.

Sesuai dengan pasal 3 Anggaran Dasar Bank, ruang lingkup kegiatan Bank adalah menjalankan kegiatan umum perbankan.

According to article 3 of the Bank’s Articles of Association, the scope of activities of the Bank is to engage in general banking business.

10




UMUM (lanjutan) a.

b.

1.

Pendirian dan Informasi Umum (lanjutan)

GENERAL (continued) a.

Establishment and General Information (continued)

Bank memperoleh persetujuan sebagai Pedagang Valuta Asing berdasarkan Surat Keputusan Direksi Bank Indonesia No. 28/366/UD/DIR tanggal 4 Desember 1995.

The Bank was granted a license to act as a Foreign Exchange Bank based on the Decree of the Director of Bank Indonesia No..28/366/UD/DIR dated.December 4, 1995.

Bank memperoleh persetujuan menjadi Bank Devisa berdasarkan Surat Keputusan Direksi Bank Indonesia No. 28/150/KEP/DIR tanggal 22 Februari 1996.

The Bank was granted a license to conduct foreign exchange activities based on the Decree of the Director of Bank Indonesia No..28/150/KEP/DIR dated.February 22, 1996.

Bank memperoleh persetujuan menjadi Bank Persepsi Kas Negara berdasarkan Surat Keputusan Menteri Keuangan Republik Indonesia No..S-452/MK.03/1996 tanggal 16 Agustus 1996.

The Bank was granted a license as a National Cash Perception Bank based on the Decree of the Minister of Finance of the Republic of Indonesia No. S-452/MK.03/1996 dated.August 16, 1996.

Kantor Pusat Bank berlokasi di Jalan Jendral Sudirman Kavling 52-53, Jakarta. Pada 31 Desember 2015, Bank mempunyai 1 kantor pusat non-operasional, 15 kantor cabang, 34 kantor cabang pembantu dan 62 ATM di seluruh Indonesia. Pada 31 Desember 2014, Bank mempunyai 1 kantor pusat nonoperasional, 14 kantor cabang, 32 cabang pembantu dan 49 ATM di seluruh Indonesia (tidak diaudit).

The Bank’s head office is located at Jalan Jendral Sudirman Kavling 52-53, Jakarta. As of December 31, 2015, the Bank has 1 nonoperational head office, 15 branch offices, 34 sub-branch offices and 62 ATMs throughout Indonesia. As of December 31, 2014, the Bank has 1 non-operational head office, 14 branch offices, 32 sub-branch offices and 49 ATMs throughout Indonesia (unaudited).

Pada tanggal 31 Desember 2015 dan 2014, Bank memiliki masing-masing 944 dan 902 karyawan (tidak diaudit).

As of December 31, 2015 and 2014, the Bank had 944 and 902 employees, respectively (unaudited).

Bank, melalui pemegang saham mayoritasnya, Qatar National Bank SAQ, merupakan bagian dari Qatar National Bank Group. Qatar National Bank Group memiliki anak perusahaan dan afiliasi di seluruh dunia.

The Bank, through its majority shareholder, Qatar National Bank SAQ, is ultimately part of the Qatar National Bank Group. The Qatar National Bank Group has subsidiaries and affiliates throughout the world.

Penawaran Umum Saham Bank

b.

Public Offering of the Bank's Shares On October 31, 2002, the Bank obtained the Effective Notification from the Chairman of the Capital Market Supervisory Agency (Bapepam) through its Decree No. S-2369/PM/2002 in relation to the public offering of its 78,800,000 shares with par value and at the offering price of Rp250 (in full amount) per share. The Bank’s shares were traded in Jakarta Stock Exchange starting. November 21, 2002. (On November 30, 2007, Jakarta Stock Exchange and Surabaya Stock Exchange have merged becoming Indonesia Stock Exchange).

Pada tanggal 31 Oktober 2002, Bank memperoleh Pernyataan Efektif dari Ketua Badan Pengawas Pasar Modal (Bapepam) berdasarkan Surat Keputusan No. S-2369/PM/2002 dalam rangka penawaran umum atas 78.800.000 lembar saham Bank dengan nilai nominal dan harga penawaran sebesar Rp250 (dalam Rupiah penuh) per saham. Saham Bank tersebut diperdagangkan di Bursa Efek Jakarta mulai tanggal 21 Nopember 2002. (Pada tanggal 30 Nopember 2007, Bursa Efek Jakarta dan Bursa Efek Surabaya telah bergabung menjadi Bursa Efek Indonesia).

11




UMUM (lanjutan) b.

1.

Penawaran Umum Saham Bank (lanjutan)

GENERAL (continued) b.

Public Offering of the Bank's Shares (continued)

Dalam penawaran umum saham ini dikeluarkan pula Waran Seri I (waran) yang diberikan secara cuma-cuma kepada pemegang saham baru. Setiap pemegang 2 saham baru Bank memperoleh 3 waran, sehingga jumlah waran yang diterbitkan adalah sebanyak 118.200.000 lembar. Setiap 1 waran memberikan hak kepada pemegang waran untuk membeli 1 saham baru Bank pada harga pelaksanaannya. Jangka waktu pelaksanaan waran yang diterbitkan adalah sejak tanggal 21.Mei 2003 sampai dengan tanggal 18.Nopember 2005. Sampai dengan tanggal pelaksanaan terakhir yaitu tanggal 18 Nopember 2005, waran yang telah dilaksanakan adalah sebanyak 101.219.000 waran pada harga pelaksanaan Rp250 (dalam Rupiah penuh) atau seluruhnya sebesar Rp25.305.

These new shares were furnished by Warrants Series I (warrant), which were granted to the new shareholders as a compliment. Each holder of 2 Bank’s new shares received 3 warrants; accordingly, the total number of warrants issued was 118,200,000 warrants. Each warrant entitled the holder to buy 1 Bank’s new share at the exercise price. The execution period was from.May 21, 2003 to November 18, 2005. Up to the last exercise date on November 18, 2005, the number of exercised warrants was 101,219,000 warrants at exercise price of Rp250 (in full amount) or totaling Rp25,305.

Pada tanggal 15 Juni 2009, Bank memperoleh Pernyataan Efektif dari Ketua Badan Pengawas Pasar Modal dan Lembaga Keuangan (Bapepam-LK) berdasarkan Surat Keputusan No..S-5209/BL/2009 dalam rangka Penawaran Umum Terbatas I (PUT I) dengan menerbitkan Hak Memesan Efek Terlebih Dahulu (HMETD) sejumlah 125.304.750 saham dengan nilai nominal Rp250 (dalam Rupiah penuh) per saham yang ditawarkan dengan harga Rp320 (dalam Rupiah penuh) per saham.

On June 15, 2009, the Bank obtained the Effective Notification from the Chairman of the Capital Market Supervisory Agency and Financial Institutions (Bapepam-LK) through its Decree No. S-5209/BL/2009 in relation to the First Limited Public Offering (PUT I) by conducting the Rights Issue (HMETD) amounting to 125,304,750 shares with par value of Rp250 (in full amount) per share at an offering price of Rp320 (in full amount) per share.

Setelah PUT I, modal ditempatkan dan disetor Bank meningkat menjadi 626.523.750 lembar saham atau senilai Rp156.631.

After the PUT I, the Bank’s issued and fully paid capital increased to 626,523,750 shares or Rp156,631.

Pada tanggal 27 Desember 2010, Bank memperoleh Pernyataan Efektif dari Ketua Bapepam-LK berdasarkan Surat Keputusan No. S-11585/BL/2010 dalam rangka Penawaran Umum Terbatas II (PUT II) dengan menerbitkan Hak Memesan Efek Terlebih Dahulu (HMETD) sejumlah 2.935.263.768 saham dengan nilai nominal dan harga penawaran sebesar Rp250 (dalam Rupiah penuh) per saham.

On December 27, 2010, the Bank obtained the Effective Notification from the Chairman of Bapepam-LK through its Decree No. S-11585/BL/2010 in relation to the Second Limited Public Offering (PUT II) by conducting the Rights Issue (HMETD) amounting to 2,935,263,768 shares with par value and at the offering price of Rp250 (in full amount) per share.

Setelah PUT II, modal ditempatkan dan disetor Bank meningkat menjadi 3.561.787.518 lembar saham atau senilai Rp890.447.

After the PUT II, the Bank’s issued and fully paid capital increased to 3,561,787,518 shares or Rp890,447.

12




UMUM (lanjutan) b.

c.

1.

Penawaran Umum Saham Bank (lanjutan)

GENERAL (continued) b.

Public Offering of the Bank's Shares (continued)

Pada tanggal 27 Mei 2013, Bank memperoleh Pernyataan Efektif dari Otoritas Jasa Keuangan (“OJK”) berdasarkan Surat Keputusan No. S-141/D.04/2013 dalam rangka Penawaran Umum Terbatas III (PUT III) dengan menerbitkan Hak Memesan Efek Terlebih Dahulu (HMETD) sejumlah 2.596.543.000 saham dengan nilai nominal dan harga penawaran sebesar Rp250 (dalam Rupiah penuh) per saham.

On May 27, 2013, the Bank obtained the Effective Notification from Financial Service Authority (“OJK”) through its Decree No. S-141/D.04/2013 in relation to the Third Limited Public Offering (PUT III) by conducting the Rights Issue (HMETD) amounting to 2,596,543,000 shares with par value and at the offering price of Rp250 (in full amount) per share.

Setelah PUT III, modal ditempatkan dan disetor Bank meningkat menjadi 6.158.330.518 lembar saham atau senilai Rp1.539.583.

After the PUT III, the Bank’s issued and fully paid capital increased to 6,158,330,518 shares or Rp1,539,583.

Pada tanggal 2 Juni 2014, Bank memperoleh Pernyataan Efektif dari Otoritas Jasa Keuangan (“OJK”) berdasarkan Surat Keputusan No. S-253/D.04/2014 dalam rangka Penawaran Umum Terbatas IV (PUT IV) dengan menerbitkan Hak Memesan Efek Terlebih Dahulu (HMETD) sejumlah 2.598.815.479 saham dengan nilai nominal dan harga penawaran sebesar Rp250 (dalam Rupiah penuh) per saham.

On June 2, 2014, the Bank obtained the Effective Notification from Financial Service Authority (“OJK”) through its Decree No. S-253/D.04/2014 in relation to the fourth Limited Public Offering (PUT IV) by conducting the Rights Issue (HMETD) amounting to 2,598,815,479 shares with par value and at the offering price of Rp250 (in full amount) per share.

Setelah PUT IV, modal ditempatkan dan disetor Bank meningkat menjadi 8.757.145.997 lembar saham atau senilai Rp2.189.287.

After the PUT IV, the Bank’s issued and fully paid capital increased to 8,757,145,997 shares or Rp2,189,287.

Dewan Komisaris dan Direksi

c. Boards of Commissioners and Directors 31 Desember/December 31, 2015

Dewan Komisaris Komisaris Utama Komisaris Independen Komisaris Independen Komisaris Independen Komisaris Independen Komisaris Komisaris Direksi Direktur Utama Direktur Direktur Direktur Direktur Direktur Direktur

Board of Commissioners Ali Ahmed Z A Al Kuwari Suroto Moehadji ) Nasrul Husin* Muhammad Anas Malla ) Djoko Sarwono** Grant Eric Lowen M. Chidambaram Andrew McGregor Duff Azhar bin Abdul Wahab Windiartono Tabingin Rusli ) Hery Syafril*** Lloyd Rolston ) Novi Mayasari****

*) **)

*) **)

Habis masa jabatan sesuai dengan RUPS pada tanggal 27 Februari 2015 Efektif sejak keluarnya persetujuan OJK atas Uji Kemampuan dan Kepatuhan No. SR-216/D.08/2015 tanggal 11 November 2015 ***) Habis masa jabatan pada tanggal 9 Oktober 2015 (Efektif mengundurkan diri pada tanggal 9 Oktober 2015) ****) Efektif sejak keluarnya persetujuan OJK atas Uji Kemampuan dan Kepatuhan No. SR-182/D.03/2015 tanggal 2 Oktober 2015

President Commissioner Independent Commissioner Independent Commissioner Independent Commissioner Independent Commissioner Commissioner Commissioner Board of Directors President Director Director Director Director Director Director Director

Expiration of employment period based on Shareholder’s General Meeting on February 27, 2015 Effective after the issuance of OJK approval of Fit and Proper Test No. SR-216/D.08/2015 on November 11, 2015 ***) Expiration of employment period based on Shareholder’s General Meeting on October 9, 2015 ****) Effective after the issuance of OJK approval of Fit and Proper Test No. SR-182/D.03/2015 on October 2, 2015

13




UMUM (lanjutan) c.

1.

Dewan Komisaris dan Direksi (lanjutan)

GENERAL (continued) c.

Boards of Commissioners and Directors (continued)

31 Desember/December 31, 2014 Dewan Komisaris Komisaris Utama Komisaris Independen Komisaris Independen Komisaris Independen Komisaris Komisaris

Board of Commissioners Ali Ahmed Z A Al Kuwari Suroto Moehadji Nasrul Husin Muhammad Anas Malla Grant Eric Lowen M. Chidambaram

President Commissioner Independent Commissioner Independent Commissioner Independent Commissioner Commissioner Commissioner

Direksi Direktur Utama Direktur Direktur Direktur Direktur Direktur d.

Board of Directors Andrew McGregor Duff Azhar bin Abdul Wahab Windiartono Tabingin Rusli Hery Syafril Lloyd Rolston

Komite-Komite Bank

d.

President Director Director Director Director Director Director The Bank’s Committees The composition of the Bank’s Committees as of December 31, 2015 and 2014 are as follows:

Susunan Komite-komite Bank pada tanggal 31 Desember 2015 dan 2014 adalah sebagai berikut:

31 Desember/December 31, 2015 Komite Audit Ketua Anggota Anggota

Muhammad Anas Malla Irzal Zaini Wayan Suryadarma

Komite Pemantau Risiko Ketua Anggota Anggota Anggota

Risk Oversight Committee Suroto Moehadji Irzal Zaini Ani Hadi Setyowati M. Chidambaram

Komite Remunerasi dan Nominasi Ketua Anggota Anggota

Audit Committee Chairman Member Member

Chairman Member Member Member Nomination and Remuneration Committee

Muhammad Anas Malla Grant Eric Lowen Steven Stevanus

Chairman Member Member

31 Desember/December 31, 2014 Komite Audit Ketua Anggota Anggota

Nasrul Husin Irzal Zaini Wayan Suryadarma

Komite Pemantau Risiko Ketua Anggota Anggota Anggota

Risk Oversight Committee Suroto Moehadji Irzal Zaini Ani Hadi Setyowati M. Chidambaram

Komite Remunerasi dan Nominasi Ketua Anggota Anggota

Audit Committee Chairman Member Member

Chairman Member Member Member Nomination and Remuneration Committee

Muhammad Anas Malla Grant Eric Lowen Novi Mayasari

14

Chairman Member Member


PT BANK QNB INDONESIA TBK CATATAN ATAS LAPORAN KEUANGAN Tanggal 31 Desember 2015 dan untuk Tahun yang Berakhir pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)

1.


UMUM (lanjutan) e.

1.

Sekretaris Perusahaan

GENERAL (continued) e. Corporate Secretary The Corporate Secretary as of December 31, 2015 was Lina and December 31, 2014 was Maria Suci Rahayu and Damar Kwartama.

Sekretaris Perusahaan pada tanggal 31 Desember 2015 adalah Lina dan 31 Desember 2014 adalah Maria Suci Rahayu dan Damar Kwartama. f.

Kepala Satuan Kerja Audit Internal (SKAI)

f.

The Bank’s Head of Internal Audit as of December 31, 2015 and 2014 was Tota Melanie L Tobing.

Kepala SKAI Bank pada tanggal 31 Desember 2015 dan 2014 adalah Tota Melanie L Tobing. g.

Laporan Keuangan Bank

g.

IKHTISAR PENTING

KEBIJAKAN

AKUNTANSI

The Bank’s Financial Statements The Management of the Bank is responsible for the preparation of these financial statements, which were completed and authorized for issue on January 11, 2016.

Manajemen Bank bertanggung jawab atas penyusunan laporan keuangan ini, yang diselesaikan dan disetujui untuk diterbitkan pada tanggal 11 Januari 2016. 2.

Head of Internal Audit

YANG

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Kebijakan-kebijakan akuntansi yang penting, yang diterapkan dalam penyusunan laporan keuangan Bank pada tanggal dan tahun berakhir 31 Desember 2015, adalah sebagai berikut:

The significant accounting policies, applied in the preparation of the Bank’s financial statements as of and for the year ended.December 31, 2015, were as follows:

a.

a. Statement of Compliance

Pernyataan Kepatuhan Laporan keuangan Bank disusun dan disajikan sesuai dengan Standar Akuntansi Keuangan (“SAK”) di Indonesia yang mencakup Pernyataan dan Interpretasi yang dikeluarkan oleh Dewan Standar Akuntansi Keuangan Ikatan Akuntan Indonesia (DSAK-IAI).

The Bank’s financial statements were prepared and presented in accordance with Indonesian Financial Accounting Standards (FAS) including statements and interpretation issued by the Financial Accounting Standards Board of the Indonesian Institute of Accountants (DSAK-IAI).

Laporan keuangan juga disusun dan disajikan sesuai dengan peraturan Badan Pengawas Pasar Modal dan Lembaga Keuangan (“BAPEPAM-LK”, yang fungsinya dialihkan kepada Otoritas Jasa Keuangan (“OJK”) sejak tanggal 1 Januari 2013) No. VIII.G.7 yang merupakan Lampiran Keputusan Ketua BAPEPAM-LK No. KEP-347/BL/2012 tanggal 25 Juni 2012 tentang “Penyajian dan Pengungkapan Laporan Keuangan Emiten atau Perusahaan Publik”.

The financial statements have also been prepared and presented in accordance with Capital Market and Financial Institutions Supervisory Agency (“BAPEPAM-LK”, which function has been transferred to Financial Service Authority (“OJK”) starting January 1, 2013) rule No. VIII.G.7, Appendix of the Decree of the Chairman of the BAPEPAM-LK No. KEP-347/BL/2012 dated June 25, 2012 regarding “Financial Statements Presentation and Disclosure of the Issuer or Public Company”.

15



IKHTISAR KEBIJAKAN PENTING (lanjutan) b.

AKUNTANSI


YANG

2.

Dasar Penyusunan Laporan Keuangan

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) b. Basis for Statements

Preparation

of

Financial

Laporan keuangan disusun dan disajikan sesuai dengan Pernyataan Standar Akuntansi Keuangan (“PSAK”) No. 1 (Revisi 2013), “Penyajian Laporan Keuangan” yang mengatur penyajian laporan keuangan, yaitu antara lain, tujuan pelaporan, komponen laporan keuangan, penyajian secara wajar, materialitas dan agregasi, saling hapus, perbedaan antara aset lancar dan tidak lancar dan liabilitas jangka pendek dan panjang, informasi komparatif, konsistensi penyajian dan memperkenalkan pengungkapan baru, antara lain, sumber estimasi ketidakpastian dan pertimbangan, pengelolaan permodalan, pendapatan komprehensif lainnya, penyimpangan dari standar akuntansi keuangan dan pernyataan kepatuhan. Pos-pos dalam Penghasilan komprehensif lainnya disajikan terpisah antara akun - akun yang akan direklasifikasikan ke laba rugi dan akun akun yang tidak akan direklasifikasikan ke laba rugi.

The financial statements were prepared and presented in accordance with the Statement of Financial Accounting Standards (“SFAS”) No. 1 (Revised 2013), “Presentation of Financial Statements”, which regulates presentation of financial statements as to, among others, the objective, components of financial statements, fair presentation, materiality and aggregation, offsetting, distinction between current and non-current assets and short-term and long-term liabilities, comparative information and consistency and introduces new disclosures such as, among others, key estimates and judgments, capital management, other comprehensive income, departures from accounting standards and statement of compliance. The items under Other Comprehensive Income (OCI) should be presented separately between items to be reclassified to profit or loss and items not to be reclassified to profit or loss.

Laporan keuangan ini disajikan dalam Rupiah, yang merupakan mata uang fungsional Bank. Kecuali dinyatakan secara khusus, informasi keuangan yang disajikan telah dibulatkan menjadi jutaan Rupiah.

Figures in these financial statements are presented in Rupiah, which is the Bank’s functional currency. Except as otherwise indicated, financial information presented in Rupiah has been rounded to the nearest million.

Laporan keuangan disusun dan disajikan berdasarkan nilai historis, kecuali beberapa akun tertentu disusun berdasarkan pengukuran lain sebagaimana diuraikan dalam kebijakan akuntansi masing-masing akun tersebut. Dasar penyusunan laporan keuangan adalah dasar akrual, kecuali laporan arus kas.

The measurement basis used is the historical cost, except for certain accounts which are measured on the bases describe in the related accounting policies. The financial statements, except for the statements of cash flows, are prepared and presented under the accrual basis of accounting.

Laporan arus kas menyajikan perubahan dalam kas dan setara kas dari aktivitas operasi, investasi dan pendanaan. Laporan arus kas disusun dengan metode langsung. Untuk tujuan laporan arus kas, kas dan setara kas meliputi kas, giro pada Bank Indonesia, giro pada bank-bank lain, penempatan pada Bank Indonesia dan bank-bank lain dan Sertifikat Bank Indonesia yang jatuh tempo dalam waktu tiga bulan sejak tanggal perolehan, sepanjang tidak digunakan sebagai jaminan atas pinjaman yang diterima serta tidak dibatasi penggunaannya.

The statements of cash flows present the changes in cash and cash equivalents from operating, investing, and financing activities. The statements of cash flows are prepared using the direct method. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash, current accounts with Bank Indonesia, current accounts with other banks, placements with Bank Indonesia and other banks and Certificates of Bank Indonesia that mature within three months from the date of acquisition, as long as they are not being pledged as collateral for borrowings nor restricted.

16



IKHTISAR KEBIJAKAN PENTING (lanjutan) c.

d.

AKUNTANSI


YANG

2.

Penggunaan pertimbangan, estimasi dan asumsi

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) c. Use of judgments, assumptions

estimates

and

Penyusunan laporan keuangan sesuai dengan Standar Akuntansi Keuangan di Indonesia mengharuskan manajemen untuk membuat pertimbangan, estimasi dan asumsi yang mempengaruhi penerapan kebijakan akuntansi dan jumlah aset, liabilitas, pendapatan dan beban yang dilaporkan.

The preparation of financial statements in conformity with Indonesian Financial Accounting Standards requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.

Walaupun estimasi ini dibuat berdasarkan pengetahuan terbaik manajemen atas kejadian dan kegiatan saat ini, hasil aktual dapat berbeda dari estimasi tersebut.

Although these estimates are based on management’s best knowledge of current events and activities, actual results may differ from those estimates.

Estimasi dan asumsi yang digunakan ditelaah secara berkesinambungan. Revisi atas estimasi akuntansi diakui pada periode dimana estimasi tersebut direvisi dan periode-periode yang akan datang yang dipengaruhi oleh revisi estimasi tersebut.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the periods in which the estimate is revised and in any future periods affected.

Informasi mengenai hal-hal penting yang terkait dengan ketidakpastian estimasi dan pertimbangan-pertimbangan penting dalam penerapan kebijakan akuntansi yang memiliki dampak yang signifikan terhadap jumlah yang diakui dalam laporan keuangan dijelaskan di Catatan 4.

Information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have significant effect on the amount recognized in the financial statements are described in Note 4.

Penjabaran Transaksi dan Saldo dalam Valuta Asing

d. Foreign Currency Balances Translation

Transactions

and

Transaksi-transaksi dalam valuta asing dijabarkan ke dalam Rupiah dengan menggunakan kurs pada tanggal transaksi.

Transactions in foreign currencies are translated into Rupiah at the exchange rates prevailing at the transaction date.

Saldo akhir tahun aset moneter dan liabilitas moneter dalam valuta asing dijabarkan ke dalam Rupiah dengan kurs laporan (penutupan) yang ditetapkan oleh Bank Indonesia, yaitu kurs tengah yang merupakan rata-rata kurs beli dan kurs jual berdasarkan Reuters pada pukul 16.00 WIB setiap hari.

Year-end balances of monetary assets and liabilities denominated in foreign currencies are translated into Rupiah using reporting (closing) rate determined by Bank of Indonesia, which is middle rate from the average of bid and ask rate based on Reuters at 16.00 WIB (Western Indonesia local time) everyday.

Laba atau rugi kurs valuta asing atas aset dan liabilitas moneter merupakan selisih antara biaya perolehan diamortisasi dalam Rupiah pada awal tahun, disesuaikan dengan suku bunga efektif dan pembayaran selama tahun berjalan dan biaya perolehan diamortisasi dalam valuta asing yang dijabarkan ke dalam Rupiah dengan menggunakan kurs pada akhir tahun.

The foreign currency gain or loss on monetary items is the difference between amortized cost in Rupiah at the beginning of the year, adjusted for effective interest and payments during the year and the amortized cost in foreign currency translated into Rupiah at the exchange rate at the end of the year.

Aset dan liabilitas non moneter dalam valuta asing yang diukur berdasarkan biaya historis dijabarkan dengan menggunakan kurs pada tanggal transaksi.

Non-monetary assets and liabilities denominated in foreign currency that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

17



IKHTISAR KEBIJAKAN PENTING (lanjutan) d.

AKUNTANSI

YANG

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Penjabaran Transaksi dan Saldo dalam Valuta Asing (lanjutan)

d. Foreign Currency Transactions Balances Translation (continued)

and

Keuntungan atau kerugian selisih kurs yang timbul dari transaksi dalam valuta asing dan dari penjabaran aset dan liabilitas moneter dalam valuta asing diakui pada laba rugi tahun berjalan.

The exchange gains or losses arising from transactions in foreign currencies and from the translation of foreign currencies monetary assets and liabilities are recognized in profit or loss for the year.

Kurs valuta asing utama yang digunakan pada tanggal 31 Desember 2015 dan 2014 adalah sebagai berikut (dalam Rupiah penuh):

The major rates of foreign exchange used as of December 31, 2015 and 2014 are as follows (in full amount):

Valuta asing Euro Eropa Dolar Amerika Serikat Dolar Australia Dolar Singapura Dolar Hong Kong Yen Jepang Poundsterling Inggris Riyal Qatar Swiss Prancis Dolar Selandia Baru Baht

e.


2015

2014

15.056,67 13.785,00 10.083,73 9.758,95 1.778,70 114.52 20.439,02 3.787,09 13.919,33 9.444,80 381,97

Foreign currencies

15.053,35 12.385,00 10.148,27 9.376,19 1.596,98 103,56 19.288,40 3.402,47 12.515,80 9.709,23 376,56

Transaksi dengan Pihak-pihak Berelasi

European Euro United States Dollar Australian Dollar Singapore Dollar Hong Kong Dollar Japanese Yen Great Britain Poundsterling Qatari Riyal Swiss Franc New Zealand Dollar Thailand Baht

e. Transactions with Related Parties

Dalam laporan keuangan ini, istilah pihakpihak berelasi digunakan sesuai dengan PSAK No. 7 (Revisi 2010), “Pengungkapan Pihakpihak Berelasi”.

In these financial statements, the term related party is used as defined in SFAS No. 7 (2010 Revision), “Related Party Disclosures”.

Pihak berelasi adalah orang atau entitas yang terkait dengan entitas yang menyiapkan laporan keuangannya (dalam PSAK No. 7 (Revisi 2010) dirujuk sebagai “entitas pelapor”).

A related party is a person or entity that is related to the entity that is preparing its financial statements (referred to SFAS No. 7 (2010 Revision) as the “reporting entity”).

a) Orang atau anggota keluarga dekatnya mempunyai relasi dengan entitas pelapor jika orang tersebut:

a) A person or a close member of that person’s family is related to a reporting entity if that person:

i.

memiliki pengendalian atau pengendalian bersama atas entitas pelapor;

i.

has control or joint control over the reporting entity;

ii.

memiliki pengaruh entitas pelapor; atau

atas

ii.

has significant influence reporting entity; or

iii.

merupakan personil manajemen kunci entitas pelapor atau entitas induk dari entitas pelapor.

iii.

is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.

signifikan

the

b) An entity is related to a reporting entity if any of the following conditions applies :

b) Suatu entitas berelasi dengan entitas pelapor jika memenuhi salah satu hal berikut: i.

over

i.

Entitas dan entitas pelapor adalah anggota dari kelompok usaha yang sama (artinya entitas induk, entitas anak, dan entitas anak berikutnya saling berelasi dengan entitas lainnya).

18

The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).



IKHTISAR KEBIJAKAN PENTING (lanjutan) e. Transaksi (lanjutan) b)

f.

dengan

AKUNTANSI Pihak-pihak


YANG

2. SUMMARY OF SIGNIFICANT POLICIES (continued)

Berelasi

e.

Transactions (continued) b)

Suatu entitas berelasi dengan entitas pelapor jika memenuhi salah satu hal berikut: (lanjutan)

with

ACCOUNTING

Related

Parties

An entity is related to a reporting entity if any of the following conditions applies : (continued)

ii.

Satu entitas adalah entitas asosiasi atau ventura bersama dari entitas lain (atau entitas asosiasi atau ventura bersama yang merupakan anggota suatu kelompok usaha, yang mana entitas lain tersebut adalah anggotanya).

ii.

One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).

iii.

Kedua entitas tersebut adalah ventura bersama dari pihak ketiga yang sama.

iii.

Both entities are joint ventures of the same third party.

iv.

Satu entitas adalah ventura bersama dari entitas ketiga dan entitas yang lain adalah entitas asosiasi dari entitas ketiga.

iv. One entity is a joint venture of a third entity and the other entity is an associate of the third entity.

v.

Entitas tersebut adalah suatu program imbalan pasca-kerja untuk imbalan kerja dari salah satu entitas pelapor atau entitas yang terkait dengan entitas pelapor. Jika entitas pelapor adalah program tersebut, maka entitas entitas yang menyelenggarakan sponsor juga berelasi dengan entitas pelapor.

v.

vi.

Entitas yang dikendalikan atau dikendalikan bersama oleh orang yang diidentifikasi dalam huruf (a).

vi. The entity is controlled, or jointly controlled by a person identified in (a).

vii. Orang yang diidentifikasi dalam huruf (a) (i) memiliki pengaruh signifikan atas entitas atau merupakan personil manajemen kunci entitas (atau entitas induk dari entitas).

vii. A person identified in (a) (i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).

Transaksi dan saldo dengan pihak-pihak berelasi, baik yang dilaksanakan dengan ataupun tidak dilaksanakan dengan persyaratan dan kondisi normal yang sama untuk pihak-pihak yang tidak berelasi, diungkapkan dalam catatan atas laporan keuangan.

Transactions and balances of accounts with related parties, whether or not transacted at normal terms and conditions similar to those with non-related parties, are disclosed in the notes to the financial statements.

Aset Keuangan dan Liabilitas Keuangan

f.

The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity.

Financial Assets and Financial Liabilities The Bank’s financial assets mainly consist of cash, current accounts with Bank Indonesia, current accounts with other banks, placements with Bank Indonesia and other banks, derivatives receivable, acceptances receivables, securities purchased under agreement to resell, loans, securities and other assets.

Aset keuangan Bank terutama terdiri dari kas, giro pada Bank Indonesia, giro pada bankbank lain, penempatan pada Bank Indonesia dan bank-bank lain, tagihan derivatif, tagihan akseptasi, efek-efek yang dibeli dengan janji dijual kembali, kredit yang diberikan, efek-efek dan aset lain-lain.

19



IKHTISAR KEBIJAKAN PENTING (lanjutan) f.

AKUNTANSI


YANG

2.

Aset Keuangan dan Liabilitas Keuangan (lanjutan)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) f.

Financial Assets and Financial Liabilities (continued)

Liabilitas keuangan Bank terutama terdiri dari simpanan dari nasabah, simpanan dari bankbank lain, liabilitas akseptasi, liabilitas derivatif, pinjaman subordinasi, beban masih harus dibayar, dan liabilitas lain-lain.

The Bank’s financial liabilities mainly consist of deposits from customers, deposits from other banks, acceptances payables, derivatives payable, subordinated loan, accruals and other liabilities.

(i)

(i) Classification

Klasifikasi Bank mengelompokkan aset keuangannya dalam kategori berikut pada saat pengakuan awal:

The Bank classifies its financial assets in the following categories on initial recognition:

i. Diukur pada nilai wajar melalui laba rugi, yang memiliki 2 sub-klasifikasi, yaitu aset keuangan yang ditetapkan demikian pada saat pengakuan awal dan aset keuangan yang diklasifikasikan dalam kelompok diperdagangkan

i.

ii. Tersedia untuk dijual;

ii. Available-for-sale;

iii. Dimiliki hingga jatuh tempo;

iii. Held-to-maturity;

iv. Pinjaman yang diberikan dan piutang.

iv. Loans and receivables

Liabilitas keuangan dikelompokkan ke dalam kategori berikut pada saat pengakuan awal:

Financial liabilities are classified into the following categories on initial recognition:

i. Diukur pada nilai wajar melalui laba rugi, yang memiliki 2 sub-klasifikasi, yaitu liabilitas keuangan yang ditetapkan demikian pada saat pengakuan awal dan liabilitas keuangan yang diklasifikasikan dalam kelompok diperdagangkan;

i.

ii. Liabilitas keuangan yang diukur pada biaya perolehan diamortisasi.

ii. Financial liabilities amortized cost.

Fair value through profit or loss, which has 2 sub-classifications, i.e. financial assets designated as such upon initial recognition and financial assets classified as held for trading;

Fair value through profit or loss, which has 2 sub-classifications, i.e. those designated as such upon initial recognition and those classified as held for trading;

measured

at

Kategori untuk diperdagangkan adalah aset dan liabilitas keuangan yang diperoleh atau dimiliki Bank terutama untuk tujuan dijual atau dibeli kembali dalam waktu dekat, atau dimiliki sebagai bagian dari portofolio yang dikelola bersama untuk memperoleh laba jangka pendek atau position taking.

Held for trading are those assets and liabilities that the Bank 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.

Kategori tersedia untuk dijual terdiri dari aset keuangan non-derivatif yang ditetapkan sebagai tersedia untuk dijual atau yang tidak dikelompokkan ke dalam salah satu kategori aset keuangan lainnya.

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.

20




AKUNTANSI


YANG

2.

Aset Keuangan dan Liabilitas Keuangan (lanjutan) (i)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) f. Financial Assets and Financial Liabilities (continued)

Klasifikasi (lanjutan)

(i) Classification (continued) ii.

ii. Liabilitas keuangan yang diukur pada biaya perolehan diamortisasi. (lanjutan)

Financial liabilities measured amortized cost. (continued)

at

Di dalam kategori dimiliki hingga jatuh tempo adalah aset keuangan nonderivatif dengan pembayaran tetap atau telah ditentukan dan jatuh temponya telah ditetapkan dimana Bank mempunyai intensi positif dan kemampuan untuk memiliki hingga jatuh tempo, dan yang tidak ditetapkan pada nilai wajar melalui laba rugi atau tersedia untuk dijual.

In the held-to-maturity category are non-derivative financial assets with fixed or determinable payments and fixed maturity that the Bank has the positive intent and ability to hold to maturity, and which are not designated at fair value through profit or loss or available-for-sale.

Pinjaman yang diberikan dan piutang adalah aset keuangan non-derivatif dengan pembayaran tetap atau telah ditentukan yang tidak mempunyai kuotasi di pasar aktif dan Bank tidak berniat untuk menjualnya segera atau dalam waktu dekat.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and that the Bank does not intend to sell immediately or in the near term.

(ii) Pengakuan

(ii) Recognition

Bank pada awalnya mengakui kredit yang diberikan serta simpanan diukur pada nilai wajar pada tanggal perolehan.

The Bank initially recognizes loans and deposits at fair value on the date of origination

Pembelian dan penjualan aset keuangan yang lazim (regular) diakui pada tanggal perdagangan dimana Bank memiliki komitmen untuk membeli atau menjual aset tersebut.

Regular way purchases and sales of financial assets are recognized on the trade date at which the Bank commits to purchase or sell the asset.

Semua aset dan liabilitas keuangan lainnya pada awalnya diakui pada tanggal perdagangan dimana Bank menjadi suatu pihak dalam ketentuan kontraktual instrumen tersebut.

All other financial assets and liabilities are initially recognized on the trade date at which the Bank becomes a party to the contractual provisions of the instrument.

Pada saat pengakuan awal, aset keuangan atau liabilitas keuangan diukur pada nilai wajar ditambah/dikurang (kecuali untuk item yang tidak diukur pada nilai wajar melalui laba rugi setelah pengakuan awal) biaya transaksi yang dapat diatribusikan secara langsung atas perolehan aset keuangan atau penerbitan liabilitas keuangan. Pengukuran aset keuangan dan liabilitas keuangan setelah pengakuan awal tergantung pada klasifikasi aset keuangan dan liabilitas keuangan tersebut.

A financial asset or financial liability is initially measured at fair value plus/less (except for an item not subsequently measured at fair value through profit or loss) transaction costs that are directly attributable to the acquisition of financial asset or issue of financial liability. The subsequent measurement of financial assets and financial liabilities depends on its classification.

21




AKUNTANSI


YANG

2.


SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) f. Financial Assets and Financial Liabilities (continued)

(ii) Pengakuan (lanjutan)

(ii) Recognition (continued)

Biaya transaksi hanya meliputi biayabiaya yang dapat diatribusikan secara langsung untuk perolehan suatu aset keuangan atau penerbitan suatu liabilitas keuangan dan merupakan biaya tambahan yang tidak akan terjadi apabila instrumen keuangan tersebut tidak diperoleh atau diterbitkan. Untuk aset keuangan, biaya transaksi ditambahkan pada jumlah yang diakui pada awal pengakuan aset, sedangkan untuk liabilitas keuangan, biaya transaksi dikurangkan dari jumlah utang yang diakui pada awal pengakuan liabilitas.

Transaction costs include only those costs that are directly attributable to the acquisition of a financial asset or issue of a financial liability and are incremental costs that would not have been incurred if the financial instrument had not been acquired or issued. In the case of financial assets, transaction costs are added to the amount recognized initially, while for financial liabilities, transaction costs are deducted from the amount of debt recognized initially.

Biaya transaksi tersebut diamortisasi selama umur instrumen berdasarkan metode suku bunga efektif dan dicatat sebagai bagian dari pendapatan bunga untuk biaya transaksi sehubungan dengan aset keuangan atau sebagai bagian dari beban bunga untuk biaya transaksi sehubungan dengan liabilitas keuangan.

Such transactions costs are amortized over the terms of the instruments based on the effective interest method and are recorded as part of interest income for transaction costs related to financial assets or interest expenses for transaction costs related to financial liabilities.

(iii) Penghentian pengakuan a. Aset keuangan pengakuannya jika:

(iii) Derecognition a. Financial assets are derecognized when:

dihentikan

-

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

-

Bank telah mentransfer hak-nya untuk menerima arus kas yang berasal dari aset keuangan atau menanggung kewajiban untuk membayarkan arus kas yang diterima tersebut secara penuh tanpa penundaan berarti kepada pihak ketiga di bawah kesepakatan pelepasan (pass through arrangement); dan

-

The Bank has transferred its rights to receive cash flows from the financial assets or has assumed an obligation to pay the cash flows in full without material delay to a third party under a ”pass through arrangement”; and

-

(a) Bank telah mentransfer secara substansial seluruh risiko dan manfaat atas aset, atau (b) Bank tidak mentransfer maupun tidak memiliki secara substansial seluruh risiko dan manfaat atas aset, namun telah mentransfer pengendalian atas aset.

-

Either (a) the Bank has transferred substantially all the risks and rewards of the asset, or (b) the Bank has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

22




AKUNTANSI


YANG

2.


SUMMARY OF SIGNIFICANT POLICIES (continued) f.

(iii) Penghentian pengakuan (lanjutan)

ACCOUNTING

Financial Assets and Financial Liabilities (continued) (iii) Derecognition (continued)

a. Aset keuangan dihentikan pengakuannya jika: (lanjutan)

a. Financial assets are derecognized when: (continued)

Ketika Bank telah mentransfer hak untuk menerima arus kas dari aset atau di bawah kesepakatan pelepasan (pass through arrangement), dan tidak mentransfer serta tidak memiliki secara substansial seluruh risiko dan manfaat atas aset atau tidak mentransfer kendali atas aset, aset diakui sebesar keterlibatan Bank yang berkelanjutan atas aset tersebut.

When the Bank has transferred its rights to receive cash flows from an asset or has entered into a “pass through 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 Bank’s continuing involvement in the asset.

Kredit yang diberikan atau aset keuangan lain dihapusbukukan ketika tidak terdapat prospek yang realistis mengenai pengembalian kredit dalam waktu dekat atau hubungan normal antara Bank dan debitur telah berakhir. Kredit yang tidak dapat dilunasi dihapusbukukan dengan mendebit cadangan kerugian penurunan nilai. Penerimaan kemudian atas kredit yang telah dihapusbukukan sebelumnya, jika pada periode berjalan dikreditkan ke dalam akun cadangan kerugian penurunan nilai atas kredit yang diberikan di laporan posisi keuangan, sedangkan jika setelah tanggal laporan posisi keuangan dikreditkan sebagai pendapatan operasional lainnya dalam laporan laba rugi dan penghasilan komprehensif lain.

Loans and receivables or other financial assets are written off when there is no realistic prospect of collection in the near future or the normal relationship between the Bank and the borrowers has ceased to exist. When a loan is deemed uncollectible, it is written off against the related allowance for impairment losses. Subsequent recoveries of loans previously written off, are added to the allowance for impairment losses account in the statements of financial position, if recovered in the current year and are recognized in the statements of profit or loss and other comprehensive income as other operational income, if recovered after the statements of financial position date.

23




AKUNTANSI


YANG

2.



(iii) Penghentian pengakuan (lanjutan)

ACCOUNTING

Financial Assets and Financial Liabilities (continued) (iii) Derecognition (continued)

b. Liabilitas keuangan dihentikan pengakuannya jika liabilitas keuangan tersebut berakhir, yaitu ketika liabilitas yang ditetapkan dalam kontrak dilepaskan atau dibatalkan atau kadaluwarsa.

b. Financial liabilities are derecognized when they are extinguished, i.e. liabilities stated in the contract are discharged, cancelled or has expired.

Jika suatu liabilitas keuangan yang ada digantikan dengan yang lain oleh pemberi pinjaman yang sama pada keadaan yang secara substansial berbeda, atau berdasarkan suatu liabilitas yang ada yang secara substansial telah diubah, seperti pertukaran atau modifikasi yang diperlakukan sebagai penghentian pengakuan liabilitas awal dan pengakuan liabilitas baru dan perbedaan nilai tercatat masingmasing diakui dalam laporan laba rugi dan penghasilan komprehensif lain.

Where an existing financial liability is replaced by another 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 statements of profit or loss and other comprehensive income.

(iv) Saling hapus

(iv) Offsetting

Aset keuangan dan liabilitas keuangan saling hapus dan nilai netonya dilaporkan di laporan posisi keuangan konsolidasian jika, dan hanya jika, saat ini terdapat hak yang berkekuatan hukum untuk saling hapus jumlah keduanya dan terdapat intensi untuk diselesaikan secara neto, atau untuk merealisasikan aset dan menyelesaikan liabilitas secara bersamaan. Pendapatan dan beban disajikan secara neto hanya ketika diperbolehkan oleh standar akuntansi.

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statements of financial position if, and only if, there is currently an enforceable legal rights to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. Income and expenses are presented on a net basis only when permitted by accounting standards.

Pendapatan dan beban disajikan dalam jumlah bersih hanya jika diperkenankan oleh standar akuntansi.

Income and expenses are presented on a net basis only when permitted by accounting standards.

(v) Pengukuran diamortisasi

biaya

perolehan

(v) Amortized cost measurement 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 method of any difference between the initial amount recognized and the maturity amount, minus any reduction for impairment.

Biaya perolehan diamortisasi dari aset keuangan atau liabilitas keuangan adalah jumlah aset atau liabilitas keuangan yang diukur pada saat pengakuan awal, dikurangi pembayaran pokok, ditambah atau dikurangi dengan amortisasi kumulatif dengan menggunakan metode suku bunga efektif yang dihitung dari selisih antara nilai awal dan nilai jatuh temponya, dan dikurangi cadangan kerugian penurunan nilai.

24




AKUNTANSI


YANG

2.



(vi) Pengukuran nilai wajar

ACCOUNTING

Financial Assets and Financial Liabilities (continued) (vi) Fair value measurement

Nilai wajar adalah harga yang akan diterima untuk menjual suatu aset atau harga yang akan dibayar untuk mengalihkan suatu liabilitas dalam 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 the measurement date.

Pengukuran nilai wajar mengasumsikan bahwa transaksi untuk menjual aset atau mengalihkan liabilitas terjadi: - Di pasar utama untuk aset dan liabilitas tersebut; atau - Jika tidak terdapat pasar utama, dipasar yang paling menguntungkan untuk aset atau liabilitas tersebut.

The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: In the principal market for the asset or liability, or In the absence of a principal market, in the most advantageous market for the asset or liability.

Nilai wajar suatu aset atau liabilitas diukur menggunakan asumsi yang akan digunakan pelaku pasar ketika menentukan harga aset dan liabilitas tersebut dengan asumsi bahwa pelaku pasar bertindak dalam kepentingan ekonomik terbaiknya.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

Pengukuran nilai wajar aset nonkeuangan memperhitungkan kemampuan pelaku pasar untuk menghasilkan manfaat ekonomik dengan menggunakan aset dalam penggunaan tertinggi dan terbaiknya atau dengan menjualnya kepada pelaku pasar lain yang akan menggunakan aset tersebut dalam penggunaan tertinggi dan terbaiknya.

A fair value measurement of a nonfinancial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

Bank menggunakan teknik penilaian yang sesuai dalam keadaan dan dimana data yang memadai tersedia untuk mengukur nilai wajar, memaksimalkan penggunaan input yang dapat diobservasi yang relevan dan meminimalkan penggunaan input yang tidak dapat diobservasi.

The Bank uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

25




AKUNTANSI


YANG

2.



(vi) Pengukuran nilai wajar (lanjutan)

g.

ACCOUNTING

Financial Assets and Financial Liabilities (continued) (vi) Fair value measurement (continued)

Semua aset dan liabilitas dimana nilai wajar diukur atau diungkapkan dalam laporan keuangan dapat dikategorikan pada level hirarki nilai wajar, berdasarkan tingkatan input terendah yang signifikan atas pengukuran nilai wajar secara keseluruhan: - Level 1 : harga kuotasian (tanpa penyesuaian) di pasar aktif untuk aset atau liabilitas yang identik yang dapat diakses pada tanggal penyesuaian. - Level 2 : input selain harga kuotasian yang termasuk dalam level 1 yang dapat diobservasi untuk aset dan liabilitas, baik secara langsung atau tidak langsung. - Level 3 : input yang tidak dapat diobservasi untuk aset dan liabilitas.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: - Level 1 : quoted (unadjusted) market prices in active market for identical assets or liabilities. - Level 2 : valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. - Level 3 : valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

Untuk aset dan liabilitas yang diakui pada laporan keuangan secara berulang, Bank menentukan apakah terjadi transfer antara level di dalam hirarki dengan cara mengevaluasi kategori (berdasarkan input level terendah yang signifikan dalam pengukuran nilai wajar) setiap akhir periode pelaporan.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Bank determines whether transfers have occurred between Levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

Untuk tujuan pengungkapan nilai wajar, Bank telah menentukan kelas aset dan liabilitas berdasarkan sifat, karakteristik, risiko aset dan liabilitas, dan level hirarki nilai wajar (Catatan 33).

For the purpose of fair value disclosures, the Bank has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy (Note 33).

Giro pada Bank Indonesia dan Bank-Bank Lain

g.

Current Accounts with Bank Indonesia and Other Banks Subsequent to initial recognition, current accounts with Bank Indonesia and other banks are carried at amortized cost using effective interest method.

Setelah pengakuan awal, giro pada Bank Indonesia dan giro pada bank-bank lain dicatat pada biaya perolehan diamortisasi menggunakan metode suku bunga efektif.

26



IKHTISAR KEBIJAKAN PENTING (lanjutan) h.

AKUNTANSI


YANG

2.

Penempatan pada Bank Indonesia dan Bank-Bank Lain, Kredit yang Diberikan dan Efek-efek yang Dibeli dengan Janji Dijual Kembali

SUMMARY OF SIGNIFICANT POLICIES (continued) h.

ACCOUNTING

Placements with Bank Indonesia and Other Banks, Loans and Securities Purchased under Agreement to Resell

Penempatan pada Bank Indonesia dan bankbank lain, kredit dan efek-efek yang dibeli dengan janji dijual kembali pada awalnya diukur pada nilai wajar ditambah biaya transaksi yang dapat diatribusikan secara langsung dan merupakan biaya tambahan untuk memperoleh aset keuangan tersebut, dan setelah pengakuan awal diukur pada biaya perolehan diamortisasi menggunakan metode suku bunga efektif.

Placements with Bank Indonesia and other banks, loans and securities purchased under agreement to resell are initially measured at fair value plus incremental direct transaction costs, and subsequently measured at their amortized cost using the effective interest method.

Kredit dalam rangka pembiayaan bersama (kredit sindikasi) dinyatakan sebesar biaya perolehan diamortisasi sesuai dengan porsi risiko yang ditanggung oleh Bank.

Syndicated loans are stated at amortized cost in accordance with the risk borned by the Bank.

Bank mencatat restrukturisasi kredit bermasalah berdasarkan jenis restrukturisasi. Dalam hal restrukturisasi kredit bermasalah dilakukan hanya dengan modifikasi persyaratan kredit, Bank mencatat dampak restrukturisasi tersebut secara prospektif dan tidak mengubah nilai tercatat kredit yang diberikan pada tanggal restrukturisasi, kecuali jika jumlahnya melebihi nilai kini penerimaan kas masa depan yang ditentukan dalam persyaratan baru. Jika nilai kini penerimaan kas masa depan sebagaimana yang ditentukan dalam persyaratan baru dari kredit yang direstrukturisasi tersebut lebih rendah daripada nilai tercatat kredit yang diberikan sebelum direstrukturisasi, Bank harus mengurangkan saldo kredit yang diberikan ke suatu jumlah yang sama dengan jumlah nilai kini penerimaan kas masa depan. Jumlah pengurangan tersebut diakui sebagai biaya cadangan kerugian penurunan nilai individual.

The Bank accounts for troubled debt restructuring in accordance with the type of restructuring. In troubled debt restructuring which involves only a modification of terms, the Bank accounts for the effect of the restructuring prospectively and does not change the carrying value of receivables at the time of restructuring unless the amount exceeds the present value of the total future cash receipts specified in the new terms. If the present value of the total future cash receipts specified in the new terms is lower than the recorded receivables balance prior to restructuring, the Bank reduces the receivables balance to the amount equal to the present value of the total future cash receipts. The amount of the reduction is recognized as individual allowance for impairment losses.

Penerimaan kembali dari kredit yang telah dihapusbukukan diakui dalam laba rugi tahun berjalan.

Recoveries from loans written-off are recognized in the current year profit or loss.

Bank membeli efek-efek dan secara bersamaan membuat perjanjian untuk menjual kembali aset tersebut (atau aset yang secara substansial sama) pada harga yang telah ditetapkan pada tanggal tertentu di masa mendatang (“securities purchased under agreement to resell”).

The Bank purchases a security and simultaneously enters into an agreement to resell the asset (or a substantially similar asset) at a fixed price on a future date (“securities purchased under agreement to resell”).

27



IKHTISAR KEBIJAKAN PENTING (lanjutan) h.

AKUNTANSI


YANG

2.

Penempatan pada Bank Indonesia dan Bank-Bank Lain, Kredit yang Diberikan dan Efek-efek yang Dibeli dengan Janji Dijual Kembali (lanjutan)

SUMMARY OF SIGNIFICANT POLICIES (continued) h.

Securities purchased under agreement to resell disajikan sebagai tagihan sebesar harga jual kembali efek-efek yang disepakati dikurangi selisih antara harga beli dan harga jual kembali yang disepakati. Selisih antara harga beli dan harga jual kembali yang disepakati tersebut diamortisasi menggunakan metode suku bunga efektif sebagai pendapatan bunga selama jangka waktu sejak efek-efek tersebut dibeli hingga dijual kembali.

i.

j.

ACCOUNTING

Placements with Bank Indonesia and Other Banks, Loans and Securities Purchased under Agreement to Resell (continued) The securities purchased under agreement to resell is presented as receivables and stated at the agreed resale price less the difference between the purchase price and the agreed resale price. The difference between the purchase price and the agreed resale price is amortized using the effective interest method as interest income over the period commencing from the acquisition date to the resale date.

i.

Tagihan dan Liabilitas Derivatif

Derivatives Receivable and Payable

Tagihan dan liabilitas derivatif pada saat pengakuan awal dan setelah pengakuan awal diakui dan diukur pada nilai wajar di laporan posisi keuangan, dengan biaya transaksi yang terjadi diakui langsung pada laba rugi tahun berjalan.

Derivatives receivable and payable are initially recognized and subsequently measured at fair value in the statement of financial position, with transaction costs taken directly to the current year profit or loss.

Semua perubahan nilai wajar diakui sebagai bagian dari pendapatan bersih instrumen yang diperdagangkan pada laporan laba rugi dan penghasilan komprehensif lain. Keuntungan atau kerugian yang direalisasi pada saat penghentian pengakuan tagihan derivatif dan liabilitas derivatif, diakui dalam laporan laba rugi tahun berjalan.

All changes in fair value are recognized as part of net trading income in the statement of profit or loss and other comprehensive income. Gains or losses which are realized when the derivatives receivable and derivatives payable are derecognized, are recognized in the current year profit or loss.

Tagihan derivatif dan liabilitas derivatif tidak direklasifikasi setelah pengakuan awal.

Derivatives receivable and payable are not reclassified subsequent to their initial recognition.

Efek-efek

j.

Securities

Efek-efek pada awalnya diukur pada nilai wajar ditambah biaya transaksi. Setelah pengakuan awal, efek-efek dicatat sesuai dengan klasifikasi masing-masing sebagai aset keuangan yang tersedia untuk dijual atau dimiliki hingga jatuh tempo.

Securities are initially measured at fair value plus transaction costs. Subsequent to initial recognition, securities are accounted for depending on their classification either as available-for-sale or held-to-maturity.

i. Tersedia untuk dijual

i. Available-for-sale Subsequent to initial recognition, securities classified as available-for-sale are carried at their fair value.

Setelah pengakuan awal, efek-efek yang diklasifikasikan dalam kelompok tersedia untuk dijual dinyatakan pada nilai wajarnya.

28



IKHTISAR KEBIJAKAN PENTING (lanjutan) j.

AKUNTANSI


YANG


Efek-efek (lanjutan) i.

j.

Securities (continued) i. Available-for-sale (continued)

Tersedia untuk dijual (lanjutan)

Interest income is recognized in profit or loss using the effective interest method. Foreign exchange gains or losses on availableforsale securities are recognized in the current year profit or loss. Other fair value changes are recognized directly in other comprehensive income until the investment is sold or impaired, whereupon the cumulative gains and losses previously recognized in other comprehensive income are reclassified to profit or loss as a reclassification adjustment.

Pendapatan bunga diakui dalam laba rugi dengan menggunakan metode suku bunga efektif. Laba atau rugi selisih kurs atas efek-efek yang tersedia untuk dijual diakui pada laba rugi tahun berjalan. Perubahan nilai wajar lainnya diakui secara langsung dalam pendapatan komprehensif lain sampai investasi tersebut dijual atau mengalami penurunan nilai, dimana keuntungan dan kerugian kumulatif yang sebelumnya diakui dalam pendapatan komprehensif lain direklasifikasi ke laba rugi sebagai penyesuaian reklasifikasi. ii.

ACCOUNTING

ii. Held-to-maturity

Dimiliki hingga jatuh tempo Efek-efek yang diklasifikasikan dimiliki hingga jatuh tempo dicatat pada biaya perolehan diamortisasi menggunakan metode suku bunga efektif. Bila terjadi penjualan atau reklasifikasi efek-efek dalam kelompok dimiliki hingga jatuh tempo dalam jumlah yang lebih dari jumlah yang tidak signifikan yang belum mendekati tanggal jatuh tempo, maka hal ini akan menyebabkan reklasifikasi atas semua efek-efek yang dimiliki hingga jatuh tempo ke dalam kelompok tersedia untuk dijual, dan Bank tidak diperkenankan untuk mengklasifikasikan efek-efek sebagai dimiliki hingga jatuh tempo untuk tahun berjalan dan untuk kurun waktu dua tahun mendatang.

Securities classified as held-to-maturity are carried at amortized cost using the effective interest method. Any sale or reclassification of a more than insignificant amount of heldto-maturity securities not close to their maturity would result in the reclassification of all held-to-maturity securities as availablefor-sale, and prevent the Bank from classifying securities as held-to-maturity for the current year and the following two financial years.

Efek-efek dan obligasi Pemerintah syariah, kecuali Reksadana, diklasifikasikan berdasarkan model usaha yang ditentukan oleh Bank pada saat pembelian surat berharga tersebut didasarkan atas klasifikasi yang sesuai dengan PSAK No. 110 tentang “Akuntansi Sukuk” sebagai berikut:

Sharia securities and Government bonds, except for Reksadana, are classified based on business model, determined by the Bank at the date of purchase in accordance with SFAS No. 110 on "Accounting for Sukuk” as follows:

1) Efek-efek sukuk yang diukur pada nilai perolehan disajikan sebesar biaya perolehan (termasuk biaya transaksi) yang disesuaikan dengan premi dan/atau diskonto yang belum diamortisasi. Premi dan diskonto diamortisasi selama jangka waktu periode hingga jatuh tempo dengan menggunakan metode garis lurus.

1) Sukuk securities at cost are stated at cost (including transaction costs), adjusted by unamortized premium and/or discount. Premium and discount are amortized over the term using straight-line method until maturity.

29



IKHTISAR KEBIJAKAN PENTING (lanjutan) j.

k.

AKUNTANSI


YANG


Efek-efek (lanjutan)

j.

ACCOUNTING

Securities (continued)

2) Efek-efek sukuk yang diukur pada nilai wajar melalui penghasilan komprehensif lain, selisih antara biaya perolehan dan nilai nominal diamortisasi secara garis lurus selama jangka waktu sukuk dan diakui dalam laporan laba rugi dan penghasilan komprehensif lain.

2) Sukuk securities at fair value in other comprehensive income, the difference between cost and nominal value is amortized using the straight-line method over the sukuk term and is recognized in statement of profit or loss and other comprehensive income.

3) Efek-efek sukuk diukur pada nilai wajar, yang dinyatakan sebesar nilai wajar. Keuntungan atau kerugian yang belum direalisasi akibat perubahan nilai wajarnya disajikan dalam laporan laba rugi dan penghasilan komprehensif lain tahun berjalan.

3) Sukuk securities at fair value are stated at fair values. Unrealized gains or losses from the changes in fair values are presented in current year statements of profit or loss and other comprehensive income.

Pajak Penghasilan

k.

Income Taxes

Bank menerapkan PSAK No. 46 (Revisi 2014), “Pajak Penghasilan”, yang mengharuskan Perusahaan untuk memperhitungkan konsekuensi pajak kini dan pajak masa depan atas pemulihan di masa depan (penyelesaian) dari jumlah tercatat aset (liabilitas) yang diakui dalam laporan posisi keuangan dan transaksi-transaksi serta peristiwa lain yang terjadi dalam periode berjalan.

The Bank applied SFAS No. 46 (Revised 2014), “Accounting for Income Tax”, which requires the Company to account for the current and future tax consequences of the future recovery (settlement) of the carrying amount of assets (liabilities) that are recognized in the statements of financial position and transactions and other events of the current period.

Bank menerapkan metode aset dan liabilitas dalam menghitung beban pajaknya. Dengan metode ini, aset dan liabilitas pajak tangguhan diakui pada setiap tanggal pelaporan sebesar perbedaan temporer aset dan liabilitas untuk tujuan akuntansi dan tujuan pajak. Metode ini juga mengharuskan pengakuan manfaat pajak di masa akan datang, seperti kompensasi rugi fiskal, jika kemungkinan realisasi manfaat tersebut di masa mendatang cukup besar (probable). Tarif pajak yang berlaku digunakan dalam menentukan pajak penghasilan tangguhan.

The Bank adopts the asset and liability method in determining its income tax expense. Under this method, deferred tax assets and liabilities are recognized at each reporting date for temporary differences between the accounting and tax base of assets and liabilities. This method also requires the recognition of future tax benefits, such as tax loss carryforwards, to the extent that realization of such benefits is probable. Currently enacted tax rates are used in the determination of deferred income tax.

Aset dan liabilitas pajak tangguhan disajikan saling hapus di laporan posisi keuangan sesuai dengan penyajian aset dan liabilitas pajak kini.

Deferred tax asset and liability are offset in the statement of financial position in the same manner the current asset and liability are presented.

Koreksi atas liabilitas pajak diakui pada saat diterimanya surat ketetapan pajak, atau apabila diajukan keberatan dan atau banding, pada saat keputusan atas keberatan atau banding itu diterima.

Amendments to taxation obligations are recorded when an assessment is received, or if objection and or appeal is applied, when the results of the objection or appeal are determined.

30



IKHTISAR KEBIJAKAN PENTING (lanjutan) l.

AKUNTANSI


YANG


Aset Tetap

l.

ACCOUNTING

Fixed Assets

Aset tetap pada awalnya diakui sebesar biaya perolehan. Biaya perolehan mencakup harga pembelian dan semua biaya yang terkait secara langsung untuk membawa aset tersebut ke lokasi dan kondisi yang diinginkan agar aset siap digunakan sesuai dengan maksud manajemen.

Fixed assets are initially recognized at cost. Cost includes its purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Setelah pengukuran awal, aset tetap diukur dengan model biaya, yaitu dicatat pada biaya perolehan dikurangi akumulasi penyusutan dan akumulasi rugi penurunan nilai.

After initial measurement, fixed assets are measured using the cost model, i.e carried at its cost less any accumulated depreciation and accumulated impairment losses.

Biaya pengurusan hak legal atas tanah ketika tanah diperoleh pertama kali diakui sebagai bagian biaya perolehan tanah dan tidak disusutkan, kecuali terdapat bukti yang mengindikasikan bahwa perpanjangan atau pembaruan hak atas tanah tersebut kemungkinan besar atau pasti tidak diperoleh. Sedangkan biaya perpanjangan atau pembaruan hak legal atas tanah diakui sebagai aset tak berwujud dan diamortisasi menggunakan metode garis lurus selama periode yang lebih pendek antara hak atas tanah atau umur ekonomis tanah.

Costs relating with acquisition of legal titles on the land rights are recognized as part of acquisition cost of land and not amortized, except there is evidence indicating that the extension or renewal of land rights is probable or certainly not be obtained. While costs of extension or renewal of legal titles on the land rights are deferred and recognized as intangible assets and amortized using the straight-line method over the legal term of the land rights or economic life of the land, whichever is shorter.

Gedung disusutkan dengan menggunakan metode garis lurus berdasarkan estimasi masa manfaat selama 20 tahun. Kecuali tanah yang tidak disusutkan, aset tetap lainnya disusutkan menggunakan metode garis lurus (untuk perolehan sejak 1 Januari 2013) dan saldo menurun ganda (double-declining-balance method) (untuk perolehan sebelum 1 Januari 2013) selama estimasi masa manfaatnya sebagai berikut:

Buildings are depreciated using straight-line method over their estimated useful lives of 20 years. Except for land which is not depreciated, other fixed assets are depreciated using straight line method (for fixed assets acquired since January 1, 2013) and double declining-balance method (for fixed assets acquired before January 1, 2013) over the estimated useful lives of the assets, as follows:

Renovasi dan perbaikan gedung Perlengkapan dan perabot kantor Kendaraan bermotor Anjungan Tunai Mandiri (ATM)

Tahun/ Years

Tarif Penyusutan/ Depreciation rate

3-7 4-8 4-8 8

66,67% - 28,57% 50,00% - 25,00% 50,00% - 25,00% 25,00%

Leasehold improvement Office equipment, furniture and fixtures Motor vehicles Automatic Teller Machines (ATMs)

Depreciation methods, useful lives and residual values of fixed assets are reassessed at each reporting date and adjusted as appropriate, to ensure that they reflect the expected economic benefits derived from these assets.

Metode penyusutan, masa manfaat dan nilai residu aset tetap ditelaah pada setiap tanggal pelaporan dan disesuaikan jika lebih tepat, untuk memastikan bahwa metode penyusutan, masa manfaat dan nilai residu tersebut telah mencerminkan manfaat ekonomi yang diharapkan dari aset tersebut.

31



IKHTISAR KEBIJAKAN PENTING (lanjutan) l.

AKUNTANSI


YANG


Aset Tetap (lanjutan)

l.

Fixed Assets (continued) Normal repair and maintenance expenses are charged to profit or loss for the year; while renovation and improvements, which are significant and prolong the useful life of assets, are capitalized to the respective assets. The carrying amount and the related accumulated depreciation of fixed assets which are sold are removed from the related group of assets, and the gain or loss is recognized as non-operating income or expense in profit or loss for the year.

Beban perbaikan dan pemeliharaan dibebankan pada laba rugi tahun berjalan; sedangkan renovasi dan penambahan yang jumlahnya signifikan dan memperpanjang masa manfaat dikapitalisasi ke aset tetap yang bersangkutan. Nilai tercatat serta akumulasi penyusutan atas aset tetap yang dijual, dikeluarkan dari kelompok aset tetap yang bersangkutan, dan laba atau ruginya diakui sebagai pendapatan atau beban nonoperasional dalam laba rugi tahun berjalan. m.

m. Agunan yang Diambil Alih

n.

ACCOUNTING

Foreclosed Assets

Pada saat pengakuan awal, agunan yang diambil alih sehubungan dengan penyelesaian kredit dicatat sebesar nilai wajar setelah dikurangi biaya untuk menjualnya tetapi tidak melebihi nilai tercatat kredit yang diberikan. Bank tidak mengakui keuntungan pada saat pengambilalihan aset. Setelah pengakuan awal, agunan yang diambil alih dicatat sebesar nilai yang lebih rendah antara nilai tercatat dengan nilai wajar setelah dikurangi biaya untuk menjualnya. Selisih lebih antara nilai tercatat dengan nilai wajar agunan yang diambil alih setelah dikurangi biaya untuk menjualnya diakui sebagai kerugian penurunan nilai dalam laba rugi tahun berjalan.

Foreclosed assets acquired in conjunction with settlement of loans are initially recorded at their fair value less costs to sell but not to exceed the carrying value of loans. The Bank does not recognize any gains when the Bank foreclosed an asset. Subsequent to initial recognition, foreclosed assets are recorded at carrying amount or at fair value less costs to sell, whichever is lower. The excess between the carrying value and fair value less costs to sell is recognized as impairment losses in current year profit or loss.

Agunan yang diambil alih tidak disusutkan dan beban-beban sehubungan dengan perolehan dan pemeliharaan aset tersebut dibebankan pada saat terjadinya.

Foreclosed assets are not depreciated and expenses in relation with the acquisition and maintenance of those assets are charged as incurred.

Selisih antara nilai tercatat dan hasil penjualan dari agunan yang diambil alih diakui sebagai laba atau rugi pada saat penjualan agunan yang diambil alih, dan diakui sebagai pendapatan atau beban non-operasional dalam laba rugi tahun berjalan.

The difference between the carrying value and the proceeds from the sale of foreclosed assets is recognized as gain or loss at the time of sale, and recognized as non-operating income or expense in profit or loss for the year.

Aset Tak Berwujud

n.

Intangible Assets Intangible assets (software and software license) are stated at cost less accumulated amortization and accumulated impairment losses. Subsequent expenditure on intangible assets, which is significant, is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditures are expensed as incurred. Amortization is recognized in profit or loss over the estimated useful lives of 8 years using straight line method (for intangible assets acquired since January 1, 2013) and double declining-balance method (for intangible assets acquired before January 1, 2013).

Aset tak berwujud (perangkat lunak dan lisensi penggunaan perangkat lunak) dicatat sebesar biaya perolehan dikurangi akumulasi amortisasi dan akumulasi rugi penurunan nilai aset. Pengeluaran selanjutnya yang jumlahnya signifikan akan dikapitalisasi hanya jika pengeluaran tersebut menambah manfaat ekonomis aset yang bersangkutan di masa mendatang. Pengeluaran lainnya dibebankan pada saat terjadinya. Amortisasi diakui pada laba rugi selama estimasi masa manfaat 8 tahun dengan menggunakan metode garis lurus (untuk perolehan sejak 1 Januari 2013) dan saldo menurun ganda (double-decliningbalance method) (untuk perolehan sebelum 1 Januari 2013). 32



IKHTISAR KEBIJAKAN PENTING (lanjutan) n.

AKUNTANSI


YANG


Aset Tak Berwujud (lanjutan)

n.

Identifikasi dan Penurunan Nilai

Pengukuran

Intangible Assets (continued) Amortization method, useful lives and residual values are reviewed at each reporting date and adjusted as appropriate, to ensure that they reflect the expected economic benefits derived from these assets.

Metode amortisasi, masa manfaat dan nilai residu ditelaah pada setiap tanggal pelaporan dan disesuaikan jika lebih tepat, untuk memastikan bahwa metode penyusutan, masa manfaat dan nilai residu tersebut telah mencerminkan manfaat ekonomi yang diharapkan dari aset tersebut. o.

ACCOUNTING

Kerugian

o.

Identification and Impairment Losses

Measurement

of

Aset keuangan

Financial assets

Pada setiap tanggal pelaporan, Bank mengevaluasi apakah terdapat bukti obyektif bahwa aset keuangan yang tidak dicatat pada nilai wajar melalui 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 reporting date, the Bank 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 a 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.

Bukti obyektif bahwa aset keuangan mengalami penurunan nilai meliputi wanprestasi atau tunggakan pembayaran oleh debitur, restrukturisasi kredit atau tagihan oleh Bank dengan persyaratan yang tidak mungkin diberikan jika debitur tidak mengalami kesulitan keuangan, indikasi bahwa debitur atau penerbit akan dinyatakan pailit, hilangnya pasar aktif dari aset keuangan akibat kesulitan keuangan, atau data yang dapat diobservasi lainnya yang terkait dengan kelompok aset keuangan seperti memburuknya status pembayaran debitur atau penerbit dalam kelompok tersebut, atau kondisi ekonomi yang berkorelasi dengan wanprestasi atas aset dalam kelompok tersebut.

Objective evidence that financial assets are impaired can include default or delinquency by a borrower, restructuring of a loan or receivable by the Bank on terms that the Bank would not otherwise consider, indications that a borrower or issuer will enter bankruptcy, the disappearance of an active market for a security due to financial difficulties, or other observable data relating to a group of assets such as adverse changes in the payment status of borrowers or issuers in the group, or economic conditions that correlate with defaults in the group.

Bank menentukan bukti penurunan nilai atas 33sset keuangan secara individual dan kolektif. Evaluasi penurunan nilai secara individual dilakukan terhadap 33sset keuangan yang signifikan secara individual.

The Bank considers evidence of impairment for financial assets at both a specific asset and collective level. All individually significant financial assets are assessed for specific impairment.

33



IKHTISAR KEBIJAKAN PENTING (lanjutan) o.

AKUNTANSI

Identifikasi dan Pengukuran Penurunan Nilai (lanjutan)


YANG


Kerugian

o.

ACCOUNTING

Identification and Measurement Impairment Losses (continued)

of

Aset keuangan (lanjutan)

Financial assets (continued)

Kredit yang diberikan yang signifikan secara individual yang tidak mengalami penurunan nilai secara individual dievaluasi secara kolektif untuk menentukan penurunan nilai yang sudah terjadi namun belum diidentifikasi. Kredit yang diberikan yang tidak signifikan secara individual akan dievaluasi secara kolektif untuk menentukan penurunan nilainya dengan mengelompokkan 34sset keuangan tersebut berdasarkan karakteristik risiko yang serupa. Kredit yang diberikan yang dievaluasi secara individual untuk menentukan penurunan nilai, dan dimana kerugian penurunan nilai diakui, tidak lagi termasuk dalam evaluasi penurunan nilai secara kolektif.

Individually significant loans found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Loans that are not individually significant are collectively assessed for impairment by grouping together such financial assets with similar risk characteristics. Loans that are individually assessed for impairment and for which an impairment loss is recognized are no longer included in a collective assessment of impairment.

Semua penempatan, giro pada bank-bank lain dan efek-efek dievaluasi penurunan nilainya secara individual.

All placements, current accounts with other banks and securities are assessed for specific impairment.

Dalam mengevaluasi penurunan nilai secara kolektif, Bank menggunakan model statistik dari tren historis atas probabilitas wanprestasi, waktu pemulihan kembali dan jumlah kerugian yang terjadi, yang disesuaikan dengan pertimbangan manajemen mengenai apakah kondisi ekonomi dan kondisi kredit saat ini mungkin menyebabkan kerugian aktual lebih besar atau lebih kecil daripada jumlah yang dihasilkan oleh model statistik. Tingkat wanprestasi, tingkat kerugian dan waktu pemulihan yang diharapkan di masa datang secara berkala dibandingkan dengan hasil aktual untuk memastikan bahwa estimasi yang digunakan masih tepat.

In assessing collective impairment, the Bank uses statistical modeling of historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management’s judgment as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by statistical modeling. Default rates, loss rates and the expected timing of future recoveries are regularly benchmarked against actual outcomes to ensure that they remain appropriate.

34



IKHTISAR KEBIJAKAN PENTING (lanjutan)

AKUNTANSI

o. Identifikasi

dan Pengukuran Penurunan Nilai (lanjutan)


YANG

2. SUMMARY OF SIGNIFICANT POLICIES (continued) o.

Kerugian

ACCOUNTING


of



Kerugian penurunan nilai atas aset keuangan yang dicatat pada biaya perolehan diamortisasi diukur sebesar selisih antara nilai tercatat aset keuangan dengan nilai kini estimasi arus kas masa datang yang didiskonto menggunakan suku bunga efektif awal dari aset keuangan tersebut. Perhitungan nilai kini dari estimasi arus kas masa datang atas aset keuangan dengan agunan (collateralized financial asset) 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. Kerugian yang terjadi diakui pada laba rugi dan dicatat pada akun cadangan atas 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. 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 laba rugi.

Impairment losses on financial assets carried at amortized cost are measured as the difference between the carrying amount of the financial assets and the present value of estimated future cash flows discounted at the financial assets’ original effective interest rate. The calculation of the present value of the estimated future cash flows of a collateralized financial asset reflects the cash flows that may result from foreclosure less costs to obtain and sell the collateral, whether or not foreclosure is probable. Losses are recognized in profit or loss and reflected in an allowance account against financial assets carried at amortized cost. Interest on the impaired financial asset continues to be recognized using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. When a subsequent event causes the amount of impairment loss to decrease, the impairment loss is reversed through profit or loss.

Kerugian penurunan nilai atas efek-efek yang tersedia untuk dijual diakui dengan mengeluarkan kerugian kumulatif yang telah diakui secara langsung dalam pendapatan komprehensif lain ke dalam laba rugi sebagai penyesuaian reklasifikasi.

Impairment losses on available-for-sale securities are recognized by transferring the cumulative loss that has been recognized directly in other comprehensive income to profit or loss as a reclassification adjustment.

Jumlah kerugian kumulatif yang direklasifikasi dari pendapatan komprehensif lain ke laba rugi merupakan selisih antara biaya perolehan, setelah dikurangi pelunasan pokok dan amortisasi, dengan nilai wajar kini, dikurangi kerugian penurunan nilai aset keuangan yang sebelumnya telah diakui pada laba rugi. Perubahan cadangan kerugian penurunan nilai yang dapat diatribusikan pada nilai waktu (time value) tercermin sebagai komponen pendapatan bunga.

The cumulative loss that is reclassified from other comprehensive income to profit or loss is the difference between the acquisition cost, net of any principal repayment and amortization, and the current fair value, less any impairment loss previously recognized in profit or loss. Changes in impairment provisions attributable to time value are reflected as a component of interest income.

35




AKUNTANSI



YANG


Kerugian

o.

ACCOUNTING


of



Jika, pada periode berikutnya, nilai wajar instrumen utang yang diklasifikasikan dalam kelompok tersedia untuk dijual yang mengalami penurunan nilai meningkat dan peningkatan tersebut dapat secara obyektif dihubungkan dengan peristiwa yang terjadi setelah pengakuan kerugian penurunan nilai pada laba rugi, maka kerugian penurunan nilai tersebut harus dipulihkan dan pemulihan tersebut diakui pada laba rugi.

If, in a subsequent period, the fair value of an impaired available-for-sale debt instrument increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss, the impairment loss is reversed, with the amount of reversal recognized in profit or loss.

Jika persyaratan kredit, piutang atau efek-efek 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 a loan, receivable or 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.

Aset non-keuangan

Non-financial assets

Nilai tercatat aset non-keuangan, selain aset pajak tangguhan, ditelaah pada setiap tanggal pelaporan untuk menentukan ada tidaknya indikasi penurunan nilai. Jika terdapat indikasi adanya penurunan nilai tersebut, maka nilai terpulihkan aset diestimasi. Kerugian penurunan nilai diakui jika nilai tercatat suatu aset melebihi estimasi nilai terpulihkannya. Nilai terpulihkan suatu aset adalah nilai yang terbesar antara nilai pakai aset dan nilai wajar dikurangi biaya penjualan. Dalam penentuan nilai pakai aset, estimasi arus kas masa depan didiskontokan menggunakan tingkat diskonto sebelum pajak yang menggambarkan penilaian pasar kini atas nilai waktu dari uang dan risiko yang terkait dengan aset yang bersangkutan.

The carrying amount of the Bank's nonfinancial assets, other than deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. An impairment loss is recognized if the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount of an asset is the greater of its value in use and its fair value less cost to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

Untuk tujuan pengujian penurunan nilai, aset yang tidak dapat diuji secara individual dapat digabungkan ke dalam kelompok aset terkecil yang menghasilkan arus kas masuk dari penggunaan berkesinambungan yang sebagian besar independen dari arus kas masuk dari aset lainnya.

For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets.

36



2.


p.

AKUNTANSI



YANG


Kerugian

o.

r.


of

Aset non-keuangan (lanjutan)

Non-financial assets (continued)

Kerugian penurunan nilai atas aset nonkeuangan yang diakui pada periode sebelumnya ditelaah pada setiap tanggal pelaporan untuk menilai apakah terdapat indikasi bahwa rugi penurunan nilai yang telah diakui sebelumnya telah menurun atau tidak ada lagi. Kerugian penurunan nilai dibalik jika terdapat perubahan estimasi yang digunakan untuk menentukan nilai terpulihkan. Jumlah kerugian penurunan nilai yang dibalik tidak boleh menyebabkan nilai aset melebihi nilai tercatat neto setelah penyusutan atau amortisasi, seandainya tidak ada kerugian penurunan nilai yang diakui.

Impairment losses in respect of non-financial assets recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

Simpanan dari Nasabah dan Bank-Bank Lain

p.

Deposits from Customers and Other Banks Deposits are initially measured at fair value less directly attributable transaction costs, and subsequently measured at their amortized cost using the effective interest method.

Simpanan pada awalnya diukur pada nilai wajar dikurangi biaya transaksi yang dapat diatribusikan secara langsung untuk perolehan simpanan, dan setelah pengakuan awal diukur pada biaya perolehan diamortisasi menggunakan metode suku bunga efektif. q.

ACCOUNTING

Tagihan dan Liabilitas Akseptasi

q.

Acceptances Receivable and Payable

Dalam kegiatan bisnis biasa, Bank memberikan jaminan keuangan seperti letter of credit, bank garansi dan akseptasi

In the ordinary course of business the Bank provides financial guarantees, consisting of letter of credit, bank guarantees and acceptances.

Setelah pengakuan awal, tagihan dan utang akseptasi dicatat pada biaya perolehan diamortiasi.

After initial recognition, acceptance receivables and payables are carried at amortized cost

Imbalan Pasca-kerja

r.

Post-employment Benefits Effective on January 1, 2015, the Bank has adopted retrospectively SFAS No. 24 (Revised 2013), “Employee Benefits”. This SFAS, among others, removes the corridor mechanism in calculating actual gains or losses which recognized as income or expense in the statements of profit or loss and other comprehensive income. Actuarial gains or losses are recognized directly through other comprehensive income. Therefore, the Bank’s financial statements as of December 31, 2014 and for the year then ended and the statement of financial position as of January 1, 2014/December 31, 2013 were restated (Note 38).

Efektif pada 1 Januari 2015, Bank telah mengadopsi secara retrospektif PSAK No. 24 (Revisi 2013), “Imbalan kerja”. PSAK ini, antara lain, menghilangkan mekanisme koridor dalam menghitung keuntungan atau kerugian yang diakui sebagai pendapatan atau beban dalam laporan laba rugi dan penghasilan komprehensif lain yang sebenarnya. Keuntungan atau kerugian aktuarial diakui langsung melalui penghasilan komprehensif lain-lain. Oleh karena itu, laporan keuangan Bank pada tanggal 31 Desember 2014 dan untuk tahun yang berakhir pada tanggal tersebut dan laporan posisi keuangan tanggal 1 Januari 2014/31 Desember 2013 disajikan kembali (Catatan 38).

37



2.

IKHTISAR KEBIJAKAN PENTING (lanjutan) r.

AKUNTANSI


YANG


Imbalan Pasca-kerja (lanjutan)

r.

ACCOUNTING

Post-employment Benefits (continued)

Beban pensiun berdasarkan program dana pensiun manfaat pasti ditentukan melalui perhitungan aktuaria secara periodik dengan menggunakan metode projected-unit-credit dan menerapkan asumsi atas tingkat diskonto, hasil yang diharapkan atas aset dana pensiun dan tingkat kenaikan manfaat pasti pensiun tahunan.

Pension costs defined benefit pension plans are determined by periodic actuarial calculation using the projected-unit-credit method and applying the assumptions on discount rate, expected return on plan assets and annual rate of increase in compensation.

Seluruh pengukuran kembali, terdiri atas keuntungan dan kerugian aktuarial dan hasil atas aset dana pensiun (tidak termasuk bunga bersih) diakui langsung melalui penghasilan komprehensif lainnya dengan tujuan agar aset atau kewajiban pensiun bersih diakui dalam laporan posisi keuangan untuk mencerminkan nilai penuh dari defisit dan surplus dana pensiun. Pengukuran kembali tidak mengreklasifikasi laba atau rugi pada periode berikutnya.

All re-measurements, comprising of actuarial gains and losses, and the return of plan assets (excluding net interest) are recognized immediately through other comprehensive income in order for the net pension asset or liability recognized in the statements of financial position to reflect the full value of the plan deficit and surplus. Re-measurements are not reclassified to profit or loss in subsequent periods.

Seluruh biaya jasa lalu diakui pada saat yang lebih dulu antara ketika amandemen/kurtailmen terjadi atau ketika biaya restrukturisasi atau pemutusan hubungan kerja diakui. Sebagai akibatnya, biaya jasa lalu yang belum vested tidak lagi dapat ditangguhkan dan diakui selama periode vesting masa depan.

All past service costs are recognized at the earlier of when the amendment/curtailment occurs and when the related restructuring or termination costs are recognized. As a result, unvested past service costs can no longer be deferred and recognized over the future vesting period.

Beban bunga dan pengembalian aset dana pensiun yang diharapkan sebagaimana digunakan dalam PSAK No. 24 versi sebelumnya digantikan dengan beban bunga bersih, yang dihitung dengan menggunakan tingkat diskonto untuk mengukur kewajiban manfaat pasti - bersih atau aset pada saat awal dari tiap periode pelaporan tahunan.

The interest cost and expected return on plan assets used in the previous version of SFAS No. 24 (Revised 2013) are replaced with a net-interest amount, which is calculated by applying the discount rate to the net defined benefit liability or asset at the start of each annual reporting period.

Imbalan kerja jangka pendek

Short-term employee benefits

Imbalan kerja jangka pendek seperti upah, iuran jaminan sosial, cuti jangka pendek, bonus dan imbalan non-moneter lainnya diakui selama periode jasa diberikan. Imbalan kerja jangka pendek dihitung sebesar jumlah yang tidak didiskontokan.

Short-term employee benefits such as wages, social security contributions, short-term compensated leaves, bonuses and other nonmonetary benefits are recognized during the period when services are rendered. Short-term employee benefits are measured using undiscounted amounts.

38



2.

IKHTISAR KEBIJAKAN PENTING (lanjutan) s.

t.

AKUNTANSI


YANG


Pinjaman Subordinasi

s.

Subordinated loans are initially recognized at fair value subsequently meansured at amortised cost using effective interest rate method.

Biaya perolehan diamortisasi dihitung dengan memperhitungkan adanya diskonto atau premi terkait dengan pengakuan awal pinjaman subordinasi dan biaya transaksi yang merupakan bagian yang tidak terpisahkan dari suku bunga efektif.

Amortised cost is calculated by taking into account and discount or premium on subordinated loan and transaction cost that are an integral part of effective interest rate.

Modal Saham

t.

Share Capital Shares are classified as equity when there is no contractual obligation to transfer cash or other financial assets.

Beban Emisi Saham

u.

Shares Issuance Costs Based on the Regulation No. VIII.G.7, appendix of Bapepam Decision Letter No. Kep-06/PM/2000 dated March 13, 2000 regarding “Guidance for Financial Statements Presentation”, costs related to the public offering of shares (including pre-emptive rights issue) are deducted from the proceeds and presented as a deduction from the “Additional Paid-in-Capital - Net” account, under Equity section in the statement of financial position.

Sesuai dengan Peraturan No. VIII.G.7 lampiran Surat Keputusan Bapepam No. Kep06/PM/2000 tanggal 13 Maret 2000 mengenai “Pedoman Penyajian Laporan Keuangan”, 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. v.

Subordinated Loan

Pinjaman subordinasi diakui sebesar nilai wajar pada awalnya dan selanjutnya diukur sebesar biaya perolehan diamortisasi dengan menggunakan suku bunga efektif.

Saham diklasifikasikan sebagai ekuitas jika tidak terdapat kewajiban kontraktual untuk mentransfer kas atau aset keuangan lainnya. u.

ACCOUNTING

Laba per Saham

v.

Earnings per Share

Laba (rugi) per saham dasar dihitung dengan membagi laba tahun berjalan dengan rata-rata tertimbang jumlah saham yang beredar selama tahun berjalan.

Basic earnings per share is computed by dividing income for the year by the weighted average number of outstanding shares during the year.

Pada tanggal 31 Desember 2015 dan 2014, tidak terdapat instrumen yang berpotensi menjadi saham biasa. Oleh karenanya, laba per saham dilusian sama dengan laba per saham dasar.

As of December 31, 2015 and 2014, there were no existing instruments which could result in the issue of further ordinary shares. Therefore, diluted earnings per share is equivalent to the basic earnings per share.

w. Pendapatan dan Beban Bunga

w.

Interest Income and Expenses Interest income and expenses are recognized in profit or loss using the effective interest method. The effective interest rate is the rate that exactly discounts the estimated future cash payments and receipts through the expected life of the financial asset or liability (or, where appropriate, a shorter period) to the carrying amount of the financial asset or liability. When calculating the effective interest rate, the Bank estimates future cash flows

Pendapatan dan beban bunga diakui dalam laba rugi menggunakan metode suku bunga efektif. Suku bunga efektif adalah suku bunga yang secara tepat mendiskontokan estimasi pembayaran dan 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 dari aset keuangan atau liabilitas keuangan. Pada

39




AKUNTANSI


YANG


w. Pendapatan dan Beban Bunga (lanjutan)

x.

y.

w.

ACCOUNTING

Interest Income and Expenses (continued)

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.

considering all contractual terms of the financial instrument but not future credit losses.

Perhitungan suku bunga efektif mencakup biaya transaksi (Catatan 2f) dan seluruh imbalan/provisi dan bentuk lain yang dibayarkan atau diterima yang merupakan bagian tak terpisahkan dari suku bunga efektif.

The calculation of the effective interest rate includes transaction costs (Note 2f) and all fees and points paid or received that are an integral part of the effective interest rate.

Pendapatan dan beban bunga yang disajikan di dalam laporan laba rugi dan penghasilan komprehensif lain meliputi:

Interest income and expenses presented in the statement of profit or loss and other comprehensive income include:

•

Bunga atas aset keuangan dan liabilitas keuangan yang dicatat pada biaya perolehan diamortisasi yang dihitung menggunakan metode suku bunga efektif;

•

Interest on financial assets and liabilities at amortized cost calculated on an effective interest basis;

•

Bunga atas efek-efek yang tersedia untuk dijual yang dihitung menggunakan metode suku bunga efektif.

•

Interest on available-for-sale securities calculated on an effective interest basis.

Pendapatan dan Beban Provisi dan Komisi

x.

Fees and Expenses

Commission

Income

and

Pendapatan dan beban provisi dan komisi yang merupakan bagian tak terpisahkan dari suku bunga efektif aset keuangan atau liabilitas keuangan dimasukkan ke dalam perhitungan suku bunga efektif.

Fees and commission income and expenses that are integral to the effective interest rate on a financial asset or liability are included in the measurement of the effective interest rate.

Pendapatan provisi dan komisi yang diperoleh atas beragam jasa yang diberikan kepada nasabah umumnya diakui pada saat penyelesaian transaksi. Untuk jasa yang diberikan selama periode waktu tertentu atau periode risiko kredit yang diterima, provisi dan komisi diamortisasi selama periode waktu terkait.

Fees and commissions income earned from a range of services rendered to customers are normally recognized upon a completion of a transaction. For services provided over a period of time or credit risk undertaken, fees and commissions are amortized over the relevant period.

Beban provisi dan komisi lainnya terutama terkait dengan provisi atas transaksi dan jasa, yang diakui sebagai beban pada saat jasa tersebut diterima.

Other fees and commission expense relate mainly to transaction and service fees, which are expensed as the services are received.

Pendapatan Bersih Diperdagangkan

Instrumen

yang

y.

Net Trading Income Net trading income comprises gains less losses on trading assets, and includes all realized and unrealized fair value changes, interest and foreign exchange differences.

Pendapatan bersih instrumen yang diperdagangkan terdiri dari laba dikurangi rugi atas aset keuangan yang dimiliki untuk diperdagangkan, dan termasuk perubahan nilai wajar yang sudah ataupun yang belum direalisasi, bunga dan selisih kurs.

40



IKHTISAR KEBIJAKAN PENTING (lanjutan) z.

AKUNTANSI


YANG


Segmen Operasi

z.

ACCOUNTING

Operating Segment

Segmen operasi adalah komponen dari entitas yang terlibat dalam aktivitas bisnis yang mana memperoleh pendapatan dan menimbulkan beban, termasuk pendapatan dan beban terkait dengan transaksi dengan komponen lainnya dari entitas, yang hasil operasinya dikaji ulang secara berkala 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.

An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the entity’s other components, whose operating results are reviewed regularly by the chief operating decision maker to make decisions about resources allocated to the segment and assess its performance, and for which discrete financial information is available.

Karena pada saat ini Direksi Bank hanya menelaah alokasi aset keuangan tertentu di antara nasabah ritel dan wholesale, tetapi tidak untuk hasil operasi lainnya serta informasi keuangan yang dapat dipisahkan juga tidak tersedia di Bank, maka manajemen berkeyakinan bahwa Bank pada saat ini dikelola sebagai segmen operasi tunggal.

As the Bank’s Board of Directors currently only reviews the allocation of certain financial assets amongst retail and wholesale customers, but not the other operating results and the discrete financial information is also currently unavailable within the Bank, the management believes that the Bank is being managed as a single operating segment.

aa. Perubahan kebijakan pengungkapan

akuntansi

dan

aa. Changes in disclosures

accounting

policies

and

Bank telah menerapkan standar akuntansi berikut pada tanggal 1 Januari 2015 yang dianggap relevan dengan Bank:

The Bank adopted the following accounting standards, which are considered relevant, starting on January 1, 2015:

•

PSAK No. 1 (Revisi 2013), “Penyajian Laporan keuangan”, yang diadopsi dari IAS 1, mengatur perubahan penyajian kelompok pos-pos dalam pendapatan komprehensif lain. Pos-pos yang akan direklasifikasi ke laba rugi disajikan terpisah dari pos-pos yang tidak akan direklasifikasi ke laba rugi.

•

SFAS No. 1 (Revised 2013), “Presentation of Financial Statements”, adopted from IAS 1, specifies changes of the grouping of items presented in other comprehensive income. Item to be reclassified to profit or loss would be presented separately from items that will never be reclassified to profit or loss.

•

PSAK No. 24 (Revisi 2013), “Imbalan Kerja”, yang diadopsi dari IAS 19, yang menghapus mekanisme koridor dan pengungkapan atas informasi liabilitas kontinjensi untuk menyederhanakan klasifikasi dan pengungkapan.

•

SFAS No. 24 (Revised 2013), “Employee Benefits”, adopted from IAS 19, which removes the corridor mechanism and contingent liability disclosure to simplify classification and disclosure.

•

PSAK No. 46 (Revisi 2014), “Pajak Penghasilan”, yang diadopsi dari IAS 12, mengatur aset dan liabilitas pajak tangguhan yang berasal dari aset yang menggunakan model revaluasi dan properti investasi yang diukur menggunakan nilai wajar.

•

SFAS No. 46 (Revised 2014), “Income Tax”, adopted from IAS 12, specifies deferred tax asset and liability arises from asset measured using revaluation model and investment property measured using fair value.

41




AKUNTANSI

aa. Perubahan kebijakan akuntansi pengungkapan (lanjutan)

3.

YANG


dan

aa. Changes in accounting disclosures (continued)

ACCOUNTING policies

and

•

PSAK No. 48 (Revisi 2014), “Penurunan Nilai Aset”, yang diadopsi dari IAS 36, mengatur tentang pengukuran jumlah terpulihkan suatu aset yang terkait dengan penerapan PSAK 68 “Pengukuran Nilai Wajar”.

•

SFAS No. 48 (Revised 2014), “Impairment of Assets”, adopted from IAS 36, specifies measurement of recoverable amount of assets, related to implementation of SFAS No. 68, “Fair Value Measurement”.

•

PSAK No. 50 (Revisi 2014), “Instrument Keuangan; Penyajian”, yang diadopsi dari IAS 32, menggantikan PSAK No. 50 (Revisi 2010): “Instrument Keuangan: Penyajian & Pengungkapan”.

•

SFAS No. 50 (Revised 2014), “Financial Instrument: Presentation”, adopted from IAS 32, replaces SFAS No. 50 (Revised 2010): “Financial Instrument: Presentation & Disclosure”.

•

PSAK No. 55 (Revisi 2014), “Instrument Keuangan; Pengakuan & Pengukuran”, yang diadopsi dari IAS 39, mengatur mengenai pengakuan & pengukuran instrument keuangan, derivatif melekat dan penghentian penerapan akuntansi lindung nilai.

•

SFAS No. 55 (Revised 2014), “Financial Instrument: Recognition and Measurement”, adopted from IAS 39, specifies recognition measurement of financial instrument, embedded derivative and discontinue of hedging accounting.

•

PSAK No. 60 (Revisi 2014), “Instrument Keuangan; Pengungkapan”, yang diadopsi dari IFRS 7, mengatur mengenai pengungkapan instrument keuangan, ketentuan saling hapus aset & liabilitas dalam Laporan Keuangan.

•

SFAS No. 60 (Revised 2014), “Financial Instrument: Disclosure”, adopted from IFRS 7, specifies disclosure of financial instrument, and offsetting criteria of financial asset & liabilities in the financial statement .

•

PSAK No. 68, “Pengukuran Nilai Wajar”, yang diadopsi dari IFRS 13, memberikan panduan tentang bagaimana pengukuran berdasarkan nilai wajar ketika nilai wajar disyaratkan atau diizinkan.

•

SFAS No. 68, “Fair Value Measurement”, adopted from IFRS 13, provides guidance in measuring fair value when fair value is required or permitted.

MANAJEMEN RISIKO MANAJEMEN MODAL a.


KEUANGAN

DAN

3.

Kerangka Manajemen Risiko

FINANCIAL RISK MANAGEMENT AND CAPITAL MANAGEMENT a. Risk Management Framework

Manajemen risiko yang efektif merupakan landasan untuk dapat menghasilkan keuntungan secara konsisten dan berkelanjutan dan oleh karenanya, merupakan bagian yang penting dari manajemen keuangan dan operasional Bank.

Effective risk management is fundamental to being able to generate profits consistently and sustainably and is thus a central part of the financial and operational management of the Bank.

Dewan Komisaris dan Direksi Bank terus melakukan pengawasan dan mitigasi secara aktif terhadap risiko-risiko yang dihadapi Bank, serta mengembangkan budaya manajemen risiko pada seluruh jenjang organisasi untuk memastikan seluruh satuan kerja memahami strategi, tingkat risiko yang diambil, dan kerangka manajemen risiko yang telah ditetapkan. Dalam pelaksanaanya, Dewan Komisaris diwakilkan oleh Komite Pemantau Risiko yang merupakan komite risiko tertinggi di tingkat Dewan Komisaris yang bertanggung jawab untuk melakukan penelaahan terhadap area risiko tertentu dan mendiskusikan hal lainnya terkait dengan permasalahan risiko, mekanisme mitigasi serta potensi kerugiannya.

The Board of Commissioners and the Board of Directors of the Bank actively supervise and mitigate the risks faced by the Bank, as well as develop a risk management culture at all levels of the organization to ensure that all working units understand the strategy, the level of risks taken, and the Bank’s risk management framework. In the implementation, Board of Commissioners is represented by Risk Oversight Committee which is highest risk committee in the level of the Board of Commissioners which responsible in review on certain risk areas and analyses other areas related to risk, its mitigating controls and as well as potential loss.

42



MANAJEMEN RISIKO KEUANGAN MANAJEMEN MODAL (lanjutan) a.


DAN

3.

Kerangka Manajemen Risiko (lanjutan)

FINANCIAL RISK MANAGEMENT AND CAPITAL MANAGEMENT (continued) a. Risk Management Framework (continued)

Dewan Komisaris mendelegasikan kuasa kepada Direktur Utama dan Direksi untuk mengimplementasikan strategi manajemen risiko.

Board of Commissioners delegate authority to President Director and Board of Directors to implement risk management strategy.

Untuk mendukung penerapan manajemen risiko yang efektif, Direksi membentuk komitekomite yang membantu kelancaran dan tata kelola perusahaan yang sehat dalam lingkup organisasi:

To support the implementation of effective risk management, Board of Directors formed committees, which help smooth and good corporate governance in the scope of the organization:

1. Komite Manajemen Risiko - Sub Komite Kebijakan dan Prosedur 2. Komite Aset dan Liabilitas (“ALCO”) 3. Komite Sumber Daya Manusia 4. Komite Pengadaan Barang dan Jasa 5. Komite Kredit 6. Komite Produk dan Aktivitas Baru, dan 7. IT Steering Committee

1. Risk Management Committee - Sub Committee on Policies and Procedures 2. Asset and Liability Committee (“ALCO”) 3. Human Resources Committee 4. Procurement Committee 5. Credit Committee 6. Products and New Activities Committee, and 7. IT Steering Committee

Komite Manajemen Risiko dibentuk pada tingkat Direksi dan bertanggung jawab untuk mengawasi perkembangan strategi dan kebijakan manajemen risiko sehari-hari. Komite ini diketuai oleh Direktur Risiko.

The Risk Management Committee is established by Board of Directors and is responsible to oversee the day to day risk management strategy and policy development. The Committee is chaired by Risk Director.

Esensi dari penerapan manajemen risiko adalah kecukupan prosedur dan metodologi pengelolaan risiko sehingga kegiatan usaha Bank tetap dapat terkendali (manageable) pada batas/limit yang dapat diterima serta menguntungkan. Penerapan manajemen risiko meliputi pengawasan aktif Pengurus Bank, kebijakan, prosedur dan penetapan limit risiko, proses identifikasi, pengukuran, pemantauan, sistem informasi, dan pengendalian risiko, serta pengendalian internal. Penerapan manajemen ini tertuang dalam suatu Risk Management Framework (RMF). RMF menetapkan pendekatan Bank terhadap manajemen risiko dan kerangka pengendalian dimana risiko dikelola dan keseimbangan antara risiko dan pendapatan dapat tercapai.

The essence of risk management application is the adequacy of risk management procedures and methodologies so that the business activities of Bank are manageable at the acceptable limits and able to generate profitability. Application of risk management includes active monitoring of Bank’s Management, policies, procedures and risk limits, the process of risk identification, measurement, monitoring, information system, and control, as well as internal control. Application of risk management is stated in a Risk Management Framework (RMF). RMF sets out the Bank’s approach to risk management and the control framework within which risks are managed and risk-return tradeoffs are made.

Secara umum RMF terdiri atas serangkaian proses sebagai berikut:

In general, RMF consists of the following processes:

Proses Identifikasi Risiko

Risk Identification Process

Kegiatan identifikasi risiko merupakan langkah awal dari serangkaian kegiatan pengelolaan dan pengendalian risiko. Kegiatan identifikasi risiko merupakan kegiatan yang bersifat proaktif dan bukan reaktif dalam hal memetakan profil risiko terhadap seluruh kegiatan operasional Bank.

The identification of risk is the first step of a series of management and risk control activities. Risk identification activity is a proactive and not reactive activity in terms of mapping the risk profile of the entire operations of the Bank.

43



3. MANAJEMEN RISIKO KEUANGAN MANAJEMEN MODAL (lanjutan) a.


DAN

3.


FINANCIAL RISK MANAGEMENT AND CAPITAL MANAGEMENT (continued) a. Risk Management Framework (continued)

Proses Pengukuran Risiko

Risk Measurement Process

Kegiatan pengukuran risiko merupakan bagian dari kegiatan penerapan manajemen risiko yang dimaksudkan untuk mengukur profil risiko yang dimiliki oleh Bank sehingga diperoleh suatu gambaran tentang efektifitas penerapan manajemen risiko melalui suatu pendekatan tertentu.

Risk measurement activity is part of risk management implementation activities that are intended to measure the risk profile of Bank in order to obtain a description of the effectiveness of risk management through the application of a particular approach.

Proses Pemantauan Pengendalian Risiko

Proses

Risk Monitoring Process and Risk Control Process

Bank menerapkan prinsip Pendekatan Pertahanan Tiga Lapis dalam memantau, mengontrol, dan mengelola risiko:

Bank has implemented the principle of Three Lines of Defense Approach in monitoring, controlling, and managing risks:

-

- First Line of Defense

Risiko

dan

Pertahanan Tingkat Pertama Unit Bisnis berperan sebagai pertahanan tingkat pertama dan bertanggung jawab untuk mengidentifikasi, mengevaluasi, mengendalikan dan memitigasi risiko dalam bisnis. Manajemen Senior dan Komite Manajemen Risiko memegang peranan penting dalam memastikan unit bisnis secara keseluruhan berfungsi efektif sebagai “Pertahanan Tingkat Pertama” untuk membangun sebuah risk and control environment sebagai bagian dari kegiatan operasional sehari-hari.

-

Business unit serves as the first line of defense and is responsible to identify, evaluate, control, and mitigate risks in business. Senior Managements and the Risk Management Committee play an important role in ensuring the overall business unit effectively functions as “First Line of Defense” to establish a risk and control environment as part of day-to-day operations.

Pertahanan Tingkat Kedua

- Second Line of Defense

Divisi Manajemen Risiko dan Divisi Kepatuhan yang independen berperan sebagai unit kunci dalam memberikan pertahanan tingkat kedua melalui fungsi pemantauan yang independen. Secara garis besar, pertahanan tingkat kedua bertanggung jawab untuk menetapkan batas-batas (boundaries), pedoman dan arahan melalui pengembangan kebijakan, kaji ulang dan persetujuan limit risiko, serta memastikan kepatuhan terhadap seluruh peraturan yang diterbikan oleh Bank Indonesia dan otoritas lainnya. -

The independent Risk Management Division and Compliance Division serve as key units in constructing second layer protection through independent monitoring function. In general, the second line of defense is responsible for setting the boundaries, guidance and directions through development of policies, review and approval of risk limits, as well as ensuring the compliance with all regulations of Bank Indonesia and other authorities.

Pertahanan Tingkat Ketiga

- Third Line of Defense

Satuan Kerja Audit Internal berperan sebagai pertahanan tingkat ketiga yang berperan untuk memberikan kegiatan assurance dan konsultasi yang independen dan yang dirancang untuk menambah nilai dan memperbaiki operasional bank serta membantu bank dalam mencapai tujuannya.

Internal Audit serves as the third line of defense which role is to provide independent and objective assurance and consulting activities designed to add value and improve the bank operational process as well as help the bank to accomplish its objectives.

44


PT BANK QNB INDONESIA TBK CATATAN ATAS LAPORAN KEUANGAN Tanggal 31 Desember 2015 dan untuk Tahun yang Berakhir pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 3. MANAJEMEN RISIKO KEUANGAN MANAJEMEN MODAL (lanjutan) a.

b.


DAN

3.


FINANCIAL RISK MANAGEMENT AND CAPITAL MANAGEMENT (continued) a.

Risk Management Framework (continued)

Pedoman dalam penerapan RMF tersebut dituangkan ke dalam suatu Risk Appetite Statement (RAS). RAS menguraikan tingkat dan karakterisik risiko yang akan diambil Bank, agar dapat merealisasikan misinya untuk para pemangku kepentingan, dengan memperhatikan batasan-batasan yang dikenakan oleh para debitur, regulator dan nasabah. Direksi dan manajemen senior bertanggung jawab mendefinisikan RAS serta memastikan bahwa kerangka manajemen risiko telah mencakup kebijakan yang rinci terkait batasan bagi seluruh organisasi terhadap kegiatan bank, yang konsisten dengan RAS dan kapasitas Bank.

Guideline for the application of RMF is stated in a Risk Appetite Statement (RAS). RAS elaborates level and characteristics of risks taken by the Bank in order to realize its mission for the stakeholders while referring to the limitations set by debtors, regulators, and customers. The Board of Directors and senior management are responsible to define RAS while ensuring that risk management framework has included detail policies pertaining to limitations for all organization toward the Bank’s activities, which are consistent with RAS and the capability of Bank.

Tujuan dari Risk Appetite Statement adalah agar Bank dapat melaksanakan strateginya serta memenuhi harapan para pemangku kepentingan. RAS tidak bertujuan mencegah pengambilan risiko, melainkan memastikan bahwa proses pengambilan risiko: a. Sejalan dengan sasaran; b. Dipahami di tingkat yang sesuai di dalam organisasi; dan c. Dilaksanakan secara optimum berdasarkan keseimbangan risiko imbal balik dalam batasan-batasan Risk Appetite Group.

The purpose of the Risk Appetite Statement is to support Bank to implement its strategy and fulfill the expectations of the shareholders. RAS does not aim to prevent risk-taking, but rather to ensure that the process of risk taking is: a. In line with the objectives; b. Comprehended at the appropriate level in the organization; and c. Implementation of optimum risk return basis within the Group Risk Appetite limits.

Risiko Kredit

b. Credit Risk

Risiko Kredit merupakan risiko gagal bayar oleh pihak lawan. Risiko Kredit dapat timbul dari berbagai lini bisnis bank, seperti perkreditan (penyediaan dana), tresuri, investasi dan trade financing, baik yang tercatat dalam banking book maupun trading book. Manajemen risiko kredit bertujuan untuk memastikan bahwa kredit diberikan berdasarkan prinsip pemberian kredit yang sehat.

Credit Risk is the risk of default by counterparty. Credit Risk may arise from various business lines of the Bank, such as credit (provision of funds), treasury, investments and trade financing, recorded both in the banking book and trading book. Credit risk management is to ensure that the credit is granted based on the principles of sound lending.

Beberapa prinsip utama dalam manajemen risiko kredit yang ditetapkan Bank antara lain:

Some key principles in the management of credit risk applied by the Bank are as follows:

•

Dewan Komisaris dan Direksi bertanggung jawab atas efektivitas penerapan manajemen risiko kredit;

•

•

Melakukan pemberdayaan unit-unit kerja independen untuk melakukan pengendalian intern atas unit-unit kerja yang terkait dengan proses pemberian kredit;

•

45

Board of Commissioners and Board of Directors are responsible for the effective implementation of credit risk management; Empower independent work units to perform internal control over the work units associated with the process of granting credit;


PT BANK QNB INDONESIA TBK CATATAN ATAS LAPORAN KEUANGAN Tanggal 31 Desember 2015 dan untuk Tahun yang Berakhir pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 3. MANAJEMEN RISIKO KEUANGAN MANAJEMEN MODAL (lanjutan) b.


DAN

3.

Risiko Kredit (lanjutan)

FINANCIAL RISK MANAGEMENT AND CAPITAL MANAGEMENT (continued) b. Credit Risk (continued) •

Improve the quality of productive assets, credit portfolio risk distribution by ensuring diversified loan portfolio in industry sectors and market segments;

•

Conduct restructuring and/or settlement of foreclosed assets;

•

Conduct daily monitoring of credit arrears, both above and below 30 days to anticipate the non-performing loans, monitor and provide early warning of potential losses due to a deterioration in loan collectability;

Melakukan identifikasi risiko yang terdapat pada produk dan aktivitas baru;

•

•

Menerapkan sistem scoring untuk retail banking dan interbank counterparty;

•

•

Identify the risks inherent in new products and activities; Apply scoring system for retail banking and interbank counterparty;

Proses persetujuan kredit dilakukan secara sentralisasi di Kantor Pusat melalui pertemuan Komite Kredit untuk kredit yang bernilai besar.

•

•

Melakukan perbaikan kualitas aset produktif, penyebaran risiko portofolio kredit dengan memastikan diversifikasi portofolio kredit di sektor-sektor industri maupun segmen pasar;

•

Melakukan restrukturisasi dan penyelesaian agunan yang diambil alih;

•

Melakukan pengawasan harian terhadap tunggakan kredit, baik di atas maupun di bawah 30 hari untuk mengantisipasi terjadinya kredit bermasalah, memonitor dan memberikan peringatan dini (early warning) atas potensi kerugian yang disebabkan penurunan kolektibilitas kredit;

•

To control and sustain minimal exposure of credit risk to the Bank resulting from its loans:

Untuk mengendalikan dan memelihara eksposur risiko kredit pada tingkat minimal yang berasal dari kredit yang diberikan: •

Bank telah memiliki prinsip-prinsip dasar risiko kredit, yang berguna sebagai acuan dasar dalam menjalankan fungsi Manajemen Risiko Kredit yang tidak boleh dilanggar;

•

Bank telah memiliki pedoman tertulis mengenai kebijakan dan prosedur kredit yang mencakup seluruh aspek aktivitas pemberian kredit. Setiap pemberian kredit harus senantiasa mengacu pada kebijakan tersebut;

•

Bank telah memiliki sistem deteksi dini permasalahan melalui ”early warning system” dan pemantauan yang ketat; dan

•

Seluruh kredit yang diberikan dijamin dengan agunan, kecuali untuk jenis kredit tertentu seperti kredit korporasi berkualitas tinggi, kredit perorangan dan fasilitas antar bank.

Loan approval process is done on a centralized basis at the Head Office through Credit Committee meeting for big account loans.

46

•

The Bank has a Credit Risk Principles, which is used as a basic reference in performing Credit Risk Management function which cannot be violated;

•

The Bank has a documented credit policy and procedures manual that covers all aspects of the Bank’s lending activities. At all times, loan transactions must adhere to the requirements of the Bank’s policy;

•

The Bank has early problem detection system through “early warning system” and disciplined monitoring; and

•

All loans are secured by collateral, except for certain loans such as high quality corporate loans, personal loans and interbank loans.




DAN

3.


FINANCIAL RISK MANAGEMENT AND CAPITAL MANAGEMENT (continued) b.

Credit Risk (continued)

Untuk mengantisipasi adanya risiko kredit yang melekat pada kegiatan usaha debitur, Bank perlu menelaah kualitas kredit calon debitur dan debitur lama, serta menerapkan peraturan dan kebijakan Bank mengenai Credit Acceptance Criteria, yang mengatur persyaratan minimum yang diperlukan, yang mencakup aspek pemilik, manajemen, industri, kinerja keuangan, dokumentasi dan administrasi dan agunan.

To anticipate the inherent credit risk in debtors’ business activities, the Bank needs to review the credit quality of new debtors and existing debtors, and implements the Bank’s regulation and policy on Credit Acceptance Criteria, which describes minimum requirements covering owner, management, industry, financial performance, administration and documentation and collateral aspects.

Agar penerapan fungsi manajemen risiko kredit sejalan dengan risk appetite yang telah ditetapkan, Direksi membentuk Komite Kredit yang memiliki fungsi dan tanggung jawab sebagai berikut:

In order for the implementation of credit risk management function in line with the risk appetite set by the Bank, Board of Directors established Credit Committee which functions and responsibilities are as follows:

1.

Memberikan persetujuan atau penolakan kredit sesuai dengan batas wewenang/jenis kredit yang ditetapkan oleh Direksi dan mengkaji ulang permohonan kredit yang melebihi limit yang telah ditetapkan;

1.

Giving approval or rejection of credit in accordance with the authority/type of credit established by the Board of Directors and reviewing the loan application that exceeds a preset limit;

2.

Menolak permintaan dan/atau pengaruh pihak-pihak yang berkepentingan dengan pemohon kredit untuk memberikan persetujuan kredit yang hanya bersifat formalitas; Mengembangkan kebijakan pinjaman dan menyerahkan kepada Komite Manajemen Risiko untuk memperoleh persetujuan;

2.

Rejecting the request and/or influence of the related parties with the credit applicants, to give credit approval for formality only;

3.

Developing lending policies and submit to the Risk Management Committee for approval;

4.

Bertindak sebagai penasehat, bila diperlukan, sehubungan dengan hal-hal perkreditan yang kompleks;

4.

Acting as advisor, if necessary, in relation to complex credit issues;

5.

Memantau pelaksanaan kebijakan kredit;

5.

Monitoring the implementation of credit policy;

6.

Mengevaluasi/menilai kinerja dari unit kerja yang mengajukan dan menelaah kredit;

6.

7.

Melakukan koordinasi dengan Komite Aset dan Liabilitas (ALCO) dalam aspek pendanaan kredit.

7.

Evaluating/assessing the performance of the units that proposed and reviewed credit; Coordinating with Assets and Liabilities Committee (ALCO) for financing of credit.

3.

47


PT BANK QNB INDONESIA TBK CATATAN ATAS LAPORAN KEUANGAN Tanggal 31 Desember 2015 dan untuk Tahun yang Berakhir pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 3. MANAJEMEN RISIKO KEUANGAN MANAJEMEN MODAL (lanjutan)


DAN

3.

b. Risiko Kredit (lanjutan)

FINANCIAL RISK MANAGEMENT AND CAPITAL MANAGEMENT (continued) b. Credit Risk (continued)

Pengendalian Batas Risiko dan Kebijakan Mitigasi

Risk Limit Control and Mitigation Policies

Limit pemberian kredit ditelaah mengikuti perubahan kondisi pasar dan ekonomi, dan penelaahan kredit secara periodik, serta penilaian atas kemungkinan wanprestasi.

Lending limits are reviewed in the light of changing market and economic conditions and periodic credit reviews and assessments of probability of default.

Bank menerapkan kebijakan untuk memitigasi risiko kredit dengan mengharuskan adanya agunan sebagai jaminan pelunasan kredit jika sumber pembayaran utama debitur melalui arus kas tidak terpenuhi.

The Bank implements policies to mitigate credit risk by requiring collateral to secure the repayment of loan if the main source of debtor’s payment through cash flows is not fulfilled.

Eksposur maksimum risiko kredit

Maximum exposure to credit risk

Untuk aset keuangan yang diakui di laporan posisi keuangan, eksposur maksimum terhadap risiko kredit sama dengan nilai tercatatnya. Untuk bank garansi dan irrevocable L/C yang diterbitkan, eksposur maksimum terhadap risiko kredit adalah nilai yang harus dibayarkan oleh Bank jika kewajiban atas bank garansi dan irrevocable L/C yang diterbitkan terjadi.

For financial assets recognized in the financial statement, the maximum exposure to credit risk is equal to their carrying amount. For bank guarantees and irrevocable L/C issued, the maximum exposure to credit risk is the maximum amount that the Bank would have to pay if the obligations on the bank guarantees and irrevocable L/C issued are called upon.

Tabel berikut menyajikan eksposur maksimum Bank terhadap risiko kredit untuk instrumen keuangan pada laporan posisi keuangan dan rekening administratif, tanpa memperhitungkan agunan yang dimiliki atau perlindungan kredit lainnya;

The following table presents the Bank’s maximum exposure to credit risk of financial instruments in the statement of financial position and off-balance sheet accounts, without taking into account any collateral held or other credit enhancement;

31 Desember/December 31 2015 Instrumen keuangan pada laporan posisi keuangan: Giro pada Bank Indonesia Giro pada bank-bank lain Penempatan pada Bank Indonesia dan bank-bank lain Tagihan derivatif Tagihan akseptasi Efek-efek yang dibeli dengan janji dijual kembali Kredit yang diberikan Efek-efek Aset lain-lain Rekening administratif: L/C yang tidak dapat dibatalkan yang masih beredar Bank garansi yang diterbitkan Total

2014

1.710.947 31.146

1.425.155 43.324

2.113.813 2.921 61.821

3.324.797 849 60.744

269.117 20.788.304 325.444 127.018

268.324 15.093.659 232.642 103.392

Financial instruments in the statement of financial position: Current accounts with Bank Indonesia Current accounts with other banks Placements with Bank Indonesia and other banks Derivatives receivable Acceptance receivable Securities purchased under agreement to resell Loans Securities Other Assets Off-balance sheet accounts:

25.357 25.320

43.453 46.664

25.481.208

20.643.003

48

Outstanding irrevocable L/C Bank guarantees issued Total




DAN

3.


b.

Tabel di bawah ini menunjukkan net maximum exposure (setelah memperhitungkan agunan) atas risiko kredit untuk efek-efek yang dibeli dengan janji dijual kembali pada tanggal 31 Desember 2015 dan 2014: Eksposur maksimum/ Maximum exposure 2015 Efek-efek yang dibeli dengan janji dijual kembali 2014 Efek-efek yang dibeli dengan janji dijual kembali

FINANCIAL RISK MANAGEMENT AND CAPITAL MANAGEMENT (continued)

269.117

268.324

Credit Risk (continued) The table below shows the net maximum exposure (after considering collateral) to credit risk of securities purchase under agreement to resell as of December 31, 2015 and 2014:

Agunan/ Collateral

Eksposur - neto/ Net exposure

270.457

269.576

-

2015 Securities purchased under agreement to resell

-

2014 Securities purchased under agreement to resell

For the loans and receivables, Bank uses the collateral to minimize the credit risk. Loans and receivables in Bank are classified into two major category:

Untuk kredit yang diberikan, Bank menggunakan agunan untuk meminimalkan risiko kredit. Berdasarkan klasifikasi, kredit Bank dapat dibedakan menjadi dua kelompok besar, yaitu: 1. Secured loans 2. Unsecured loans

1. 2.

Untuk Secured loans, Bank menetapkan jenis dan nilai agunan yang dijaminkan sesuai skema kredit. Jenis dari agunan terdiri dari: a. Physical collateral, antara lain tanah, bangunan dan BPKB kendaraan motor. b. Financial collateral, antara lain simpanan (tabungan, giro dan deposito berjangka), surat berharga dan emas. c. Lainnya antara lain garansi dan lembaga penjamin.

For secured loans, Bank determined the type and value of collateral according to the loan scheme. Types of collateral are as follows : a. Physical collateral, such as land, buildings and proof of vehicle ownership. b. Financial collateral, such as time deposit, savings, demand deposit, securities, and gold. c. Others, such as guarantees, government guarantees and guarantee institution.

Apabila terjadi default (gagal bayar), Bank akan menggunakan agunan tersebut sebagai pilihan terakhir untuk pemenuhan kewajiban counterparty.

In times of default, Bank will use the collateral as the last resort in recovering its investment.

Unsecured loans terdiri dari fully unsecured loans dan partially secured loans seperti kredit untuk karyawan golongan berpenghasilan tetap dan kredit konsumer lainnya. Dalam pembayaran kewajibannya, partially secured loans umumnya dilakukan melalui pemotongan penghasilan secara otomatis.

Unsecured loans consist of fully unsecured loans and partially secured loans such as loans for fixed income employees, and other consumer loans. In their payment obligations, partially secured loans are generally made through automatic payroll deduction.

Dengan demikian, meskipun kredit tersebut termasuk dalam kategori unsecured loans namun tingkat risiko dan partially secured loans tidak sebesar nilai tercatat kredit. Sedangkan untuk fully unsecured loans, tingkat risiko adalah sebesar nilai tercatat kredit.

Although it is included in the unsecured loans category, the risk level of partially secured loans is lower than the carrying value. As for fully unsecured loan, the risk level is equal to the carrying value.

49

Secured loasn Unsecured loans




DAN

3.




Proses penentuan peringkat kredit Bank membedakan eksposur untuk menentukan eksposur mana yang memiliki faktor risiko lebih besar dan tingkat kerugian potensial yang lebih tinggi. Peringkat kredit setiap debitur ditelaah secara berkala dan perubahannya diimplementasikan secepatnya. Peringkat kredit yang diterapkan atas setiap debitur juga mempertimbangkan kualitas kredit dari debitur tersebut yang telah ditentukan oleh bank-bank lain.

The Bank’s credit rating determination processes differentiate exposures in order to highlight those with greater risk factors and higher potential severity of loss. The credit rating for each debtor is reviewed regularly and any amendments are implemented promptly. The credit rating applied for each debtor also considered credit quality of the respective debtor as determined by other banks.

Peringkat kredit Bank sesuai dengan peringkat kredit dari Bank Indonesia sebagaimana diatur dalam peraturan Bank Indonesia yang berlaku.

The Bank’s credit rating follows Bank Indonesia’s credit rating as stipulated in the prevailing Bank Indonesia regulations.

Pembagian aset keuangan berdasarkan kualitas kreditnya disajikan di bawah ini:

Distribution of financial assets by their credit quality is summarised as below:

31 Desember/December 31, 2015 Belum jatuh tempo dan tidak mengalami penurunan nilai/ Neither past due nor impaired

Jatuh tempo dan tidak mengalami penurunan nilai/ Past due and not impaired

Cadangan kerugian penurunan nilai/ Allowance for impairment losses

1.710.947

-

-

31.146

-

-

-

31.146

2.111.813 61.821

-

-

-

2.111.813 61.821

Placement with Bank Indonesia and other banks Acceptances receivable

269.117 18.650.912 325.444 127.018

1.640.025 -

539.107 -

269.117 20.788.304 325.444 127.018

Securities purchased under agreement to resell Loan Securities Other asset

Mengalami penurunan nilai /Impaired

Total

Aset pada biaya perolehan diamortisasi Giro pada Bank Indonesia Giro pada bank-bank lain Penempatan pada Bank Indonesia dan bankbank lain Tagihan akseptasi Efek-efek yang dibeli dengan janji dijual kembali Kredit yang diberikan Efek-efek Aset lain-lain Aset pada nilai wajar melalui laba rugi Tagihan derivatif

2.921

-

23.291.139

1.640.025

539.107

50

-

(41.740) -

1.710.947

-

2.921

(41.740)

25.428.531

Assets at amortized cost Current account with Bank Indonesia Current account with other banks

Assets at fair value through profit or loss Derivative receivables




DAN

3.




31 Desember/December 31, 2014 Belum jatuh tempo dan tidak mengalami penurunan nilai/ Neither past due nor impaired

Jatuh tempo dan tidak mengalami penurunan nilai/ Past due and not impaired


Mengalami penurunan nilai /Impaired

Total

Aset pada biaya perolehan diamortisasi Giro pada Bank Indonesia Giro pada bank-bank lain Penempatan pada Bank Indonesia dan bankbank lain Tagihan akseptasi Efek-efek yang dibeli dengan janji dijual kembali Kredit yang diberikan Efek-efek Aset lain-lain Aset tersedia untuk dijual Efek-efek Aset pada nilai wajar melalui laba rugi Tagihan derivatif

Assets at amortized cost Current account with Bank Indonesia Current account with other banks

1.425.155

-

-

-

1.425.155

43.324

-

-

-

43.324

3.324.797 60.744

-

-

-

3.324.797 60.744

Placement with Bank Indonesia and other banks Acceptances receivable

268.324 14.227.079 231 103.392

831.752 -

47.289 -

268.324 15.093.659 231 103.392

Securities purchased under agreement to resell Loans Securities Other asset

232.411

-

-

849

-

-

19.686.306

831.752

47.289

(12.461) -

-

232.411

(12.461)

849

Available-for-sale assets Securities Assets at fair value through profit or loss Derivative receivables

20.552.886

The aging analysis of past due but not impaired loans as of December 31, 2015 and 2014, are as follows:

Analisis umur pinjaman yang jatuh tempo tetapi tidak mengalami penurunan nilai pada tanggal 31 Desember 2015 dan 2014, sebagai berikut:

31 Desember/ December 31, 2015 1 sampai 30 hari/ 1 to 30 days

31 sampai 60 hari/ 31 to 60 days


Total

Modal kerja Investasi Konsumen Karyawan

178.780 52 9

15.832 2.713 33 6

442.155 959.354 41.044 47

636.767 962.067 41.129 62

Working capital Investment Consumer Employee

Total Cadangan kerugian penurunan nilai

178.841

18.584

1.442.600

1.640.025

Total

Neto

178.782

(59 )

(11)

(479)

18.573

1.442.121

(549 ) 1.639.476

Allowance for impairment losses Net

31 Desember/December 31, 2014 1 sampai 30 hari/ 1 to 30 days



Total

Modal kerja Investasi Konsumen Karyawan

4.898 93 2

8.897 7 7

494.210 313.535 9.865 238

508.005 313.535 9.965 247

Working capital Investment Consumer Employee

Total Cadangan kerugian penurunan nilai

4.993

8.911

817.848

831.752

Total

Neto

4.992

(1 )

-

(183)

8.911

817.665

51

(184 ) 831.568

Allowance for impairment losses Net




DAN

3.




Bank mengevaluasi penurunan nilai aset keuangan secara individual dan kolektif. Penurunan nilai secara individual terkait dengan eksposur yang secara individual signifikan, sedangkan penurunan nilai kolektif terkait kelompok aset keuangan yang sejenis dimana kerugian telah terjadi namun belum dapat diidentifikasi atas aset yang secara individual tidak signifikan dan eksposur yang secara individual signifikan yang telah dievaluasi penurunan nilainya secara individual namun tidak ditemukan adanya penurunan nilai secara individual.

The Bank assesses impairment of financial assets on an individual and collective basis. The individual impairment related to individually significant exposures, while collective impairment related to groups of homogeneous financial assets in respect of losses that have been incurred but have not been identified on assets that are considered individually insignificant as well as individually significant exposures that were subject to individual assessment for impairment but not found to be individually impaired.

Definisi kualitas kredit debitur dalam menentukan peringkat kredit sesuai dengan kualitas kredit yang diatur dalam peraturan Bank Indonesia yang berlaku, sebagai berikut:

The definition of the debtor’s credit quality in determining credit rating is in accordance with credit quality stipulated in the prevailing Bank Indonesia regulations, as follows:

•

Lancar: eksposur menunjukkan laba yang tinggi atau stabil, modal dan likuiditas yang memadai, secara umum tercermin dari pembayaran komitmen terhadap Bank dan kreditur lainnya secara tepat waktu. Sumber pembayaran dapat diidentifikasikan secara jelas dan Bank tidak bergantung pada jaminan untuk penyelesaian komitmen debitur di masa datang.

•

Current: exposures exhibit high or stable earnings, adequate capital and liquidity, as generally evidenced by prompt repayment of its commitment with the Bank and other creditors. Source of payment can be clearly identifiable and the Bank does not rely on collateral for settlement of the debtor’s future commitments.

•

Dalam perhatian khusus: eksposur memerlukan tingkat pemantauan yang bervariasi dan risiko wanprestasi menjadi perhatian.

•

Special mention: exposures require varying degrees of special attention and default risk is of concern.

•

Kurang lancar: eksposur dimana nasabah dalam tahap keterlambatan pembayaran dan telah gagal untuk melakukan pembayaran kewajiban yang lewat jatuh tempo 91 hari sampai dengan 120 hari, sesuai dengan persyaratan kontraktual dalam perjanjian kredit.

•

Substandard: exposures which the debtor is in the stages of delinquency and has failed to make a payment on overdue accounts for 91 days up to 120 days, in accordance with the contractual terms of the loan agreement.

•

Diragukan: eksposur dimana nasabah dalam tahap keterlambatan pembayaran dan telah gagal untuk melakukan pembayaran kewajiban yang lewat jatuh tempo 121 hari sampai dengan 180 hari, sesuai dengan persyaratan kontraktual dalam perjanjian kredit.

•

Doubtful: exposures which the debtor is in the stages of delinquency and has failed to make a payment on overdue accounts for 121 days up to 180 days, in accordance with the contractual terms of the loan agreement.

•

Macet: eksposur dimana nasabah dalam tahap keterlambatan pembayaran dan telah gagal untuk melakukan pembayaran kewajiban yang lewat jatuh tempo lebih dari 180 hari, sesuai dengan persyaratan kontraktual dalam perjanjian kredit.

•

Loss: exposures which the debtor is in the stages of delinquency and has failed to make a payment on overdue accounts for more than 180 days, in accordance with the contractual terms of the loan agreement.

52



3. MANAJEMEN RISIKO KEUANGAN MANAJEMEN MODAL (lanjutan) b.


DAN

3.




Definisi kualitas aset keuangan lainnya selain kredit yang diberikan adalah sebagai berikut:

The definition of quality of financial assets other than loans are as follows:

•

Lancar: eksposur menunjukkan tidak terdapatnya tunggakan pembayaran jumlah yang jatuh tempo sesuai perjanjian kontraktual.

•

Current: exposures indicate that no delinquency of payment of amounts due in accordance with the contractual terms.

•

Kurang lancar: eksposur menunjukkan adanya tunggakan jumlah yang jatuh tempo sesuai perjanjian kontraktual.

•

Substandard: exposures indicate that there is delinquency of payment of amounts due in accordance with the contractual terms.

•

Macet: eksposur yang seluruh jumlah pokok dan jumlah yang jatuh tempo lainnya tidak dapat diharapkan untuk diterima kembali/dipulihkan sesuai dengan perjanjian kontraktual.

•

Loss: exposures that all the principal and other amounts due cannot be expected to be received/recovered in accordance with the contractual terms.

Belum jatuh tempo dan tidak mengalami penurunan nilai

Neither past due nor impaired

Eksposur menunjukkan laba yang tinggi atau stabil, modal dan likuiditas yang memadai, secara umum tercermin dengan pembayaran komitmen terhadap Bank secara tepat waktu. Sumber pembayaran dapat diidentifikasikan secara jelas.

Exposures exhibit high or stable earnings, adequate capital and liquidity, as generally evidenced by prompt repayment of its commitment with the Bank. Source of payment can be clearly identifiable.

Jatuh tempo penurunan nilai

Past due and not impaired

dan

tidak

mengalami

Eksposur dimana telah terjadi tunggakan pembayaran pokok atau bunga kontraktual, tetapi Bank berkeyakinan bahwa penurunan nilai individual belum terjadi dengan mempertimbangkan agunan yang tersedia dan/atau tingkat tertagihnya jumlah yang masih terutang kepada Bank.

Exposures, for which contractual interest or principal payments are past due, however the Bank believes that individual impairment has not occurred with consideration of the collateral pledged and/or the stage of collection of amounts owned.

Mengalami penurunan nilai

Impaired

Eksposur dengan peringkat kurang lancar, diragukan dan macet dimana Bank telah menentukan bahwa terdapat bukti obyektif penurunan nilai dan Bank tidak mengharapkan untuk menerima kembali seluruh nilai pokok dan bunga tertunggak sesuai dengan persyaratan kontraktual dalam perjanjian.

Exposures with substandard, doubtful and loss grading for which the Bank determines that there is objective evidence of impairment and it does not expect to collect all principal and interest due according to the contractual terms of the agreement.

53




DAN

3.

Risiko Kredit (lanjutan) Kredit dengan persyaratan dinegosiasikan kembali


Credit Risk (continued) Loans with renegotiated terms

yang

Kredit dengan persyaratan yang dinegosiasikan kembali adalah kredit yang telah direstrukturisasi karena memburuknya posisi keuangan nasabah dan Bank telah memberikan konsesi yang mana tidak akan dipertimbangkan dalam kondisi normal. Ketika kredit telah direstrukturisasi, kredit tersebut tetap berada dalam kelompok ini walaupun kinerja nasabah membaik setelah restrukturisasi.

Loans with renegotiated terms are loans that have been restructured due to deterioration in the borrower’s financial position and where the Bank has made concessions that it would not otherwise consider. Once the loan is restructured, it remains in this category independent of satisfactory performance after restructuring.

Agunan

Collateral

Bank memiliki agunan atas kredit dalam bentuk properti, kas, aset bergerak dan aset lainnya. Estimasi nilai wajar didasarkan atas nilai agunan pada saat pemberian kredit. Penilaian jaminan dapat dilakukan oleh penilai eksternal dan/atau penilai internal. Untuk kredit dengan jumlah plafon debitur/grup debitur lebih dari Rp5.000, penilaiannya harus dilakukan oleh penilai eksternal/independen. Penilaian kembali jaminan dilakukan baik oleh penilai internal dan/atau eksternal setahun sekali untuk kredit yang performing. Untuk kredit yang nonperforming, frekuensi penilaian kembali dilakukan lebih sering. Untuk kredit yang mengalami penurunan grading, maka penilaian kembali harus segera dilakukan. Pada umumnya, agunan tidak dimiliki atas penempatan pada Bank Indonesia dan bankbank lain, dan efek-efek.

The Bank holds collateral against loans in the form of property, cash, movable assets and others. Estimates of fair value are based on the value of collateral assessed at the time of borrowing. Collateral assessment can be performed by external and/or internal appraiser. Loans with plafond above Rp5,000 should be assessed by external/independent appraiser. Re-assessment of collaterals is performed by internal and/or external appraiser every year for performing loan. For non-performing loan, the frequency of reassessment could be conducted more often. In term of down graded loans, re-assessment should be conducted immediately. Collateral generally is not held over placements with Bank Indonesia and other banks, and securities.

Analisa konsentrasi risiko kredit

Concentration of credit risk analysis

Konsentrasi risiko kredit timbul ketika sejumlah nasabah menjalankan kegiatan usaha yang sejenis atau menjalankan kegiatan usaha dalam wilayah geografis yang sama, atau ketika nasabah memiliki karakteristik yang sejenis yang akan menyebabkan kemampuan mereka untuk memenuhi kewajiban kontraktualnya secara serupa dipengaruhi oleh perubahan kondisi ekonomi atau kondisi lainnya.

Concentrations of credit risk arise when a number of customers are engaged in similar business activities or activities within the same geographic region, or when they have similar characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions.

54




DAN

3.



Concentration of credit risk by type of debtors:

Konsentrasi risiko kredit berdasarkan jenis debitur:

31 Desember/December 31, 2015 Pemerintah dan Bank Indonesia/ Government and Bank Indonesia

Korporasi/ Corporates

Giro pada Bank Indonesia Giro pada bank-bank lain Penempatan pada Bank Indonesia dan bank-bank lain Tagihan derivatif Tagihan akseptasi Efek-efek yang dibeli dengan janji dijual kembali Kredit yang diberikan Efek-efek Aset lain-lain Komitmen dan kontinjensi dengan risiko kredit Total Persentase

Bank/ Banks

Ritel/Retail

Total Current accounts with Bank Indonesia Current accounts with other banks

-

1.710.947 -

31.146

-

1.710.947 31.146

-

2.103.542 -

8.271 2.921 61.821

-

2.111.813 2.921 61.821

19.046.689 231 93.750

269.117 325.213 8.716

-

1.741.615 24.552

269.117 20.788.304 325.444 127.018

50.697

-

-

-

50.697

19.191.367

4.417.535

104.159

1.766.167

25.479.228

76%

17%

0%

7%

100%

Percentage

Current accounts with Bank Indonesia Current accounts with other banks

Placements with Bank Indonesia and other banks Derivatives receivable Acceptance receivable Securities purchased under agreement to resell Loans Securities Other asset Commitments and contingencies with credit risk Total

31 Desember/December 31, 2014 Pemerintah dan Bank Indonesia/ Government and Bank Indonesia

Korporasi/ Corporates

Giro pada Bank Indonesia Giro pada bank-bank lain Penempatan pada Bank Indonesia dan bank-bank lain Tagihan derivatif Tagihan akseptasi Efek-efek yang dibeli dengan janji dijual kembali Kredit yang diberikan Efek-efek Aset lain-lain Komitmen dan kontinjensi dengan risiko kredit Total Persentase

Bank/ Banks

Ritel/Retail

Total

-

1.425.155 -

43.324

-

1.425.155 43.324

8.005

2.784.797 -

540.000 849 52.739

-

3.324.797 849 60.744

13.861.748 231 83.420

268.324 232.411 6.255

-

1.244.372 13.717

268.324 15.106.120 232.642 103.392

90.117

-

-

-

90.117

14.043.521

4.716.942

636.912

1.258.089

20.655.464

68%

23%

3%

6%

100%

Placements with Bank Indonesia and other banks Derivatives receivable Acceptance receivable Securities purchased under agreement to resell Loans Securities Other asset Commitments and contingencies with credit risk Total Percentage

Konsentrasi risiko kredit dari kredit yang diberikan berdasarkan jenis kredit, valuta dan sektor ekonomi diungkapkan pada Catatan 12.

Concentration of credit risk of loans by type of loans, currency and economic sector is disclosed in Note 12.

Stress Testing

Stress Testing

Stress Testing adalah metode pengukuran risiko dengan memperkirakan potensi kerugian ekonomi Bank berdasarkan kondisi pasar abnormal untuk memastikan sensitivitas kinerja Bank terhadap perubahan faktor risiko dan mengidentifikasi faktor yang mempengaruhi dan berdampak pada pendapatan dan modal Bank secara signifikan

Stress Testing is a method of risk measurement by estimating the potential economic loss to the Bank under abnormal market conditions in order to ascertain the sensitivity of the Bank’s performances to changes in risk factors and to identify influencing factors that significantly impact the Bank’s revenue and capital.

55




DAN

3.



Stress Testing (lanjutan)

Stress Testing (continued)

Dalam menghadapi kondisi fluktuasi nilai tukar rupiah terhadap Dolar Amerika Serikat, Bank telah melakukan stress test terhadap nasabah wholesale yang memiliki eksposur kredit valas dengan melakukan beberapa skenario kurs.

In facing with the fluctuation of rupiah exchange rate to United States Dollar, Bank has conducted stress test to wholesale customers who have foreign currency credit exposure by conducting several exchange rate scenarios.

c. Risiko Pasar

c.

Market Risk

Risiko pasar adalah risiko yang timbul dari pergerakan variabel pasar dalam portofolio yang dimiliki oleh Bank yang dapat menimbulkan kerugian bagi Bank (adverse movement). Variabel pasar didefinisikan sebagai suku bunga dan nilai tukar termasuk derivatif dari kedua jenis risiko ini. Tujuan dari manajemen risiko pasar adalah untuk mengelola dan mengendalikan eksposur risiko pasar dalam parameter yang dapat diterima, dan secara bersamaan mengoptimalkan hasil pengembalian atas risiko yang diterima.

Market Risk is the risk arising from movement in market variables in portfolios held by the Bank that could incur losses for the Bank (adverse movements). Market variables are defined as interest rates and exchange rates including derivatives of these two type of risks. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return on risk.

ALCO Bank yang beranggotakan Direksi dan beberapa anggota manajemen senior bertanggungjawab untuk menetapkan kebijakan dan strategi pengelolaan risiko tingkat suku bunga di banking book, serta mengawasi penerapan dan pelaksanaannya. Tujuan utama ALCO adalah untuk mengoptimalkan hasil usaha Bank dengan tetap memperhatikan limit risiko yang telah ditetapkan.

The Bank’s ALCO, which consists of the Board of Directors and selected members of senior management, is responsible for determining interest rate risk management policies and strategies in banking book and monitoring its implementation and execution. The main objective of ALCO is to optimize the Bank’s return within predetermined risk limits.

Secara keseluruhan, risiko pasar dibagi dalam risiko-risiko berikut:

In overall, market risk is divided into the following risks: -

- Risiko mata uang

Currency risk

Bank memiliki eksposur risiko mata uang akibat adanya transaksi dalam valuta asing. Bank memonitor risiko konsentrasi yang terjadi untuk setiap valuta sehubungan dengan penjabaran transaksi dan aset dan liabilitas moneter dalam valuta asing ke dalam Rupiah.

The Bank is exposed to currency risk through transaction in foreign currencies. The Bank monitors any concentration risk in relation to any individual currency in regard to the translation of foreign currency transactions and monetary assets and liabilities into Rupiah.

Agar sejalan dengan risk appetite yang telah ditetapkan oleh Bank, maka kegiatan propierty trading tidak diperkenankan. Pengelolaan posisi valuta asing Bank dilakukan dengan cara mengendalikan Posisi Devisa Neto (“PDN”) Bank secara keseluruhan.

To align with the risk appetite set by the Bank, hence propierty trading activity is not allowed. The Bank’s foreign currency position management is conducted by managing the Bank’s overall Net Foreign Exchange Position (“NOP”).

56




DAN

3.

c. Risiko Pasar (lanjutan)

FINANCIAL RISK MANAGEMENT CAPITAL MANAGEMENT (continued)

AND

c. Market Risk (continued) The management of currency risk is supplemented by monitoring the sensitivity of the Bank’s net open position to various currency exchange rate scenarios on a quarterly basis. Standard scenarios that are considered include a 4% movement in average foreign currencies against Rupiah, which according to management’s assessment, is relevant to assess its significance to the Bank’s financial results. The analysis (unaudited) are as follows:

Pengelolaan risiko mata uang dilengkapi dengan pemantauan sensitivitas posisi devisa neto Bank terhadap berbagai skenario kurs mata uang yang ditelaah secara triwulanan. Skenario standar yang dipertimbangkan meliputi perubahan nilai tukar rata-rata valuta asing terhadap Rupiah sebesar 4%, yang menurut penilaian manajemen, relevan untuk menilai signifikansinya terhadap hasil usaha Bank. Analisa tersebut (tidak diaudit) adalah sebagai berikut: 4% kenaikan/ increase *)

4% penurunan/ decrease **)

(289) (153)

289 153

Sensitivitas terhadap laba rugi Per 31 Desember 2015 Per 31 Desember 2014

Sensitivity to profit or loss For the year ended December 31, 2015 For the year ended December 31, 2014

*) Kurs valuta asing rata-rata meningkat terhadap Rupiah/Average foreign exchange rates are appreciated against Rupiah. **) Kurs valuta asing rata-rata menurun terhadap Rupiah/Average foreign exchange rates are depreciated against Rupiah. 31 Desember/December 31, 2015

Valuta

Keseluruhan (laporan posisi keuangan dan rekening administratif) Euro Eropa Dolar Amerika Serikat Dolar Australia Dolar Singapura Dolar Hong Kong Yen Jepang Dolar Selandia Baru Swiss Perancis Poundsterling Inggris Riyal Qatar Baht Total

Aset/Assets

Liabilitas/ Liabilities

Posisi Devisa Neto (nilai absolut)/ Net Open Position (absolute amount)

Currencies

48.199 8.520.351 54.595 223.941 895 3.498 127 345

47.267 8.515.738 53.886 224.315 927 3.114 172

932 4.613 709 374 32 384 127 173

30.467 197 498

29.879 93 -

588 104 498 8.534

Aggregate (statement of financial position and administrative accounts) European Euro United States Dollar Australian Dollar Singapore Dollar Hong Kong Dollar Japanese Yen New Zealand Dollar Swiss Frenc Great British Poundsterling Qatari Riyal Baht Thailand Total

3.225.289

Total capital (Note 3f)

0,26%

NOP ratio

Total modal (Catatan 3f) Rasio PDN

57




DAN

3.


FINANCIAL RISK MANAGEMENT AND CAPITAL MANAGEMENT (continued) c. Market Risk (continued)

31 Desember/December 31, 2014

Valuta

Liabilitas/ Liabilities

Aset/Assets

Keseluruhan (laporan posisi keuangan dan rekening administratif) Euro Eropa Dolar Amerika Serikat Dolar Australia Dolar Singapura Dolar Hong Kong Yen Jepang Dolar Selandia Baru Swiss Perancis

Posisi Devisa Neto (nilai absolut)/ Net Open Position (absolute amount)

64.796 7.372.088 76.790 217.756 844 1.060 87 310

64.918 7.375.996 76.937 217.732 817 997 155

122 3.908 147 24 27 63 87 155

2.198 242

2.177 --22222227

21 215 4.769

Aggregate (statement of financial position and administrative accounts) European Euro United States Dollar Australian Dollar Singapore Dollar Hong Kong Dollar Japanese Yen New Zealand Dollar Swiss Frenc Great British Poundsterling Qatari Riyal Total

2.203.577

Total capital (Note 3f)

0,22%

NOP ratio

Poundsterling Inggris Riyal Qatar Total Total modal (Catatan 3f) Rasio PDN

-

Currencies

-

Risiko tingkat suku bunga

Interest rate risk

Kegiatan usaha Bank dipengaruhi oleh risiko fluktuasi suku bunga terhadap aset berbunga dan liabilitas berbunga (bukan untuk tujuan diperdagangkan) yang memiliki jatuh tempo atau re-price pada saat yang berbeda-beda atau dalam jumlah yang beragam.

The Bank’s operations are subject to the risk of interest rate fluctuations to the extent that interest-earning assets and interest-bearing liabilities (not for trading purpose) mature or re-price at different times or in different amounts.

Tabel di bawah ini menyajikan aset berbunga dan liabilitas berbunga (bukan untuk tujuan diperdagangkan) Bank pada nilai tercatat, yang dikategorikan menurut mana yang terlebih dahulu antara tanggal re-pricing atau tanggal jatuh tempo kontraktual:

The table below summarizes the Bank’s interest-earning assets and interest-bearing liabilities (not for trading purpose) at carrying amounts, categorized by the earlier of contractual re-pricing or maturity dates:

31 Desember/December 31, 2015 Suku bunga mengambang/ Floating rate

Suku bunga tetap/Fixed rate

_

________________

Nilai tercatat/ Carrying ≤ 3 bulan/ amount months Penempatan pada Bank Indonesia dan bank-bank lain Efek-efek yang dibeli dengan janji dijual kembali Kredit yang diberikan Efek-efek

Simpanan dari nasabah Simpanan dari bank-bank lain Pinjaman Subordinasi

> 3 - 12 bulan/ months

>1-2 tahun/ years

> 2 tahun/ years

≤ 3 bulan/ months


>1-2 tahun/ years

> 2 tahun/ years

2.111.813

-

-

-

-

2.111.813

-

-

269.117 20.788.304 325.444

263.367 -

771.379 -

570.699 -

4.259.124 -

269.117 2.170.608 -

5.170.556 69

319.676 73.994

Placements with Bank Indonesia and other banks Securities purchased under agreement to resell 7.262.895 Loans 251.381 Securities

23.494.678

263.367

771.379

570.699

4.259.124

4.551.538

5.170.625

393.670

7.514.276

18.509.008

-

-

-

-

17.841.843

499.555

167.610

-

3.179.111 964.950

-

-

-

-

3.179.111 -

-

-

964.950

22.653.069

-

-

-

-

21.020.954

499.555

167.610

964.950

841.609

263.367

771.379

570.699

4.259.124

4.671.070

226.060

6.549.326

58

(16.469.416)

-

Deposits from customers Deposits from other banks Subordinated Loan




DAN

3.


FINANCIAL RISK MANAGEMENT AND CAPITAL MANAGEMENT (continued) c. Market Risk (continued)

31 Desember/December 31, 2014 Suku bunga mengambang/ Floating rate

Suku bunga tetap/Fixed rate

_

________________

Nilai tercatat/ Carrying ≤ 3 bulan/ amount months Penempatan pada Bank Indonesia dan bank-bank lain Efek-efek yang dibeli dengan janji dijual kembali Kredit yang diberikan Efek-efek

Simpanan dari nasabah Simpanan dari bank-bank lain


>1-2 tahun/ years

> 2 tahun/ years

≤ 3 bulan/ months


>1-2 tahun/ years

> 2 tahun/ years

3.324.797

-

-

-

-

3.324.797

-

-

268.324 15.093.659 232.642

268.151 -

851.295 -

30.866 -

2.426.086 -

268.324 1.317.458 183.834

4.351.878 48.577

528.207 69

Placements with Bank Indonesia and other banks Securities purchased under agreement to resell 5.319.718 Loans 162 Securities

18.919.422

268.151

851.295

30.866

2.426.086

5.094.413

4.400.455

528.276

5.319.880

-

-

-

-

-

-

-

-

-

528.276

5.319.880

(16.161.710) (3.145.962) (1.863.330)

(12.486.860)

(3.580)

-

-

-

(1.859.750)

(18.025.040) (3.149.542)

-

-

-

(14.346.610)

894.382 (2.881.391)

851.295

30.866

2.426.086

(9.252.197)

(528.888) (528.888) 3.871.567

-

Deposits from customers Deposits from other banks

Untuk mengurangi risiko tingkat suku bunga yang ditimbulkan oleh kredit yang diberikan dengan suku bunga tetap, berdasarkan perjanjian kredit dengan debitur/ nasabah, Bank berhak mengubah besaran suku bunga sewaktu-waktu atas dasar pertimbangan Bank, kecuali untuk kredit-kredit tertentu yang telah ditetapkan jangka waktu re-pricing.

To mitigate the interest rate risk arising from fixed rate loans, based on the loan agreements with the debtors/customers, the Bank has the rights to change the interest rates at any time at its discretion, except for certain loans which repricing period have been determined.

Secara umum, Bank sensitif terhadap liabilitas karena aset berbunga memiliki jangka waktu jatuh tempo yang lebih panjang dan frekuensi re-price yang lebih jarang dibandingkan liabilitas berbunga. Hal ini berarti dalam kondisi suku bunga yang meningkat, marjin yang dihasilkan akan mengecil sejalan dengan reprice liabilitas. Namun demikian, dampak aktual akan dipengaruhi oleh sejumlah faktor, termasuk pembayaran yang dilakukan sebelum atau setelah tanggal jatuh tempo kontraktual dan perpanjangan simpanan dari nasabah secara berkesinambungan pada saat jatuh tempo (roll-over).

In general, the Bank is liability sensitive because its interest-earning assets have a longer duration and being repriced less frequently than interestbearing liabilities. This means that in rising interest rate environment, margin earned will narrow as liabilities reprice. However, the actual effect will depend on a number of factors, including the extent to which repayments are made earlier or later than the contractual maturity dates and extension of customer deposits on a roll-over basis.

59




DAN

3.



c. Market Risk (continued) Tahun yang berakhir pada tanggal 31 Desember/ Year ended December 31 2015 2014 Kontraktual/ Kontraktual/ Efektif/Effective Efektif/Effective Contractual Contractual

Aset Rupiah: Penempatan pada Bank Indonesia dan bank-bank lain Bank Indonesia 5,50% Call money Efek-efek yang dibeli dengan janji dijual kembali 6,40% Kredit yang diberikan 0% - 32.98% Efek-efek Sertifikat Bank Indonesia Surat Perbendaharaan Negara Obligasi korporasi 15,25%-15,50% Obligasi Pemerintah 8,25% -11,00% Valuta asing: Penempatan pada Bank Indonesia dan bank-bank lain Bank Indonesia Call money Kredit yang diberikan Efek-efek Obligasi pemerintah Liabilitas Rupiah: Simpanan dari nasabah Giro Tabungan Deposito berjangka dan deposit on call Simpanan dari bank-bank lain Giro Deposito berjangka dan deposit on call Call money Valuta asing: Simpanan dari nasabah Giro Deposito berjangka dan deposit on call Simpanan dari bank-bank lain Call Money Pinjaman Subordinasi

5,50% -

5,75% 6,05% - 6,70%

5,75% 6,06%

6,40% 12,89%

6,65% 0,00% - 31,19%

6,65% 12,54%

15,35% 8,52%

6,90% - 7,15% 6,41% 15,25%-15,50% 15,25%-15,50%

7,07% 6,41% 15,35% 15,35%

0,38% 4,66% - 6,11%

0,38% 5,59%

0,09% - 0,13% 1,49% 4,50% - 6,01%

0,09% 1,49% 5,20%

-

-

-

-

0% - 4,25% 0% - 5,00%

0,81% 1,61%

0,00% - 4,00% 0,00% - 5,25%

0,86% 1,77%

0,25% - 12,00%

9,43%

0,00% - 11,50%

10,00%

0 % - 1,00%

1,86%

0,00% - 4,00%

1,25%

5,50% - 7,00% 7,25% - 8,40%

6,17% 7,89%

6,50% - 7,50% -

2,00% -

0,00% - 1,50%

0,17%

0,00% - 3,50%

0,47%

0,10% - 3,50%

2,14%

0,10% - 5,25%

2,86%

7.25%

7,25%

-

-

Assets Rupiah: Placements with Bank Indonesia and other banks Bank Indonesia Call money Securities purchased under agreement to resell Loans Securities Certificates of Bank Indonesia State Treasury Notes Corporate bonds Government bonds Foreign currencies: Placements with Bank Indonesia and other banks Bank Indonesia Call money Loans Securities Government bonds Liabilities Rupiah: Deposits from customers Current accounts Saving accounts Time deposits and deposit on call Deposits from other banks Demand deposits Time deposits and deposit on call Call money Foregn currencies: Deposits from customers Current accounts Time deposits and deposit on call Deposit from other banks Call money Subordinated Loan

- Interest rate risk (continued)

- Risiko tingkat suku bunga (lanjutan) Analisa sensitivitas atas risiko tingkat suku bunga dan risiko mata uang

Sensitivity analysis currency risk

Pengelolaan risiko tingkat suku bunga dilengkapi dengan pemantauan atas sensitivitas terhadap aset dan liabilitas keuangan Bank yang memiliki tingkat suku bunga mengambang dan tetap terhadap berbagai skenario suku bunga. Skenario standar yang dipertimbangkan secara triwulanan meliputi penurunan atau kenaikan yield curve secara paralel sebesar 100 basis point (bp). Analisa sensitivitas Bank atas kenaikan atau penurunan tingkat suku bunga pasar, dengan asumsi tidak terdapat perubahan asimetris pada yield curve dan posisi keuangan yang konstan, (tidak diaudit) adalah sebagai berikut:

The management of interest rate risk is supplemented by monitoring the sensitivity of the Bank’s financial assets and liabilities which have floating and fixed interest rate to various interest rate scenarios. Standard scenarios that are considered on a quarterly basis include a 100 basis point (bp) parallel fall or rise in all yield curves. An analysis of the Bank’s sensitivity to increase or decrease in market interest rates, assuming no asymmetrical movement in yield curves and a constant financial position, (unaudited) is as follows:

60

on

interest rate and



3. MANAJEMEN RISIKO KEUANGAN MANAJEMEN MODAL (lanjutan)


DAN

3.


c. Market Risk (continued) Sensitivity analysis on interest rate and currency risk (continued)

Analisa sensitivitas atas risiko tingkat suku bunga dan risiko mata uang (lanjutan) 100 bp kenaikan/increase Sensitivitas terhadap pendapatan bunga bersih Per 31 Desember 2015 Per 31 Desember 2014


100 bp penurunan/decrease

(45.673) (20.601)

45.673 20.601

d. Risiko Likuiditas

Sensitivity to net interest income For the year ended December 31, 2015 For the year ended December 31, 2014

d. Liquidity Risk

Risiko Likuiditas adalah risiko yang disebabkan oleh ketidakmampuan Bank untuk menyelesaikan kewajibannya pada saat jatuh tempo. Risiko likuiditas dapat dikategorikan sebagai berikut:

Liquidity Risk is risk caused by inability of the Bank to settle its liabilities at due date. Liquidity risk can be categorised as follows:

•

Risiko Likuiditas-Pasar, yaitu risiko timbul dari ketidakmampuan Bank mengimbangi posisi tertentu dengan pasar karena kondisi likuiditas pasar buruk atau gangguan pasar.

yang untuk harga yang

•

Market-Liquidity Risk, namely arising from the inability of the Bank to offset certain position at market prices due to poor conditions of market liquidity or market disruptions.

•

Risiko Likuiditas Pendanaan, yaitu risiko yang timbul dari ketidakmampuan Bank untuk mengkonversi aset ke kas atau memperoleh pendanaan dari sumber lain

•

Funding Liquidity Risk, namely risk arising from the inability of the Bank to convert assets to cash or obtain funding from other sources

Pengelolaan likuiditas dan manajemen asetliabilitas meliputi pemeliharaan likuiditas di atas tingkat yang aman untuk memastikan bahwa setiap saat kebutuhan dana dapat dipenuhi untuk melunasi liabilitas yang telah jatuh tempo.

Liquidity and asset-liability management include maintaining liquidity above safety level to ensure that funding requirement can be met to pay liabilities which due at any time.

Ketidaksesuaian antara jangka waktu jatuh tempo dana dari pihak ketiga yang pada umumnya lebih pendek dari jatuh tempo kredit yang diberikan akan menyebabkan masalah likuiditas, yang akan mempengaruhi kemampuan Bank dalam memenuhi kewajibannya kepada para nasabah. Hal ini dapat mempengaruhi tingkat kepercayaan masyarakat yang pada akhirnya dapat mempengaruhi kelangsungan usaha Bank.

The mismatch between maturities of funding which in general is shorter than maturity of loans will cause liquidity problems, which will affect the capability of the Bank to meet its obligations to customers. This may influence public’s trust and may affect the going concern of the Bank.

Dalam menghadapi kemungkinan adanya ketidaksesuaian jatuh tempo aset dan liabilitas, manajemen Bank melalui rapat bulanan ALCO melakukan penelaahan atas beberapa hal yang bersifat strategis, antara lain:

To face possibility of assets and liabilities mismatch, the Bank’s management, through monthly ALCO meeting, reviews strategic matters, such as:

1.

1.

2. 3. 4. 5. 6. 7.

Pengelolaan dana yang memiliki jatuh tempo yang tidak sesuai dengan aset; Ketepatan pengelolaan aset dan liabilitas yang sensitif terhadap perubahan suku bunga; Analisa simpanan nasabah yang menggambarkan tren berbagai produk dana pihak ketiga di seluruh Indonesia; Penempatan dana pada portofolio efek-efek; Laporan perkembangan kredit yang telah ada dan yang baru; Strategi penetapan harga sesuai dengan kondisi pasar saat ini; Perbandingan antara target dengan realisasi dana pihak ketiga.

2. 3. 4. 5. 6. 7.

61

Management of fund which has maturities mismatch; Accuracy of management of assets and liabilities which are sensitive to interest rate movement; Customer deposits analysis which describes the trend of all third party fund products throughout Indonesia; Investment in securities portfolio; Existing and new loans progress report; Pricing strategy in accordance with current market condition; Comparison between target and realization of third party fund.




DAN

3.

d. Risiko Likuiditas (lanjutan)

FINANCIAL RISK MANAGEMENT AND CAPITAL MANAGEMENT (continued) d. Liquidity Risk (continued)

Pengelolaan likuiditas Bank ditekankan pada penyesuaian arus kas masuk dan keluar. Kesenjangan arus kas diantisipasi melalui pemeliharaan cadangan likuiditas primer yang memadai sesuai dengan perkiraan arus kas dan struktur liabilitas yang ada. Pemeliharaan cadangan likuiditas primer meliputi pemeliharaan cadangan wajib pada tingkat yang optimal yang ditetapkan Bank Indonesia serta pemeliharaan efek-efek berjangka pendek yang sangat likuid seperti Sertifikat Bank Indonesia dan instrumen operasi moneter Bank Indonesia lainnya. Bank juga memelihara cadangan likuiditas sekunder yang terdiri dari penempatan dana jangka pendek di bank-bank lain serta efek-efek berjangka panjang yang likuid seperti obligasi pemerintah, obligasi bank dan obligasi korporasi yang memiliki peringkat baik. Pengelolaan likuiditas juga dilakukan melalui pengelolaan struktur sumber dana dengan menerapkan limit konsentrasi deposan dan berusaha mengurangi ketergantungannya pada dana mahal seperti deposito berjangka dan menggantinya dengan sumber dana murah seperti giro dan tabungan. Bank juga senantiasa memelihara kemampuannya untuk memiliki akses ke pasar uang dengan selalu memelihara hubungan dengan bank-bank koresponden. Bank juga secara berkala memonitor seluruh keadaan di atas dan mengambil tindakan agar terdapat variasi pendanaan.

The focus of the Bank’s management of liquidity is to match the cash inflows and cash outflows. The gap between cash flows will be anticipated with the proper maintenance of primary liquidity reserve in accordance with proforma cash flows and existing liabilities structure. Maintenance of primary liquidity reserve consists of maintenance of reserve requirement that should be in optimal level based on Bank Indonesia regulation and shortterm highly liquid securities, such as Certificates of Bank Indonesia and other Bank Indonesia monetary operation instruments. The Bank also maintains secondary liquidity reserve, which consists of short- term placements with other banks and liquid longterm securities such as government bonds, private bank bonds and corporate bonds that have good rating. Liquidity management is also conducted through financial resources structure, such as by applying the depositors concentration limit and trying to decrease the dependence on high cost fund such as time deposits and replace it with lower cost fund such as current accounts and saving deposits. The Bank also maintains its ability to access money market by maintaining relationship with correspondent banks. The Bank also regularly monitors all situations above and takes some actions to achieve funding variations.

Eksposur terhadap Risiko Likuiditas

Exposure to Liquidity Risk

Ukuran utama yang digunakan oleh Bank untuk mengelola risiko likuiditas adalah rasio aset likuid bersih terhadap simpanan dari nasabah. Untuk tujuan ini, aset likuid bersih termasuk kas dan setara kas dan efek utang dengan peringkat investasi yang memiliki pasar yang aktif dan likuid, dikurangi simpanan dari bank-bank dan komitmen yang jatuh tempo dalam satu bulan ke depan, jika ada. Pada tanggal 31 Desember 2015 dan 2014, rasio aset likuid bersih terhadap simpanan dari nasabah adalah masing-masing 5,65% dan 8,99%.

The key measure used by the Bank for managing liquidity risk is the ratio of net liquid assets to deposits from customers. For this purpose, net liquid assets are considered as including cash and cash equivalents and investment grade debt securities for which there is an active and liquid market, less any deposits from banks and commitments maturing within the next month, if any. As of December 31, 2015 and 2014, the reported ratios of net liquid assets to deposits from customers were 5.65% and 8.99%, respectively.

31 Desember/December 31 2015

2014

Kas dan setara kas Efek-efek Simpanan dari bank-bank lain

3.899.338 325.444 (3.179.111)

4.845.929 232.642 (1.863.330)

Cash and cash equivalents Securities Deposits from other banks

Total aset likuid neto Simpanan dari nasabah Rasio aset likuid bersih terhadap simpanan dari nasabah

1.045.671 18.509.008

3.215.241 16.161.710

5,65%

19,89%

Total net liquid assets Deposits from customers Ratio of net liquid assets to deposits from customers

62


PT BANK QNB INDONESIA TBK CATATAN ATAS LAPORAN KEUANGAN Tanggal 31 Desember 2015 dan untuk Tahun yang Berakhir pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 3. MANAJEMEN RISIKO KEUANGAN MANAJEMEN MODAL (lanjutan) d.

PT BANK QNB INDONESIA TBK NOTES TO THE FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) DAN

3.

Risiko Likuiditas (lanjutan)

FINANCIAL RISK MANAGEMENT CAPITAL MANAGEMENT (continued) d.

AND

Liquidity Risk (continued)

Bank bergantung pada simpanan dari nasabah dan bank-bank lain sebagai sumber utama pendanaannya yang secara umum memiliki periode jatuh tempo yang lebih singkat dan sebagian besar merupakan liabilitas yang harus dibayarkan segera. Simpanan-simpanan yang memiliki jangka waktu jatuh tempo yang singkat ini meningkatkan risiko likuiditas Bank dan Bank secara aktif mengelola risiko ini dengan memelihara tingkat harga yang kompetitif dan pengawasan tren pasar secara berkesinambungan.

The Bank relies on deposits from customers and other banks as its primary sources of funding which generally have shorter maturities and a large proportion of them are repayable on demand. The short-term nature of these deposits increases the Bank’s liquidity risk and the Bank actively manages this risk through maintaining competitive pricing and constant monitoring of market trends.

Sumber pendanaan jangka pendek tersebut senantiasa diperpanjang secara otomatis sehingga dapat mengurangi selisih/gap dari jatuh tempo antara aset dan liabilitas.

Short-term funding source is constantly made an automatic renewal, so it can reduce the difference/gap of maturities between assets and liabilities.

Sisa umur kontraktual liabilitas keuangan sampai dengan jatuh tempo pada tanggal 31 Desember 2015 dan 2014 adalah sebagai berikut:

Residual contractual maturities of financial liabilities as of December 31, 2015 and 2014 are as follows: 2015

Nilai tercatat/ Carrying amount Liabilitas non-derivatif Simpanan dari nasabah Simpanan dari bank-bank lain Pinjaman Subordinasi

(18.509.008) (3.179.111) (964.950) (22.653.069)

Nilai nominal bruto arus kas masuk (keluar)/ Gross nominal inflow (outflow)

Kurang dari 1 bulan/Less than 1 month

(18.577.337) (3.180.755) (1.367.214)

(6.550.615) (2.627.855) (5.830)

(23.125.306)

(9.184.300)

1 - 3 bulan/ months

(11.359.557) (552.900) (11.660) (11.924.117)


(667.165) (1.349.724)

Non-derivative liabilities Deposits from customers Deposits from other banks Subordinated Loan

(2.016.889)

2014

Nilai tercatat/ Carrying amount Liabilitas non-derivatif Simpanan dari nasabah Simpanan dari bank-bank lain

Nilai nominal bruto arus kas masuk (keluar)/ Gross nominal inflow (outflow)

Kurang dari 1 bulan/Less than 1 month

1 - 3 bulan/ months


(16.161.710) (1.863.330)

(16.230.644) (1.870.383)

(12.943.529) (5.657)

(2.758.227) -

(528.888) (1.864.726)

(18.025.040)

(18.101.027)

(12.949.186)

(2.758.227)

(2.393.614)

Non-derivative liabilities Deposits from customers Deposits from other banks

Tabel di atas menyajikan arus kas yang tidak didiskontokan dari liabilitas keuangan Bank berdasarkan periode jatuh tempo kontraktual yang paling dekat. Arus kas atas instrumen keuangan yang diharapkan Bank bervariasi secara signifikan dari analisa ini. Sebagai contoh, simpanan dari nasabah diharapkan memiliki saldo yang stabil atau meningkat.

The above table shows the undiscounted cash flows on the Bank’s financial liabilities on the basis of their earliest possible contractual maturity. The Bank’s expected cash flows on these instruments vary significantly from this analysis. For example, deposits from customers are expected to maintain a stable or increasing balance.

Nilai nominal arus kas masuk (keluar) yang diungkapkan pada tabel di atas menyajikan arus kas kontraktual yang tidak didiskontokan terkait dengan nilai pokok dan bunga dari liabilitas keuangan.

The nominal inflow (outflow) disclosed in the above table represents the contractual undiscounted cash flows relating to the principal and interest on the financial liability.

63




3. FINANCIAL RISK MANAGEMENT AND CAPITAL MANAGEMENT (continued)

d. Risiko Likuiditas (lanjutan)

d. Liquidity Risk (continued)

Analisa jatuh tempo aset dan liabilitas keuangan

Maturity gap analysis of financial assets and liabilities

Tabel di bawah menganalisa nilai tercatat aset dan liabilitas keuangan Bank ke dalam kelompok jatuh tempo berdasarkan sisa jangka waktu sampai dengan tanggal jatuh tempo kontraktual pada tanggal 31 Desember 2015 dan 2014:

The table below analyses the carrying amount of financial assets and liabilities of the Bank into maturity time bands based on remaining term to contractual maturity as of December 31, 2015 and 2014: 2015

Nilai tercatat/ Carrying amount Kas Giro pada Bank Indonesia Giro pada bank-bank lain Penempatan pada Bank Indonesia dan bank lain Efek-efek yang dibeli dengan janji dijual kembali Tagihan derivatif Tagihan akseptasi Kredit yang diberikan Efek-efek Aset lain-lain - neto Total aset keuangan Simpanan dari nasabah Simpanan dari bank-bank lain Liabilitas derivatif Liabilitas akseptasi Beban masih harus dibayar dan liabilitas lain-lain Pinjaman Subordinasi Total liabilitas keuangan Selisih

Tanpa tanggal jatuh tempo kontraktual/ No contractual maturity

< 1 bulan/ month

1 - 3 bulan/ months

> 3 - 12 bulan/months

>1-2 tahun/years

> 2 tahun/ years

45.432

45.432

-

-

-

-

-

1.710.947

1.710.947

-

-

-

-

-

31.146

31.146

-

-

-

-

-

2.111.813

-

2.111.813

-

-

-

-

269.117 2.921 61.821 20.788.304 325.444 127.018

127.018

204.484 2.921 49.565 899.520 -

64.633 12.256 1.534.455 -

5.941.935 -

890.375 74.063 -

11.522.019 251.381 -

Cash Current accounts with Bank Indonesia Current accounts with other banks Placements with Bank Indonesia and other banks Securities purchased under agreement to resell Derivatives receivable Acceptances receivable Loans Securities Other assets - net

25.473.963

1.914.543

3.268.303

1.611.344

5.941.935

964.438

11.773.400

Total financial assets

(18.509.008)

(2.010.849)

(4.471.437)

(11.359.557)

(3.179.111) (661) (61.821 )

(4.256) -

(2.621.955) (661 ) (49.565)

(552.900 ) (12.256)

(70.470) (964.950 )

(70.470) -

(22.786.021)

(2.085.575)

(7.143.618)

(11.924.713)

(171.032 )

(3.875.315)

(10.313.369)

2.687.942

-

(49.555)

(167.610 )

-

-

-

-

(499.555 ) 5.442.380

(167.610 ) 796.828

-

Deposits from customers

-

Deposits from other banks Derivatives payable Acceptances payable

(964.950 )

Accruals and other liabilities Subordinated Loan

(964.950 )

Total financial liabilities

10.808.450

Difference

2014

Nilai tercatat/ Carrying amount Kas Giro pada Bank Indonesia Giro pada bank-bank lain Penempatan pada Bank Indonesia dan bank lain Efek-efek yang dibeli dengan janji dijual kembali Tagihan derivatif Tagihan akseptasi Kredit yang diberikan Efek-efek Aset lain-lain - neto Total aset keuangan Simpanan dari nasabah Simpanan dari bank-bank lain Liabilitas derivatif Liabilitas akseptasi Beban masih harus dibayar dan liabilitas lain-lain Total liabilitas keuangan Selisih

Tanpa tanggal jatuh tempo kontraktual/ No contractual maturity

< 1 bulan/ month

1 - 3 bulan/ months

> 3 - 12 bulan/months

>1-2 tahun/years

> 2 tahun/ years

52.653

52.653

-

-

-

-

-

1.425.155

1.425.155

-

-

-

-

-

43.324

43.324

-

-

-

-

-

3.324.797

-

3.324.797

-

-

-

-

268.324 849 60.744 15.093.659 232.642 103.392

-

268.324 849 4.599 311.308 47.695 98.717

11.824 1.274.302 136.138 -

44.321 5.203.172 48.578 -

559.074 69 -

7.745.803 162 4.675

Cash Current accounts with Bank Indonesia Current accounts with other banks Placements with Bank Indonesia and other banks Securities purchased under agreement to resell Derivatives receivable Acceptances receivable Loans Securities Other assets - net

20.605.539

1.521.132

4.056.289

1.422.264

5.296.071

559.143

7.750.640

Total financial assets

(16.161.710)

(3.145.962)

(9.728.633)

(2.758.227)

(528.888 )

-

-

Deposits from customers

(1.863.330) (1.371) (60.744)

(3.580) -

(2.000) (1.371) (4.599)

(1.857.750) (11.823)

(44.322)

-

-

Deposits from other banks Derivatives payable Acceptances payable

(69.958)

(69.958)

-

-


(18.157.113)

(3.219.500)

(9.736.603)

(4.627.800)

-

-

Total financial liabilities

2.448.426

(1.698.368)

(5.680.314)

(3.205.536)

559.143

7.750.640

Difference

-

-

64

-

(573.210 ) 4.722.861




3.

e. Risiko Operasional


AND

e. Operational Risk

Risiko operasional adalah risiko yang disebabkan oleh antara lain ketidakcukupan dan/atau tidak berfungsinya proses internal, kesalahan manusia, kegagalan sistem atau adanya masalah eksternal yang mempengaruhi operasional Bank.

Operational Risk is the risk caused by among others by inadequacy and/or dysfunction of internal processes, human error, system failure or external problems affecting the operations of the Bank.

Kebijakan dan prosedur yang terkait dengan pengelolaan risiko operasional termasuk kebijakan pengendalian minimum standar telah diterbitkan, ditelaah dan diperbaharui secara berkesinambungan untuk memastikan kecukupan mekanisme pengendalian pada semua kebijakan dan prosedur Bank. Bank secara aktif melakukan program sosialisasi untuk mengembangkan risk awareness dan meningkatkan pengendalian terhadap kualitas dalam rangka menurunkan tingkat risiko operasional.

The related policy and procedures for the management of operational risk including the standard minimum controls policies are issued, reviewed and improved continuously to ensure the adequacy of control mechanisms in all of the Bank’s policies and procedures. The Bank actively conducts the socialization program to develop risk awareness and quality control to mitigate the operational risk.

Dalam rangka memitigasi risiko operasional, Bank telah menyusun dan menerapkan kebijakan anti-fraud untuk meminimisasi potensi kecurangan (fraud), yang akan menyebabkan kerugian Bank, baik dikarenakan kecurangan eksternal maupun internal.

In order to mitigate operational risks, the Bank has developed and enforced anti-fraud policy to minimize potential of fraud, which led to the Bank’s losses, either caused by external or internal fraud.

Sebagai bagian dari penerapan kebijakan antifraud tersebut, Bank telah membentuk suatu Komite Pemantau Anti-Fraud dan Anti-Fraud Task Force.

As part of the implementation of the anti-fraud policy, the Bank has established Anti-Fraud Oversight Committee and Anti-Fraud Task Force.

Selain itu, Bank telah mengembangkan sebuah Risk & Control Self Assessment (RCSA) sebagai tools identifikasi risiko operasional dan mitigasi risiko operasional. RCSA telah dilakukan untuk beberapa unit baik di cabang maupun di kantor pusat. Secara berkala RCSA akan senantiasa dipantau perkembangannya dan disempurnakan mengikuti perkembangan bisnis Bank. Selanjutnya RCSA akan dikembangkan ke seluruh unit kerja di Bank dan secara berkala diterapkan.

Beside that, Bank has developed Risk & Control Self Assessment (RCSA) as tools to identify and mitigate operational risk. RCSA has been conducted for number of units both in the branches as well as in the head office. RCSA development will be periodically monitored and improved following business development of the Bank. RCSA will also be developed across the Bank and periodically be implemented.

Business Continuity Management (BCM)

Business Continuity Management (BCM)

BCM adalah proses manajemen menyeluruh yang mengidentifikasikan dampak potensial yang mengancam organisasi dan menyediakan kerangka kerja untuk membangun ketahanan dan kemampuan dengan respon yang efektif yang menjaga kepentingan stakeholder, reputasi, brand dan aktivitas penciptaan nilai.

BCM is a holistic management process that identifies potential impacts that threaten an organization and provides a framework for building resilience and the capability to respond effectively safeguard the interests of the stakeholders, reputation, brand and value creating activities.

65




3.

e. Risiko Operasional (lanjutan)


AND

e. Operational Risk (continued) The goal of the application of BCM is to:

Sasaran dari penerapan BCM adalah untuk: 1.

Memastikan kelanjutan proses dari fungsi/unit yang kritikal sesuai dengan toleransi waktu yang telah ditetapkan saat terjadi krisis atau bencana;

1.

Ensure the continuing process of critical function/unit in accordance with a predetermined tolerance time during a crisis or disaster;

2.

Memastikan setiap fungsi/unit yang kritikal memiliki startegi pemulihan yang sesuai dan dapat dimplementasikan saat terjadi krisis atau bencana

2.

Ensure each critical function/unit has the appropriate recovery strategies and can be implemented during a crisis or disaster;

3.

Memastikan ketersediaan sumber daya manusia dan material yang dibutuhkan oleh bank dalam menjalankan bisnis saat terjadi krisis atau bencana;

3.

Ensure the availability of human and material resources required by the bank to continue run the business in the event of a crisis or disaster;

4.

Meningkatkan kesadaran karyawan untuk selalu siap dalam menghadapi kondisi krisis atau bencana;

4.

Increase awareness of employees to always be prepared to deal with a crisis situation or disaster;

5.

Menjaga sumber daya utama yang dibutuhkan dalam mendukung pemulihan aktivitas Bank;

5.

Keeping the main resources required to support the recovery of the Bank's activities;

6.

Mengurangi dampak terhadap layanan Bank;

6.

Reduce the services;

7.

Mengurangi risiko reputasi;

7.

Reducing the risk of reputation;

8.

Meningkatkan kepercayaan publik dan sistem keuangan makro;

8.

Improve public confidence and macro financial system;

9.

Meningkatkan ketahanan kemampuan pemulihannya; dan

9.

Increasing the resilience or recovery capability, and

atau

impact

on

the

Bank's

10. Menjaga eksistensi Bank.

10. Maintain the existence of the Bank.

Penerapan program-program terkait BCM di Bank melibatkan seluruh komponen dan mendapat dukungan penuh dari manajemen sejak dari tahap perencanaan, penyusunan, pemeliharaan, pengawasan sampai penyempurnaannya.

The implementation of programs related to BCM at Bank involve all components and have the full support of management since the planning stage, the preparation, maintenance, supervision until perfected.

f. Manajemen Modal

f. Capital Management

Bank diwajibkan untuk mentaati peraturan Bank Indonesia (“PBI”) yang berlaku dalam hal modal yang diwajibkan regulator. Pendekatan Bank terhadap pengelolaan modal ditentukan oleh strategi dan persyaratan organisasi Bank, dengan mempertimbangkan peraturan, serta keadaan ekonomi dan komersial.

The Bank is required to comply with prevailing Bank Indonesia Regulation (“PBI”) regulation in respect of regulatory capital. The Bank’s approach to capital management is driven by the Bank’s strategic and organizational requirements, taking into account the regulatory, economic and commercial environment.

Bank menghitung kebutuhan modal berdasarkan PBI yang berlaku dimana modal yang diwajibkan regulator Bank dianalisa dalam dua tier:

The Bank calculates its capital requirements using the prevailing PBI where the Bank’s regulatory capital is analyzed into two tiers:

66




3.

f. Manajemen Modal (lanjutan)


AND

f. Capital Management (continued)

•

Modal tier 1, meliputi modal ditempatkan dan disetor penuh, cadangan umum dan wajib, saldo laba dan laba tahun berjalan.

•

Tier 1 capital, which includes issued and fully paid share capital, general and legal reserve, retained earnings and profit for the year.

•

Modal tier 2, meliputi instrumen modal dalam bentuk saham atau lainnya yang memenuhi persyaratan, cadangan umum asset produktif

•

Tier 2 capital, which includes capital instruments in the form of shares or others that fulfills terms, provision for productive asset

Bank tidak mempunyai modal tambahan lain yang memenuhi kriteria modal tier 3 sesuai dengan PBI yang berlaku.

The Bank does not have any other supplementary capital which meets the criteria of tier 3 capital under prevailing PBI.

Berbagai batasan telah diterapkan untuk menentukan komponen modal yang diwajibkan oleh regulator. Pengaruh dari pajak tangguhan telah dikeluarkan dalam menentukan jumlah saldo laba untuk menghitung modal tier 1; 100 persen laba tahun berjalan sebelum aset pajak tangguhan yang dapat diperhitungkan dalam modal tier 1; dan modal tier 2 tidak boleh melebihi modal tier 1. Juga terdapat batasan jumlah cadangan umum aset produktif yang boleh dimasukkan sebagai bagian dari modal tier 2.

Various limits are applied to elements of the regulatory capital. The effect of deferred taxation has been excluded in determining the amount of retained earnings for tier 1 capital; 100 percent of the profit for the year before deferred taxation asset being included in tier 1 capital; and qualifying tier 2 capital cannot exceed tier 1 capital. There is also a restriction on the amount of general allowance for productive assets that may be included as part of tier 2 capital.

Aktiva Tertimbang Menurut Risiko (“ATMR”) Bank ditentukan berdasarkan persyaratan yang telah ditentukan yang mencerminkan berbagai tingkatan risiko yang terkait dengan aset dan eksposur yang tidak tercermin dalam laporan posisi keuangan. Berdasarkan PBI, Bank diharuskan untuk mempertimbangkan risiko kredit, risiko pasar dan risiko operasional dalam mengukur ATMR Bank.

The Bank’s risk weighted assets (“RWA”) are determined according to specified requirements that seek to reflect the varying levels of risk attached to assets and exposures not recognized in the statement of financial position. Based on PBI, the Bank needs to take into consideration its credit risk, market risk and operational risk in measuring the RWA.

Kebijakan bank adalah menjaga modal yang kuat untuk menjaga kepercayaan pemodal, kreditur dan pasar dan untuk mempertahankan perkembangan bisnis di masa depan. Pengaruh tingkat modal terhadap tingkat pengembalian ke pemegang saham juga diperhitungkan dan Bank juga memahami perlunya menjaga keseimbangan antara tingkat pengembalian yang tinggi, yang dimungkinkan dengan gearing yang lebih besar serta keuntungan-keuntungan dan tingkat keamanan yang didapat dari posisi modal yang kuat.

The Bank’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The impact of the level of capital on shareholders’ return is also recognized and the Bank also recognizes the need to maintain a balance between the higher returns that might be possible with greater gearing and the advantages and security level afforded by a strong capital position.

Bank telah mematuhi semua persyaratan modal yang ditetapkan oleh pihak eksternal sepanjang tahun.

The Bank has complied with all externally imposed capital requirements throughout the year.

67




3.

f. Manajemen Modal (lanjutan)

f.

2015

Total modal yang diwajibkan regulator Aset tertimbang menurut risiko Risiko kredit Risiko pasar Risiko operasional Total aset tertimbang menurut risiko Rasio kewajiban penyediaan modal untuk risiko kredit dan risiko operasional Rasio kewajiban penyediaan modal minimum untuk risiko kredit, pasar dan operasional Rasio kewajiban penyediaan modal minimum yang diwajibkan

2.086.745 1.138.543 3.225.288

2.060.336 143.241 2.203.577

19.203.194 8.534 719.834 19.931.562

14.130.136 4.769 461.610 14.596.515

Risk weighted assets Credit risk Market risk Operational risk Total risk weighted assets

16.19%

15,10%(

Capital adequacy ratio for credit risk and operational risk

16.18%

15,10%(

Capital adequacy ratio for credit risk, market risk and operational risk

8.00%

8,00%(

Required capital adequacy ratio

31 Desember 2014 Efek-efek yang dibeli dengan janji dijual kembali

269.117

268.324

Total regulatory capital

g. Offsetting financial asset and liabilities Information about rights of offset and related arrangements (such as collateral posting requirements) for financial instruments under and enforceable master netting agreements or similar arrangements disclosed in the following tables:

Informasi tentang hak untuk membukukan saling hapus dan perjanjian (seperti persyaratan jaminan) terkait instrumen keuangan yang memiliki perjanjian utama atau sejenis disajikan pada tabel berikut:

31 Desember 2015 Efek-efek yang dibeli dengan janji dijual kembali

Tier 1 capital Tier 2 capital

Management uses regulatory capital ratios in order to monitor its capital base, and these capital ratios remain the industry standards for measuring capital adequacy. BI’s approach to such measurement is primarily based on monitoring the relationship of the capital resources requirement based on risk profile to available capital resources.

g. Saling hapus aset dan liabilitas keuangan

Aset keuangan yang diakui pada akhir periode pelaporan

Capital Management (continued)

2014

Manajemen menggunakan rasio modal yang diwajibkan regulator untuk memantau modal dan rasio-rasio modal ini tetap menjadi standar industri untuk mengukur kecukupan modal. Pendekatan BI untuk pengukuran ini terutama berdasarkan pemantauan terhadap hubungan antara modal yang diwajibkan berdasarkan profil risiko terhadap modal yang tersedia.

Nilai tercatat bruto (sebelum offsetting)/ Gross carrying amount (before offsetting)

AND

The table below shows the Bank’s capital and capital adequacy ratio as of December 31, 2015 and 2014 are as follows:

Tabel di bawah ini menunjukkan modal dan rasio kewajiban penyediaan modal minimum Bank masing-masing pada tanggal 31 Desember 2015 dan 2014 sebagai berikut:

Modal tier 1 Modal tier 2


Nilai offset bruto sesuai dengan kriteria offsetting/ Gross amount offset in accordance with the offsetting criteria

Nilai neto yang disajikan di laporan posisi keuangan/ Net amount presented in the statement of financial position

-

-

269.117

268.324

68

Efek dari sisa hak untuk offset yang tidak memenuhi kriteria offset/ Effect of remaining rights of offset that do not meet offsetting criteria Nilai wajar Financial collateral/ Fair value of financial collateral

Instrumen keuangan/ Financial instruments

-

-

270.457

269.576

Nilai eksposur neto/ Net exposure

Financial Assets recognized at the end of reporting period

-

December 31, 2015 Securities purchased under agreement to resell

-

December 31, 2014 Securities purchased under agreement to resell



PENGGUNAAN PERTIMBANGAN

ESTIMASI


DAN

4. USE OF ESTIMATES AND JUDGMENTS

Pengungkapan ini merupakan tambahan atas pembahasan tentang manajemen risiko keuangan (Catatan 3).

These disclosures supplement the commentary on financial risk management (Note 3).

a.

a.

Sumber utama atas ketidakpastian estimasi (i)

Key sources of estimation uncertainty (i)

Cadangan kerugian penurunan nilai aset keuangan

Allowances for financial assets

impairment

losses

of

Evaluasi atas kerugian penurunan nilai aset keuangan yang dicatat pada biaya perolehan diamortisasi dijelaskan di Catatan 2o.

Financial assets accounted for at amortized cost are evaluated for impairment on a basis described in Note 2o.

Cadangan kerugian penurunan nilai terkait dengan pihak lawan spesifik dalam seluruh cadangan kerugian penurunan nilai dibentuk atas tagihan yang penurunan nilainya dievaluasi secara individual berdasarkan estimasi terbaik manajemen atas nilai tunai arus kas yang diharapkan akan diterima. Dalam mengestimasi arus kas ini, manajemen membuat pertimbangan mengenai kondisi keuangan dari pihak lawan dan nilai bersih yang dapat direalisasi dari agunan yang diterima. Setiap aset yang mengalami penurunan nilai dievaluasi, dan strategi penyelesaiannya serta estimasi arus kas yang dinilai dapat diperoleh kembali secara independen disetujui oleh Departemen Kredit.

The specific counterparty component of the total allowances for impairment applies to claims evaluated individually for impairment and is based upon management’s best estimate of the present value of the cash flows that are expected to be received. In estimating these cash flows, management makes judgments 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 estimate of cash flows considered recoverable are independently approved by the Credit Department.

Evaluasi cadangan kerugian penurunan nilai secara kolektif meliputi kerugian kredit yang melekat pada portofolio tagihan dengan karakteristik ekonomi yang serupa ketika terdapat bukti obyektif bahwa telah terjadi penurunan nilai tagihan dalam portofolio tersebut namun penurunan nilai secara individu belum dapat diidentifikasi. Dalam menentukan perlunya membentuk cadangan kerugian penurunan nilai kredit secara kolektif, manajemen mempertimbangkan faktorfaktor seperti kualitas kredit, besarnya portofolio, konsentrasi kredit dan faktorfaktor ekonomi.

Collectively assessed impairment allowances cover credit losses inherent in portfolios of claims with similar economic characteristics when there is objective evidence to suggest that they contain impaired claims, but the individual impaired items cannot yet be identified. In assessing the need for collective loan loss allowances, management considers factors such as credit quality, portfolio size, credit concentrations and economic factors.

Dalam mengestimasi cadangan yang dibutuhkan, asumsi-asumsi dibuat untuk menentukan model kerugian bawaan dan untuk menentukan parameter input yang diperlukan, berdasarkan pengalaman historis dan kondisi ekonomi saat ini. Ketepatan dari cadangan ini tergantung pada seberapa tepat estimasi arus kas masa depan untuk menentukan cadangan individual serta asumsi model dan parameter yang digunakan dalam menentukan cadangan kolektif.

In order to estimate the required allowance, assumptions are made to define the way inherent losses are modeled and to determine the required input parameters, based on historical experience and current economic conditions. The accuracy of the allowances depends on how well the estimated future cash flows are determined for specific counterparty allowances and the model assumptions and parameters used in determining collective allowances. 69




PENGGUNAAN ESTIMASI DAN PERTIMBANGAN (lanjutan) a. Sumber utama atas ketidakpastian estimasi (lanjutan) (ii) Penentuan nilai wajar Dalam menentukan nilai wajar atas aset keuangan dan liabilitas keuangan dimana tidak terdapat harga pasar yang dapat diobservasi, Bank harus menggunakan teknik penilaian seperti dijelaskan pada Catatan 2f. Untuk instrumen keuangan yang jarang diperdagangkan dan tidak memiliki harga yang transparan, nilai wajarnya menjadi kurang obyektif dan karenanya, membutuhkan tingkat pertimbangan yang beragam, tergantung pada likuiditas, konsentrasi, ketidakpastian faktor pasar, asumsi penentuan harga dan risiko lainnya yang mempengaruhi instrumen tertentu. (iii) Liabilitas imbalan pasca-kerja Penentuan liabilitas imbalan pasca-kerja Bank bergantung pada pemilihan asumsi yang digunakan oleh aktuaris independen dalam menghitung jumlahjumlah tersebut. Asumsi tersebut termasuk antara lain, tingkat diskonto, tingkat kenaikan gaji tahunan, tingkat pengunduran diri karyawan tahunan, tingkat kecacatan, umur pensiun dan tingkat kematian. (iv) Umur ekonomis dan metode depresiasi dari aset tetap Manajemen Bank memperkirakan masa manfaat aset tetap berdasarkan periode dimana aset tetap diharapkan akan tersedia untuk digunakan. Masa manfaat ekonomis aset tetap ditinjau secara berkala dan diperbarui jika memiliki ekspektasi yang berbeda dari perkiraan sebelumnya, karena kerusakan secara fisik dan teknis, atau keusangan secara

4. USE OF ESTIMATES AND JUDGMENTS (continued) a. Key sources of estimation uncertainty (continued) (ii) Determining fair values The determination of fair value for financial assets and liabilities for which there is no observable market price requires the use of valuation techniques as described in Note 2f. For financial instruments that trade infrequently and have little price transparency, fair value is less objective, and requires varying degrees of judgment depending on liquidity, concentration, uncertainty of market factors, pricing assumptions and other risks affecting the specific instrument.

Komersial dan legal atau batasan lainnya atas penggunaan aset tersebut. Selain hal tersebut, estimasi masa manfaat dari aset tetap didasarkan pada penilaian secara kolektif dengan menggunakan praktik industri, teknik evaluasi internal dan pengalaman dengan aset serupa. Tetap dimungkinkan, bagaimanapun, bahwa hasil masa depan dapat secara material dipengaruhi oleh perubahan estimasi yang disebabkan perubahan faktor-faktor tersebut di atas. Jumlah dan saat pencatatan biaya untuk setiap periode akan dipengaruhi oleh perubahan dari faktor dan keadaan saat pencatatan. Pengurangan dari taksiran masa manfaat dari aset tetap akan meningkatkan beban usaha.

Commercial and legal or other limits on the use of the assets. In addition, estimation of the useful lives of fixed assets is based on collective assessment of industry practice, internal technical evaluation and experience with similar assets. It is possible, however, that future results of operations could be materially affected by changes in estimates brought about by changes in the aforementioned factors mentioned. The amounts and timing of recorded expenses for any period are affected by changes of those factors and circumstances during recording. A reduction in the estimated useful lives of fixed assets increases the recorded operating expenses.

(iii)

(iv)

70

Obligation for post-employment benefits The determination of the Bank’s obligation for post-employment benefits is dependent on its selection of certain assumptions used by the independent actuaries in calculating such accounts. Those assumptions include among others, discount rates, annual salary increase rate, annual employee turnover rate, disability rate, retirement age and mortality rate. Useful life and depreciation method of fixed assets The management of Bank estimates the useful lives of fixed assets based on the period over which the assets are expected to be available for use. The estimated useful lives of fixed assets are reviewed periodically and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence



PENGGUNAAN ESTIMASI PERTIMBANGAN (lanjutan)


DAN

4. USE OF ESTIMATES (continued)

b. Pertimbangan akuntansi yang penting dalam menerapkan kebijakan akuntansi Bank

b.

AND

JUDGMENTS

Critical accounting judgments in applying the Bank’s accounting policies

Pertimbangan akuntansi yang penting dalam menerapkan kebijakan akuntansi Bank meliputi:

Critical accounting judgments made in applying the Bank’s accounting policies include:

(i)

(i) Fair value of financial instruments

Nilai wajar dari instrumen keuangan Kebijakan akuntansi Bank untuk pengukuran nilai wajar dibahas di Catatan 2f.

The Bank’s accounting policy on fair value measurements is discussed in Note 2f.

Bank mengukur nilai wajar dengan menggunakan hirarki dari metode berikut:

The Bank measures fair values using the following hierarchy of methods:

•

Tingkat 1: Harga kuotasi di pasar aktif untuk instrumen keuangan yang sejenis.

•

Level 1: Quoted market price in an active market for an identical instrument

•

Tingkat 2: Teknik penilaian berdasarkan input yang dapat diobservasi. Termasuk dalam kategori ini adalah instrument keuangan yang dinilai dengan menggunakan harga kuotasi di pasar aktif untuk instrumen yang sejenis; harga kuotasi untuk instrumen keuangan yang sejenis di pasar yang kurang aktif; atau teknik penilaian lainnya dimana seluruh input signifikan yang digunakan dapat diobservasi secara langsung ataupun tidak langsung dari data yang tersedia di pasar.

•

Level 2: Valuation techniques based on observable inputs. This category includes instruments valued using quoted market prices in active markets for similar instruments; quoted prices for similar instruments in markets that are considered less than active; or other valuation techniques where all significant inputs are directly or indirectly observable from market data.

•

Tingkat 3: Teknik penilaian menggunakan input signifikan yang tidak dapat diobservasi: instrumen keuangan dinilai menggunakan teknik penilaian dimana satu atau lebih input signifikan tidak dapat diobservasi. Kategori ini termasuk instrumen yang diukur berdasarkan harga kuotasi untuk instrumen serupa dimana penyesuaian atau asumsi signifikan yang tidak dapat diobservasi diperlukan untuk mencerminkan perbedaan di antara instrumen tersebut.

•

Level 3: Valuation techniques using significant unobservable inputs: financial instruments valued using valuation techniques where one or more significant inputs are unobservable. This category includes instrument that are valued based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

71



4.

PENGGUNAAN ESTIMASI PERTIMBANGAN (lanjutan) b.


DAN


Pertimbangan akuntansi yang penting dalam menerapkan kebijakan akuntansi Bank (lanjutan) (i) Nilai wajar dari (lanjutan)

b.

JUDGMENTS

Critical accounting judgments in applying the Bank’s accounting policies (continued)

(i) Fair value (continued)

instrumen keuangan

AND

of

financial

instruments

Nilai wajar atas instrumen derivatif yang dinilai menggunakan teknik penilaian dengan menggunakan komponen yang dapat diamati di pasar terutama adalah swap suku bunga, swap mata uang dan kontrak pertukaran mata uang. Teknik penilaian yang paling banyak digunakan meliputi model penilaian forward dan swap yang menggunakan perhitungan nilai kini. Model tersebut menggabungkan berbagai komponen yang meliputi kualitas kredit dari counterparty, nilai spot dan kontrak berjangka serta kurva tingkat suku bunga.

The fair values of derivatives instrument valued by valuation techniques using components which can be observed in the market, primarily are interest rate swaps, currency swaps and currency exchange contracts. Most widely used valuation techniques include forward and swap valuation models which use the present value calculation. The models incorporate various components which include the credit quality of the counterparty, spot value and future contracts and interest rate curve.

Teknik penilaian termasuk model nilai tunai dan arus kas yang didiskontokan, dan perbandingan dengan instrumen yang sejenis dimana terdapat harga pasar yang dapat diobservasi. Asumsi dan input yang digunakan dalam teknik penilaian termasuk suku bunga bebas risiko (risk-free) dan suku bunga acuan, credit spread dan variabel lainnya yang digunakan dalam mengestimasi tingkat diskonto, harga obligasi, kurs valuta asing, serta tingkat kerentanan dan korelasi harga yang diharapkan. Tujuan dari teknik penilaian adalah penentuan nilai wajar yang mencerminkan harga dari instrumen keuangan pada tanggal pelaporan yang akan ditentukan oleh para partisipan di pasar dalam suatu transaksi yang wajar.

Valuation techniques include net present value and discounted cash flow models, and comparison to similar instruments for which market observable prices exist. Assumptions and inputs used in valuation techniques include risk-free and benchmark interest rates, credit spreads and other variables used in estimating discount rates, bond prices, foreign currency exchange rates, and expected price volatilities and correlations. The objective of valuation technique is to arrive at a fair value determination that reflects the price of the financial instrument at the reporting date that would have been determined by market participants acting at arm’s length.

Pada tanggal 31 Desember 2015 dan 2014, pengukuran Bank atas nilai wajar aset keuangan dan liabilitas keuangan yaitu, aset keuangan dan liabilitas keuangan untuk diperdagangkan, dan efek-efek yang tersedia untuk dijual dikategorikan sebagai tingkat 1 dalam hirarki nilai wajar.

As of December 31, 2015 and 2014, the Bank’s measurement of fair value of financial assets and financial liabilities, i.e. financial assets and financial liabilities held for trading, and available-for-sale securities was categorized as level 1 in the fair value hierarchy.

72



PENGGUNAAN ESTIMASI PERTIMBANGAN (lanjutan) b.


DAN


Pertimbangan akuntansi yang penting dalam menerapkan kebijakan akuntansi Bank (lanjutan)

b.

AND

JUDGMENTS

Critical accounting judgments in applying the Bank’s accounting policies (continued) (ii) Financial asset and liability classification

(ii) Klasifikasi aset dan liabilitas keuangan Kebijakan akuntansi Bank memberikan keleluasaan untuk menetapkan aset dan liabilitas keuangan ke dalam berbagai kategori pada saat pengakuan awal sesuai dengan standar akuntansi yang berlaku berdasarkan kondisi tertentu.

The Bank’s accounting policies provide scope for financial assets and liabilities to be designated on inception into different accounting categories in certain circumstances.

•

Dalam mengklasifikasikan aset keuangan dalam kelompok “tersedia untuk dijual”, Bank telah menetapkan bahwa aset tersebut sesuai dengan definisi aset dalam kelompok “tersedia untuk dijual” yang dijabarkan di Catatan 2f.

•

In classifying financial assets as “available for sale”, the Bank has determined that it meets the description of “available for sale” assets set out in Note 2f.

•

Dalam mengklasifikasikan aset keuangan sebagai “dimiliki hingga jatuh tempo”, Bank telah menetapkan bahwa Bank memiliki intensi positif dan kemampuan untuk memiliki aset tersebut hingga tanggal jatuh tempo seperti yang dipersyaratkan (Catatan 2f).

•

In classifying financial assets as “heldto-maturity”, the Bank has determined that it has both the positive intention and alibility to hold the assets until their maturity date as required (Note 2f).

(iii) Operating leases

(iii) Sewa operasi Bank, sebagai lessee, telah mengadakan perjanjian sewa untuk bangunan yang digunakannya untuk operasi. Bank telah menentukan bahwa semua risiko dan manfaat signifikan dari kepemilikan properti yang disewa dalam sewa operasi tersebut tidak dapat dialihkan kepada Bank.

The Bank, as lessee, has entered into lease on premises it uses for its operations. The Bank has determined that all significant risks and rewards of ownerships of the properties it leases on operating lease are not transferrable to the Bank.

73




KAS

5. CASH 31 Desember/December 31 2015

Rupiah Valuta asing Dolar Amerika Serikat Dolar Singapura Euro Eropa Dolar Australia Riyal Qatar Yen Jepang Poundsterling Inggris Total

2014 40.239

48.597

Rupiah

4.221 112 282 153 213 144 68

3.304 416 135 107 94 -

Foreign currencies United States Dollar Singapore Dollar European Euro Australian Dollar Qatari Riyal Japanese Yen Great Britain Poundsterling

45.432

52.653

Total

Total cash in Rupiah currency includes cash amount in ATMs amounted to Rp5,528 and Rp3,784 as of December 31, 2015 and 2014, respectively.

Saldo kas dalam mata uang Rupiah termasuk jumlah kas pada ATM masing-masing sebesar Rp5.528 dan Rp3.784 pada tanggal-tanggal 31 Desember 2015 dan 2014. 6.

GIRO PADA BANK INDONESIA

6. CURRENT ACCOUNTS WITH BANK INDONESIA 31 Desember/December 31 2015

Rupiah Dolar Amerika Serikat Total

2014

987.235 723.712

901.270 523.885

Rupiah United States Dollar

1.710.947

1.425.155

Total

Pada tanggal 31 Desember 2015 dan 2014, Giro Wajib Minimum (“GWM”) Bank masing-masing sebesar 12,16% dan 12,98% untuk mata uang Rupiah serta sebesar 8,54% dan 8,14% untuk valuta asing.

As of December 31, 2015 and 2014, the minimum reserve requirements (“GWM”) of the Bank were 12.16% and 12.98% for Rupiah currency, and 8.54% and 8.14% for foreign currency, respectively.

Giro Wajib Minimum Bank dalam Rupiah pada tanggal 31 Desember 2015 dan 2014 terdiri dari GWM Primer masing-masing sebesar 7,59% dan 8,35% dengan menggunakan saldo rekening giro Rupiah pada Bank Indonesia, dan GWM Sekunder masing-masing sebesar 4,57% dan 4,64% dengan menggunakan Sertifikat Bank Indonesia dan obligasi pemerintah.

The minimum reserve requirement of the Bank for Rupiah currency as of December 31, 2015 and 2014 consisted of primary GWM of 7.59% and 8.35%, respectively, through current accounts with Bank Indonesia in Rupiah, and secondary GWM of 4.57% and 4.64%, respectively, through Certificates of Bank Indonesia and government bonds.

Bank telah memenuhi ketentuan Peraturan Bank Indonesia yang berlaku tentang Giro Wajib Minimum Bank Umum.

The Bank has fulfilled Bank Indonesia’s regulation regarding Statory Reserves Requirement on Commercial Banks.

Informasi mengenai klasifikasi dan nilai wajar giro pada Bank Indonesia diungkapkan pada Catatan 32.

Information regarding the classification and fair value of current accounts with Bank Indonesia is disclosed in Note 32.

74



7.


GIRO PADA BANK-BANK LAIN

7. CURRENT ACCOUNTS WITH OTHER BANKS 31 Desember/December 31 2015

2014

Rupiah Pihak ketiga PT Bank Mandiri (Persero) Tbk Standard Chartered Bank, Jakarta PT Bank Central Asia Tbk

869 25 22

425 25 6

Rupiah Third parties PT Bank Mandiri (Persero) Tbk Standard Chartered Bank, Jakarta PT Bank Central Asia Tbk

Total - Rupiah

916

456

Total - Rupiah

Valuta asing Pihak berelasi Qatar National Bank SAQ - Qatar Pihak ketiga PT Bank Mandiri (Persero) Tbk Standard Chartered Bank - New York Standard Chartered Bank - London ANZ Banking Group Ltd. - Australia Wells Fargo Bank Standard Chartered Bank - Singapura JP Morgan Chase Bank - New York PT Bank Central Asia Tbk Sumitomo Mitsui Banking Corporation Jepang United Overseas Bank Ltd. - Singapura Bank Mizuho Ltd. - Tokyo Bank Bangkok Deutsche Bank Trust Company Americas - New York Deutsche Bank AG - Frankfurt United Overseas Bank Ltd. - Hongkong Zurcher Kantonal Bank ANZ Banking Group Ltd. - Selandia Baru

172

198

7.918 7.097 2.102 1.843 1.932 1.541 1.500 1.162

12.660 7.417 1.110 719 7.993 949 3.709 2.929

1.050 957 814 498

368 1.144 194 -

470 444 431 172 127

619 2.182 435 155 87

Foreign currencies Related party Qatar National Bank SAQ - Qatar Third parties PT Bank Mandiri (Persero) Tbk Standard Chartered Bank - New York Standard Chartered Bank - London ANZ Banking Group Ltd. - Australia Wells Fargo Bank Standard Chartered Bank - Singapore JP Morgan Chase Bank - New York PT Bank Central Asia Tbk Sumitomo Mitsui Banking Corporation Japan United Overseas Bank Ltd. - Singapore Bank Mizuho Ltd. - Tokyo Bangkok Bank Deutsche Bank Trust Company Americas - New York Deutsche Bank AG - Frankfurt United Overseas Bank Ltd. - Hong Kong Zurcher Kantonal Bank ANZ Banking Group Ltd. - New Zealand

Total - Valuta asing

30.230

42.868

Total - Foreign currencies

Total giro pada bank-bank lain

31.146

43.324

Total current accounts with other banks

Pada tanggal 31 Desember 2015 dan 2014, seluruh giro pada bank-bank lain tidak mengalami penurunan nilai.

As of December 31, 2015 and 2014, all current accounts with other banks were not impaired.

Manajemen Bank berkeyakinan bahwa tidak ada cadangan kerugian penurunan nilai giro pada bankbank lain yang perlu dibentuk pada tanggal-tanggal 31 Desember 2015 dan 2014.

The Bank’s management believes that no allowance for impairment losses on current accounts with other banks should be provided as of December 31, 2015 and 2014.

Pada tanggal 31 Desember 2015 dan 2014, tidak ada giro pada bank-bank lain yang dijadikan jaminan.

As of December 31, 2015 and 2014, there were no current accounts with other banks pledged as collateral.

Informasi mengenai klasifikasi dan nilai wajar giro pada bank-bank lain diungkapkan pada Catatan 32. Giro pada pihak berelasi diungkapkan pada Catatan 34.

Information regarding the classification and fair value of current accounts with other banks is disclosed in Note 32. Current accounts with related parties are disclosed in Note 34.

Informasi mengenai giro pada bank-bank lain berdasarkan jenis mata uang diungkapkan pada Catatan 36.

Information regarding the currency type of current accounts with other banks is disclosed in Note 36.

75




PENEMPATAN PADA BANK INDONESIA DAN BANK-BANK LAIN

8.

PLACEMENTS WITH BANK INDONESIA AND OTHER BANKS The details of placements with Bank Indonesia and other banks are as follows:

Rincian penempatan pada Bank Indonesia dan bank-bank lain adalah sebagai berikut:

31 Desember/December 31 2015 Rupiah Bank Indonesia Call money Pihak ketiga Citibank N.A PT Bank ANZ Indonesia Deutche Bank AG PT Bank OCBC NISP Tbk PT Bank Panin Tbk PT Bank Chinatrust Indonesia PT Bank Bukopin Tbk PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk

2014 683.687

1.112.822

-

120.000 90.000 90.000 50.000 50.000 50.000 50.000

-

40.000

Rupiah Bank Indonesia Call money Third parties Citibank N.A PT Bank ANZ Indonesia Deutche Bank AG PT Bank OCBC NISP Tbk PT Bank Panin Tbk PT Bank Chinatrust Indonesia PT Bank Bukopin Tbk PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk

683.687

1.652.822

Total - Rupiah

1.419.855

1.671.975

8.271

-

Foreign currencies Bank Indonesia Call money Third parties Wells Fargo Bank


1.428.126

1.671.975


Total Penempatan pada Bank Indonesia dan bank-bank lain

2.111.813

3.324.797

Total Placements with Bank Indonesia and other banks

Total - Rupiah Valuta asing Bank Indonesia Call money Pihak ketiga Wells Fargo Bank

The term of placements with Bank Indonesia and other banks are as follows:

Jangka waktu penempatan pada Bank Indonesia dan bank-bank lain adalah sebagai berikut:

31 Desember/December 31 2015 Rupiah Bank Indonesia Call money Valuta asing Bank Indonesia Call money

2014

7 hari/days -

2 hari/days 2-7 hari/days

7 hari/days 1 hari/day

2 hari/days -

Rupiah Bank Indonesia Call money Foreign currencies Bank Indonesia Call money

Pada tanggal 31 Desember 2015 dan 2014, seluruh penempatan pada Bank Indonesia dan bank-bank lain tidak mengalami penurunan nilai.

As of December 31, 2015 and 2014, all placements with Bank Indonesia and other banks were not impaired.

Manajemen Bank berkeyakinan bahwa tidak ada cadangan kerugian penurunan nilai penempatan pada bank-bank lain yang perlu dibentuk pada tanggal 31 Desember 2015 dan 2014.

The Bank’s management believes that no allowance for impairment losses on placements with other banks should be provided as of December 31, 2015 and 2014.

Informasi mengenai jatuh tempo penempatan pada Bank Indonesia dan bank-bank lain diungkapkan pada Catatan 3d. Informasi mengenai klasifikasi dan nilai wajar penempatan pada Bank Indonesia dan bank-bank lain diungkapkan pada Catatan 32.

Information in respect of maturities of placements with Bank Indonesia and other banks is disclosed in Note 3d. Information regarding the classification and fair value of placements with Bank Indonesia and other banks is disclosed in Note 32.

76



9.


TAGIHAN DAN LIABILITAS DERIVATIF

9. DERIVATIVES RECEIVABLE AND PAYABLE As of December 31, 2015 and 2014, derivatives receivable and payable were as follows

Pada tanggal 31 Desember 2015 dan 2014, tagihan dan liabilitas derivatif adalah sebagai berikut: 2015 Tagihan Derivatif/ Derivatives Receivable

2014 Liabilitas Derivatif/ Derivatives Payable

Tagihan Derivatif/ Derivatives Receivable

Liabilitas Derivatif/ Derivatives Payable

Kontrak berjangka Valuta asing Bank Bukan bank

2.921 -

661 -

849 -

1.371 -

Total

2.921

661

849

1.371

Currency forward contract Banks Non-banks Total

Pada tanggal 31 Desember 2015 dan 2014, semua tagihan derivatif dan liabilitas derivatif merupakan transaksi dengan pihak ketiga.

As of December 31, 2015 and 2014, all derivatives receivable and payable were made with third parties.

Pada tanggal 31 Desember 2015 dan 2014, nilai kontrak dan rata-rata jangka waktu kontrak berjangka valuta asing adalah sebagai berikut:

As of December 31, 2015 and 2014, the contract amount and average contract period of currency forward contracts are as follows:


Jenis valuta/ Currency

Kontrak pembelian berjangka valuta asing

Kontrak penjualan berjangka valuta asing

Nilai kontrak (dalam valuta asal)/ Contract amount (in original currency)

Rentang tanggal jatuh tempo/ Range of maturity date

USD AUD GBP EUR

7.700.00 1.862.280 976.068 1.974.783

6 January 2016 / January 6, 2016 8 Januari 2016 / January 8, 2016 8 Januari 2016 / January 8, 2016 14 Januari 2016 / January 14, 2016

Currency forward purchase contracts

USD EUR

26.490.000 434.194

4 Januari - 2 Maret 2016/ January 4 - March 2, 2016 14 Januari 2016 / January 14, 2016

Currency forward selling contracts


Jenis valuta/ Currency

Kontrak pembelian berjangka valuta asing

Kontrak penjualan berjangka valuta asing

Nilai kontrak (dalam valuta asal)/ Contract amount (in original currency)

USD EUR AUD

9.000.000 2.000.000 3.700.000

USD

20.822.876

SGD

11.007.647

77


2 Januari - 5 Januari 2015/ January 2 - January 5, 2015 9 Januari 2015 / January 9, 2015 23 Januari 2015 / January 23, 2015

Currency forward purchase contracts

2 Januari - 23 Januari 2015/ January 2 - January 23, 2015 5 Januari - 9 Januari 2015/ January 5 - January 9, 2015

Currency forward selling contracts




10. TAGIHAN DAN LIABILITAS AKSEPTASI a.

10. ACCEPTANCES RECEIVABLE AND PAYABLE a.

Tagihan akseptasi:

Acceptances receivable:

31 Desember/December 31 2015 Rupiah Pihak ketiga Nasabah Valuta Asing Pihak berelasi Bank Pihak ketiga Bank Total

2014

36.826

-

Rupiah Third parties Debtors Foreign Currencies Related party Banks Third parties Banks

61.821

60.744

Total

-

8.005

24.995

52.739

The Bank’s management believes that no allowance for impairment losses on accepatance receivable should be provided as of December 31, 2015 and 2014.

Manajemen bank berkeyakinan bahwa tidak ada cadangan kerugian penurun nilai tagihan akseptasi yang perlu dibentuk pada tanggal 31 Desember 2015 dan 2014. b.

b.

Liabilitas akseptasi:

Acceptances payable:

31 Desember/December 31 2015 Rupiah Pihak berelasi Bank Pihak ketiga Bank Valuta Asing Pihak berelasi Bank Pihak ketiga Bank Total

2014

36.826

-

Rupiah Related party Bank Third parties Banks Foreign Currencies Related party Banks Third parties Banks

61.821

60.744

Total

-

-

-

8.005

24.995

52.739

Information in respect of maturities were disclosed in Note 3d. Information with regards to the classification and fair value were disclosed in Note 32.

Informasi mengenai jatuh tempo diungkapkan pada Catatan 3d. Informasi mengenai klasifikasi dan nilai wajar diungkapkan pada Catatan 32. 11. EFEK-EFEK YANG DIBELI DENGAN JANJI DIJUAL KEMBALI

11.

SECURITIES PURCHASED AGREEMENT TO RESELL

UNDER

31 Desember/December 31, 2015 Rentang tanggal pembelian/ Range of purchase date

Rentang tanggal Harga penjualan kembali/ penjualan Range of kembali/ resale date Resale price

Pendapatan bunga yang belum diakui/ Unearned interest

Nilai tercatat/ Carrying amount

Transaksi dengan Bank Indonesia Rupiah

Surat utang negara

Transactions with Bank Indonesia Rupiah 10 - 11 Desember/ December 10 - 11, 2015

7 - 8 Januari/ January 7 - 8, 2016

270.457

(1.340)

269.117

Government promissory notes

31 Desember/December 31, 2014 Rentang tanggal pembelian/ Range of purchase date

Rentang tanggal Harga penjualan kembali/ penjualan Range of kembali/ resale date Resale price

Pendapatan bunga yang belum diakui/ Unearned interest

Nilai tercatat/ Carrying amount

Transaksi dengan Bank Indonesia Rupiah

Surat utang negara

Transactions with Bank Indonesia Rupiah 17 - 18 Desember/ December 17 - 18, 2014

14 - 15 Januari/ January 14 - 15, 2015

269.576

(1.252)

268.324

Government promissory notes

The Bank’s management believes that no allowance for impairment losses on securities purchased under agreement to resell should be provided as of December 31, 2015 and 2014.

Manajemen Bank berkeyakinan bahwa tidak ada cadangan kerugian penurunan nilai efek-efek yang dibeli dengan janji dijual kembali yang perlu dibentuk pada tanggal 31 Desember 2015 dan 2014. 78




11. EFEK-EFEK YANG DIBELI DENGAN JANJI DIJUAL KEMBALI (lanjutan)

11.

Information in respect of maturities of securities purchased under agreement to resell is disclosed in Note 3d. Information regarding the classification and fair value of securities purchased under agreement to resell is disclosed in Note 32.

Informasi mengenai jatuh tempo efek-efek yang dibeli dengan janji dijual kembali diungkapkan pada Catatan 3d. Informasi mengenai klasifikasi dan nilai wajar efek-efek yang dibeli dengan janji dijual kembali diungkapkan pada Catatan 32. 12. KREDIT YANG DIBERIKAN a.

SECURITIES PURCHASED UNDER AGREEMENT TO RESELL (continued)

12.

LOANS a.

Berdasarkan jenis dan valuta

By type and currency


b.

2014

Rupiah Investasi Modal kerja Konsumsi Sindikasi Karyawan

6.640.386 6.334.595 462.890 29.003 48.845

4.921.707 4.932.455 403.308 70.824 53.218

Rupiah Investment Working capital Consumer Syndication Employee loans

Total - Rupiah

13.515.719

10.381.512

Total - Rupiah

Valuta asing Sindikasi Modal kerja Investasi

2.967.146 2.300.614 2.046.565

1.176.950 2.434.226 1.113.432

Foreign currencies Syndication Working capital Investment


7.314.325

4.724.608


Total kredit yang diberikan Cadangan kerugian penurunan nilai

20.830.044 (41.740)

15.106.120 (12.461)

Total kredit yang diberikan - neto

20.788.304

15.093.659

b.

Berdasarkan sektor ekonomi

Total loans Allowance for impairment losses Total loans - net

By economic sectors

31 Desember/December 31 2015 Rupiah Perdagangan, restoran dan hotel Jasa usaha Industri Konstruksi Pengangkutan, pergudangan dan komunikasi Listrik, gas dan air Jasa sosial masyarakat Pertanian, perkebunan, dan sarana perkebunan Pertambangan Lain-lain Total - Rupiah

2014

4.221.216 3.195.487 2.132.744 1.251.837

2.495.202 3.407.830 1.389.914 760.637

879.426 831.334 407.475

972.859 623.001 149.960

60.770 23.373 512.057

37.082 19.398 525.629

Rupiah Trading, restaurant and hotels Business services Manufacturing Constructions ) Transportation, warehousing and communication Electricity, gas and water Social and public services Agriculture, plantation, and plantation equipments Mining Others

13.515.719

10.381.512

Total - Rupiah

79




12. KREDIT YANG DIBERIKAN (lanjutan) b.

12.

LOANS (continued) b.

Berdasarkan sektor ekonomi (lanjutan)

By economic sectors (continued)

31 Desember/December 31 2015 Valuta asing Industri Jasa usaha Perdagangan, restoran dan hotel Pertambangan Pengangkutan, pergudangan dan komunikasi Konstruksi Jasa sosial masyarakat Pertanian, perkebunan, dan sarana perkebunan

2.526.596 1.690.680 938.833 827.839

1.578.390 942.333 603.993 742.748

703.619 385.980 171.853

820.050 24.709

68.925

12.385

Foreign currencies Manufacturing Business services Trading, restaurant and hotels Mining Transportation, warehousing and communication Construction Social and public services Agriculture, plantation, and plantation equipments

7.314.325

4.724.608



20.830.044 (41.740)

15.106.120 (12.461)


20.788.304

15.093.659


c.

2014


c. By maturity

Berdasarkan periode jatuh tempo

Based on the term of loan agreements:

Berdasarkan periode perjanjian kredit:


d.

2014

Rupiah ≤ 1 tahun > 1 - 3 tahun > 3 - 5 tahun > 5 tahun

2.594.575 3.513.920 1.648.269 5.758.955

3.065.005 1.832.227 1.349.625 4.134.655

Total - Rupiah

13.515.719

10.381.512

Total - Rupiah

Valuta asing ≤ 1 tahun > 1 - 3 tahun > 3 - 5 tahun > 5 tahun

1.130.231 1.677.880 596.666 3.909.548

1.827.445 601.842 538.065 1.757.256

Foreign currencies ≤ 1 year > 1 - 3 years > 3 - 5 years > 5 years


7.314.325

4.724.608



20.830.044 (41.740)

15.106.120 (12.461)


20.788.304

15.093.659


d. The loans are secured by collaterals which are legalized by deed of encumbrance, other guarantees or assets that are generally accepted in the banking industry, such as time deposits, demand deposits, motor vehicles, land and buildings. As of December 31, 2015 and 2014, total loans secured by cash collateral (back to back loans) amounted to Rp1,359,063 and Rp1,066,730, respectively.

Kredit dijamin dengan agunan yang diikat dengan akta pemberian hak tanggungan, jaminan lain atau aset yang umumnya diterima oleh bank, antara lain deposito berjangka, giro, kendaraan bermotor, tanah dan bangunan. Pada tanggal 31 Desember 2015 dan 2014, jumlah kredit yang dijaminkan dengan jaminan tunai (back to back loans) adalah masingmasing sebesar Rp1.359.063 dan Rp1.066.730.

e.

Rupiah ≤ 1 year ) > 1 - 3 years > 3 - 5 years > 5 years

e. Working capital loans and investment loans were granted to customers for working capital and purchase of capital goods. Working capital loans include current account.

Kredit modal kerja dan investasi diberikan kepada debitur untuk kepentingan modal kerja dan pembelian barang modal. Kredit modal kerja mencakup kredit dalam bentuk rekening koran. 80




12. KREDIT YANG DIBERIKAN (lanjutan)

12.

LOANS (continued)

f.

Kredit konsumsi terdiri dari kredit pemilikan rumah, kredit pemilikan kendaraan bermotor dan kredit perorangan lainnya.

f. Consumer loans consist of housing, motor vehicles ownership loans and other personal loans.

g.

Pada tanggal 31 Desember 2015 dan 2014, rasio kredit usaha kecil terhadap jumlah kredit yang diberikan adalah masing-masing sebesar 0,17% dan 0,26%.

g. As of December 31, 2015 and 2014, the ratio of small business loans to total loans is 0.17% and 0.26%, respectively.

h.

Kredit sindikasi merupakan kredit yang diberikan kepada nasabah berdasarkan perjanjian pembiayaan bersama dengan bank-bank lain. Partisipasi Bank dalam kredit sindikasi dengan bank-bank lain pada tanggal 31 Desember 2015 dan 2014 sebesar Rp2.996.149 dan Rp1.247.774 atau 20,58% dan 10,22% dari saldo kredit sindikasi. Bank berperan sebagai pimpinan dan partisipan dalam kredit sindikasi tersebut.

h. Syndicated loans represent loans provided to borrowers under a syndication agreement with other banks. The Bank’s participation in syndicated loans with other banks as of December 31, 2015 and 2014 amounted to Rp2,996,149 and Rp1,247,774 or 20,58% and 10.22% of syndicated loans balance, respectively. The bank acted as arranger and participant in the said syndicated loans.

i.

Kredit yang diberikan kepada karyawan Bank digunakan untuk keperluan pinjaman atas pembelian rumah, kendaraan, dan keperluan lainnya dengan jangka waktu jatuh tempo berkisar antara 1 sampai 15 tahun, yang dikenakan bunga berkisar antara 0% sampai 8% per tahun. Kredit tersebut akan dilunasi melalui pemotongan gaji setiap bulan. Jumlah kredit yang diberikan kepada karyawan masing-masing sebesar Rp48.845 dan Rp53.218 atau 0,23% dan 0,35% dari jumlah kredit yang diberikan pada tanggal-tanggal 31 Desember 2015 dan 2014.

i.

The loans given to the Bank’s employees are used for purchase of houses, cars and other personal necessities with maturities ranging from 1 to 15 years, with interest rates ranging from 0% to 8% per annum. These loans will be settled through their monthly salary deductions. The loans to the employees amounted to Rp48,845 and Rp53,218 or represented 0.23% and 0.35% of total loans as of December 31, 2015 and 2014, respectively.

j.

Restrukturisasi kredit dilakukan melalui modifikasi persyaratan jumlah pokok dan bunga dan perpanjangan jangka waktu kredit. Pada tanggal-tanggal 31 Desember 2015 dan 2014, kredit yang direstrukturisasi masingmasing sebesar Rp2.071.171 atau 9,94% dan Rp64.889 atau 0,43% dari jumlah kredit yang diberikan, dengan cadangan kerugian penurunan nilai masing-masing sebesar Rp16.872 dan Rp379. Dari kredit yang direstrukturisasi tersebut, Bank tidak memiliki komitmen untuk memberikan fasilitas kredit tambahan.

j.

Loans restructuring was conducted through modification of terms of principal and interest and extension of terms. As of December 31, 2015 and 2014, restructured loans amounted to Rp2,071,171 or 9.94% and Rp64,889 or 0.43% of total loans, respectively, with the respective allowance for impairment losses amounted to Rp16,872 and Rp379. From the restructured loans, the Bank did not have any commitments to extend additional loan facilities.

k.

Pada tanggal 31 Desember 2015 dan 2014, Bank telah memenuhi ketentuan Batas Maksimum Pemberian Kredit (“BMPK”), baik untuk pihak berelasi maupun untuk pihak ketiga.

k.

As of December 31, 2015 and 2014, the Bank complied with the Legal Lending Limit (“LLL”) requirements for both related parties and third parties.

81




12. KREDIT YANG DIBERIKAN (lanjutan) l.

12.

LOANS (continued) l.

Pada tanggal 31 Desember 2015 dan 2014, rincian kredit bermasalah (klasifikasi kurang lancar, diragukan dan macet menurut peraturan Bank Indonesia) menurut sektor ekonomi adalah sebagai berikut:

As of December 31, 2015 and 2014, details of non-performing loans (substandard, doubtful and loss grading based on Bank Indonesia regulation) based on economic sector are as follows:


2014

Kredit bermasalah/ Non-performing loans


Kredit bermasalah/ Non-performing loans


Konstruksi Industri Perdagangan, restoran dan hotel Pengangkutan, pergudangan dan komunikasi Pertanian, perkebunan dan sarana perkebunan Jasa sosial masyarakat Pertambangan Lain-lain

226.881 161.024 43.187

(2.483) (20.039) (8.742)

432 28.617

(432) (4.217)

8.320

(13)

2.697

6.517 3.189 2.857 87.132

(1.423) (1.762) (389) (5.566)

1.423 3.566 2.857 7.697

(234) (829) (226) (5.952)

Construction Manufacturing Trading, restaurant and hotels Transportation, warehousing and communicaton Agriculture, plantation and plantation improvement Social and public services Mining Others

Total

539.107

(40.417)

47.289

(11.890)

Total

-

m. As of December 31, 2015 and 2014, the nonperforming loan (“NPL”) ratio based on prevailing Bank Indonesia regulation are as follows:

m. Pada tanggal 31 Desember 2015 dan 2014, rasio non-performing loan (“NPL”) sesuai dengan peraturan Bank Indonesia yang berlaku adalah sebagai berikut:

31 Desember/December 31 2015 NPL bruto NPL neto

n.

2014 2,59% 2,40%

0,31% 0,23%

n.

Bank mengadakan perjanjian fasilitas kredit penerusan, kredit pembiayaan bersama serta perjanjian pengambilalihan piutang dengan beberapa lembaga pembiayaan untuk membiayai kepemilikan kendaraan bermotor. Jumlah saldo fasilitas kredit penerusan, kredit pembiayaan bersama, serta kredit yang diambil alih dengan skema tanpa tanggung renteng pada tanggal 31 Desember 2015 dan 2014 adalah masing-masing sebesar Rp178.678 dan Rp332.574, yang termasuk dalam kredit konsumsi.

82

Gross NPL Net NPL

The Bank has entered into chanelling loan, joint financing and receivables purchase agreements with several multifinance companies for financing retail purchases of vehicles. The outstanding balance of chanelling loans, joint financing loans and receivables purchased under without recourse scheme as of December 31, 2015 and 2014 is amounted to Rp178,678 and Rp332,574, respectively, which was included in consumer loans.




12. KREDIT YANG DIBERIKAN (lanjutan)

12.

LOANS (continued) o.

o. Perubahan cadangan kerugian penurunan nilai kredit yang diberikan selama tahun berjalan adalah sebagai berikut:

The changes in allowance for impairment losses on loans during the year are as follows:

31 Desember/December 31 2015 Cadangan kerugian penurunan nilai kolektif: Saldo, awal tahun Penyisihan kerugian penurunan nilai selama tahun berjalan Penghapusbukuan kredit Selisih kurs karena penjabaran mata uang asing

8.293

7.174

21.145 (20.663)

1.144 (25)

Saldo, akhir tahun Cadangan kerugian penurunan nilai individual: Saldo, awal tahun Penyisihan kerugian penurunan nilai selama tahun berjalan Unwinding Interest

2014 Collective allowance for impairment losses: Balance, beginning of year

279

-

Provision for impairment losses during the year Loans write off Foreign exchange translation difference

9.054

8.293

Balance, end of year

3.686

Individual allowance for impairment losses: Balance, beginning of year

482 -

Provision for impairment losses during the year Unwinding Interest

4.168

66.327 (37.809)

Saldo, akhir tahun

32.686

4.168

Balance, end of year

Total cadangan kerugian penurunan nilai

41.740

12.461

Total allowance for impairment losses

The Bank’s management believes that the allowance for impairment losses provided is adequate to cover any possible impairment on loans.

Manajemen Bank berkeyakinan bahwa jumlah cadangan kerugian penurunan nilai yang dibentuk cukup untuk menutupi kemungkinan penurunan nilai kredit yang diberikan. p. Pada tanggal-tanggal 31 Desember 2015 dan 2014, kredit pada pihak berelasi diungkapkan pada Catatan 34.

p.

q. Informasi mengenai jatuh tempo kredit yang diberikan diungkapkan pada Catatan 3d. Informasi mengenai klasifikasi dan nilai wajar kredit yang diberikan diungkapkan pada Catatan 32.

q. Information in respect of maturities of loans receivable is disclosed in Note 3d. Information regarding the classification and fair value of loans is disclosed in Note 32.

13. EFEK-EFEK

As of December 31, 2015 and 2014, loans with related parties were disclosed in Note 34.

13. SECURITIES 31 Desember/December 31 2015

Dimiliki hingga jatuh tempo Rupiah Obligasi Pemerintah: Nilai nominal Premi yang belum diamortisasi Nilai tercatat Obligasi korporasi: Nilai tercatat Total efek-efek yang dimiliki hingga jatuh tempo

2014

320.000 5.213

-

325.213

-

231

231

325.444

231

83

Held-to-maturity Rupiah Government Bonds: Nominal value Unamortized Premiums Carrying amount Corporate bonds: Carrying amount Total held-to-maturity securities




13. EFEK-EFEK (lanjutan)

13. SECURITIES (continued) 31 Desember/December 31 2015

2014

Tersedia untuk dijual Rupiah Sertifikat Bank Indonesia: Nilai nominal Diskonto yang belum diamortisasi Nilai wajar Surat Perbendaharaan Negara: Nilai Nominal Diskonto yang belum diamortisasi Rugi yang belum direalisasi

187.462 (3.628)

-

183.834

Fair value State Treasury Notes: Nominal Value Unamortized discount Unrealized loss

-

50.000 (1.346) (77)

-

48.577

-

232.411

Total available-for-sale securities

325.444

232.642

Total securities

Nilai wajar Total efek-efek tersedia untuk dijual Total efek-efek

-

Available-for-sale Rupiah Certificates of Bank Indonesia: Nominal value Unamortized discounts

Fair Value

Details of the securities are as follows:

Rincian efek-efek adalah sebagai berikut:

31 Desember/December 31, 2015 Nilai tercatat/ nilai wajar/ Carrying amount/ fair value

Nilai nominal/ Nominal value Obligasi Pemerintah/ Goverment Bonds

320.000

Obligasi korporasi/ Corporate bonds


325.213

231

231

Frekuensi pembayaran bunga/ Frequency of interest payment

15 September 2020 - 15 Maret 2024/ September 15, 2020 - March 15, 2024

6 bulan /months

5 Januari 2016 - 5 Januari 2021/ January 5, 2016 - January 5, 2021

3 bulan/months

31 Desember/December 31, 2014 Nilai tercatat/ nilai wajar/ Carrying amount/ fair value

Nilai nominal/ Nominal value Sertifikat Bank Indonesia/ Certificates of Bank Indonesia Surat Perbendaharaan Negara / State Treasury Notes Obligasi korporasi/ Corporate bonds


187.462

183.834

50.000

48.577

231

231

6 Febuari - 11 September 2015/ February 6, 2015 - September 11, 2015 11 Juni 2015/ June 11, 2015

3 bulan/months

Total

2014

idAA

1 bulan/month

5 Januari 2016 - 5 Januari 2021/ January 5, 2016 - January 5, 2021

Peringkat/Rating

Obligasi PT Jasa Marga (Persero) Tbk

-

The details of corporate bonds by issuer and rating as of December 31, 2015 and 2014 are as follows:

Rincian obligasi korporasi berdasarkan penerbit dan peringkat obligasi pada tanggal 31 Desember 2015 dan 2014 adalah sebagai berikut: 2015

Frekuensi pembayaran bunga/ Frequency of interest payment

2015

idAA

2014

231

231

Bonds PT Jasa Marga (Persero) Tbk

Obligasi korporasi di atas telah diperingkat oleh Pefindo.

The above corporate bonds have been rated by Pefindo.

Pada tanggal-tanggal 31 Desember 2015 dan 2014, seluruh efek-efek tidak mengalami penurunan nilai. Manajemen Bank berkeyakinan bahwa tidak ada cadangan kerugian penurunan nilai efek-efek yang perlu dibentuk pada tanggaltanggal 31 Desember 2015 dan 2014.

As of December 31, 2015 and 2014, all securities were not impaired. The Bank’s management believes that no allowance for impairment lossess on securities should be provided as of December 31, 2015 and 2014.

84




13. EFEK-EFEK (lanjutan)

13. SECURITIES (continued) Information in respect of maturities of securities is disclosed in Note 3d. Information regarding the classification and fair value of securities is disclosed in Note 32.

Informasi mengenai jatuh tempo surat-surat berharga diungkapkan pada Catatan 3d. Informasi mengenai klasifikasi dan nilai wajar efek-efek diungkapkan pada Catatan 32. 14. BEBAN DIBAYAR DIMUKA

14. PREPAYMENTS Details of prepayments are as follows:

Rincian beban dibayar dimuka adalah sebagai berikut:

31 Desember/December 31 2015 Sewa (Catatan 38) Asuransi Lainnya

2014 61.317 261 46.865

46.032 192 10.890

108.443

57.114

15. ASET TETAP

15.

Rent (Note 38) Insurance Other

FIXED ASSETS

31 Desember/December 31, 2015 Saldo awal/ Beginning balance Biaya perolehan: Tanah Gedung Renovasi dan perbaikan gedung Perlengkapan dan perabot kantor Kendaraan bermotor

Akumulasi penyusutan: Gedung Renovasi dan perbaikan gedung Perlengkapan dan perabot kantor Kendaraan bermotor

Nilai buku-neto

Penambahan/ Additions

Pengurangan/ Deductions

Saldo akhir/ Ending balance

11.529 23.860 79.331

806 11.955

-

97.348 389

12.872 40

(1.051) (19)

109.169 410

212.457

25.673

(1.070)

237.060

(8.841) (30.867)

(1.037) (14.857)

-

(57.783) (335)

(13.730) (29)

977 19

(97.826)

(29.653)

996

114.631

11.529 24.666 91.286

Cost: Land Buildings Leasehold improvement Office equipment, furniture and fixtures Vehicles

Accumulated depreciation: Buildings Leasehold improvement Office equipment, furniture (70.536) and fixtures (345) Vehicles

(9.878) (45.724)

(126.483) 110.577

Net book value

31 Desember/December 31, 2014 Saldo awal/ Beginning balance Biaya perolehan: Tanah Gedung Renovasi dan perbaikan gedung Perlengkapan dan perabot kantor Kendaraan bermotor

Akumulasi penyusutan: Gedung Renovasi dan perbaikan gedung Perlengkapan dan perabot kantor Kendaraan bermotor

Nilai buku-neto




11.529 22.867 61.228

993 18.103

90.713 377

11.476 12

(4.841) -

97.348 389

186.714

30.584

(4.841)

212.457

(7.892) (19.542)

(949) (11.325)

-

(8.841) (30.867)

(47.758) (297)

(14.848) (38)

4.823 -

(57.783) (335)

(75.489)

(27.160)

4.823

(97.826)

111.225

-

11.529 23.860 79.331

114.631

85

Cost: Land Buildings Leasehold improvement Office equipment, furniture and fixtures Vehicles

Accumulated depreciation: Buildings Leasehold improvement Office equipment, furniture and fixtures Vehicles

Net book value




15. ASET TETAP (lanjutan)

15.

FIXED ASSETS (continued)

Beban penyusutan yang dibebankan ke dalam beban umum dan administrasi masing-masing sebesar Rp29.653 dan Rp27.160 untuk tahun yang berakhir tanggal-tanggal 31 Desember 2015 dan 2014.

Depreciation expense charged to general and administrative expenses amounted to Rp29,653 and Rp27,160 for the years ended December 31, 2015 and 2014, respectively.

Rincian penjualan aset tetap adalah sebagai berikut:

Details of sale of fixed assets are as follows:

Tahun yang Berakhir pada tanggal 31 Desember/Year ended December 31 2015 Hasil penjualan aset tetap Nilai buku Laba penjualan aset tetap

2014 115 (74)

73 (18)

41

55

Proceeds from sale of fixed assets Net book value Gain on sale of fixed assets

Pada tanggal 31 Desember 2015, seluruh hak kepemilikan atas tanah Bank adalah dalam bentuk Hak Guna Bangunan (HGB), yang memiliki sisa jangka waktu hak legal berkisar antara 3 sampai dengan 27 tahun. Manajemen Bank berkeyakinan bahwa hak kepemilikan atas tanah tersebut dapat diperpanjang pada saat jatuh tempo.

As of December 31, 2015, all the Bank’s land were in the form of landrights (Hak Guna Bangunan), which have remaining period of legal rights ranging from 3 to 27 years. The Bank’s management believes that the landrights can be extended upon expiry.

Pada tanggal-tanggal 31 Desember 2015 dan 2014, aset tetap yang telah disusutkan penuh dan masih digunakan masing-masing sejumlah Rp17.556 dan Rp15.814.

As of December 31, 2015 and 2014, fixed assets that have been fully depreciated yet still being used amounted to Rp17,556 and Rp15,814, respectively.

Pada tanggal-tanggal 31 Desember 2015 dan 2014, kendaraan, gedung dan perlengkapan dan perabot kantor telah diasuransikan kepada PT Asuransi Bosowa Periskop terhadap semua risiko kehilangan atau kerusakan fisik dengan nilai pertanggungan sebesar masing-masing sejumlah Rp279.669 dan USD1.019.731 untuk tahun 2015 dan Rp176.770 dan USD1.300.546 untuk tahun 2014.

As of December 31, 2015 and 2014, motor vehicles, buildings and office equipment, furniture and fixtures were insured with PT Asuransi Bosowa Periskop against all risks of physical loss or damage for sum insured of Rp279,669 and USD1,019,731 for the year 2015 and Rp176,770 and USD1,300,546 for year 2014.

Manajemen Bank berkeyakinan bahwa nilai pertanggungan aset tetap yang diasuransikan adalah cukup untuk menutupi kemungkinan kerugian atas aset yang dipertanggungkan. Manajemen Bank juga berkeyakinan tidak terdapat penurunan nilai aset tetap selama tahun berjalan.

The Bank’s management believes that the insurance coverage is adequate to cover possible losses on the assets insured. The Bank’s management also believes that there was no impairment of fixed assets during the year.

86




16. ASET TAK BERWUJUD

16.

INTANGIBLE ASSETS

31 Desember/December 31, 2015 Saldo awal/ Beginning balance Biaya perolehan: Perangkat lunak Lisensi penggunaan perangkat lunak

Akumulasi amortisasi: Perangkat lunak Lisensi penggunaan perangkat lunak

Nilai buku - neto


39.172



5.318

-

26.001

5.473

-

31.474

65.173

10.791

-

75.964 (21.377)

(16.774)

(4.603)

-

(6.029)

(2.888)

-

(8.917)

(22.803)

(7.491)

-

(30.294)

42.370

Cost: Software

44.490

45.670

Software license

Accumulated amortization: Software Software license

Net book value

31 Desember/December 31, 2014 Saldo awal/ Beginning balance Biaya perolehan: Perangkat lunak Lisensi penggunaan perangkat lunak

Akumulasi amortisasi: Perangkat lunak Lisensi penggunaan perangkat lunak

Nilai buku - neto




30.753

8.419

-

39.172

18.992

7.009

-

26.001

49.745

15.428

-

65.173

(12.578)

(4.196)

-

(16.774)

(2.975)

(3.054)

-

(6.029)

(15.553)

(7.250)

-

(22.803)

34.192

42.370

Cost: Software Software license

Accumulated amortization: Software Software license

Net book value

Beban amortisasi yang dibebankan dalam beban umum dan administrasi masing-masing sejumlah Rp7.491 dan Rp7.250 untuk tahun yang berakhir tanggal-tanggal 31 Desember 2015 dan 2014.

Amortization expense charged to general and administrative expenses amounted to Rp7,491 and Rp7,250, for the years ended December 31, 2015 and 2014, respectively.

Pada tanggal 31 Desember 2015 dan 2014, seluruh aset tak berwujud tidak mengalami penurunan nilai.

As of December 31, 2015 and 2014, all intangible assets were not impaired.

17. LIABILITAS SEGERA

17. LIABILITIES PAYABLE ON DEMAND 31 Desember/December 31 2015

2014

Escrow accounts Liabilitas pajak Titipan dana nasabah Lain-lain

297.270 30.196 474 9.417

216.104 26.580 90 10.011

Escrow accounts Tax liabilities Customer fund deposits Others

Total

337.357

252.785

Total

Escrow account merupakan rekening nasabah yang khusus digunakan untuk transaksi kredit.

Escrow account represents the customer’s accounts which were specifically used for loan transactions.

87




17. LIABILITAS SEGERA (lanjutan)

17. LIABILITIES (continued)

PAYABLE

ON

DEMAND

Customer fund deposits represents transfer from one party to another through the Bank as an intermediary, which on the date of the financial statements, the fund has not been effectively received or credited into the beneficiary’s account.

Titipan dana nasabah merupakan pengiriman dana (transfer) dari satu pihak kepada pihak lainnya melalui Bank sebagai perantara, dimana pada tanggal laporan keuangan, dana tersebut belum efektif diterima atau dikredit ke rekening penerima dana (beneficiary). 18. SIMPANAN DARI NASABAH

18. DEPOSITS FROM CUSTOMERS 31 Desember/December 31, 2015 Pihak berelasi/ Related parties

Pihak ketiga/ Third parties

Total

Rupiah Giro Tabungan Deposito berjangka dan deposit on call

24.619 337

1.113.403 411.713

1.138.022 412.050

553.353

10.505.227

11.058.580

Total - Rupiah

578.309

12.030.343

12.608.652

Rupiah Current accounts Saving accounts Time deposits and deposit on call Total - Rupiah

Valuta asing Giro Deposito berjangka dan deposit on call

631

460.147

460.778

461.798

4.977.780

5.439.578

Foreign currencies Current accounts Time deposits and deposit on call

Total - valuta asing

462.429

5.437.927

5.900.356

Total - foreign currencies

1.040.738

17.468.270

18.509.008

Total

Total

31 Desember/December 31, 2014 Pihak berelasi/ Related parties Rupiah Giro Tabungan Deposito berjangka dan deposit on call Total - Rupiah

Pihak ketiga/ Third parties

32.081 2.287

1.178.928 384.644

Total 1.211.009 386.931

63.280

9.526.196

9.589.476

97.648

11.089.768

11.187.416

Rupiah Current accounts Saving accounts Time deposits and deposit on call Total - Rupiah

Valuta asing Giro Deposito berjangka dan deposit on call

1.546

1.546.476

1.548.022

161.005

3.265.267

3.426.272

Foreign currencies Current accounts Time deposits and deposit on call

Total - valuta asing

162.551

4.811.743

4.974.294

Total - foreign currencies

Total

260.199

15.901.511

16.161.710

Total

As of December 31, 2015 and 2014, time deposits pledged as loans collateral amounted to Rp836,819 and Rp988,312, respectively. Current account pledged as loans collateral amounted to Rp378,850 and Rp375,222 as of December 2015 and 2014. There were no saving accounts pledged as collateral as of December 31, 2015 and 2014.

Pada tanggal 31 Desember 2015 dan 2014, jumlah deposito yang dijadikan sebagai jaminan kredit yang diberikan adalah masing-masing sebesar Rp836.819 dan Rp988.312. Giro yang dijadikan sebagai jaminan kredit yang diberikan sebesar Rp378.850 dan Rp375.222 pada tanggal 31 Desember 2015 dan 2014. Tidak ada tabungan yang dijadikan jaminan pada tanggal 31 Desember 2015 dan 2014.

88




18. SIMPANAN DARI NASABAH (lanjutan)

18. DEPOSITS FROM CUSTOMERS (continued) The amount of time deposits based on period:

Saldo deposito berjangka berdasarkan periodenya: 31 Desember/December 31, 2015

Rupiah ≤ 1 bulan > 1 - 3 bulan > 3 - 6 bulan > 6 - 12 bulan On call Total

Valuta asing/ Foreign currencies


Total

Valuta asing/ Foreign currencies

Rupiah

Total

3.714.421 4.821.729 794.639 61.944 1.665.847

3.673.816 1.022.679 143.550 4.221 595.312

7.388.237 5.844.408 938.189 66.164 2.261.159

4.353.664 3.453.641 738.235 55.585 988.351

2.174.433 160.406 92.492 2.502 996.439

6.528.097 3.614.047 830.727 58.087 1.984.790

≤ 1 month > 1 - 3 months > 3 - 6 months > 6 - 12 months On call

11.058.580

5.439.578

16.498.157

9.589.476

3.426.272

13.015.748

Total

Information in respect of maturities of deposits from customers is disclosed in Note 3d. Information regarding the classification and fair value of deposits from customers is disclosed in Note 32. Deposits from related parties are disclosed in Note 34.

Informasi mengenai jatuh tempo simpanan dari nasabah diungkapkan pada Catatan 3d. Informasi mengenai klasifikasi dan nilai wajar simpanan dari nasabah diungkapkan pada Catatan 32. Simpanan dari pihak berelasi diungkapkan pada Catatan 34. 19. SIMPANAN DARI BANK-BANK LAIN

19.

DEPOSITS FROM OTHER BANKS

31 Desember/December 31 2015 Rupiah Pihak berelasi Giro Pihak ketiga Giro Deposit on call Deposito berjangka Interbank call money

2014

616

618

3.640 1.500 375.000

2.962 2.000 -

380.756

5.580

Rupiah Related party Demand deposits Third parties Demand deposits Deposit on call Time deposits Interbank call money

Valuta asing Pihak berelasi Interbank call money Pihak ketiga Interbank call money

2.688.075 110.280

-

Foreign currency Related party Interbank call money Third parties Interbank call money

Total

3.179.111

1.863.330

Total

1.857.750

Saldo deposito berjangka, deposit on call dan interbank call money berdasarkan periodenya:

The amounts of time deposits, deposit on call and interbank call money based on its period:


2014

≤ 1 bulan > 1 - 3 bulan

3.172.805 2.051.400

2.000 1.857.750

≤ 1 month > 1 - 3 months

Total

3.174.855

1.859.750

Total

Pada tanggal-tanggal 31 Desember 2015 dan 2014, tidak ada simpanan dari bank-bank lain yang dijadikan jaminan.

As of December 31, 2015 and 2014, there were no deposits from other banks pledged as collateral.

Informasi mengenai jatuh tempo simpanan dari bank-bank lain diungkapkan pada Catatan 3d. Informasi mengenai klasifikasi dan nilai wajar simpanan dari bank-bank lain diungkapkan pada Catatan 32. Simpanan dari pihak berelasi diungkapkan pada Catatan 34.

Information in respect of maturities of deposits from other banks is disclosed in Note 3d. Information regarding the classification and fair value of deposits from other banks is disclosed in Note 32. Deposits from related parties are disclosed in Note 34. 89




20. PAJAK PENGHASILAN

20.

INCOME TAX a.

a. Utang pajak penghasilan terdiri dari:

Income tax payable consisted of:

31 Desember/December 31 2015 PPh pasal 29

2014 2.401

2013

20.402

-

b.

b. Beban pajak penghasilan terdiri dari:

Income tax Article 29

The components of income tax expense are as follows:

Tahun yang berakhir pada tanggal 31 Desember/Years ended December 31 2015

2014

2013

Pajak kini Pajak tangguhan

18.635 34.254

20.588 20.715

2.140

Current tax Deferred tax

Total

52.889

41.303

2.140

Total

c. Berdasarkan Undang-Undang perpajakan di Indonesia, Bank menghitung dan melaporkan/menyetorkan pajak berdasarkan sistem self-assesment. Fiskus dapat menetapkan/mengubah pajak-pajak tersebut dalam jangka waktu tertentu sesuai peraturan yang berlaku. d.

Rekonsiliasi antara laba sebelum beban pajak penghasilan yang disajikan dalam laporan laba rugi dan penghasilan komprehensif dengan laba kena pajak untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2015, 2014 dan 2013 adalah sebagai berikut : 2015 Laba sebelum beban Pajak penghasilan Beda temporer: Imbalan pasca-kerja Bonus dan tunjangan yang masih harus dibayar Penyusutan aset tetap Pendapatan bunga yang ditangguhkan dan biaya transaksi Cadangan kerugian penurunan Nilai kredit Lain-lain

c.

Under the Indonesian taxation laws, the Bank submits tax returns on a self-assessment basis. The tax authorities may assess/amend taxes within the statute of limitations under prevailing regulations.

d.

The reconciliation between income before income tax expense as presented in the statement profit or loss and other comprehensive income and taxable income for the years ended December 31, 2015, 2014 and 2013 are as follows:

2014

2013

208.935

162.828

6.726

Income before income tax expense

20.805

13.745

8.592

Temporary differences: Post-employment benefits

11.462 589

7.090 (1.301 )

-

(11.363 )

7.093 (483) (169.368) 4.936

(70.477) (1.773)

(49.771 ) 1.783

(137.017)

(46.454)

(44.970 )

1.722 777 123

1.606 714 66

1.306 289 136 103

2.622

2.386

1.834

Taksiran laba (rugi) fiskal Kompensasi rugi fiskal tahun sebelumnya 2013

74.540

118.760

Laba (rugi) kena pajak

74.540

82.350

Beban pajak penghasilan badan Dikurangi : pajak penghasilan dibayar dimuka

18.635

20.588

Beda permanen: Bentuk natura dan kenikmatan Pajak penghasilan dan denda Beban promosi lainnya Lain-lain

Liabilitas pajak kini

-

(36.410 )

(16.234)

(186)

2.401

20.402

90

(36.410 ) (36.410)

Accrued bonus and allowances Depreciation of fixed assets Deferred interest income and transaction costs Allowance for impairment losses on loans Others

Permanent differences: Benefits in kind Income tax and penalties Other promotion expenses Others

Estimated tax income (loss) Tax losses carried forward from prior year 2013 Taxable income (loss)

-

Current income tax expense

-

Less : prepayment of income tax

-

Current tax liability




20. PAJAK PENGHASILAN (lanjutan)

20.

INCOME TAX (continued) e.

e. Rekonsiliasi antara hasil perkalian laba sebelum beban pajak penghasilan dengan tarif pajak yang berlaku dan beban pajak penghasilan adalah sebagai berikut:

The reconciliation between income before income tax expense multiplied by the prevailing tax rate and income tax expense are as follows:

Tahun yang berakhir pada tanggal 31 Desember/Years ended December 31 2015 Laba sebelum beban pajak penghasilan Tarif pajak yang berlaku

2013

208.935 25%

162.828 25%

6.726 25%

52.233

40.707

1.682

656 -

596 -

459 (1)

Permanent differences at 25% tax rate Other adjustment

52.889

41.303

2.140

Income tax expense

Beda permanen dengan tarif pajak 25% Penyesuaian lainnya Beban Pajak

2014

f. The details of the deferred tax assets (liabilities) as of December 31, 2015 and 2014 were as follows:

f. Rincian aset (liabilitas) pajak tangguhan pada tanggal-tanggal 31 Desember 2015 dan 2014 adalah sebagai berikut: 2014*)

2015 Aset pajak tangguhan: Liabilitas imbalan pasca-kerja Bonus dan tunjangan yang masih harus dibayar Penyusutan aset tetap Rugi belum direalisasi dari perubahan nilai wajar efek-efek yang tersedia untuk dijual Kerugian pajak tahun berjalan Lain-lain

Liabilitas pajak tangguhan: Cadangan kerugian penurunan nilai aset keuangan

Liabilitas (Aset) pajak tangguhan, neto

Income before income tax expense Prevailing tax rate

2013*)

20.155

15.974

10.739

8.628 63

6.854 184

3.988 37

1.234

19 -

9.103 443

30.080

23.031

24.310

(72.404)

(30.062 )

(12.443)

(72.404)

(30.062)

(12.443)

(42.324)

(7.031)


11.867

Deferred tax assets: Post-employment benefits obligation Accrued bonus and allowances Depreciation of fixed assets Unrealized loss from changes in fair value of available-for-sale securities Current tax loss Others

Deferred tax liabilities: Allowance for impairment losses on financial assets

Deferred tax liabilities (Assets), net


g. The Bank’s management believes that total deferred tax assets arising from temporary differences are probable to be realized in the future years.

g. Manajemen Bank berkeyakinan bahwa seluruh aset pajak tangguhan yang timbul dari beda temporer kemungkinan besar dapat direalisasi pada tahun-tahun mendatang.

91




21. LIABILITAS IMBALAN PASCA-KERJA

21.

OBLIGATION BENEFITS

FOR

POST-EMPLOYMENT

Sesuai dengan Undang-Undang Republik Indonesia No. 13/2003 tentang ketenagakerjaan, Bank wajib memberikan imbalan pasca-kerja kepada karyawannya pada saat pemutusan hubungan kerja atau pada saat karyawan menyelesaikan masa kerjanya. Imbalan pascakerja ini diberikan terutama berdasarkan masa kerja dan kompensasi karyawan pada saat pemutusan hubungan kerja atau selesainya masa kerja.

In accordance with Law of the Republic of Indonesia No. 13/2003 relating to labor regulations, the Bank is required to provide postemployment benefits to its employees when their employment is terminated or when they retire. These benefits are primarily based on years of service and the employees’ compensation at termination or retirement.

Dengan demikian, Bank mencatat liabilitas yang mencerminkan imbalan pasca-kerja yang diwajibkan oleh Undang-Undang No.13/2003.

Therefore, the Bank recorded a liability, which represents post-employment benefits as required by Law No.13/2003.

Tabel berikut menyajikan liabilitas imbalan pascakerja Bank yang tercatat di laporan posisi keuangan pada tanggal 31 Desember 2015 dan 2014, dan perubahan liabilitas imbalan pasca-kerja dan beban yang diakui dalam laporan laba rugi dan penghasilan komprehensif lain untuk tahun yang berakhir tanggal 31 Desember 2015 dan 2014:

The following table summarizes the obligation for post-employment benefits of the Bank as recorded in the statements of financial position as of December 31, 2015 and 2014, and movement in the obligation and expense recognized in the statement of profit or loss and other comprehensive income for the years ended December 31, 2015 and 2014: 2014*)

2015 Biaya imbalan kerja Beban jasa kini Beban atas kewajiban Penilaian kembali atas biaya jangka panjang lainnya

19.365 5.111

15.082 3.866

(10)

Total

Liabilitas imbalan pasca-kerja, akhir tahun

12.748

Employee benefit expense Current service cost Interest on obligation Remeasurement of other longterm benefit Total

Obligation for postemployement benefits Obligation for post-employment benefits, 38.654 beginning of the year Post-employment benefits expense 12.748 for the year Total amount recognized in (4.292) other comprehensive income

63.892

42.954

24.466

18.540

(4.078)

7.193

(3.661)

(4.795)

(4.156)

80.619

63.892

42.954

Payments of benefits during the year Obligation for post-employment benefits, end of the year

Movement in the present value of obligation for post-employment benefit for the years ended December 31, 2015 and 2014 are as follows: 2014*)

2015

Nilai kini liabilitas imbalan pasca-kerja akhir periode

(214)

18.540

Mutasi atas nilai kini liabilitas imbalan pasca-kerja pada tanggal 31 Desember 2015 dan 2014 adalah sebagai berikut:

Nilai kini liabilitas imbalan pasca-kerja, awal periode Beban jasa kini Beban atas kewajiban Pembayaran imbalan pasca-kerja selama tahun berjalan Kerugian (keuntungan) aktuarial

10.643 2.319

(408)

24.466

Liabilitas imbalan pasca kerja Liabilitas imbalan pasca-kerja, awal tahun Beban imbalan pasca-kerja tahun berjalan Total yang diakui di penghasilan komprehensif lainnya Pembayaran imbalan pasca-kerja selama tahun berjalan

2013*)

2013*) Present value of obligation for postemployment benefits, beginning of the year Current service cost Interest on obligation

63.892 19.365 5.111

42.954 15.082 3.866

38.654 10.643 2.319

(3.661) (4.088)

(4.795) 6.785

(4.156 ) Payments of benefits during the year (4.506) Actuarial losses (gain)

80.619

63.892


42.954

Present value of obligation for for post - employment benefits, end of the year


92




21. LIABILITAS IMBALAN PASCA-KERJA (lanjutan)

21.

OBLIGATION FOR BENEFITS (continued)

POST-EMPLOYMENT

The calculation of obligation for post-employment benefits as of December 31, 2015 and 2014 was performed by Biro Pusat Aktuaria as the independent actuary based on its reports dated January 5, 2016 and January 13, 2015, respectively. Obligation for post-employment benefits are calculated using the “Projected Unit Credit” method with the following assumptions:

Perhitungan liabilitas imbalan pasca-kerja pada tanggal 31 Desember 2015 dan 2014 dilakukan oleh Biro Pusat Aktuaria sebagai aktuaris independen berdasarkan laporannya masingmasing pada tanggal-tanggal 5 Januari 2016 dan 13 Januari 2015. Liabilitas imbalan pasti atas imbalan pasca-kerja (post-employment benefit) tersebut dihitung dengan menggunakan metode “Projected Unit Credit” dan asumsi-asumsi signifikan sebagai berikut: 31 Desember/ December 31,

Tingkat diskonto per tahun Kenaikan gaji per tahun Usia pensiun Tingkat kematian

2015

2014

2013

8.6% 6.0% 55 tahun/ years Tabel TMI 2011/ TMI 2011 table

8.0% 6.0% 55 tahun/years Tabel TMI 2011/ TMI 2011 table

9.0% 6.0% 55 tahun/years Tabel TMI 2011/ TMI 2011 table

Discount rate per annum Salary increase per annum Pension age Mortality rate

31 Desember/December 31 2015 Nilai kini liabilitas imbalan pasca-kerja Pengalaman penyesuaian yang timbul pada liabilitas program

2014*)

2013*)

2012*)

(80.619)

(63.892)

(42.954)

1.456

(3.354)

(797)

Present value of obligation for post-employment benefits Experience adjustments 19 arising on plan liability

(38.654)



Perubahan satu poin persentase dalam tingkat diskonto yang diasumsikan akan memiliki dampak sebagai berikut:

A one percentage point change in the assumed discount rate would have the following effects:

31 Desember/December 31 2015 Kenaikan/ Increase Dampak pada agregat biaya jasa kini Dampak pada nilai kini kewajiban imbalan kerja

2014*) Penurunan/ Decrease

Kenaikan/ Increase

Penurunan/ Decrease

17.910

21.020

(1.258)

75.166

86.768

(4.690)

Effect on the aggregate current service cost Effect on the present value of 5.330 defined benefit obligation

1.443



Jatuh tempo kewajiban aset dana manfaat pasti pada tanggal 31 Desember 2015, 2014 dan 2013 adalah sebagai berikut:

The maturity of defined benefit plan obligation as of December 31, 2015, 2014 and 2013 is as follows:

2015

2014

2013

Dalam waktu 12 bulan berikutnya (periode laporan tahun Antara 2 dan 5 tahun Antara 5 dan 10 tahun Di atas 10 tahun

6.354 10.919 24.950 38.395

2.966 10.278 17.766 32.882

3.187 4.985 9.919 24.863

Within the next 12 months (the next annual reportingperiod) Between 2 and 5 years Between 5 and 10 years Beyond 10 years

Jumlah

80.619

63.892

42.954

Total

93




22. PINJAMAN SUBORDINASI

22. SUBORDINATED LOAN The Bank obtained subordinated loans from Qatar National Bank S.A.Q, the Bank’s majority shareholder.

Bank memperoleh pinjaman subordinasi dari Qatar National Bank S.A.Q, pemegang saham mayoritas Bank.


2014

Tanggal perolehan 30 September 2015

964.950

-

Date obtained September 30, 2015

Total

964.950

-

Total

On September 30, 2015 the subordinated loan of USD70 million was obtained for Supplementary Capital (Tier 2). The interest rate at 7.25% per annum, payable on quarterly basis from the date of principal loan drawdown. Maturity of subordinated loan is on September 29, 2020.

Pada tanggal 30 September 2015, Bank memperoleh pinjaman subordinasi sebesar USD70 juta dan digunakan sebagai Modal Pelengkap (Tier 2). Suku bunga pinjaman sebesar 7,25% per tahun, dibayarkan setiap triwulan yang dihitung sejak tanggal penarikan pinjaman pokok. Jatuh tempo pinjaman subordinasi pada tanggal 29 September 2020. 23. MODAL SAHAM

23.

SHARE CAPITAL The composition of the Banks’ shareholders as of December 31, 2015 and 2014 are as follows:

Komposisi pemegang saham Bank pada tanggal 31 Desember 2015 dan 2014 adalah sebagai berikut:

31 Desember/December 31, 2015 Persentase kepemilikan/ Percentage of ownership (%)

Total saham/ Number of shares

Total

Qatar National Bank SAQ PT Bosowa Kapital Masyarakat (masing-masing di bawah 5%)

7.232.691.746 713.429.674

82.59% 8.15%

1.808.173 178.358

Qatar National Bank SAQ PT Bosowa Kapital

811.024.577

9.26%

202.756

Public (each below 5%)

Total

8.757.145.997

100,00%

2.189.287

Total

31 Desember/December 31, 2014 Total saham/ Number of shares

Persentase kepemilikan/ Percentage of ownership (%)

Total

Qatar National Bank SAQ PT Bosowa Kapital Masyarakat (masing-masing di bawah 5%)

7.232.691.746 665.717.756

82,59% 7,60%

1.808.173 166.430

Qatar National Bank SAQ PT Bosowa Kapital

858.736.495

9,81%

214.684

Public (each below 5%)

Total

8.757.145.997

100,00%

2.189.287

Total

94




23. MODAL SAHAM (lanjutan)

23.

SHARE CAPITAL (continued)

Berdasarkan Akta Pernyataan Keputusan Rapat Umum Pemegang Saham Tahunan Bank No. 37 tanggal 27 Februari 2015 yang dibuat di hadapan Fathiah Helmi, SH, notaris di Jakarta, para pemegang saham menyetujui peningkatan modal dasar Bank dari Rp2.500.000 atau sebanyak 10.000.000.000 saham menjadi Rp8.000.000 atau sebanyak 32.000.000.000 saham.

Based on the Deed of Minutes of Annual Shareholders’ General Meeting of Bank No. 37 dated February 27, 2015 of Fathiah Helmi, SH, notary public in Jakarta, the shareholders agreed to increase the Bank’s authorized share capital from Rp2,500,000 or 10,000,000,000 shares to Rp8,000,000 or 32,000,000,000 shares.

Peningkatan modal dasar tersebut telah disetujui oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dengan Surat Keputusan No. AHU-0004611.AH.01.02 Tahun 2015 tanggal 24 Maret 2015.

The increase in the authorized share capital has been approved by the Minister of Laws and Human Rights of the Republic of Indonesia under his Decree No. AHU-0004611.AH.01.02 Year 2015 dated March 24, 2015.

Berdasarkan Rapat Umum Pemegang Saham Luar Biasa Kedua pada tanggal 26 Juni 2009, sebagaimana dinyatakan dalam akta No. 85 tanggal 26 Juni 2009 yang dibuat dihadapan Fathiah Helmi, SH, notaris di Jakarta, Bank melakukan Penawaran Umum Terbatas I (PUT I) dengan menerbitkan Hak Memesan Efek Terlebih Dahulu (HMETD) sejumlah 125.304.750 saham dengan nilai nominal sebesar Rp250 (dalam Rupiah penuh) per saham yang ditawarkan dengan harga Rp320 (dalam Rupiah penuh) per saham. Penerbitan saham melalui PUT I tersebut menghasilkan agio saham sebesar Rp8.771.

Based on the Second Extraordinary Shareholders’ General Meeting on June 26, 2009, effected by deed No. 85 dated June 26, 2009 of Fathiah Helmi, SH, notary public in Jakarta, the Bank released the First Limited Public Offering (PUT I) by issuing the Rights Issue (HMETD) amounting to 125,304,750 shares with par value of Rp250 (in full amount) per share at an offering price of Rp320 (in full amount) per share. This share issuance through PUT I resulted in additional paid-in capital of Rp8,771.

Setelah PUT I, modal ditempatkan dan disetor Bank meningkat menjadi 626.523.750 lembar saham atau senilai Rp156.631.

After the PUT I, the Bank’s issued and fully paid capital increased to 626,523,750 shares or Rp156,631.

Berdasarkan Rapat Umum Pemegang Saham Luar Biasa pada tanggal 27 Desember 2010 sebagaimana dinyatakan dalam akta No. 63 tanggal 27 Desember 2010 yang dibuat di hadapan Fathiah Helmi, SH, notaris di Jakarta, Bank melakukan Penawaran Umum Terbatas II (PUT II) dengan menerbitkan Hak Memesan Efek Terlebih Dahulu (HMETD) sejumlah 2.935.263.768 saham dengan nilai nominal dan harga penawaran sebesar Rp250 (dalam Rupiah penuh) per saham.

Based on the Extraordinary Shareholders’ General Meeting on December 27, 2010, as effected by deed No. 63 dated December 27, 2010 of Fathiah Helmi, SH, notary public in Jakarta, the Bank released the Second Limited Public Offering (PUT II) by issuing the Rights Issue (HMETD) amounting to 2,935,263,768 shares with par value and at the offering price of Rp250 (in full amount) per share.

Setelah PUT II, modal ditempatkan dan disetor Bank meningkat menjadi 3.561.787.518 saham atau senilai Rp890.447.

After the PUT II, the Bank’s issued and fully paid capital increased to 3,561,787,518 shares or Rp890,447.

Berdasarkan Akta Akuisisi No. 26 tanggal 26 Januari 2011 yang dibuat di hadapan Fathiah Helmi, SH, notaris di Jakarta, Bank dan Qatar National Bank SAQ (“QNB”) telah menandatangani Akta Akuisisi dimana QNB sebagai pembeli siaga dalam rights issue telah memperoleh 2.478.728.032 saham biasa atas Saham Baru dengan nominal Rp250 (dalam Rupiah penuh) per saham atau senilai Rp619.682.

Based on the Acquisition Deed No. 26 dated January 26, 2011 of Fathiah Helmi, SH, notary public in Jakarta, the Bank and Qatar National Bank SAQ (“QNB”) have signed the Deed of Acquisition where QNB as a standby buyer in the rights issue has acquired 2,478,728,032 ordinary shares of New Shares with a nominal value of Rp250 (in full amount) per share or Rp619,682.

95




23. MODAL SAHAM (lanjutan)

23. SHARE CAPITAL (continued)

Pada tanggal 27 Mei 2013, Bank memperoleh Pernyataan Efektif dari Otoritas Jasa Keuangan (“OJK”) berdasarkan Surat Keputusan No. S-141/D.04/2013 dalam rangka Penawaran Umum Terbatas III (PUT III) dengan menerbitkan Hak Memesan Efek Terlebih Dahulu (HMETD) sejumlah 2.596.543.000 saham dengan nilai nominal dan harga penawaran sebesar Rp250 (dalam Rupiah penuh) per saham.

On May 27, 2013, the Bank obtained the Effective Notification from the Financial Service Authority (“OJK”) through its Decree No. S-141/D.04/2013 in relation to the Third Limited Public Offering (PUT III) by conducting the Rights Issue (HMETD) amounting to2,596,543,000 shares with par value and at the offering price of Rp250 (in full amount) per share.

Setelah PUT III, modal ditempatkan dan disetor Bank meningkat menjadi 6.158.330.518 lembar saham atau senilai Rp1.539.583.

After the PUT III, the Bank’s issued and fully paid capital increased to 6,158,330,518 shares or Rp1,539,583.

Pada tanggal 2 Juni 2014, Bank memperoleh Pernyataan Efektif dari Otoritas Jasa Keuangan (“OJK”) berdasarkan Surat Keputusan No..S-253/D.04/2014 dalam rangka Penawaran Umum Terbatas IV (PUT IV) dengan menerbitkan Hak Memesan Efek Terlebih Dahulu (HMETD) sejumlah 2.598.815.479 saham dengan nilai nominal dan harga penawaran sebesar Rp250 (dalam Rupiah penuh) per saham.

On June 2, 2014, the Bank obtained the Effective Notification from the Financial Service Authority (“OJK”) through its Decree No..S-253/D.04/2014 in relation to the Fourth Limited Public Offering (PUT IV) by conducting the Rights Issue (HMETD) amounting to 2,598,815,479 shares with par value and at the offering price of Rp250 (in full amount) per share.

Setelah PUT IV, modal ditempatkan dan disetor Bank meningkat menjadi 8.757.145.997 lembar saham atau senilai Rp2.189.287

After the PUT IV, the Bank’s issued and fully paid capital increased to 8,757,145,997 shares or equivalent to Rp2,189,287.

24. TAMBAHAN MODAL DISETOR

24.

ADDITIONAL PAID-IN CAPITAL The additional paid-in capital as of December 31, 2015 and 2014 were derived from:

Tambahan modal disetor pada tanggal 31 Desember 2015 dan 2014 berasal dari:


2014

Agio saham Beban emisi saham

8.771 (33.341)

8.771 (33.341)

Additional paid-in capital Shares issuance costs

Total - neto

(24.570)

(24.570)

Total - net

Share issuance costs arose from shares issuance through Initial Public Offering, PUT I, PUT II, PUT III, and PUT IV amounting to Rp1,635, Rp1,032, Rp25,562, Rp2,525 and Rp2,587 respectively (Notes 1b and 22).

Beban emisi saham timbul dari penerbitan saham melalui Penawaran Umum Perdana, PUT I, PUT II, PUT III dan PUT IV masing-masing sebesar Rp1.635, Rp1.032, Rp25.562, Rp2.525 dan Rp2.587 (Catatan 1b dan 23). 25. CADANGAN UMUM DAN WAJIB

25.

GENERAL AND LEGAL RESERVE The general and legal reserve was provided in relation with the Law of the Republic of Indonesia No.)1/1995 which has been replaced with the Law No.)40/2007 regarding the Limited Liability Company effective on August 16, 2007 which requires companies to set up a general reserve amounting to at least 20% of the issued and paid up share capital. There is no timeline over which this amount should be provided.

Cadangan umum dan wajib dibentuk sesuai dengan Undang-Undang Republik Indonesia No.)1/1995 sebagaimana telah diubah dengan Undang-Undang No..40/2007 tentang Perseroan Terbatas yang berlaku efektif sejak tanggal 16 Agustus 2007 yang mengharuskan perusahaanperusahaan untuk membentuk cadangan umum dengan jumlah minimum 20% dari modal saham yang ditempatkan dan disetor. Tidak ada batas waktu pembentukan cadangan ini.

96




25. CADANGAN UMUM DAN WAJIB (lanjutan)

25.

GENERAL AND LEGAL RESERVE (continued)

Berdasarkan akta No. 36 tanggal 27 Februari 2015 dibuat dihadapan Fathiah Helmi, SH, notaris Jakarta, disetujui penetapan laba bersih tahun 2014 digunakan untuk menambah modal Bank dan memperkuat rasio modal.

Based on deed No. 36 dated February 27, 2015 of Fathiah Helmi, SH, notary public in Jakarta, was approved that profit for the year 2014 was used to increase the capital and to strengthen capital adequacy ratio.

Berdasarkan akta No. 67 tanggal 28 Maret 2014 dibuat dihadapan Fathiah Helmi, SH, notaris Jakarta, disetujui penetapan laba bersih tahun 2013 digunakan untuk menutup akumulasi kerugian tahun sebelumnya.

Based on deed No. 67 dated March 28, 2014 of Fathiah Helmi, SH, notary public in Jakarta, was approved that profit for the year 2013 was used to cover accumulated losses of previous years.

26. PENDAPATAN BUNGA - NETO

26.

NET INTEREST INCOME

Tahun yang Berakhir pada tanggal 31 Desember/Year ended December 31 2015 Pendapatan bunga Kredit yang diberikan Penempatan pada Bank Indonesia dan bank-bank lain Efek-efek Efek-efek yang dibeli dengan janji dijual kembali Lainnya

Beban bunga Simpanan dari nasabah Deposito berjangka dan deposit on call Giro Tabungan Simpanan dari bank-bank lain Deposit on call Deposito berjangka Giro Pinjaman Subordinasi Premi penjaminan ke LPS (Catatan 37) Lain-lain

Pendapatan bunga - neto

2014

1.926.821

1.159.160

58.437 47.209

30.244 24.502

8.046 69

7.189 26

2.040.582

1.221.121

(1.167.481) (89.005) (3.862)

(717.966) (39.444) (7.576)

(32.229) (80) (7) (17.662) (41.005) -

(27.606) (253) (10) (20.101) (1.543)

(1.351.331)

(814.499)

689.251

406.622

97

Interest income Loans Placements with Bank Indonesia and other banks Securities Securities purchased under agreement to resell Others

Interest expense Deposits from customers Time deposits and deposits on call Current accounts Saving accounts Deposits from other banks Deposits on call Time deposits Demand deposits Subordinated Loan Guarantee premium to LPS (Note 37) Others

Net interest income




27. PENDAPATAN PROVISI DAN KOMISI - NETO

27. NET FEES AND COMMISSION INCOME

Tahun yang Berakhir pada tanggal 31 Desember/Year ended December 31 2015 Pendapatan provisi dan komisi Jasa Jasa administrasi Lain-lain

184.214 2.017 10.047

168.018 1.231 7.982

196.278

177.231

Beban provisi dan komisi Transaksi antar bank Pendapatan provisi dan komisi - neto

2014

(2.020)

(2.430)

194.258

174.801

28. PENYISIHAN KERUGIAN PENURUNAN NILAI ASET KEUANGAN - NETO

Fees and commission income Services Administration fees Others

Fees and commission expenses Inter-bank transactions Net fees and commission income

28. PROVISION FOR IMPAIRMENT LOSSES ON FINANCIAL ASSETS - NET

Tahun yang Berakhir pada tanggal 31 Desember/Year ended December 31 2015 Kredit yang diberikan (Catatan 12)

2014 87.472

1.626

29. BEBAN KARYAWAN

29.

Loans (Note 12)

PERSONNEL EXPENSES

Tahun yang Berakhir pada tanggal 31 Desember/Year ended December 31

2015

2014*)

Gaji pokok THR/bonus Outsourcing Imbalan pasca-kerja Tunjangan jabatan Pendidikan dan pelatihan Pengobatan Asuransi Perekrutan Tunjangan cuti, kehadiran, dan tranportasi Lain-lain

175.850 81.251 31.657 24.466 18.082 16.159 13.144 7.657 1.681

146.300 68.473 23.860 18.540 11.566 12.000 4.699 5.357 208

827 4.968

247 1.353

Basic salaries THR/bonus Outsourcing Post-employment benefits Functional allowance Education and training Medical Insurance Recruitment Leave, attendance, and transportation allowance Others

Total

375.743

292.603

Total



98




30. BEBAN UMUM DAN ADMINISTRASI

30.

GENERAL AND ADMINISTRATIVE EXPENSES

Tahun yang Berakhir pada tanggal 31 Desember/Year ended December 31 2015

2014

Sewa Iklan dan promosi Penyusutan aset tetap Pemeliharaan dan perbaikan

54.354 30.818 29.653 21.259

34.505 13.841 27.160 13.456

Telepon, telex dan data komunikasi Jasa profesional Transportasi Percetakan dan perlengkapan Air, gas dan listrik Amortisasi aset tak berwujud Pajak dan retribusi Asuransi Lain-lain

19.321 17.624 12.120 8.588 8.482 7.491 2.420 2.153 10.823

18.207 8.337 8.525 4.077 7.002 7.250 1.973 1.102 4.177

Rental Advertising and promotion Depreciation of fixed assets Repair and maintenance Telephone, telex and data communication Professional fees Transportation Printing and stationary Water, gas and electricity Amortization of intangible assets Tax and retribution Insurance Others

225.106

149.612

Total

Total

31. LABA PER SAHAM - DASAR

31.

EARNINGS PER SHARE - BASIC Earnings per share - basic is computed by dividing income for the year by the weighted average number of outstanding shares during the year.

Laba per saham - dasar dihitung dengan membagi laba tahun berjalan dengan rata-rata tertimbang jumlah saham yang beredar pada tahun yang bersangkutan.

Tahun yang Berakhir pada tanggal 31 Desember/Year ended December 31 2015 Laba tahun berjalan Rata-rata tertimbang jumlah saham yang beredar untuk perhitungan laba per saham dasar Laba per saham - dasar (dalam Rupiah penuh)

32. ASET KEUANGAN KEUANGAN

DAN

2014

156.046

121.525

8.747.145.997

7.439.326.477

17,82

16,34

LIABILITAS

32. FINANCIAL LIABILITIES

Income for the year Weighted average number of outstanding shares for basic earnings per share computation Earnings per share basic (in full amount)

ASSETS

AND

FINANCIAL

Di bawah ini disajikan perbandingan antara nilai tercatat, seperti dilaporkan dalam laporan posisi keuangan, dan nilai wajar semua aset keuangan dan liabilitas keuangan.

Below is the comparison of the carrying amounts, as reported in the statement of financial position, and the fair value of all financial assets and liabilities.

Pada tabel di bawah ini, instrumen keuangan telah dikelompokkan berdasarkan klasifikasi masingmasing. Kebijakan akuntansi yang penting di Catatan 2f menjelaskan bagaimana kategori aset keuangan dan liabilitas keuangan tersebut diukur dan bagaimana pendapatan dan beban, termasuk laba dan rugi atas nilai wajar (perubahan nilai wajar instrument keuangan), diakui.

In the below table, financial instruments have been allocated based on their classification. The significant accounting policies in Note 2f describe how the categories of the financial assets and financial liabilities are measured and how income and expenses, including fair value gains and losses (changes in fair value of financial instruments), are recognized.

99


PT BANK QNB INDONESIA TBK CATATAN ATAS LAPORAN KEUANGAN Tanggal 31 Desember 2015 dan untuk Tahun yang Berakhir pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 32. ASET KEUANGAN KEUANGAN (lanjutan)

DAN


LIABILITAS

32. FINANCIAL ASSETS LIABILITIES (continued)

AND

FINANCIAL

Aset keuangan telah dikelompokkan ke dalam aset keuangan yang diukur pada nilai wajar melalui laba atau rugi, pinjaman yang diberikan dan piutang, dimiliki hingga jatuh tempo dan tersedia untuk dijual. Sama halnya dengan aset keuangan, liabilitas keuangan telah dikelompokkan ke dalam liabilitas keuangan yang diukur pada nilai wajar melalui laba atau rugi dan yang dicatat pada biaya perolehan diamortisasi lainnya.

Financial asset classes have been allocated into assets at fair value through profit or loss, loans and receivables, held-to-maturity and available-for-sale financial assets. Similarly, financial liability has been allocated into financial liabilities at fair value through profit or loss and other amortized cost.

Nilai wajar yang diungkapkan di bawah ini adalah berdasarkan informasi relevan yang tersedia pada tanggal laporan posisi keuangan dan tidak diperbaharui untuk mencerminkan perubahan dalam kondisi pasar yang terjadi setelah tanggal laporan posisi keuangan.

The fair values are based on relevant information available as at the date of statement of financial position and have not been updated to reflect changes in market condition after the date of statement of financial position.

Tabel di bawah menyajikan nilai tercatat dan nilai wajar aset dan liabilitas keuangan Bank pada tanggal 31 Desember 2015 dan 2014.

The table below sets out the carrying amount and fair values of the Bank’s financial assets and liabilities as of December 31, 2015 and 2014.


Nilai wajar melalui laba rugi/ Fair value through profit or loss Aset keuangan Kas Giro pada Bank Indonesia Giro pada bank-bank lain Penempatan pada Bank Indonesia dan bank-bank lain Tagihan derivatif Tagihan akseptasi Efek-efek yang dibeli dengan janji dijual kembali Kredit yang diberikan Efek-efek Aset lain-lain

Liabilitas keuangan Simpanan dari nasabah Simpanan dari bank-bank lain Liabilitas derivatif Liabilitas akseptasi Beban masih harus dibayar dan liabilitas lain-lain Pinjaman Subordinasi

Pinjaman yang diberikan dan piutang/ Loans and receivables

Dimiliki hingga jatuh tempo/ Held-to maturity

Biaya perolehan diamortisasi lainnya/ Amortized other cost

Tersedia untuk dijual/ Available forsale

Jumlah Nilai tercatat/ Total carrying amount

Nilai wajar/ Fair value Financial assets Cash

-

45.432

-

-

-

45.432

45.432

-

1.710.947 31.146

-

-

-

1.710.947 31.146

1.710.947 31.146

2.921 -

2.111.813 61.821

-

-

-

2.111.813 2.921 61.821

2.111.813 2.921 61.821

-

269.117 20.788.304 127.018

-

325.444 -

-

269.117 20.788.304 325.444 127.018

269.117 20.788.304 313.651 127.018

2.921

25.145.598

-

325.444

-

25.473.963

25.462.170

661 -

-

61.821

-

18.509.008 3.179.111 -

18.509.008 3.179.111 661 61.821

18.509.008 3.179.111 661 61.821

Financial liabilities Deposits from customers Deposits from other banks Derivatives payable Acceptance payable

-

-

-

-

70.420 964.950

68.354 964.950

68.354 964.950

Accruals and other liabilities Subordinated Loan

661

-

61.821

-

22.723.489

22.783.905

22.783.905

100

Current accounts with Bank Indonesia Current accounts with other banks Placements with Bank Indonesia and other banks Derivatives receivable Acceptances receivable Securites purchased under agreement to resell Loans Securities Other assets



32. ASET KEUANGAN KEUANGAN (lanjutan)

DAN


LIABILITAS


AND

FINANCIAL


Nilai wajar melalui laba rugi/ Fair value through profit or loss Aset keuangan Kas Giro pada Bank Indonesia Giro pada bank-bank lain Penempatan pada Bank Indonesia dan bank-bank lain Tagihan derivatif Tagihan akseptasi Efek-efek yang dibeli dengan janji dijual kembali Kredit yang diberikan Efek-efek Aset lain-lain

Liabilitas keuangan Simpanan dari nasabah Simpanan dari bank-bank lain Liabilitas derivatif Liabilitas akseptasi Beban masih harus dibayar dan liabilitas lain-lain

Pinjaman yang diberikan dan piutang/ Loans and receivables

Dimiliki hingga jatuh tempo/ Held-to maturity

Biaya perolehan diamortisasi lainnya/ Amortized other cost

Tersedia untuk dijual/ Available forsale

Jumlah Nilai tercatat/ Total carrying amount

Nilai wajar/ Fair value Financial assets Cash

-

52.653

-

-

-

52.653

52.653

-

1.425.155 43.324

-

-

-

1.425.155 43.324

1.425.155 43.324

849 -

3.324.797 60.744

-

-

-

3.324.797 849 60.744

3.324.797 849 60.744

-

268.324 15.093.659 103.392

231 -

232.411 -

-

268.324 15.093.659 232.642 103.392

268.324 15.093.859 232.642 103.392

849

20.372.048

231

232.411

-

20.605.539

20.605.739

1.371 -

-

-

-

16.161.710 1.863.330 60.744

16.161.710 1.863.330 1.371 60.744

16.161.710 1.863.330 1.371 60.744

Financial liabilities Deposits from customers Deposits from other banks Derivatives payable Acceptance payable

-

-

-

-

69.958

69.958

69.958

Accruals and other liabilites

1.371

-

-

-

18.155.742

18.157.113

18.157.113

Current accounts with Bank Indonesia Current accounts with other banks Placements with Bank Indonesia and other banks Derivatives receivable Acceptances receivable Securites purchased under agreement to resell Loans Securities Other assets

Berikut metode dan asumsi yang digunakan untuk perkiraan nilai wajar:

The following methods and assumptions are used to estimate the fair value:

Nilai wajar aset dan liabilitas keuangan tertentu selain kredit yang diberikan dan efek-efek mendekati nilai tercatat karena instrumen keuangan tersebut memiliki jangka waktu jatuh tempo yang singkat dan/atau suku bunganya sering ditinjau ulang.

Fair values of certain financial assets and liabilities other than loans and securities are approximately the same with their carrying amounts due to the short-term maturities of these financial instrumentsand/or repriced frequently.

Nilai wajar dari kredit yang diberikan dengan suku bunga mengambang dan nilai tercatat atas kredit jangka pendek dengan suku bunga tetap adalah perkiraan yang layak atas nilai wajar. Nilai wajar dari kredit jangka panjang yang diberikan dengan suku bunga tetap menunjukkan nilai diskon dari perkiraan arus kas masa depan yang diharapkan akan diterima oleh Bank. Perkiraan arus kas ini didiskontokan dengan menggunakan suku bunga pasar untuk menentukan nilai wajar.

The carrying amounts of variable loans and shortterm fixed rate loans are the reasonable approximation of their fair values. The carrying amount of long term fixed rate loans shows the discounted estimated future cash flows. The cash flows estimation is discounted at the market interest rate to determine fair value.

Nilai wajar efek-efek yang diklasifikasikan sebagai dimiliki hingga jatuh tempo yang diberikan dengan suku bunga tetap menunjukkan nilai diskon dari perkiraan arus kas masa depan yang diharapkan akan diterima oleh Bank. Perkiraan arus kas ini didiskontokan dengan menggunakan suku bunga pasar untuk menentukan nilai wajar. Nilai wajar efek-efek yang diklasifikasikan sebagai tersedia untuk dijual adalah berdasarkan harga kuotasi pasar.

The carrying amount securities that classified as held-to-maturity shows the discounted estimated future cash flows. The cash flows estimation is discounted at the market interest rate to determine fair value. The fair value of securities that classified as available for sales was update on quated market prices.

101



32. ASET KEUANGAN KEUANGAN (lanjutan)

DAN


LIABILITAS


AND

FINANCIAL

Nilai wajar atas instrumen derivatif yang dinilai menggunakan teknik penilaian dengan menggunakan komponen yang dapat diamati di pasar terutama adalah swap suku bunga, swap mata uang dan kontrak pertukaran mata uang. Teknik penilaian yang paling banyak digunakan meliputi model penilaian forward dan swap yang menggunakan perhitungan nilai kini. Model tersebut menggabungkan berbagai komponen yang meliputi kualitas kredit dari counterparty, nilai spot dan kontrak berjangka serta kurva tingkat suku bunga.

The fair values of derivatives instrument valued by valuation techniques using components which can be observed in the market, primarily are interest rate swaps, currency swaps and currency exchange contracts. Most widely used valuation techniques include forward and swap valuation models which use the present value calculation. The models incorporate various components which include the credit quality of the counterparty, spot value and future contracts and interest rate curve.

Nilai wajar dari instrumen yang tidak dikuotasi, kredit yang diberikan dan aset non keuangan lainnya diestimasi dengan mendiskonto arus kas masa depan menggunakan tingkat suku bunga yang tersedia untuk pinjaman dengan persyaratan, risiko kredit dan sisa jangka waktu jatuh tempo yang serupa.

The fair value of unquoted instruments, loans and other non financial assets is estimated by discounting the future cash flow using rates currently available for debt on similar terms, credit risk and remaining maturities.

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)

(i) Level 1: quoted (unadjusted) prices in active markets for identical financial assets or liabilities, (ii) Level 2: those involving inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices), (iii) Level 3: those with inputs for the asset and liability that are not based on observable market data (observable input)

Tingkat 1: dikutip (tidak dapat disesuaikan) dari harga pasar aktif untuk aset atau liabilitas keuangan yang identik, (ii) Tingkat 2: yang melibatkan input selain dari harga pasar aktif yang dikutip yang termasuk dalam tingkat 1 yang dapat diobservasi untuk aset dan liabilitas, baik secara langsung (seperti harga) atau tidak langsung (turunan dari harga), (iii) Tingkat 3: input untuk aset dan liabilitas yang tidak didasarkan pada data yang dapat diobservasi di pasar (input yang tidak dapat diobservasi).

102


PT BANK QNB INDONESIA TBK CATATAN ATAS LAPORAN KEUANGAN Tanggal 31 Desember 2015 dan untuk Tahun yang Berakhir pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 32. ASET KEUANGAN KEUANGAN (lanjutan)

DAN


LIABILITAS


AND

FINANCIAL

The table below show the financial instruments measured at fair value grouped according to the fair value hierarchy.

Tabel di bawah ini menunjukkan instrumen keuangan yang diukur pada nilai wajar yang dikelompokkan berdasarkan hirarki nilai wajar.

31 Desember/December 31, 2015 Nilai wajar/Fair value Nilai tercatat/ Carrying value

Aset Keuangan Nilai wajar melalui laba rugi Tagihan derivatif Dimiliki hingga jatuh tempo Efek-efek Kredit yang diberikan dan Piutang Kredit Liabilitas keuangan yang diukur pada biaya perolehan diamortisasi Pinjaman subordinasi Total Liabilitas Keuangan Nilai wajar melalui laba rugi Liabilitas derivatif Total

Tingkat/ Level 1

Tingkat/ Level 2

Tingkat/ Level 3

2.921

-

2.921

-

Financial Assets Fair value through profit or loss Derivatives receivables

325.444

313.651

-

-

Held-to-maturity Securities

20.788.304

-

20.388.217

400.086

Loan and Receivables Loans

964.950

-

964.950

-

Financial liabilities measured at amortized cost Subordinated loan

22.081.619

313.651

20.391.138

400.086

Total

-

Financial Liabilities Fair value through profit or loss Derivatives payable

661

-

661

661

661

Total

31 Desember/December 31, 2014 Nilai wajar/Fair value Nilai tercatat/ Carrying value

Aset Keuangan Nilai wajar melalui laba rugi Tagihan derivatif Tersedia untuk dijual Efek-efek Dimiliki hingga jatuh tempo Efek-efek Kredit yang diberikan dan Piutang Kredit Total Liabilitas Keuangan Nilai wajar melalui laba rugi Liabilitas derivatif Total

Tingkat/ Level 1

Tingkat/ Level 2

Tingkat/ Level 3

849

-

849

-

Financial Assets Fair value through profit or loss Derivatives receivables

232.180

232.180

-

-

Available-for-sale Securities

231

-

231

-

Held-to-maturity Securities

15.093.659

-

15.073.703

19.956

Loan and Receivables Loans

15.326.919

232.180

15.074.783

19.956

Total

1.371

-

1.371

-

Financial Liabilities Fair value through profit or loss Derivatives payable

1.371

-

1.371

-

Total

103




33. KUALITAS ASET PRODUKTIF

33. QUALITY OF PRODUCTIVE ASSETS The tables below present the grading of productive assets of the Bank in accordance with the prevailing Bank Indonesia regulations at their carrying amounts:

Tabel di bawah ini menunjukkan kolektibilitas aset produktif Bank sesuai dengan peraturan Bank Indonesia yang berlaku yang disajikan pada nilai tercatatnya:


Lancar/Current Giro pada Bank Indonesia Giro pada bank-bank lain Penempatan pada Bank Indonesia dan bank-bank lain Tagihan derivatif Tagihan akseptasi Efek-efek yang dibeli dengan janji jual kembali Kredit yang diberikan Efek-efek Komitmen dan kontinjensi yang memiliki risiko kredit Total

Dalam perhatian khusus/ Special mention

Kurang lancar/ Substandard

Diragukan/ Doubtful

Macet/Loss

Total

50.697

-

-

-

-

50.697

Current accounts with Bank Indonesia Current accounts with other banks Placements with Bank Indonesia and other banks Derivatives receivable Acceptance receivable Securites purchased under agreement to resell Loans Securities Commitments and contingencies with credit risk

23.255.690

1.557.830

24.046

20.512

454.132

25.352.210

Total

1.710.947 31.146

-

-

-

-

1.710.947 31.146

2.111.813 2.921 61.821

-

-

-

-

2.111.813 2.921 61.821

269.117 18.731.784 325.444

1.557.830 -

24.046 -

20.512 -

454.132 -

269.117 20.788.304 325.444


Lancar/Current Giro pada Bank Indonesia Giro pada bank-bank lain Penempatan pada Bank Indonesia dan bank-bank lain Tagihan derivatif Tagihan akseptasi Efek-efek yang dibeli dengan janji jual kembali Kredit yang diberikan Efek-efek Komitmen dan kontinjensi yang memiliki risiko kredit Total

Dalam perhatian khusus/ Special mention

Kurang lancar/ Substandard

Diragukan/ Doubtful

90.117

-

-

-

-

90.117

Current accounts with Bank Indonesia Current accounts with other banks Placements with Bank Indonesia and other banks Derivatives receivable Acceptance receivable Securites purchased under agreement to resell Loans Securities Commitments and contingencies with credit risk

19.672.644

831.568

5.043

9.517

20.839

20.539.611

Total

-

-

-

-

1.425.155 43.324

3.324.797 849 60.744

-

-

-

-

3.324.797 849 60.744

268.324 14.226.692 232.642

831.568 -

5.043 -

9.517 -

20.839 -

268.324 15.093.659 232.642

34.

Pihak berelasi/Related party

Azhar bin Abdul Wahab Rusli

Sifat relasi/Nature of relationship Personil manajemen kunci/ Key management personnel Personil manajemen kunci/ Key management personnel Personil manajemen kunci/ Key management personnel Personil manajemen kunci/ Key management personnel

Lloyd Rolston

Personil manajemen kunci/ Key management personnel

Windiarto Tabingin

Personil manajemen kunci/ Key management personnel Personil manajemen kunci/ Key management personnel Personil manajemen kunci/ Key management personnel

Hery Syafril Novi Mayasari

NATURE OF RELATIONSHIP AND TRANSACTIONS WITH RELATED PARTIES The details of the relationship and type of significant transactions with related parties as of December 31, 2015 and 2014 are as follows:

Rincian sifat hubungan dan jenis transaksi yang signifikan dengan pihak berelasi pada tanggal 31 Desember 2015 dan 2014 adalah sebagai berikut:

Andrew McGregor Duff

Total

1.425.155 43.324

34. SIFAT HUBUNGAN DAN TRANSAKSI DENGAN PIHAK BERELASI

Nasrul Husin

Macet/Loss

104

Jenis transaksi/Type of transaction Tabungan/Saving accounts Giro dan pinjaman karyawan/ Current accounts and employee loan Tabungan dan pinjaman karyawan/ Saving accounts and employee loan Deposito berjangka, giro, tabungan dan pinjaman karyawan/Time deposits, current account, Saving accounts and employee loan Deposito berjangka, tabungan, giro dan pinjaman karyawan/ Time deposits, saving accounts, current accounts and employee loan. Deposito berjangka dan tabungan/ Time deposits and saving accounts. Deposito berjangka,tabungan dan pinjaman karyawan/Time deposits, saving and employee loan Pinjaman karyawan, giro, tabungan dan deposito berjangka/ Employee loan, current accounts, saving Accounts and time deposits.




34. SIFAT HUBUNGAN DAN TRANSAKSI DENGAN PIHAK BERELASI (lanjutan)

34.

The details of the relationship and type of significant transactions with related parties as of December 31, 2015 and 2014 are as follows: (continued)

Rincian sifat hubungan dan jenis transaksi yang signifikan dengan pihak berelasi pada tanggal 31 Desember 2015 dan 2014 adalah sebagai berikut: (lanjutan) Pihak berelasi/Related party Suroto Moehadji Qatar National Bank - London Ooredo Asia Qatar National Bank SAQ

PT Indosat Tbk

NATURE OF RELATIONSHIP AND TRANSACTIONS WITH RELATED PARTIES (continued)

Sifat relasi/Nature of relationship

Jenis transaksi/Type of transaction

Personil manajemen kunci/ Key management personnel Mempunyai induk yang sama/Owned by the Same shareholder Perusahaan afiliasi/ Affiliated company Perusahaan induk/ Parent company

Entitas yang dikendalikan oleh pemerintah yang sama sebagai pemegang saham akhir, State of Qatar/Entity controlled by the same government as the ultimate shareholder, State of Qatar

Pinjaman karyawan/ Employee loan Liabilitas akseptasi/Acceptances payable Deposito berjangka dan giro/ Time deposits and current accounts Giro pada bank-bank lain, simpanan dari bank lain dan Pinjaman Subordinasi/Current accounts with other banks, deposit from other banks and Subordinated Loan Giro, deposito berjangka dan efek-efek/ Current accounts, time deposits and securities

Transaksi dengan personil manajemen kunci

Transactions with key management personnel

Personil manajemen kunci adalah pihak yang memiliki kewenangan dan tanggung jawab untuk mengendalikan aktivitas Bank baik secara langsung maupun tidak langsung.

Key management personnel are parties who have authority and responsibility to control the Bank’s activities, directly or indirectly.

Personil manajemen kunci termasuk Dewan Komisaris dan Direksi yang memiliki kewenangan dan tanggung jawab yang signifikan untuk merencanakan, mengarahkan dan mengendalikan kegiatan Bank.

Key management personnel include Board of Commissioners and Board of Directors that have significant authority and responsibility for planning, directing and controlling the Bank’s activities.

Jumlah gaji, tunjangan dan bonus Dewan Komisaris, Direksi, Komite Audit dan Komite Pemantau Risiko selama tahun yang berakhir tanggal 31 Desember 2015 dan 2014 adalah sebagai berikut:

Total of salaries, allowances and bonuses of the Board of Commissioners, Board of Directors, Audit Committee and Risk Monitoring Committee for the years ended December 31, 2015 and 2014 are as follows:

Tahun yang Berakhir pada tanggal 31 Desember/Year ended December 31 2015 Dewan Komisaris Direksi Komite Audit dan Pemantau Risiko

2014 1.687 23.332

2.460 27.717

551

598

25.570

30.775

105

Board of Commissioners Board of Directors Audit Committee and Risk Monitoring Committee




34. SIFAT HUBUNGAN DAN TRANSAKSI DENGAN PIHAK BERELASI (lanjutan)

34.

NATURE OF RELATIONSHIP AND TRANSACTIONS WITH RELATED PARTIES (continued) The total of significant balance and transactions with related parties as of and for the years ended December 31, 2015 and 2014 were as follows:

Jumlah saldo dan transaksi yang signifikan dengan pihak-pihak berelasi pada tanggal dan untuk tahun yang berakhir tanggal 31 Desember 2015 dan 2014 adalah sebagai berikut: 2015 Jumlah/ Amount

Giro pada bank-bank lain Kredit yang diberikan Simpanan dari nasabah: Giro Tabungan Deposito berjangka Simpanan dari bank lain Liabilitas akseptasi Pinjaman Subordinasi Pendapatan Bunga Beban bunga

2014

Persentase/ Percentage*)

Jumlah/ Amount

Persentase/ Percentage*)

172 3.434

0,001% 0,013%

198 3.613

0,001% 0,017%

25.250 337 1.015.151 2.688.691 24.995 964.950 279 19.922

0,108% 0,001% 4,351% 11,523% 0,107% 4.135% 0,014% 1.474%

33.627 2.287 224.285 1.858.368 52.739 197 13.648

0,181% 0,012% 1,209% 10,014% 0,284% 0,016% 1,676%

Current accounts with other banks Loans Deposits from customers: Current accounts Saving accounts Time deposits Deposit from other bank Acceptances payable Subordinated Loan Interest income Interest expenses

*) Persentase terhadap jumlah aset/liabilitas/pendapatan/beban terkait

*) Percentage of total assets/liabilities/respective income/ expense

Kompensasi personil manajemen kunci untuk tahun berjalan terdiri dari:

The compensation for key management personnel for the year comprised of:

31 Desember/December 31 2015 Imbalan kerja jangka pendek

2014 25.019

35. KOMITMEN DAN KONTINJENSI

30.177

35.

Short-term employee benefits

COMMITMENTS AND CONTINGENCIES


2014

KOMITMEN Liabilitas komitmen L/C yang tidak dapat dibatalkan

(25.357)

(43.453)

COMMITMENTS Committed liabilities Irrevocable letters of credit

Total liabilitas komitmen

(25.357)

(43.453)

Total committed liabilities

KONTINJENSI Tagihan kontinjensi Pendapatan bunga dalam penyelesaian Liabilitas kontinjensi Bank garansi yang diterbitkan

50.660

7.432

(25.340)

(46.664)

CONTINGENCIES Contingent receivables Interest income on non-performing loans Contingent liabilities Bank guarantees issued

Total aset (liabilitas) kontinjensi - neto

25.320

(39.232)

Total contingent assets (liabilities) - net

Total aset (liabilitas) komitmen dan kontinjensi - neto

37

(82.685)

Total committed and contingent assets (liabilities) - net

106




35. KOMITMEN DAN KONTINJENSI (lanjutan)

35.

COMMITMENTS (continued)

AND

CONTINGENCIES

Jumlah fasilitas kredit (uncommitted) Bank kepada nasabah yang belum digunakan pada tanggal 31 Desember 2015 dan 2014 adalah masingmasing sebesar Rp2.957.752 dan Rp2.060.151.

The Bank’s unused loan facilities (uncommitted) granted to customers as of December 31, 2015 and 2014 were amounted to Rp2,957,752 and Rp2,060,151, respectively.

Pada tanggal 31 Desember 2015 dan 2014, jangka waktu untuk Letter of Credit (L/C) adalah sekitar 1 bulan sampai dengan 6 bulan, sedangkan jangka waktu untuk bank garansi yang diterbitkan masingmasing berkisar antara 1 bulan sampai dengan 1 tahun dan 90 hari sampai dengan 3 tahun.

As of December 31 2015 and 2014, the term of Letters of Credit (L/C) were approximately 1 month to 6 months, while the term of bank guarantees issued ranged between 1 month to 1 years and 90 days to 3 years, respectively.

36. ASET DAN LIABILITAS DALAM VALUTA ASING

36.

ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

31 Desember/December 31 2015 Valuta asing (dalam Nilai penuh)/ Foreign currencies (in full amount) Aset Kas Dolar Amerika Serikat Dolar Singapura Dolar Australia Yen Jepang Euro Eropa Riyal Qatar Poundsterling Inggris Giro pada Bank Indonesia Dolar Amerika Serikat Giro pada bank-bank lain - Pihak berelasi Riyal Qatar - Pihak ketiga Euro Eropa Dolar Amerika Serikat Dolar Australia Dolar Singapura Dolar Hong kong Yen Jepang Poundsterling Inggris Dolar Selandia Baru Swiss Perancis Baht Penempatan pada Bank Indonesia dan bank-bank lain Dolar Amerika Serikat Tagihan akseptasi Dolar Amerika Serikat Kredit yang diberikan Dolar Amerika Serikat Efek-efek Dolar Amerika Serikat Aset lain-lain Dolar Amerika Serikat Yen Jepang Total aset

2014 Valuta asing (dalam Nilai penuh) Foreign currencies (in full amount)

Ekuivalen Rp/ Equivalent Rp


306.244 11.436 15.207 1.254.515 18.734 22.575 4.520

4.221 112 153 144 282 213 68

266.774 44.393 10.550 8.965 27.600 -

3.304 416 107 135 94 -

52.500.000

723.712

42.300.000

523.885

45.427

172

58.214

198

29.483 980.796 182.819 928.119 242.328 16.276.963 102.821 13.417 12.382 1.302.854

444 13.520 1.843 9.057 431 1.864 2.102 127 172 498

144.940 2.308.760 70.834 941.480 272.144 5.420.416 57.530 8.973 12.382 -

2.182 28.593 719 8.827 435 562 1.110 87 155 -

103.600.000

1.428.126

135.000.000

1.671.975

4.484.678

61.821

4.258.292

52.739

530.600.312

7.314.325

381.469.083

4.724.608

-

-

-

-

1.179.955

16.266

1.318.143 -

16.325 -

Assets Cash United States Dollar Singapore Dollar Australian Dollar Japanese Yen European Euro Qatari Riyal Great British Poundsterling Current accounts with Bank Indonesia United States Dollar Current accounts with other banks Related party Qatari Riyal Third parties European Euro United States Dollar Australian Dollar Singapore Dollar Hong Kong Dollar Japanese Yen Great British Poundsterling New Zealand Dollar Swiss Frenc Thailand Baht Placements with Bank Indonesia and other banks United States Dollar Acceptances receivable United States Dollar Loans United States Dollar Securities United States Dollar Other assets United States Dollar Japanese Yen

7.036.456

Total assets

9.579.673

107




36. ASET DAN LIABILITAS DALAM VALUTA ASING (lanjutan)

36.

ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES (continued)

31 Desember/December 31 2015 Valuta asing (dalam Nilai penuh)/ Foreign currencies (in full amount) Liabilitas Liabilitas segera Euro Eropa Dolar Amerika Serikat Dolar Australia Dolar Singapura Yen Jepang Poundsterling Inggris Simpanan dari nasabah - Pihak berelasi Euro Eropa Dolar Amerika Serikat Dolar Australia - Pihak ketiga Euro Eropa Dolar Amerika Serikat Dolar Australia Dolar Singapura Dolar Hong Kong Yen Jepang Poundsterling Inggris Riyal Qatar Simpanan dari bank-bank lain - Pihak berelasi Dolar Amerika Serikat Liabilitas akseptasi Dolar Amerika Serikat Beban masih harus dibayar dan liabilitas lain-lain Dolar Amerika Serikat Dolar Hongkong Euro Eropa Dolar Singapura Dolar Australia Yen Jepang Poundsterling Inggris Pinjaman Subordinasi - Pihak berelasi Dolar Amerika Serikat Total liabilitas Total liabilitas - neto

37. JAMINAN TERHADAP PEMBAYARAN BANK UMUM

2014


Valuta asing (dalam Nilai penuh) Foreign currencies (in full amount)


176 13.453.584 731 4.604 29

3 185.458 7 45 1

3.687 13.990.110 2.194 7.815 120.346 140

56 173.268 22 73 13 3

33.545.771 -

462.429 -

13.067.412 70.034

161.840 711

1.371.164 381.396.261 2.681.945 11.834.118 259.733 14.267.063 737.810 6.642

20.645 5.257.548 27.044 115.489 462 1.634 15.080 25

2.160.828 373.591.149 3.724.349 11.995.538 255.050 4.809.613 56.415 7.850

32.528 4.626.927 37.795 112.472 407 498 1.089 27

203.000.000

2.798.355

150.000.000

1.857.750

4.484.678

61.821

4.258.292

52.739

699.504 1.258 1.849 9.973 4.724 3.147 152

9.643 2 28 97 48 3

862.902 1.548 1.423 8.997 10.850 10.336 2

10.687 2 21 84 110 1 -

70.000.000

964.950

-

9.920.817

7.069.123

(341.144)

KEWAJIBAN

(32.667)

37.

Liabilities Liabilities payable on demand European Euro United States Dollar Australian Dollar Singapore Dollar Japanese Yen Great British Poundsterling Deposits from customers Related parties European Euro United States Dollar Australian Dollar Third parties European Euro United States Dollar Australian Dollar Singapore Dollar Hong Kong Dollar Japanese Yen Great British Poundsterling Riyal Qatar Deposits from other banks Related parties United States Dollar Acceptances payable United States Dollar Accruals and other liabilities United States Dollar Hong Kong Dollar European Euro Singapore Dollar Australian Dollar Japanese Yen Great British Poundsterling Subordinated Loan Related parties United States Dollar Total liabilities Total liabilities - net

GUARANTEES ON THE OBLIGATIONS OF COMMERCIAL BANKS

Berdasarkan Undang-Undang No. 24 tanggal 22 September 2004, efektif sejak tanggal 22 September 2005, Lembaga Penjamin Simpanan (LPS) dibentuk untuk menjamin kewajiban tertentu bank-bank umum berdasarkan program penjaminan yang berlaku.

Based on Law No. 24 dated September 22, 2004, effective September 22, 2005, Indonesian Deposit Insurance Corporation (Lembaga Penjamin Simpanan/LPS) was established to provide guarantee on certain deposits from customers based on prevailing guarantee schemes.

Total premi penjaminan yang dibayarkan untuk tahun yang berakhir tanggal 31 Desember 2015 dan 2014 masing-masing sebesar Rp41.005 dan Rp20.101.

The guarantee premium paid for the years ended December, 2015 and 2014 amounted to Rp41,005 and Rp20,101, respectively.

Total simpanan yang dijamin oleh LPS pada tanggal 31 Desember 2015 dan 2014 masingmasing sebesar Rp7.686.743 dan Rp2.111.652.

Total deposits secured by LPS as December, 2015 and 2014 amounted Rp7,686,743 and Rp2,111,652, respectively.

Pada tanggal 31 Desember 2015 dan 2014, tingkat suku bunga atas simpanan yang dijamin oleh LPS masing-masing sebesar 7,50% dan 7,75% untuk mata uang Rupiah, serta masing-masing sebesar 1,25% dan 1,50% untuk valuta asing.

As of December 31, 2015 and 2014, interest rates of deposits secured by LPS were 7.50% and 7.75%, respectively, for Rupiah currency, and 1.25% and 1.50%, respectively, for foreign currency. 108

of to




38. PERJANJIAN DAN PERIKATAN PENTING

38. SIGNIFICANT AGREEMENTS

Perjanjian Kerjasama dengan PT Karta Metadata

Mutual Agreement with PT Karta Metadata

Dalam rangka meningkatkan pelayanan Bank terhadap masyarakat, Bank mengadakan Perjanjian Kerjasama dengan PT Karta Metadata. Tujuan dari perjanjian ini adalah PT Karta Metadata ditunjuk untuk menyediakan fasilitas layanan Q Virtual Account (QVA) yang dapat digunakan untuk proses transaksi keuangan elektronik. perjanjian kerjasama ini berlaku sejak 15 Januari 2014 untuk jangka waktu 36 bulan sejak ditandatanganinya perjanjian ini.

In order to increase the Bank’s services to its customers, the Bank entered into Mutual Agreement with PT Karta Metadata. The purpose of this mutual is to provide service facilities of Q Virtual Account (QVA) that can be used to process electronical financial transactions. This agreement was effective since January 15, 2014 for the period of 36 months since the signing of the agreement.

Perjanjian Aliansi Strategis dengan PT AIA Financial

Strategic Alliance PT AIA Financial

Dalam rangka meningkatkan pelayanan Bank kepada nasabahnya, Bank mengadakan Perjanjian Aliansi Strategis dengan PT AIA Financial. Tujuan dari kerja sama ini adalah untuk melakukan promosi, distribusi, dan penjualan produk-produk asuransi melalui kantor cabang/In Branco Selling, product bundling dengan produk-produk Bank, dan penyerahan atau rujukan para nasabah dari Bank. Perjanjian kerja sama ini berlaku sejak tanggal 23 Mei 2013 untuk jangka waktu 24 bulan sejak ditandatanganinya perjanjian ini.

In order to increase the Bank’s services to its customers, the Bank entered into Strategic Alliance Agreement with PT AIA Financial. The purpose of this alliance is to conduct promotion, distribution, and sale of insurance products through branch offices/In Branco Selling, product bundling with those of the Bank and delivery or referral of customers from the Bank. This agreement was effective since May 23, 2013 for the period of 24 months since the signing of the agreement.

Perjanjian Cigna

Mutual Agreement with PT Asuransi Cigna

Kerjasama

dengan

PT

Asuransi

Agreement

with

Dalam rangka meningkatkan pelayanan Bank kepada nasabahnya, Bank mengadakan Perjanjian Aliansi Strategis dengan PT Asuransi Cigna. Tujuan dari kerja sama ini adalah untuk melakukan promosi, memasarkan dan menawarkan produk Asuransi ke para nasabah Bank di semua kantor cabang di seluruh negara Republik Indonesia dengan cara sebagaimana disetujui bersama. Perjanjian kerja sama ini berlaku sejak tanggal 23 April 2013 untuk jangka waktu 24 bulan sejak ditandatanganinya perjanjian ini.

In order to increase the Bank’s services to its customers, the Bank entered into Mutual Agreement with PT Asuransi Cigna. The purpose of this mutual is to conduct promotion, distribution and sale of insurance products through to Bank’s customers in all of its branches and offices throughout the Republic Indonesia in the manners mutually agreed by the parties. This agreement was effective since April 23, 2013 for the period of 24 months since the signing of the agreement.

Perjanjian Sewa Data PT Aplikanusa Lintasarta

Data Centre Lease PT Aplikanusa Lintasarta

Center

dengan

Agreement

with

In order to increase the Bank’s services to its customers, the Bank entered into Mutual Agreement with PT Aplikanusa Lintasarta. The purpose of this mutual is to provide service facilities of data center that can be used to locate the server. This agreement was effective since June 29, 2012 for the period of 36 months since the signing of the agreement.

Dalam rangka meningkatkan pelayanan Bank terhadap masyarakat, Bank mengadakan Perjanjian Kerjasama dengan PT Aplikanusa Lintasarta. Tujuan dari perjanjian ini adalah PT Aplikanusa Lintasarta ditunjuk untuk menyediakan fasilitas pusat data yang digunakan untuk menempatkan server. Perjanjian kerjasama ini berlaku sejak 29 Juni 2012 untuk jangka waktu 36 bulan sejak ditandatanganinya perjanjian.

109



PERJANJIAN (lanjutan)

DAN

PERIKATAN


PENTING

38. SIGNIFICANT AGREEMENTS (continued)

Perjanjian Pengembangan Sistem Informasi Teknologi dengan PT Indosat Tbk

IT System Developmet PT Indosat Tbk

Dalam rangka meningkatkan keamanan system teknologi informasi, Bank mengadakan perjanjian sewa-menyewa data center dengan PT Indosat Tbk. Tujuan dari perjanjian sewa ini adalah PT Indosat menyediakan data center untuk menyimpan data cadangan dalam rangka mengantisipasi terjadinya bencana. Perjanjian kerjasama ini berlaku sejak 2 Juli 2012 untuk jangka waktu 36 bulan sejak ditandatanganinya perjanjian ini.

In order to improve the security of information systems technology, the Bank signed into lease Agreement with PT Indosat Tbk. The purpose of this lease agreement is to provide service facilities of data center that can be used to store the backup data to anticipate the occurrence of disasters. This agreement was effective since July 2, 2012 for the period of 36 months since the signing of the agreement.

Perjanjian Layanan Telekomunikasi MPLS (Multy Protocol Label Switch) dengan PT Indosat Tbk

MPLS (Multy Protocol Label Switch) Technology Agreement with PT Indosat Tbk

Dalam rangka meningkatkan pelayanan Bank terhadap masyarakat, Bank mengadakan Perjanjian Kerjasama dengan PT Indosat Tbk. Tujuan dari perjanjian ini adalah penyediaan fasilitas layanan komunikasi data yang menggunakan jaringan berbasis Multy Protocol Label Switch. Perjanjian kerjasama ini berlaku sejak 22 Januari 2014 untuk jangka waktu 12 bulan sejak ditandatanganinya perjanjian ini.

In order to increase the Bank’s service to its customers, the Bank entered into Mutual Agreement with PT Indosat Tbk. The purpose of this mutual is to provide service facilities of data communication that based on Multy Protocol Label Switch. This agreement was effective since January 22, 2014 for the period of 12 months since the signing of the agreement.

Perjanjian Sewa Menyewa Gedung dengan PT Dian Graha Cipta

Building Lease Agreement with PT Dian Graha Cipta

Pada tanggal 19 Desember 2011, Bank menandatangani perjanjian sewa menyewa dengan PT Dian Graha Cipta, dimana Bank menyewa gedung QNB Tower di SCBD Parc 18 Jalan Jend. Sudirman Kavling 52-53, Jakarta, yang digunakan sebagai Kantor Pusat Bank. Perjanjian sewamenyewa berlaku untuk jangka waktu 7 tahun sejak ditandatanganinya perjanjian ini.

On December 19, 2011, the Bank signed lease agreement with PT Dian Graha Cipta whereby the Bank leased QNB Tower building located at SCBD Parc 18 Jalan Jend. Sudirman Kavling 52-53, Jakarta, currently occupied as the Bank’s Head Office. This lease agreement was effective for the period of 7 years since the signing of the agreement.

Perjanjian Perubahan Akta Sewa Menyewa Rumah (Kantor) dengan Tuan Halim Sajogo

Amendment in The Lease Deed Agreement on a House (Office) with Tuan Halim Sajogo

Pada tanggal 8 Januari 2014, Bank menandatangani perubahan perjanjian sewa menyewa dengan Tuan Halim Sajogo, dimana Bank melakukan perpanjangan sewa menyewa rumah (kantor) Jalan Ir. H. Juanda No. 11, Bandung, yang digunakan sebagai Kantor Cabang Bank. Perjanjian sewa-menyewa berlaku sampai dengan tanggal 3 Desember 2022.

On January 8, 2014, the Bank signed the lease deed agreement with Tuan Halim Sajogo, whereby the Bank will lease extension a house (office) located at Jalan Ir. H. Juanda No. 11, Bandung, currently occupied as the Bank’s branch office. This lease agreement was effective until December 3, 2022.

110

Agreement

with




DAN

PERIKATAN


PENTING


Perjanjian Kerjasama Penerimaan Pembayaran Tagihan dengan PT Prismalink International

Mutual Agreement Bill PT Prismalink International

Dalam rangka meningkatkan pelayanan Bank terhadap masyarakat, Bank mengadakan Perjanjian Kerjasama dengan PT Prismalink International. Tujuan dari perjanjian ini adalah PT Prismalink International menyediakan fasilitas layanan penerimaan setoran pembayaran tagihan biller dan tagihan lainnya dari nasabah melalui system pembayaran tersebut. Perjanjian kerjasama ini berlaku sejak 8 Januari 2014 untuk jangka waktu 36 bulan sejak ditandatanganinya perjanjian ini.

In order to increase the Bank’s service to its customers, the Bank entered into Mutual Agreement with PT Prismalink International. The purpose of this mutual is to provide service facilities of biller payment and other bills of customers through the payment system. This agreement was effective since January 8, 2014 for the period of 36 months since the signing of the agreement.

Perjanjian dengan PT Microsoft Indonesia

Agreement with PT Microsoft Indonesia

Dalam rangka meningkatkan pelayanan, Bank mengadakan Perjanjian dengan PT Microsoft Indonesia. Tujuan dari kerja sama ini adalah untuk pembelian produk dari Microsoft untuk peningkatan pelayanan dan performa bank. Perjanjian kerja sama ini berlaku sejak tanggal 23 Juli 2012 untuk jangka waktu 36 bulan sejak ditandatanganinya perjanjian ini.

In order to increase services, the Bank entered into Agreement with PT Microsoft Indonesia. The purpose of this mutual is to purchase software product from Microsoft for increase the Bank’s service, and performance. This agreement was effective since July 23, 2012 for the period of 36 months since the signing of the agreement.

Perjanjian Kerjasama Worldwide Indonesia

Crown

Mutual Agreement with PT Crown Worldwide Indonesia

Dalam rangka meningkatkan pelayanan, Bank mengadakan Perjanjian Kerjasama dengan PT Crown Worldwide Indonesia. Tujuan dari perjanjian ini adalah PT Crown Worldwide Indonesia ditunjuk untuk menyediakan fasilitas layanan jasa penyimpanan dokumen. Perjanjian kerjasama ini berlaku sejak 7 Mei 2013 untuk jangka waktu 24 bulan sejak ditandatanganinya perjanjian ini.

In order to increase services, the Bank entered into Mutual Agreement with PT Crown Worldwide Indonesia. The purpose of this mutual is to provide service facilities of provision of hardcopy storage. This agreement was effective since May 7, 2013 for the period of 24 months since the signing of the agreement.

Perjanjian Kerjasama dengan PT Angkasa Pura Solusi

Mutual Agreement with PT Angkasa Pura Solusi

Dalam rangka meningkatkan pelayanan Bank terhadap masyarakat, Bank mengadakan Perjanjian Kerjasama dengan PT Angkasa Pura Solusi. Tujuan dari perjanjian ini adalah PT Angkasa Pura Solusi menyediakan fasilitas layanan kartu sapphire, perjalanan cepat dan penanganan kelompok khusus. Perjanjian kerjasama ini berlaku sejak 8 Juli 2014 untuk jangka waktu 24 bulan sejak ditandatanganinya perjanjian ini.

In order to increase the Bank’s service to its customers, the Bank entered into Mutual Agreement with PT Angkasa Pura Solusi. The purpose of this mutual is to provide service facilities of sapphire program, fast track, and group handling. This agreement was effective since July 8, 2014 for the period of 24 months since the signing of the agreement.

dengan

PT

111

Payment

with




DAN

PERIKATAN


PENTING


Perjanjian Kerjasama dengan PT Alpha EMS

Mutual Agreement with PT Alpha EMS

Dalam rangka meningkatkan pelayanan Bank terhadap masyarakat, Bank mengadakan Perjanjian Kerjasama dengan PT Alpha EMS. Tujuan dari perjanjian ini adalah PT Alpha EMS menyediakan fasilitas layanan jasa Cash Replenishment dan First Line Maintenance ATM. Perjanjian kerjasama ini berlaku sejak 1 Oktober 2015 untuk jangka waktu 24 bulan sejak ditandatanganinya perjanjian ini.

In order to increase the Bank’s service to its customers, the Bank entered into Mutual Agreement with PT Alpha EMS. The purpose of this mutual is to provide services facilities of Cash Replenishment and First Line Maintenance ATM. This agreement was effective since October 1, 2015 for the period of 24 months since the signing of the agreement.

Perjanjian Kerjasama dengan PT Multipolar Technology

Mutual Agreement Technology

Dalam rangka meningkatkan pelayanan bank terhadap masyarakat, Bank mengadakan Perjanjian Kerjasama dengan PT Multipolar Technology. Tujuan dari perjanjian ini adalah PT Multipolar Technology menyediakan fasilitas layanan implementasi Hardware dan Software untuk Tivoli Storage Manager (TSM). Perjanjian kerjasama ini berlaku sejak 11 Februari 2014 untuk jangka waktu 36 bulan sejak ditandatanganinya perjanjian ini.

In order to increase the Bank’s service to its customers, the Bank entered into Mutual Agreement with PT Multipolar Technology. The purpose of this mutual is to provide facility of Hardware and Software’s implementation for Tivoli Storage Manager (TSM). This agreement was effective since February 11, 2014 for the period of 36 months since the signing of the agreement.

Perjanjian Kerjasama Manajemen Indonesia

Mutual Agreement with Management Indonesia

dengan

PT

Manulife

with

PT

PT

Multipolar

Manulife

Dalam rangka meningkatkan pelayanan bank terhadap masyarakat, Bank mengadakan Perjanjian Kerjasama dengan PT Manulife Manajemen Indonesia. Tujuan dari perjanjian ini adalah PT Manulife Manajemen Indonesia menyediakan fasilitas layanan Reksa Dana. Perjanjian kerjasama ini berlaku sejak 29 Januari 2015 untuk jangka waktu 12 bulan sejak ditandatanganinya perjanjian ini.

In order to increase the Bank’s service to its customers, the Bank entered into Mutual Agreement with PT Manulife Management Indonesia. The purpose of this mutual is to provide service of Wealth Management. This agreement was effective since January 29, 2015 for the period of 12 months since the signing of the agreement.

Perjanjian Kerjasama dengan PT Trimegah Asset Management

Mutual Agreement with PT Trimegah Asset Management

Dalam rangka meningkatkan pelayanan bank terhadap masyarakat, Bank mengadakan Perjanjian Kerjasama dengan PT Trimegah Asset Management. Tujuan dari perjanjian ini adalah PT Trimegah Asset Management menyediakan fasilitas layanan keuangan dan alternatif investasi yang terbaik melalui penawaran Reksa Dana. Perjanjian kerjasama ini berlaku sejak 29 Januari 2015 untuk jangka waktu 24 bulan sejak ditandatanganinya perjanjian ini.

In order to increase the Bank’s service to its customers, the Bank entered into Mutual Agreement with PT Trimegah Asset Management. The purpose of this mutual is to provide facility of Financial Services and the best investing alternate through Wealth Management’s offering. This agreement was effective since January 29, 2015 for the period of 24 months since the signing of the agreement.

112




39.0SEGMEN OPERASI a.

39.0 OPERATION SEGMENT

Bidang usaha

a.

Business activities The Bank’s segment information is presented based on its business activities, namely credit, treasury and trade finance.

Segmen Bank disajikan berdasarkan jenis kegiatan usahanya, yakni kredit, treasuri dan ekspor-impor. b.

Segmen usaha

b.

Business segment

Segmen geografis

Geographic segment

Bank tidak mempunyai pendapatan dan aset tidak lancar dari pelanggan eksternal selain yang diatribusikan kepada negara domisili bank.

The Bank does not have revenues and noncurrent asset from external customers other than attributed to the Bank’s country of domicile.

Segmen operasi

Operating segment

Segmen operasi dilaporkan sesuai dengan laporan internal Bank yang disiapkan untuk mengambil keputusan operasional yang bertanggung jawab untuk mengalokasikan sumber daya ke segmen tertentu dan penilaian atas performanya.

Operating segments are reported in accordance with the internal reporting provided to the chief operating decision maker which is responsible for allocating resources to certain segments and performance assessments.

Seperti yang dijelaskan di Catatan 2z, Bank pada saat ini dikelola sebagai segmen operasi tunggal. Pada saat ini, Bank hanya menganalisa segmen secara geografis dimana manajemen menelaah laporan internal manajemen secara bulanan untuk masingmasing area.

As discussed in Note 2z, the Bank is being managed as a single operating segment. Currently, the Bank only performs segment analysis based on the geographical area where the management reviews internal management reports on a monthly basis.

Tidak ada pendapatan dari satu konsumen eksternal atau pihak lain yang mencapai 10% atau lebih dari total pendapatan Bank untuk tahun yang berakhir pada tanggal 31 Desember 2015 dan 2014.

No revenue from transactions with a single external customer or counterparty amounted to 10% or more of the Bank’s total revenue for the years ended December 31, 2015 and 2014.

Bank mengelola kegiatan operasinya dan mengidentifikasi segmen yang dilaporkan berdasarkan wilayah geografis yang terbagi menjadi beberapa area, yaitu Jakarta, Sumatera, Jawa dan wilayah Timur.

The Bank manages its operating activities and identifies its reporting segments based on geographical area that is allocated into several areas, namely, Jakarta, Sumatera, Jawa and East Region.

Segmen Operasi Bank berdasarkan letak geografis adalah sebagai berikut:

Geographical segment information of the Bank was as follows:


Jakarta Total aset Total liabilitas

19.333.304 18.107.169

Sumatera

Jawa

1.854.141 2.260.257

Wilayah Timur/ East Region

3.081.541 2.815.819

1.488.663 150.220

Total 25.757.649 23.333.465

Total assets Total liabilities


Jakarta Total aset Total liabilitas

15.284.088 13.118.978

Sumatera 1.692.090 2.808.592

Jawa 2.692.617 2.477.018

113

Wilayah Timur/ East Region 1.170.223 169.409

Total 20.839.018 18.573.997

Total assets Total liabilities




39.0SEGMEN OPERASI (lanjutan) b.

39.0 OPERATION SEGMENT (continued)

Segmen usaha (lanjutan)

b.

Business segment (continued)

Segmen operasi (lanjutan)

Operating segment (continued)

Segmen Operasi Bank berdasarkan letak geografis adalah sebagai berikut:

Geographical segment information of the Bank was as follows:

Tahun yang berakhir pada tanggal 31 Desember 2015/ Year ended December 31, 2015

Jakarta Pendapatan (beban) bunga bersih Pendapatan provisi dan komisi bersih Pendapatan operasional lainnya Beban operasional Pendapatan (beban) non-operasional neto Laba (rugi) sebelum pajak penghasilan

Sumatera


Jawa

Total

486.019

75.687

73.460

54.085

689.251

173.005

3.848

15.366

2.039

194.258

Net interest income (expenses) Net fees and commission income

13.509 (616.524 )

2.554 (44.004 )

737 (22.623)

1.460 (13.345)

18.260 (696.496 )

Other operating income Operating expenses

3.616

50

18

59.625

38.135

66.958

3.662

Non-operating income (expenses) - net

208.935

Income (loss) before income tax

(22) 44.217

Tahun yang berakhir pada tanggal 31 Desember 2014/ Year ended December 31, 2014

Jakarta Pendapatan (beban) bunga bersih Pendapatan provisi dan komisi bersih Pendapatan operasional lainnya Beban operasional Pendapatan (beban) non-operasional neto Laba (rugi) sebelum pajak penghasilan

Sumatera

Total

106.575

88.645

406.622

4.566

3.783

1.631

174.801

Net interest income (expenses) Net fees and commission income

333 (33.877 )

339 (20.603)

42 (8.162)

34.632 (456.137)

Other operating income Operating expenses

212.899

(1.497 )

164.821 33.918 (393.495 )

2.876 21.019


Jawa

31 (30.444 )

(9) 90.085

12

2.910

Non-operating income (expenses) - net

82.168

162.828

Income (loss) before income tax

Pendapatan bunga, pendapatan provisi dan komisi, pendapatan operasional lainnya dan pendapatan non-operasional Bank berasal dari pelanggan/pihak lawan yang berdomisili di Negara Indonesia.

Bank’s interest income, fees and commission income, other operating income and nonoperating income were generated from its customers/counterparties domiciled in Indonesia.

Tidak terdapat transaksi dengan pelanggan eksternal tunggal yang mencapai 10% dari jumlah pendapatan bunga yang dihasilkan Bank.

There was no transaction with single external customer which reached 10% of total interest income generated by the Bank.

40. PENERAPAN PSAK No. 24 (REVISI 2013)

40. IMPLEMENTATION OF SFAS No. 24 (REVISED 2013)

Sejak 1 Januari 2015, Bank menerapkan PSAK No. 24 (Revisi 2013), “Imbalan Kerja”, yang mengatur perlakuan akuntansi dan pengungkapan atas imbalan kerja.

Starting on January 1, 2015, the Bank adopted SFAS No. 24 (Revised 2013), “Employee Benefits”, which regulates accounting treatment and disclosure on employee benefit.

Penerapan PSAK No. 24 (Revisi 2013) diterapkan secara retrospektif sehingga laporan keuangan posisi 31 Desember 2014 dan 1 Januari 2014/31 Desember 2013 dan untuk tahun yang berakhir pada tanggal 31 Desember 2014 telah disajikan kembali dan disesuaikan dengan PSAK No. 24 (Revisi 2013).

The implementation of SFAS No. 24 (Revised 2013) is applied retrospectively so that the financial statements as of December 31, 2014 and January 1, 2014/December 31, 2013 and for the year ended December 31, 2014 have been restated and adjusted in accordance with SFAS No. 24 (Revised 2013).

114



40. PENERAPAN PSAK No. (lanjutan)


24 (REVISI 2013)

40. IMPLEMENTATION OF SFAS No. 24 (REVISED 2013) (continued)

Pengaruh penerapan pertama kali PSAK No. 24 (Revisi 2013) untuk laporan keuangan per tanggal 31 Desember 2014 dan 1 Januari 2014/31 Desember 2013, adalah sebagai berikut:

The effect of first time implementation of SFAS No. 24 (Revised 2013) on the financial statements as of December 31, 2014 and January 1, 2014/December 31, 2013, are as follows:

31 Desember 2014/ December 31, 2014 Penyesuaian Sehubungan Dengan Penerapan Awal PSAK No. 24 (Revisi 2013)/ Adjustment of First Implementation of SFAS No. 24 (Revised 2013)

Sebelum Disesuaikan/ Before Adjustment

Setelah Disesuaikan/ As Adjusted Statement of Financial Position

Laporan Posisi Keuangan Liabilitas Liabilitas pajak tangguhan Liabilitas imbalan kerja dan pasca-kerja Ekuitas Kerugian aktuarial atas program manfaat pasti Saldo laba (deficit) Belum ditentukan penggunaannya

12.332

5.301

7.031

42.688

21.204

63.892

-

(19.503)

(19.503)

3.600

115.469

111.869

Liabilities Deferred tax liabilities Short term and postemployment benefit liability Equity Actuarial loss on defined benefit plan Retained earnings (deficit) Unappropriated

Tahun yang berakhir pada tanggal 31 Desember 2014/ As of year ended December 31, 2014 Penyesuaian Sehubungan Dengan Penerapan Awal PSAK No. 24 (Revisi 2013)/ Adjustment of First Implementation of SFAS No. 24 (Revised 2013)

Sebelum Disesuaikan/ Before Adjustment Laporan Laba Rugi dan Penghasilan Komprehensif Lain Beban karyawan Beban Pajak Penghasilan Komprehensif Lainnya Pos-pos yang tidak akan direklasifikasi ke laba rugi: Kerugian aktuarial atas program manfaat pasti Pajak penghasilan terkait dengan komponen pendapatan komprehensif lainnya Laba per saham dasar

(293.520) (41.074)

917 (229)

Setelah Disesuaikan/ As Adjusted

(292.603) (41.303)

Statement of Profit or Loss and Other Comprehensive Income General and administrative Tax expense

-

(7.193)

(7.193)

Other Comprehensive Income Items that will not be reclasified to profit or loss: Actuarial loss on defined benefit plan

-

1.798

1.798

Income tax relating to components of other comprehensive income

16,24

0,1

16,34

Basic earnings per share

115


PT BANK QNB INDONESIA TBK CATATAN ATAS LAPORAN KEUANGAN Tanggal 31 Desember 2015 dan untuk Tahun yang Berakhir pada Tanggal Tersebut (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) 40. PENERAPAN PSAK No. (lanjutan)


24 (REVISI 2013)

40. IMPLEMENTATION OF SFAS No. 24 (REVISED 2013) (continued)

Pengaruh penerapan pertama kali PSAK No. 24 (Revisi 2013) untuk laporan keuangan per tanggal 31 Desember 2014 dan 1 Januari 2014/31 Desember 2013, adalah sebagai berikut: (lanjutan)

The effect of the implementation of SFAS No. 24 (Revised 2013) on the financial statements as of December 31, 2014 and January 1, 2014/December 31, 2013, are as follows: (continued)

1 Januari/ January 1, 2014 31 Desember 2013/ December 31, 2013 Penyesuaian Sehubungan Dengan Penerapan Awal PSAK No. 24 (Revisi 2013)/ Adjustment of First Implementation of SFAS No. 24 (Revised 2013)

Sebelum Disesuaikan/ Before Adjustment

Laporan Posisi Keuangan Aset Aset pajak tangguhan Liabilitas Liabilitas imbalan kerja dan pasca-kerja Ekuitas Kerugian aktuarial atas program manfaat pasti Saldo laba (defisit) Belum ditentukan penggunaannya

8.135

28.026

(8.968)

3.732

14.928

Setelah Disesuaikan/ As Adjusted

11.867

Statement of Financial Position Asset Deferred tax liabilities

42.954

Liabilities Short term and postemployment benefit liability

(14.108)

(14.108)

15.024

(6.056)

Equity Actuarial loss on defined benefit plan Retained earnings (deficit) Unappropriated

41. STANDAR AKUNTANSI YANG TELAH DISAHKAN NAMUN BELUM BERLAKU EFEKTIF

41. ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE

Standar akuntansi dan interpretasi yang telah disahkan oleh Dewan Standar Akuntansi Keuangan (DSAK), tetapi belum berlaku efektif untuk laporan keuangan tahun berjalan diungkapkan di bawah ini. Bank berintensi untuk menerapkan standar tersebut, jika dipandang relevan, saat telah menjadi efektif.

The standards and interpretations that are issued by the Indonesian Financial Accounting Standards Board (DSAK), but not yet effective for current financial statements are disclosed below. The Bank intends to adopt these standards, if applicable, when they become effective.

•

•

Amandemen PSAK No. 1: Penyajian Laporan Keuangan tentang Prakarsa Pengungkapan. Amandemen ini mengklarifikasi, bukan mengubah secara signifikan, persyaratan PSAK No. 1, antara lain, mengklasifikasi mengenai materialitas, fleksibilitas urutan sistematis catatan atas laporan keuangan dan pengidentifikasian kebijakan akuntansi signifikan.

116

Amendments to SFAS No. 1: Presentation of Financial Statements on Disclosures initiative. This amendments clarify, rather than significantly change, existing SFAS No. 1 requirements, among others, to clarify the materiality, flexibility as to the order in which they present the notes to financial statements and identification of significant accounting policies.




41. STANDAR AKUNTANSI YANG TELAH DISAHKAN NAMUN BELUM BERLAKU EFEKTIF (lanjutan)

41. ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE (continued)

•

Amandemen PSAK No. 16: Aset Tetap tentang Klarifikasi Metode yang Diterima untuk Penyusutan dan Amortisasi. Amandemen ini mengklarifikasi prinsip yang terdapat dalam PSAK No. 16 dan PSAK No. 19 Aset Takberwujud bahwa pendapatan mencerminkan suatu pola manfaat ekonomik yang dihasilkan dari pengoperasian usaha (yang mana aset tersebut adalah bagiannya) dari pada manfaat ekonomik dari pemakaian melalui penggunaan aset. Sebagai kesimpulan bahwa penggunaan metode penyusutan aset tetap yang berdasarkan pada pendapatan adalah tidak tepat.

•

Amendments to SFAS No. 16: Property, Plant and Equipment on Clarification of the accepted method for depreciation and amortization. The amendments clarify the principle in SFAS No. 16 and SFAS No. 19 Intangible Asset that revenue reflects a pattern of economic benefits that are generated from operating a business (of which the asset is part) rather than the economic benefits that are consumed through use of the asset. As a result, a revenuebased method connot be used to depreciate the Property, Plant and Equipment.

•

Amandemen PSAK No. 24: Imbalan Kerja tentang Program Imbalan Pasti: Iuran Pekerja. PSAK No. 24 meminta entitas untuk memperhatikan iuran dari pekerja atau pihak ketiga ketika memperhitungkan program manfaat pasti. Ketika iuran tersebut sehubungan dengan jasa, harus diatribusikan pada periode jasa sebagai imbalan negatif. Amandemen ini mengklarifikasi bahwa, jika jumlah iuran tidak bergantung pada jumlah tahun jasa, entitas diperbolehkan untuk mengakui iuran tersebut sebagai pengurang dari biaya jasa dalam periode ketika jasa terkait diberikan, daripada alokasi iuran tersebut pada periode jasa.

•

Amendment to SFAS No. 24: Employee Benefits on Defined benefit plans: Employee Contributions. SFAS No. 24 requires an entity to consider contributions from employees or third parties when accounting for defined benefit plans. Where the contributions are linked to service, they should be attributed to periods of service as a negative benefit. These amendments clarify that, if the amount of the contributions is independent of the number of years of service, an entity is permitted to recognise such contributions as a reduction in the service cost in the period in which the service is rendered, instead of allocating the contributions to the periods of service.

•

PSAK No. 5 (Penyesuaian 2015): Segmen Operasi. Penyesuaian ini mengklarifikasi:

•

SFAS No. 5 (2015 Improvement): Operating Segments. The improvement clarifies that:

-

-

•

-

Entitas mengungkapkan pertimbangan yang dibuat manajemen dalam penerapan kriteria agregasi PSAK No. 5 paragraf 12 termasuk penjelasan singkat segmen operasi yang digabungkan dan karakteristik ekonomi. Pengungkapan rekonsiliasi aset segmen terhadap total aset jika rekonsiliasi dilaporkan kepada pengambil keputusan operasional, demikian juga untuk pengungkapan liabilitas segmen.

-

•

PSAK No. 7 (Penyesuaian 2015): Pengungkapan Pihak-pihak Berelasi. Penyesuaian ini mengklarifikasi bahwa entitas manajemen (entitas yang menyediakan jasa personil manajemen kunci) adalah pihak berelasi yang dikenakan pengungkapan pihak berelasi. Dan entitas yang memakai entitas manajemen mengungkapkan biaya yang terjadi untuk jasa manajemennya. 117

An entity must disclose the judgements made by management in applying the aggregation criteria in paragraph 12 of SFAS No. 5 including a brief description of operating segments that have been aggregated and the economic characteristics. Disclose the reconciliation of segment assets to total assets if the reconciliation is reported to the chief operating decision maker, similar to the required disclosure for segment liabilities.

SFAS No. No. 7 (2015 Improvement): Related Party Disclosures. The improvement clarifies that a management entity (an entity that provides key management personnel services) is a related party subject to the related party disclosures. In addition, an entity that uses a management entity is required to disclose the expenses incurred for management services.




41. STANDAR AKUNTANSI YANG TELAH DISAHKAN NAMUN BELUM BERLAKU EFEKTIF (lanjutan)

41. ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE (continued)

•

PSAK No. 16 (Penyesuaian 2015): Aset Tetap. Penyesuaian ini mengklarifikasi bahwa dalam PSAK No. 16 dan PSAK No. 19 aset dapat direvaluasi dengan mengacu pada data pasar yang dapat diobservasi terhadap jumlah tercatat bruto ataupun neto. Dan akumulasi penyusutan atau amortisasi adalah perbedaan antara jumlah tercatat bruto dan jumlah tercatat aset tersebut. Jumlah tercatat aset tersebut disajikan kembali pada jumlah revaluasiannya.

•

SFAS No. 16 (2015 Improvement): Property, Plant and Equipment. The improvement clarifies that in SFAS No. 16 and SFAS No. 19 that the asset may be revalued by reference to observable data on either the gross or the net carrying amount. In addition, the accumulated depreciation or amortisation is the difference between the gross and carrying amounts of the asset. Carrying amounts of the asset is restated by revaluated amounts.

•

PSAK No. 19 (Penyesuaian 2015): Aset Takberwujud. Penyesuaian ini mengklarifikasi bahwa dalam PSAK No. 16 dan PSAK No. 19 aset dapat direvaluasi dengan mengacu pada data pasar yang dapat diobservasi terhadap jumlah tercatat bruto ataupun neto. Dan akumulasi penyusutan atau amortisasi adalah perbedaan antara jumlah tercatat bruto dan jumlah tercatat aset tersebut. Jumlah tercatat aset tersebut disajikan kembali pada jumlah revaluasiannya.

•

SFAS No. 19 (2015 Improvement): Intangible Assets. The improvement clarifies that in SFAS No. 16 and SFAS No. 19 that the asset may be revalued by reference to observable data on either the gross or the net carrying amount. In addition, the accumulated depreciation or amortisation is the difference between the gross and carrying amounts of the asset. Carrying amounts of the asset is restated by revaluated amounts.

•

PSAK No. 25 (Penyesuaian 2015): Kebijakan Akuntansi, Perubahan Estimasi Akuntansi dan Kesalahan. Penyesuaian ini memberikan koreksi editorial pada PSAK No. 25 paragraf 27.

•

SFAS No. 25 (2015 Improvement): Accounting Policies, Changes in Accounting Estimates and Errors. The improvement provides editorial correction for paragraph 27 of SFAS No. 25.

•

PSAK No. 68 (Penyesuaian 2015): Pengukuran Nilai Wajar. Penyesuaian ini mengklarifikasi bahwa pengecualian portofolio dalam PSAK 68 dapat diterapkan tidak hanya kelompok aset keuangan dan liabilitas keuangan, tetapi juga diterapkan pada kontrak lain dalam ruang lingkup PSAK No. 55.

•

SFAS No. 68 (2015 Improvement): Fair value Measurement. The improvement clarifies that the portfolio exception in SFAS No. 68 can be applied not only to financial assets and financial liabilities, but also to other contracts within the scope of SFAS No. 55.

The Bank is presently evaluating and has not yet determined the effects of these accounting standards on its financial statements.

Bank sedang mengevaluasi dampak dari standar akuntansi tersebut dan belum menentukan dampaknya terhadap laporan keuangan Bank.

118


Annual Report 2015

Continuous Investment and Growth

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Annual Report 2015

PT Bank QNB Indonesia Tbk QNB Tower 18 Parc SCBD Jl. Jend. Sudirman Kav. 52-53 Jakarta 12190

Continuous Investment and Growth Annual Report 2015

Continuous Investment and Growth

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