Sustainability Report 2013

Transcription

5
Bank BTN | Sustainability Report 2013
Table of Contents
About the Report
2
Profile of Bank BTN
3
• Bank BTN at A Glance
3
• Vision and Mission
5
• Corporate Values
5
Report of the Board of Commissioners
6
Report of the Board of Directors
8
Management Strategy and Approach
10
• Sustainability Principles
10
• Governance Strategy
14
• Towards World Class Governance
14
• GCG Roadmap Pillars
15
• GCG Implementation Results
16
• Dividend Policy
19
• Social Responsibility
19
• Cost Allocation 2013
25
• Contributions to The Nation and Country
26
• Growing with Business Partners and Suppliers
26
• Moving Forward
26
• Enhancement of Products and Services
27
• Strengthen Other Assistance
28
• Responsibility to Customers
30
• Activities in 2013
33
Testimonials from MSME Partners
44
Sustainability Indicators
50
• Financial Indicators
50
• Non-Financial Indicators
51
• GCG Assessment
52
• Awards
53
Global Reporting Initiatives (GRI) Cross Reference
54
Your Opinion is So Meaningful
59
1
About the Report
Bank BTN has been present in the Indonesian
community for more than 50 years. During that
time Bank BTN continued being committed to
realizing its vision, namely “Being the Leading
Bank in Housing Finance”. To uphold this
commitment, Bank BTN is always transparent
by publishing a Sustainability Report every
year together with the Annual Report. This
Sustainability Report is the fourth report brought
to you by Bank BTN as an attempt to inform
the transparency of the Bank’s commitment
to create sustainable contributions for all
stakeholders and society. This is one form
to express Bank BTN’s concern in achieving
sustainable development that is aligned with
the wheels of business run day-to-day by the
company.
Sustainable development for Bank BTN is one
of the most important factors in the effort to
improve business performance consistently
and continuously in the long term, in line with
the vision, mission and goals to be achieved.
Global Reporting Initiatives (GRI) 3.1 states that
the goal of sustainable development is to meet
the needs of the present without compromising
the ability of future generations to meet their
needs. As an important force in society, the
organization in whatever form, has an important
role in achieving this goal. Therefore, Bank BTN
is determined to make sustainable development
as the main development goal so that lofty
ideals to make Bank BTN as the leading Bank
in housing finance that is always a friend of
Indonesian family towards world class banking
company can soon materialize and eventually
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create a synergy with relevant parties and provide
significant benefits to support the development
of Indonesian economy. We strongly believe that
the achievements that have been obtained today
are the result of the implementation of strategy
in prioritizing efforts of making sustainable
contributions to the stakeholders in particular
and the community in general.
The contents of this Sustainability Report cover
the social activities of Bank BTN within one year
since January 1, 2013 until December 31, 2013.
It can be said that this report in general reveals
the performance and activities of Bank BTN in
supporting sustainable development as well as
closely associated with its social responsibility
to customers, employees, suppliers, business
partners, society, and the environment.
Moreover, we can state that this Sustainability
Report is tailored to the international standards
that followed the rules of GRI 3.1. We show
our steps headed to the standards through this
report. This Sustainability Report is an integral
part of the 2013 Annual Report of Bank BTN.
Therefore, these two reports complement each
other in representing ideas of our entire business
and operational performance, as well as in
relation to the future sustainability of the Bank.
Thus, some repetitions could not be avoided
because these two reports complement each
other in representing the practices of corporate
transparency principles in revealing the
achievement of business performance and its
relation to sustainable development in the future.
Profile of Bank BTN
BANK BTN AT A GLANCE
Bank BTN (IDX: BBTN) is a public
company and the market leader in the
housing finance in Indonesia. Bank BTN
has been trusted by the government as
housing loan distributor since 1974, and has
been established as a Company since 1897
(when it was named Postspaarbank). Since
then, Bank BTN has been struggling to support
the Indonesian family from all walks of life to
have a good place to live.
In line with the vision of Bank BTN to be the
Leading Bank in Housing Finance, Bank BTN
conducts business division of the Company
into KPR and Consumer Banking, Housing
Bank BTN Network in 2013
and Commercial Banking, and Sharia Banking
to provide a wider choice in serving customers
in addition to the financing of housing that has
been the commitment of Bank BTN since the
beginning. As of December 31, 2013, Bank
BTN has had a total of 3 Regional Offices, 65
branch offices, 223 sub-branch offices, 479
cash offices, 22 Sharia branch offices, 21 Sharia
sub-branch offices, 7 Sharia cash offices, 2,922
Online Post Offices, 10 Mobil Cash Cars, 12
payment points, 1,504 ATMs, 13 CDMs, 10
Kiosk Machines throughout Indonesia, as well
as providing network access over 80,000 ATMs
Link, ATM Bersama, ATM Alto, ATM MEPS and
ATM Prima.
Kalimantan
Regional Office
Branch Office
Sulawesi
-
Regional Office
5
Branch Office
Papua &
Maluku
5
Regional Office
-
Sub Branch Office
10
Sub Branch Office
13
Branch Office
3
Cash Office
18
Cash Office
18
Sub Branch Office
3
2
Sharia Outlet
Cash Office
2
Sharia Outlet
Post Office
ATM
299
Post Office
68
ATM
2
126
Sharia Outlet
80
-
Post Office
61
ATM
19
Sumatra
Regional Office
1
Branch Office
11
Sub Branch Office
34
Cash Office
58
Sharia Outlet
6
Post Office
700
ATM
199
Jawa
Regional Office
Branch Office
2
38
Bali & Nusa
Tenggara
Total
Regional Office
Sub Branch Office
158
Regional Office
-
Cash Office
375
Branch Office
3
Sub Branch Office
Sharia Outlet
40
Sub Branch Office
5
Cash Office
Branch Office
Post Office
1,595
Cash Office
8
Sharia Outlet
ATM
1,101
Sharia Outlet
-
Post Office
Post Office
ATM
141
ATM
2009
2010
2011
2012
-
1
2
3
2013
3
61
63
65
65
65
204
214
218
223
223
-
111
316
415
479
21
26
39
50
50
2,045
2,661
2,738
2,922
2,922
528
745
1,181
1,404
1,504
37
3
Company name
Company Incorporation
Composition of Shareholders
(as of December 31, 2012)
Listing of Shares
Type of Business
Stock Code
Public Accountants
Registrar of Securities
Rating Agency
Corporate Secretary
Investor Relations
Company Website
Information Center
Shareholders of Bank BTN
Annual General Meeting of
Shareholders 2014
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PT Bank Tabungan Negara (Persero) Tbk
Menara Bank BTN
Jln. Gajah Mada No. 1
Jakarta 10130, Indonesia
Phone
: 62-21 6336789, 6332666
Fax
: 62-21 6346704
Email
: csd@btn.co.id
February 9, 1950
• The Government of Republic of Indonesia 60.14%
• Employees 1.31%
• Public 38.55%
Indonesia Stock Exchange
Commercial Bank
BBTN
Purwantono, Suherman & Surja
Anggota Ernst & Young Global
Gedung Bursa Efek Indonesia Tower 2 Lt. 7
Jln. Jend. Sudirman Kav 52 – 53,
Phone
: 62-21 5289 5000
Fax
: 62-21 5289 4100
PT Datindo Entrycom
Puri Datindo – Wisma Sudirman
Jln. Jend. Sudirman Kav 34 –35, Jakarta
10220, Indonesia
Phone
: 62-21 570 9009
Fax
: 62-21 570 9026
PT Pemeringkat Efek Indonesia (Pefindo)
Setiabudi Atrium Suite 809 – 810
Jln. HR Rasuna Said Kav. 62
Phone
: 62-21 521 0077
Fax
: 62-21 521 0078
PT Fitch Ratings Indonesia
Prudential Tower, lantai 20
Jln. Jenderal Sudirman Kav. 79
Phone
: 62-21 5795 7755
Fax
: 62-21 5795 7750
Viator Simbolon
Menara Bank BTN Lantai 20
Jln. Gajah Mada No.1
Phone
: 62-21 6336789, 6332666
Fax
: 62-21 6336719
Eko Waluyo
Menara Bank BTN Lantai 20
Jln. Gajah Mada No. 1
Phone
: 62-21 638 70142, 638 70107
Fax
: 62-21 638 70104
www.btn.co.id
500286
As of December 31, 2013, BBTN was owned by 9,463 shareholders,
which consists of 9,255 domestic shareholders and 208 foreign
shareholders
The Annual General Meeting of Shareholders will be held on
February 25, 2014 in Jakarta
VISION & MISSION
VISION
To be a leading bank in housing finance
MISSION
•
•
•
•
Providing innovative products and services and superior services that focus
on housing finance and savings
Developing quality and high integrity human capital, and the implementation of
Good Corporate Governance and Compliance
Increasing competitive advantage through the latest Information Technology
Concerning for the interests of society and the environment
CORPORATE VALUES
Six Core Values
•
Twelve Corporate Cultures
Service Excellence
Providing services that exceed customer expectations
(internal and external).
•
Innovation
Constantly developing new ideas and
improvements to add value to the company
•
ongoing
Exemplary Behavior
Starting with yourself, exemplary in behavior that reflects
cultural work values of Bank BTN for employees and
related parties
•
Professionalism
Being competent in the field and continue to selfdevelopment resulting in the best performance and
deliver added value for the company and all employees
of Bank BTN.
•
•
•
•
•
•
•
•
•
•
•
•
•
Friendly and courteous
Caring, proactive, and responsive
Has initiative to make improvement
Oriented to creating added value
Being an example in behaving good
and true
Motivate the application of work
culture values
Competent and responsible
Work smart and thorough
Consistent and disciplined
Honest and dedicated
Sincere and open
Mutual trust and respect
Integrity
Being consistent between thoughts, words and actions in
accordance with the provisions of the company, professional
code of conduct, and principles of commendable truth
•
Cooperation
Building a genuine and open relationship with fellow
employees of Bank BTN and other parties based on
mutual trust and respect to achieve a common goal.
Advanced Culture Internalization Program 2013
2014–2015
Strengthening Bank BTN Culture Internalization Process
• Prima pattern inherent to GCG implementation
• Reappointment of GCG Champion
• Creating GCG Scoreboard
• Business ethics and work culture awareness program
• Socialization of the application of good corporate governance principles
• Socialization of Conflict of Interest
• Assessment of Work Culture implementation
• Program on evaluation and assessment of business ethics and work culture
• Human Capital Management Prima Pattern
• Implementation of Prima Pattern Award
Work Culture Transformation
of Bank BTN
•
Making work culture
as a driver to improved
performance of the
company and
review Rebranding as an
initial process towards
world class banking
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Report of the Board of
Commissioners
Sahala Lumban Gaol
Commissioner
Dear Stakeholders,
As good corporate citizens, the Board of
Commissioner appreciated the efforts of
Management to improve the welfare of society
through the implementation of the Partnership
and Community Development Program as
outlined in the Bank BTN Sustainability Report
2013 that has become an integral part of the
2013 Annual Report. In this report, we presented
various things done by Bank BTN in an effort to
contribute on an ongoing basis (sustainable),
not only for performance improvement of Bank
BTN and services to customers, but, more
than all these is the contribution of Bank BTN
to building and increasing housing finance in
Indonesia in general.
Bank BTN management continually seeks to be
at the forefront of efforts to support Indonesian
community housing purposes, along with the
success of the Nation in maintaining economic
stability that can support the prospects of the
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Indonesian economy which is quite bright in
the future. In addition, as a Public Bank which
focuses on housing finance business segment,
the management
has been directing the
company’s services to meet various housing
finance supporting needs that are part of
Bank BTN’s business in order to provide the
best services to its customers. However, the
management of Bank BTN will remain faithful to
the root effort that has stuck solid as the largest
housing loan provider Bank in Indonesia. The
management and all employees of Bank BTN
will retain these characteristics along with our
efforts in improving non-residential loan services.
Residential and non-residential housing
business executed by the Management of
Bank BTN is based on targets that have been
established towards international quality. In
general, the various targets of Bank BTN
in 2013 as a series of the Bank’s road map
leading towards a world class company have
been properly met. Therefore, Management
and all ranks of Bank BTN are trying to continue
contributing on an ongoing basis to customers,
developers, community and all stakeholders by
continuing to improve the quality of housing
finance products and existing services systems.
In distributing services, Bank BTN also
prioritizes benefits for all parties and/or
from all circles of society. We continue to
provide facilities that facilitate the middle to
lower income people to get a decent place
to stay, in accordance with what has been
entrusted
by the government to Bank
BTN. We are fully aware that the current
achievement of Bank BTN is not inseparable
from the contributions of all ranks of Bank
BTN. Therefore, the management and all
ranks of Bank BTN will continue to ensure
that the various programs to appreciate
and develop employees will continue to be
improved. Performance evaluation at all
levels continues to be refined with clear and
fair reward and punishment system based
on demonstrated performance. In addition,
Bank BTN does not forget the importance
of maintaining sustainable harmony with
the community and surrounding environment.
Management and all ranks of Bank BTN will
continue to provide the best services for
micro, small, and medium enterprises and
implement various programs that support the
improvement and development of education,
health, and environment through the BTN
Harmony Program.
One provision of Bank BTN in achieving worldclass quality and also for the sake of sustainability
of Bank BTN efforts in the future is to establish
good relations with the general public and
the surrounding environment. Therefore, the
management and all ranks of Bank BTN will
continue to apply various strategies that have
been established and maintain good relations
with stakeholders. Bank BTN management
also plans to conduct efficiency in business
operations and continue to maintain capital
adequacy in order to increase network capacity
and coverage of Bank BTN in times to come.
The Board of Commissioners believes, with
hard work, professionalism, intelligence, and
cooperation and harmonious relationship with
all stakeholders that this can be done. Thus,
Bank BTN can continue contribute on an
ongoing basis to housing finance in particular
and other areas in general, as well as continue
increasing sustained contributions to this
Nation and State that we dearly loved.
Jakarta, December 31, 2013
Sahala Lumban Gaol
Commissioner
7
Report of the
Board of Directors
Maryono
President Director
Dear Stakeholders,
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We had been through 2013 with encouraging
performance
achievements.
These
achievements were gained nothing other than
because of hard work of all ranks of Bank BTN
in the implementation of various efforts and
business strategies that have made sustainable
business aspect as the most important factor.
Therefore, new knowledge and innovation in
technology, management and public policy, is a
challenge for all organizations in order to make
new choices in carrying out their operations,
production, services, and other activities, which
would have an impact on the earth, humans,
and the economy.
The main challenge of sustainable development
is the demand for options and new ways of
thinking innovatively. We are very aware of this
and understand the importance of strategy
to maintain the Bank’s sustainability. Global
Reporting Initiatives (GRI) 3.1 state that the
development of knowledge and technology is
not only required to contribute to economic
growth, but can also assist to solve problems
related to risks and threats to the sustainability
of our social, environmental, and economic
relationships.
We again present our Sustainability Report
to provide clear and transparent information
to the stakeholders about our efforts that strives
to continue to contribute to the customers,
society, nation and country. We can say that
this Sustainability Report has been compiled
based on the GRI Reporting Framework to
reveal outputs and outcomes that occurred
in a particular reporting period in the context
of organizational commitment, strategy, and
approach of the Management of Bank BTN.
Through this report, all stakeholders will
obtain information about the contribution of
Bank BTN on an ongoing basis that we feel
strongly supported the improved performance of
Bank BTN in the long term where over the past few
years had been proven consistently successful
in improving net income growth with respect to
implementation of various corporate strategies,
including internet-based system, improved
infrastructure, and efficiency in the control of
lending and debt collection.
Bank BTN has taken strategic steps through a
transformation program to support the needs of
customers. Bank BTN understands that housing
needs cannot be separated from the needs of
the people who live in the house. Therefore,
Bank BTN will continue to develop products,
not only housing loans, but also simultaneously
non-housing loans while still maintaining its
identity as the leader in housing finance in
Indonesia. We also need to say that Bank BTN
continues to show commitment in distributing
housing loans to lower middle income people
with Government support through the Housing
Finance Liquidity Facility (FLPP).
In addition, we also realize the importance of
human capital restructuring. We appreciate the
hard work of employees fairly based on their
performance and participation to the Bank, as
well as other rational and reliable considerations.
This increased appreciation of employees’
performance is also a form of our efforts to
sustain the ongoing performance of Bank
BTN in the future. Coinciding with internal
restructuring of the Bank and improving
the quality of products and services for
customers, we also strengthen good
relationships with other stakeholders, such as
business partners, community and surrounding
environment, as well as the Government.
To improve the quality of life of marginal people,
during 2013 we implemented various programs
in various fields, including education, health,
as well as public facilities and infrastructure,
including other religious and social assistance.
The amount of funds expended for community
development programs during 2013 reached
Rp40.42 billion.
In 2014 and future years, Bank BTN will continue
to refine various programs that can provide
contribution to the sustainability of Bank BTN,
environment, community and housing finance in
Indonesia in general. We expect to be able to
continue to help our customers in meeting their
housing needs, as well as taking a step forward
to world class quality.
Finally, on behalf of the entire Board of Directors
of Bank BTN, we express our appreciation
and thanks to the Board of Commissioners, all
ranks of employees of Bank BTN, and to the
stakeholders for their support and participation
in achieving sustainability performance in 2013.
We always open opportunity to stakeholders to
provide input, suggestions, and constructive
criticism to improve sustainability performance
of Bank BTN in the coming period.
Jakarta, December 31, 2013
Maryono
President Director
9
Management
Strategy and Approach
SUSTAINABILITY PRINCIPLES
New innovations to create prosperity and
improved quality of life through various economic
activities in the globalization era and current
information age are usually accompanied with
a number of new risks associated with stable
environmental conditions, economic and social
culture. The development of knowledge and
technology is required not only to provide
contribution to economic growth, but also assist
to solve problems related to risks and threats
to the sustainability of our social, environmental,
and economic relationships. Therefore, new
knowledge and innovation in technology,
management and public policy is a challenge for
all organizations in order to make a new choice
in carrying out their operations, production,
services, and other activities, which will have an
impact on the environment, social and culture.
Sustainable development is one of the
components in building the Indonesian
economy. The goal of sustainable development
itself is fulfilling the needs of the present without
compromising the ability of future generations to
meet their needs. This is very understandable
and Bank BTN necessarily supports the goal.
One form is through the this Sustainability
Report which is prepared incorporating the
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elements of transparency and accountability
through implementation of company activities
involving three elements, namely economic,
social, and environmental and/or with due
regard to sustainable principles, as follows:
• Documents are made by the company related
to economic, social, and environmental
performance aspects as management
control tools on internal stakeholders as
well as accountability tools, particularly on
external stakeholders.
• Performance report of the three aspects can
only be called a sustainability report when
the performance reported within a certain
time is already sustainable or showed a
tendency to improve.
• The consequence is that the sustainability
report contains various indicators of the
three aspects to be monitored continuously
and periodically.
The implementation of Bank BTN programs that
supports sustainable development is aimed to:
• improve the welfare of society and improve
the environment,
• develop the values and culture of the
Bank, in accordance with Good Corporate
Governance
(GCG)
and
applicable
regulations,
Sustainable development is one of the components
in building the Indonesian economy. The goal of
sustainable development itself is to meet the needs of
the present generation without reducing the ability of
future generations in meeting their needs. This is very
much understood by Bank BTN, and the Bank has no
hesitation to support this goal.
• establish a positive image of the Bank in the
community, and
• promote cooperation and mutual respect
to the public and environment where Bank
Offices are operational.
Implementation of activities that support
sustainable development of PT Bank Tabungan
Negara (Persero) Tbk is to realize the Fourth
Mission of Bank BTN in regard to the interests
of the public and environment. The activities
undertaken are among others:
• Economic Affairs in the form of activities that
have an impact on increasing employment
and business opportunities in order to
alleviate poverty in the community.
• Social Affairs in the form of activities that
have an impact on improving the quality of
life in the fields of education, health, arts and
culture, sports and religion.
• Environmental Affairs in the form of activities
that have an impact on increased comfort
and environmental sustainability as well as
energy savings and the use of alternative
energy.
• Activities to ease the burden of communities
due to natural disasters or certain economic
conditions due to the increase in prices of
basic commodities.
Business Strategy
The Long Term Plan (RJP) of Bank BTN
for 2013-2017 generally consists of 3
transformation pillars, namely transformation
of business, transformation of work culture
and transformation of infrastructure, with as
main target on 2017 Bank BTN can be the
7th largest in terms of total assets and remain
as the market leader in the field of housing
finance (KPR). To achieve this vision, Bank
BTN will pursue a transformation program
with the following details.
Strengthening of housing finance
(KPR) position
Bank BTN will retain its position as KPR
market share holder No.1 in Indonesia with a
greater targeted market share of more than
30% in 2017 from the market share in 2012
which amounted to 24.8. This is done by
strengthening the position in the lower middle
segment and increasing the share in the upper
middle segment. The strategy which will be run
for the lower middle segment is to maintain KPR
dominance in the lower middle segment while
increasing barrier to entry into the lower middle
segment of competitor banks through efficient
business processes, while the strategy for
the upper middle segment is through product
differentiation and services. KPR products as
the main engine of loan growth will be directed
to continue to grow in the future. The wide open
KPR potential is shown by the high number of
national housing backlog, high public interest
to use KPR facilities in the home purchase, and
increased purchasing power, especially with
the increase in middle class population.
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In line with Bank Indonesia Regulations, the
business of Bank BTN will remain focused
on housing especially provision of housing
for people with the strategy of maintaining a
portfolio of housing loans and non-housing
loans with a portion of 85%:15%. Housing
loans cover all loans designated for residential
construction, home purchase, building own
home, home renovation and other usage with
the home as collateral.
Bank BTN also improves loan quality through
a thorough revamping of loan management,
including improved management of collection
and loan workout, while upholding prudential
banking principles and GCG towards the ratio of
average loan quality of the industry.
Creating a new growth engine
To create a new growth engine, Bank BTN has
entered into a strategic alliance with various
parties to maximize the potential of housing
value chain such as:
• Establish
alliance
with
state-owned
insurance (BUMN Asuransi) in supporting the
KPR business namely to manage Advance
Payment Assistance, joint Marketing and
socialization, Provision of long-term funds,
as well as Home Ownership Loan Insurance.
• Strengthen cooperation with provider
partners and housing project builders,
namely
developers,
association
of
developers, and contractors to ensure the
fulfillment of housing supply.
• Establish relationship and communication
with providers of building materials for
housing projects in order to ensure that
housing supply is met.
• Strengthen cooperation with the Local
Government to ensure the availability of
land area for the construction of housing
projects, support the provision of housing
infrastructure such as roads, water,
electricity, lighting, transportation, and land
initiator for the bank.
• Strengthen cooperation and communication
with the Central Government in particular
housing stakeholders such as the Ministry
of Public Housing, Ministry of Finance, and
BLU PPP.
12
In addition, Bank BTN also conducts synergizing
between state-owned enterprises (BUMN)
(strategic alliances) both in terms of business
development and infrastructure (network, IT,
etc.) that support business growth, develop
non-housing finance with a 15% portion directed
at portfolio with high margin (high yield), namely
lending to the MSME, consumer and commercial
segments and in particular housing value chain,
increase contribution of fee-based income to
operating income through diversified products
and services with a focus on the development
of transaction services, treasury business and
trade finance, bancassurance and investment
products, investment and participation in
subsidiary companies, as well as supporting
inorganic growth to support the growth strategy
of the bank through corporate acquisition action
of banks and non-bank financial institutions on
potential new markets and potential market of
housing supply chain that has not been fully
explored.
Increase in funding
Increasing funding is done by strengthening
the retail segment to increase funding through
low-cost funding towards cheap funds ratio
(CASA ratio) above 50% through the exploration
strategy of existing customers and new customer
acquisition regular-prime segments, as well
as development and optimization of physical
network and e-channel. Meanwhile, corporation
and institutional segments will continue to
be developed through placement patterns of
funds with underlying loan cooperation and
maximization of institutional fund services by
improving transactional services in order to have
a stable core funding through the optimization of
pattern B to B and strengthening alliances with
agencies, local governments, and other stateowned enterprises.
Strengthening sharia business
Sharia business strategy in the short term
will be directed at improving sharia business
assets through leveraging that harnesses the
parent company’s network for efficiency and
effectiveness. As for the long term, existing
potential will be reviewed to perform spinoff considering the broad potential of sharia
business market.
Transformation of work culture
Highly competent Human Capital
Bank BTN has implemented a corporate
culture externalization program and developed
a communication medium towards external
parties, namely affiliate program and effective
socialization/communication, as well as run an
advanced cultural externalizing program and
realized a positive image of Bank BTN, namely
continuity of the externalizing program and
formulation of innovation programs.
Improvement of the quality of human capital at
Bank BTN is done with qualified recruitment and
training and improvement of sustainable work
culture.
Improvement of IT systems
Application of reliable information technology
systems is the main target of Bank BTN in
providing banking services and solutions in
accordance with the needs of its customers.
Bank BTN constantly upgrades existing
systems to increase accessibility, ensure safety
and reliability of systems, and availability of
information technology-based services through
the following multiple initiatives.
• Zero Downtime, namely the availability of
network and infrastructure that is secure and
stable in support of IT services for business
activities.
• Time to Market and Efficiency, namely
sustainable development in application
aspect to support business products and
operational efficiency in improving profits
and reducing costs
• Data Integrity and Confidentiality, namely
provision of information management
systems which fulfills the integrity of secure
data
• E-Channel, namely the procurement
and development of new digital delivery
disburses, in particular the aspect of
commerce as mainstay of the bank in
improving productivity of benefits, and feebased income with high optimization of
resources and margins.
• Leading Edge Technology, namely the
adoption of new technologies to support
business needs and changes
Improvement of operational process
In order to be a competitive bank, the
increase in quality of the process will help
Bank BTN become healthier and more
attractive to consumers by adopting the latest
risk management namely quantitative risk
management, loan scoring and liquidity risk
management, and have the SLA.
Implementation of Good Corporate
Governance & Compliance
The main goal of GCG application at Bank BTN is
the creation of business ethics conducted by every
member of Bank BTN in working and behaving
based on GCG principles. To achieve this, it is
necessary to strengthen the implementation
of GCG which includes foundation, namely
Commitment on Governance (commitment)
and three pillars, namely Governance structure
and infrastructure (structure and supporting
infrastructure), Governance mechanism (policy),
and Governance outcome (strategy). These will
be run through the implementation of the GCG
2013-2017 road map in three stages as follows:
• Pre-implementation
(2013-2014);
Strengthen management commitment to
build and/or complete the GCG structure
and infrastructure, build and complete the
GCG soft structure.
• Implementation
focus
(2013-2017);
GCG Awareness Program, institutionalization
and
internalization,
monitoring
and
development of software (dashboard),
Assessment Program, and externalization.
• Implementation cycle (2017); Ongoing
improvement program using the Plan Do
Check Action (PDCA) method periodically
at each year end of GCG implementation
in support of business transformation, work
culture, and infrastructure.
13
GOVERNANCE STRATEGY
Our Commitment
The house is a basic human need. The house
has a role and function that is so essential for life
and human life. The house is not just a place and
education center for a family, culture nursery, or
improved quality of life for the next generation,
but more than all that, the house has indeed a
central role as protection of identity and selfesteem. In fact, however hard the efforts of a
nation to establish order of the country to be
sturdy and strong, it will never work well without
the nation’s success in managing households
harmoniously, both physical and spirit. Bank
BTN has committed to be a family friend of
Indonesia and serve them by providing a chance
to get a decent and comfortable home. By
strengthening our focus on providing housing
finance to the community, we plan to meet the
various needs of Indonesian families and add
value to their lives.
TOWARDS WORLD CLASS
GOVERNANCE
In order to fulfill our commitment to be a friend
of the family of Indonesia, Bank BTN is aware
that Governance or widely known as Good
Corporate Governance (GCG) is a necessary
condition to increase the performance of the
company, not only in the short term, but also
14
in the long run on a consistent and sustainable
basis. Moreover, as a public company that is
committed to be a world-class company (world
class banking company), the management and
all ranks of Bank BTN have a high commitment
in implementing GCG. Therefore, all aspects
of the management of the Bank’s business
are always enhanced by conducting relentless
business transformation processes consistently
and continuously, aligned with good corporate
governance principles. In implementing the basic
principles of Corporate Governance that include
transparency, accountability, responsibility,
independency and fairness (TARIF), Bank
BTN builds a paradigm and/or firm conviction
that GCG will ensure the creation of a perfect/
thorough business balance so that all forms of
interests, whether business or social, individuals
with internal and external groups, as well as
interests of shareholders and stakeholders
will lead to a balance point. For Bank BTN,
implementation of good corporate governance
principles is not just to follow applicable rules,
but is a fundamental element that supports
business performance and sustainability of the
Bank in the future. GCG implementation has
become the machine and mechanism as driver
(value driver) for Bank BTN to improve corporate
values (value creation) as can be seen through
the images and illustrations and eventually lead
to a strategic impact, as follows:
GCG ROADMAP PILLARS
The four pillars as the cornerstones of GCG implementation at Bank BTN are as follows:
• Commitment on Governance
• Governance Structure
• Governance Mechanism
• Governance Outcome
These GCG pillars are instructions in order to execute the development strategy of Bank BTN’s GCG which
includes several stages, as follows:
1. Pre Implementation
Stage: In this stage there are
3 (three) things to be done,
namely:
• Confirm management
commitment
• Establish and/or
complement GCG soft
structure
• Establish and/or
complement GCG
infrastructure
3. Implementation Cycle
Stage: Continuous monitoring
and determination of action
plan and feedback at the end
of each year using the Plan Do
Check Action (PDCA) method
towards long-term success.
2. Implementation Stage:
In this stage is done several
strategies, namely:
• Awareness programs
• Internalization and
institutionalization
• Evaluation and
Assessment Program
• Development of software
(Intelligence Governance
[i-Gov])
• Externalization.
Road Map
Stage 1: Foundation
• Reaffirm the commitment of Management
and all Employees of BTN (each period)
• Establish and/or complement GCG Structure
& Infrastructure
• Establish and/or complement GCG Policy
(self-structure)
• Persistence Spirit
• GCG Awareness Program
• Institutionalization and Internalization
• Monitoring & Software Development
(Dashboard)
• Assessment Program
• Externalization
Stage 2: Internalization
• GCG Awareness Program
• Institutionalization &
Internalization
• Monitoring & development
• Software (Dashboard)
• Externalization
Stage 3: Excellence
• Superior governance
• Continuous monitoring
(Action Plan & Feedback)
• P-D-C-A
2017
2013-2017
2013-2014
15
• Improve the performance of the Bank through
the creation of good decision-making
process, increased operational efficiency,
and optimal service to stakeholders.
• Enhance corporate value by financial
performance improvement and risk reduction
for actions carried out in the operations of
the Bank.
• Increase investor confidence to conduct
business activities in Indonesia as one of
the thriving markets in the midst of global
economic challenges. Meeting stakeholder
satisfaction which includes task satisfaction
and employee satisfaction.
GCG IMPLEMENTATION RESULTS
In 2013, several indicators that demonstrate
the successful implementation of the above
strategy, among others, can be shown from
the results of GCG assessment performed by
several independent parties as follows:
In 2013, Bank BTN implemented a third party
assessment in cooperation with The Indonesian
Institute for Corporate Governance (IICG).
Corporate Governance Perception Index (CGPI)
is done through four assessment stages with
different weights; self-assessment (25%),
completeness of documents (23%), paper and
presentation (17%) and observation (35%).
Research results and CGPI rankings are then
organized into 3 (three) rating categories, namely
Fairly Trusted, Trusted and Highly Trusted. After
an independent and objective ranking based on
the “GCG In Knowledge Perspectives” theme,
IICG concluded that Bank BTN is included in
the “Trusted” company category. The quality
score of GCG implementation of Bank BTN is
85.42 of the maximum value of 100 and the
Bank has successfully maintained “The Most
Trusted Company” award. According to IICG,
the management of the company has been
conducted properly.
Governance Structure and Mechanism
The governance structure (Management
Structure) of Bank BTN is a way how activities
within the organization are divided, organized and
coordinated and designed in order to support
the passage of activities of the organization
in a responsible and controlled manner by
the separation between decision making and
decision control (who control whom) through
major organs and organ support that have
been built at Bank BTN. Put differently it can be
said that governance structure is a framework
within the organization that determines how
various governance principles can be divided,
run and controlled by Bank BTN through the
division of functions, rights, obligations and
responsibilities between the parties concerned
of Bank BTN, including the process of effective
internal and external controls and creating
internal balance (between corporate organs)
and external balance (between stakeholders)
and then all at once regulate how Bank BTN
should be directed and controlled to improve
business performance on an accountable basis
(Governance Mechanism).
Company Organs
Major Organs
Supporting
Organs
16
GMS
Board of Commissioners
Committees:
• Audit Committee
• Remuneration &
Nomination Committee
• Risk Monitoring Committee
Board of Directors
Committees:
• Risk Management
Committee
• Loan Committee
• Personnel Committee
• Technology Committee
• Products Committee
• ALCO
•
•
•
•
•
Corporate Secretary
Internal Audit
External Audit
Compliance
Risk Management
As can be seen from the table, Bank BTN has
Main Organs composed of the AGMS, Board of
Commissioners and Board of Directors, as well
as Supporting Organs consisting of committees,
either under the supervision of the Board of
Commissioners or the Board of Directors, as
well as working units under the supervision of
the Board of Directors. AGMS is the highest
organ at Bank BTN as a forum to determine
policies and make decisions that have not been
given to the Board of Commissioners and Board
of Directors. The Board of Commissioners has
the duty to supervise and provide advice to the
Board of Directors, while the Board of Directors
is the organ responsible for the management
and performance of the business and operations
of the Bank.
The composition of the Board of Commissioners
and Board of Directors of Bank BTN as of
December 31, 2013 is as follows:
President Commissioner
Commissioner
Commissioner
Independent
Commissioner
Independent
Commissioner
Independent
Commissioner
President Director
Maryono*
Director
Director
Irman Alvian Zahiruddin
Mansyur Syamsuri Nasution*
* Effective as of March 18, 2013
A full description of the governance structure
and mechanism of Bank BTN and/or various
programs implemented in 2013 can be seen in
the Annual Report 2013 of Bank BTN.
Communication with Shareholders and
Investors
In communication with shareholders and
investors Bank BTN is guided by the principles
of transparency and justice, so that a fair
disclosure to all parties is emphasized without
discrimination based on the composition of
share ownership. This proved to be conducted
well by Bank BTN because in 2013, according
to an assessment conducted by the Indonesian
Institute for Corporate Directorship (IICD),
Bank BTN was awarded Best Disclosure and
Mardiasmo*
Dwijanti Tjahjaningsih
Agung Kuswandono**
Amanah Abdulkadir**
Sahala Lumban Gaol***
Maulana Ibrahim****
*
have passed Fit & Proper test Bank Indonesia per December 9,
2013, but not yet valid up to December 31, 2013
** have passed fit & proper test Bank Indonesia per July 17, 2013
*** effectively transferred become Independent Commissioner after
passed Fit & Proper test Bank Indonesia
**** has passed fit & proper test Bank Indonesia per October 24,
2013 and effectively per December 8, 2013
17
Transparency. The assessment conducted by
IICD was done using international standards,
as the standards used by the Organization for
Economic Co-operation and Development
(OECD), which included five assessment factors,
as follows:
• The Rights of Shareholders and Key
Ownership Functions
• The Equitable Treatment of Shareholders
• The Role of Stakeholders in Corporate
Governance
• Disclosure and Transparency
• The Responsibilities of the Board
Bank BTN actively holds meeting forums with
analysts and investors through public exposure
to ensure that information can be properly
Activities
Investor Relations Activities in 2013
Basically, Bank BTN is always maintaining good
relationships with stakeholders, particularly
shareholders and investors, as important actors
in business sustainability. Throughout 2013, the
Bank organized various information disclosure
activities as follows:
Details
Time
Location
Public Expose
Investor Summit 2013
27 Nov
Jakarta
Analyst Meeting
FY 2012
27 Feb
Jakarta
1Q 2013
18 Apr
Jakarta
2Q 2013
23 Jul
Jakarta
3Q 2013
28 Oct
Jakarta
DBS Vickers Securities Indonesia Corporate Day
18 Feb
Jakarta
UBS Indonesia Conference
5-6 Mar
Jakarta
CIMB Indonesia Corporate Days
4-5 Jul
Bali
Danareksa CEO Days
4-5 Sep
Jakarta
Barclays – Mandiri Sekuritas Indonesia Corporate Day
30 Sep-1 Oct
London
DB Access Indonesia Conference 2013
2-3 Oct
Jakarta
Morgan Stanley – 12th Asia Pacific Summit
13-15 Nov
Singapore
Non-Deal Roadshow
29-30 Apr
Kuala Lumpur
Non-Deal Roadshow
2-3 May
Singapore
Non-Deal Roadshow
13-17 May
USA
Non-Deal Roadshow
20-21 May
Hong Kong
Non-Deal Roadshow
23-24 May
Tokyo
Non-Deal Roadshow
24-28 Jun
Europe
AGMS
27 Mar
Jakarta
Investor
Conference
Roadshow
GMS
18
implemented. The methods used are as follows:
• Direct, which includes: Public Expose, Non
Deal Road Show, Press Conference, 1-on1 Meetings, Group Meetings, Branch Visits
and Site Visits
• Indirect, which includes: Annual Report,
Publication of Financial Statements,
Website, Conference Calls and Emails.
In addition to these activities, Bank BTN is also
actively conducting other activities such as
meetings with the media, reviews of the media
and promotion through the media. Not less
important, Bank BTN has also provided the
widest possible access to the general public and
investors to obtain information via Bank BTN
website www.btn.co.id. This website contains
the latest information such as corporate actions,
financial statements and company guidance
(quarterly), Bank BTN presentation material to
the public and media news clipping about the
Company.
Since its shares have been listed on the Indonesia
Stock Exchange, Bank BTN has recorded good
performance improvement. This can be seen
from the 2.04 times over- subscription, Best Mid
Cap IPO Deal of the Year 2009 in South East
Asia award, Best IPO in Indonesia (The ASSETS
Asian Awards 2009) and has successfully
performed the Fastest Stock IPO process.
Bank BTN shares have also been included as
components for the calculation of several
leading stock index, namely:
• LQ 45 Index
• Kompas 100 Index
• Bisnis 27 Index
Most of investors of Bank BTN are foreign
investors. Therefore, Bank BTN seeks to
provide disclosure of information to its
investors according to international standards.
The commitment of Bank BTN to provide
transparency to investors has been recognized
by various parties, both inside and outside the
country. One of our proud achievements is
the award for Best Investor Service Provider in
Indonesia which we received from the Global
Banking and Finance Review, London.
In 2014, Bank BTN launched several programs
to continue to strengthen relationship with
investors. Some of which are investor
conferences, analyst meetings and non-deal
roadshows.
DIVIDEND POLICY
In an effort to maximize shareholders’ value,
Bank BTN has made provisions to pay cash
dividends at least 25% of net income each
year, the amount of which will be determined at
the time of the AGMS. This dividend payment
is implemented by considering earning (profit),
financial condition, liquidity and compliance
with regulations in force as well as various other
factors that are considered relevant by the
Board of Directors following AGMS approval.
We can say that in 2012, in accordance with
the decision of the AGMS on April 19, 2012,
Bank BTN has implemented a dividend policy
as follows:
• Distribution of cash dividends amounting
to Rp223.73 billion. The cash dividend is
calculated based on the achievement of
financial performance during 2011.
• Total dividend per share amounted to
Rp25.31
• Payout Ratio 20%
Meanwhile, in 2013, in accordance with
decisions set out at the Annual General Meeting
of Shareholders dated March 27, 2013, Bank
BTN has implemented the following dividend
policy.
• Distribution of cash dividends amounting
to Rp409.19 billion. The cash dividend is
calculated based on the achievement of
financial performance during 2012.
• Total dividend per share amounted to
Rp38.74
• Payout Ratio 30%
SOCIAL RESPONSIBILITY
Community and Environmental
Development
The contributions of Bank BTN to society and
the environment are realized in social activities
within the framework of Corporate Social
Responsibility (CSR). CSR is the realization
and/or shape of Bank BTN implementation of
concern to society and the environment.
19
Bank BTN CSR General Policy
Corporate Social Responsibility (CSR) is a
commitment by Bank BTN to participate actively
in improving the welfare of the community through
good business practices and contribution of
some resources of the company through a
variety of activities, including: environmental
protection, education, health, partnerships,
arts, and sports, as can be seen by way of
illustration of the CSR Basic Concept of Bank
BTN. Through CSR, in running the wheels of
business, Bank BTN constantly strives to create
a harmonious atmosphere of business activities
with the wider community and environment
friendly. By contributing to the community and
the environment, Bank BTN is expected to be
the beloved company of the wider community.
Thus, Bank BTN can participate in creating
an environment that is safe, comfortable and
20
dynamic which is an ideal condition for the
sustainability of any business.
In the implementation, broadly speaking,
the various activities carried out by Bank
BTN in implementing Social and Community
Development Programs include Partnership
Program
and
Community
Development
Program (PKBL). Bank BTN’s PKBL Program
concentrates its activity on community
empowerment goals, especially in residential
neighborhood
or
settlement.
Housing
community development focus is selected
linked to the core business of Bank BTN as
distributor of housing loans. In practice, this
community empowerment is shown through
activities containing education, environment,
and socio-economic empowerment.
COMMUNITY DEVELOPMENT PROGRAM
Bank BTN’s Basic CSR Concept
Corporate Image
Money
Power
Capability
Environment
Communication
Education
Communication
Health
Partnership
Arts & Sports
Cooperation with Third Parties
PKBL Policy
Broadly speaking, through the PKBL, Bank BTN
is trying to prioritize community empowerment in
each operational activity, particularly in housing
and settlements, which is the main business
areas of Bank BTN. In the implementation, the
program includes important activities in the
fields of environment, social empowerment and
economics, and education.
Environmental Activities and Impact
Bank BTN is implementing CSR activities
in the environmental field through the
BTN Environmental Harmony and Natural
Conservation Programs. Through the BTN
Environmental Harmony program we provide
support and assistance to society, especially
where Bank BTN disburses financing. In the
implementation, this program prioritizes lower
middle income people. This program aims to
educate people in an integrated manner through
several training or education, and mentoring
to residents as the basis for an integrated
development program. The program includes
activities on an integrated and sustainable basis
to support hygiene, health, reforestation, and
education.
The following is a description of the activities
of BTN Environmental Harmony program
per field:
• Environment: Bank BTN delivers materials
about community participation in waste
management, garbage sorting method,
organic
waste
management,
and
manufacture of products from non-organic
garbage.
• Education and Training: Bank BTN
undertakes development, education, as well
as physical and spiritual education quality
training for children along with their parents.
With training, the children and parents
are expected to recognize themselves so
that they can form a healthy teamwork in
interpersonal relationships.
• Health: The program is accompanied
with development of community health
care quality through workshops regarding
children’s health and herbal plants for
various diseases.
• Socio-economic: This program is expected
as a trigger and foundation in the alleviation
of poverty through several activities such as
entrepreneurship training, and management
within the family and surrounding
empowerment potential.
21
• Religion: A community activity program
should be balanced by religion as motivation
and reinforcement as well as basis in
interacting both within the family and society.
• Public Infrastructure and Facilities: Public
infrastructure and facilities as a fulfillment of
the needs of society and the environment
that support other activities so that hopefully
people can be more empowered.
The names of activities in the BTN Environmental
Harmony Program in more detail are described
in the following table.
Activities in 2013
Activities undertaken in 2013 by Bank BTN were
as follows:
Nature Conservation and Environmental
Field
Bank BTN has made a commitment to PT
Bakti Usaha Menanam Nusantara Hijau Lestari
I (BUMN HLI) to create synergy in greening
activities with the Agrosil vopastural pattern in
Ciherang Village and Ciaro Village, Nagreg Subdistrict, Bandung District, West Java which is
Citarum watershed in the form of planting trees
Name of activities in the BTN Harmonious Environment Program
Item
BTN Welfare 2
BTN Religion
BTN Green
BTN Fit
BTN Health
BTN Intelligent
BTN Hygiene
BTN Care
BTN Partnership
Information
Program for Improving Welfare, Social, Arts and Culture
Religious Affairs Program
Nature Conservation Program
Sports Program
Program in the field of Health
Education Program
Program in the field of Hygiene
Program in the field of Natural Disaster Response
Community Entrepreneurship Empowerment Program
Sejahtera
BTN
Kemitraan
BTN
Peduli
BTN
Religi
BTN
Hijau
BTN
Community
Bugar
BTN
Bersih
BTN
Cerdas
BTN
22
Sehat
BTN
as much as 22,222 trees on reforestation land
area of 55.55 hectares. Total commitment of
Bank BTN amounted to Rp1,000,000,000.00
(one billion Rupiah) to support the event. Bank
BTN hoped that with the implementation of the
greening activity, Citarum watershed will be
green again and public awareness in protecting
the environment will increase. In addition, Bank
BTN has also carried out reforestation programs
in Jakarta, North Bandung, Universitas Teknologi
Sumbawa, West Nusa Tenggara and Universitas
Bengkulu.
Social and Economic Field
• Joint Homecoming with Bank BTN
In 2013 Bank BTN held a free-of-charge
Homecoming Program using the theme
“Homecoming 2013 Towards Prosperity
with Bank BTN” provided to 1,300 informal
workers. The homecoming participants
consisted of many informal workers
operating in the office and housing
environment of Bank BTN scattered in the
Greater Jakarta area. This joint homecoming
program is one form of Bank BTN’s
awareness of the surrounding communities
conducted continuously every year. In 2013
this activity was carried out for the sixth time
by Bank BTN. When compared with a similar
activity of the previous year, the number
of participants increased by 100 people.
Participants were not charged anything in
this program. They were just required to
show their Tabungan Batara Bank BTN
savings booklets as proof of membership.
Homecoming destinations were Semarang,
Yogyakarta, Solo and Bandar Lampung.
• Bank BTN Flood Care Activity
Associated with the major floods that hit
almost the entire territory in the Greater
Jakarta area, Bank BTN as a form of concern
for the environment participated in the
Bank BTN Flood Care Activity by providing
food packages worth Rp100,000,000.00
(one hundred million Rupiah) to 244
Heads of Families who are in need worth
Rp100,000.00 per package. Implementation
sites were Jakarta and Bekasi.
• Bank BTN Food Sharing Activity
In response to the instruction of the Ministry
of State-Owned Enterprises (BUMN) for the
implementation of low-cost market in order
to anticipate the impact of rising fuel prices,
as a concern for the people who are in need,
on July 4, 2013 Bank BTN organized a Food
Sharing Activity which was implemented at
Kelurahan Penjaringan by distributing 2,500
food packages worth Rp250,000,000.00.
23
Sports Field
Support for National Athletes
In order to improve performance of Indonesian
athletes in the multi-event sports of Sea Games
2013 and 2015, the Asian Games in 2014 and
the Olympic Games in 2015, Bank BTN together
with Perusahaan Pengelola Aset (PPA) and PT.
Danareksa synergized to support improvement
and development of Judo sport achievement at
the international level in the form of educational
assistance and / or training, improvement
in health and other assistance to athletes
considered necessary to support improved
achievement of judo sports in Indonesia. Bank
BTN’s commitment in 2013 for the improvement
and development of Judo sports achievement
amounted to Rp862,000,000.00 (eight hundred
sixty-two million Rupiah).
Education and/or Training Field
• Briefing and Business Training Program to
200 members of the army
• In response to the instruction of the Ministry
of State-Owned Enterprises (BUMN)
for the Preparatory Program on Second
Career Army Officers in 2013, Bank
BTN along with 12 other BUMNs
24
designated by the Ministry of StateOwned Enterprises, participated in the
activity aimed at preparing participants to
deal with the second phase of a career in
the field of psychological, financial and
social relationships as well as provide insight
and debriefing and comprehensive skills.
The activity was carried out for 8 weeks
at Pertamina Learning Center on June 2728, 2013 and at Garuda Indonesia Training
Center from July 1-19, 2013. Bank BTN
participated in the activities referred to
amounted to Rp1,500,000,000.00 (one
billion five hundred million Rupiah).
• University Scholarships
In 2013, Bank BTN provided scholarships for
higher education to 197 students throughout
Indonesia. Branch offices that carried out
the provision of scholarships to outstanding
students were Bandung, Banjarmasin,
Bengkulu, Ciputat, Medan, Pekanbaru,
Pontianak and Semarang. The total funds
expended for the university scholarship
program amounted Rp499,000,000.00
(four hundred ninety- nine million Rupiah).
The specifics are as follows:
Branch
Bandung
Banjarmasin
Bengkulu
Ciputat
Medan
Pekanbaru
Pontianak
Semarang
Distribution of Bank BTN Scholarship
Intitutions
Scholarship
Universitas Padjajaran
2
Universitas Lambung Mangkurat
10
Universitas Bengkulu
4
Universitas Terbuka
Universitas Sumatra Utara
Universitas Riau
Universitas Lancang Kuning
Sekolah Tinggi Kesehatan
Universitas Islam Riau
Sekolah Tinggi Kejuruan dan Ilmu Pengetahuan
Universitas Diponegoro
Universitas Negeri Semarang
Politeknis Kesehatan Semarang
120
10
10
2
4
10
4
12
4
5
IDR
12,000,000
5,000,000
12,000,000
288,000,000
30,000,000
30,000,000
7,000,000
10,000,000
30,000,000
12,000,000
36,000,000
12,000,0000
15,000,000
The following table shows the types of training and training funding allocations.
Allocation of Training Funds
Region
Malang
Yogyakarta
Malang
Jakarta
Jakarta
Surabaya, Bukit Darmo
Jakarta
Jakarta
Total
Activities
Total (in IDR)
Human resource development and economic enhancement
MSME Training
Human resource empowerment and economic enhancement
Training and education facilities
Convection entrepreneurial training
9,500,000
10,000,000
19,300,000
25,000,000
49,000,000
50,000,000
281,169,000
1,500,000,000
1,943,969,000
Religious Affairs Field
Construction of a Church on Mansinam Island of West Papua Province
In response to the instruction of the Ministry of State-Owned Enterprises (BUMN) in order to
accelerate development on Mansinam Island, Bank BTN along with 15 other state-owned
enterprises (BUMNs) that have been designated by the Ministry of State-Owned Enterprises
participated in the construction activity of the Church at Mansinam Island, West Papua Province.
Total participation of Bank BTN in the activity referred to amounted to Rp1,000,000,000.00 (one
billion Rupiah).
COST ALLOCATION 2013
Following are details of the allocation of the distribution of program funds for community development
and socio-economic empowerment for the year 2013.
Fields
Economy
Arts & Culture
Sports
Education
Health
Comunity Service
Religion
Biodiversity
Total
Realisasi
1,739,008,940
10,000,000
862,000,000
3,173,631,000
158,000,000
1,198,916,000
2,290,600,000
897,670,300
10,329,826,240
25
CONTRIBUTIONS TO THE NATION AND
COUNTRY
As proof of our commitment to contribute to
the country, Bank BTN always gives valueadded returns to the government through taxes
and dividends. In 2013, Bank BTN deposited
taxes amounting to Rp1.01 trillion compared to
total taxes paid in 2012. Meanwhile, dividends
distributed to the government in 2013 amounted
to Rp409.19 billion, which is calculated based
on financial performance achievement during
2012 with a payout ratio of 30%.
We realize that the advantages and achievement
we acquired involved contributions from the
government and society. Therefore, giving back
to the country is our task to be carried out as
well as possible.
GROWING WITH BUSINESS
PARTNERS AND SUPPLIERS
Bank BTN’s commitment in the field of
housing finance is reflected in the harmonious
relationship with strategic partners and/or
suppliers such as developers and contractors.
Such cooperation should be mutually supportive
and provide added value. In establishing
cooperation, Bank BTN upholds the principles
of professionalism, transparency, and fairness.
To be a strategic partner of Bank BTN in terms
of distributing individual housing loans and
residential construction, Bank BTN implements
several parallel guides for all parties. With the
principle of reference, it is expected that the
existing cooperation between Bank BTN and
developers can be mutually beneficial and
provide equal opportunity to each party. Similarly
with suppliers, potential suppliers should follow
the bidding mechanism that takes place openly.
The tender mechanism will be done by opening
bidding, consider any bid received, and evaluate
in order to get a strategic partner in conducting
cooperation. By upholding transparency, the
26
tender is to be an evidence of the absence of
corruption practices, collusion and nepotism in
cooperating with business partners. In entering
into business cooperation, Bank BTN will first
consider the business type of business partners
and suppliers, supplier experience from the
first operation, and the advantages owned by
suppliers compared to competitors. Above all,
a reliable capability is not enough without the
commitment to uphold reference values and
good business ethics.
Good cooperation is inseparable from
anticipation of emerging risks, and Bank BTN
will pay attention to the number of employees
owned by suppliers to calculate risks that may
occur with the capability of the workforce.
Labor is bound permanently, subcontractors,
and part-time work personnel. Associated
with compliance with applicable laws, Bank
BTN also considers a few things, such as the
implementation of the Law on Labor. Bank BTN
will pay attention to the existence of child labor,
compensation in the form of wages, working
hours, availability of health services and safety,
conditions of discrimination and diversity, and
concern towards environment.
MOVING FORWARD
Bank BTN would take many steps to maintain
sustainability and harmony with society and the
environment. These things include Corporate
Governance, social responsibility, human
resource development, and lending to the
community and the developers.
Based on the corporate governance roadmap,
2014 is the time for Bank BTN to feel the results
of the GCG implementation phase in 2013.
Therefore, the next task for Bank BTN is to
monitor and strengthen the implementation of
GCG in conformity with applicable standards. If
good governance continues to be maintained,
Bank BTN will go through a smooth path to reach
its goal to be a world-class banking company
in 2025. In addition, Bank BTN will continue to
develop community development programs to
create an environment that is always comfortable
to live in, as well as improve housing finance
services to the public so that they can have a
viable home. Bank BTN also would like to improve
employee engagement with the Bank so that the
Bank and the employees can become one unity
to advance in the common interest. Appreciation
and fair opportunity for all parties will be improved
by strengthening the existing system.
Furthermore,
Bank
BTN
expects
to
develop bigger by continuing to contribute
to the environment and also for the sustainability
of Bank BTN itself.
ENHANCEMENT OF PRODUCTS AND
SERVICES
Bank BTN does not only provide housing
finance, but also supports developers to
build decent housing for the people. Bank
BTN is even contributing to the international
community. Bank BTN has been trusted by
the government to extend housing loans to
the community since 1974. We always give
our best efforts to help Indonesian families get
Type of Loan
Subsidized KPR
Non-Subsidized KPR
Other Housing Loan
Construction Loan
December 2010
Rp Billion
21,945
15,635
3,815
5,519
a dream home at affordable prices, especially
for the lower middle class.
As of December 31, 2013, total conventional
outstanding loans amounted to Rp92.39 trillion,
increased from Rp75.41 trillion as of December
31, 2012. Meanwhile, total sharia financing in
2013 amounted to Rp8.08 trillion, up from a
total of Rp6.00 trillion in 2012. Of the loan and
financing position, total housing loans amounted
to Rp87.01 trillion and total non-housing loans
amounted to Rp13.46 trillion. The composition
of loans extended by Bank BTN is 87% housing
loans and 13% non-housing loans. This
composition shows the commitment of Bank
BTN to develop non-residential financing, which
is not less important than housing finance.
Bank BTN realizes that the service required by
Indonesian families is not only the need to have
a home, but also the need to have a place to
stay, where they can live decently. Based on this
understanding, BTN intends to develop a nonresidential loan portfolio and at the same time
retain its focus on housing loans, as the core
business of Bank BTN for more than 3 decades.
Here is a table comparing the position of housing
loans disbursed by Bank BTN over the last 4 years.
December 2011
Rp Billion
25,804
18,611
4,457
7,191
December 2012
Rp Billion
24,798
29,129
5,993
9,462
December 2013
Rp Billion
27,255
36,948
7,090
10,637
27
From the very beginning, Bank BTN has
consistently demonstrated a commitment to
help the community, especially the lower middle
class in meeting their need to get a decent place
to stay. Through KPR BTN Sejahtera, Bank BTN
implements government subsidy programs
to provide home ownership finance with the
Housing Financing Liquidity Facility (FLPP) for
all Indonesian people with low interest rates,
light and fixed installments throughout the loan
period. Bank BTN disburses this FLPP through
two products, namely KPR BTN Sejahtera
Tapak (for the purchase of landed houses) and
KPR BTN Sejahtera Susun (for the purchase of
flats). This product is intended for Low Income
Communities (MBR) that meet the criteria,
as follows: (1) To purchase first home (have
never had a home); (2) Have never received a
subsidy; (3) Has a Tax Number (NPWP) and Tax
Return (SPT)/ Income Statement; and (4) Has
a maximum principal income of Rp3.5 million/
month for KPR BTN Sejahtera Tapak and Rp5.5
million/month for KPR BTN Sejahtera Susun.
Throughout 2013, Bank BTN managed to
channel Subsidized KPR amounting to Rp6,018
trillion, or as many as 80,148 housing units
through Conventional Banking and Rp488
billion, or as many as 6,524 housing units
through Sharia Business Unit. Thus, the
Bank disbursed 28.30% (27.13% from BTN
Conventional and 1.17% from Sharia Business
Unit). Meanwhile, Bank BTN is still leading the
Subsidized KPR market with a 92.23% market
share (source: PPP Kemenpera data). The
success of Bank BTN in distributing the total
Subsidized KPR has proved the commitment
of Bank BTN in strengthening the contribution
of the Bank to finance housing for the lower
middle community. Here is a diagram illustration
showing the distribution of Subsidized KPR
within the last 5 years.
STRENGTHEN OTHER ASSISTANCE
Bank BTN’s commitment to strengthen housing
finance for the lower-middle class does not make
us forget to service middle class customers.
Bank BTN is still faithfully serving middle-class
customers by offering the following products.
28
KPR BTN Platinum
KPR BTN Platinum is a housing loan of Bank
BTN for the purposes to purchase a home
from a developer or non-developer, both for
the purchase of a new home or second home,
the purchase of a home that is still under
construction (indent) and take over the loan
from another bank. The advantages of KPR BTN
Platinum are competitive interest rates, fast and
easy process, very flexible loan period, loan life
insurance protection, fire insurance protection,
and earthquake protection, and has a wide
network of cooperation with developers across
the regions of Indonesia. Bank BTN provides
financing up to 80% of the lowest value between
home sale price after discounts and the fair
market price based on appraisal by the Bank for
a home with an area < 70m2 or 70% for a home
with an area> 70m2. The prevailing interest rate
is a floating rate with a maximum loan period
of 25 years. This loan is secured by the house
and land financed. Throughout 2013, Bank BTN
distributed 67,699 KPR BTN Platinum units with
a value of Rp12.5 trillion.
KPA BTN (Apartment Ownership Loan)
KPA BTN is an apartment ownership loan for the
purpose of purchasing an apartment, both for
the purchase of a new apartment and second
apartment, purchase of an unfinished apartment
(indent) and take over a loan from another bank.
The advantages of KPA BTN are competitive
interest rates, fast and easy process, very flexible
loan period, loan life insurance protection,
fire insurance protection, and earthquake
protection, and has an extensive network of
cooperation with developers in major cities in
Indonesia along with very attractive promotion
programs. Maximum KPA BTN financing is up
to 80% of the lowest value between sale price
after discounts and the fair market price based
on appraisal by the Bank for an apartment with
an area of < 70m2 or 70% for an apartment with
an area> 70m2. The prevailing interest rate is a
floating rate with a maximum loan period of 15
years. Throughout 2013, Bank BTN distributed
67,699 KPA BTN units with a value of Rp522
billion.
Kredit Ruko BTN
Kredit Bangun Rumah BTN
Kredit Ruko BTN is a home store/home office/
kiosk ownership that can be used as habitable
or place of business. The advantages of Kredit
Ruko BTN are competitive interest rates, fast
and easy process, very flexible loan period,
loan life insurance protection, fire insurance
protection, and earthquake protection (in some
areas). Through Kredit Ruko BTN, Bank BTN
disburse loans to buy a home store (ruko) which
can function as a store, office, or other business
purposes. Loans are granted at a maximum
of 70% of the purchase price or market value,
whichever is lower. Home store loan usually has
a maximum loan period of 15 years with the
home store being financed as collateral with
floating interest rate. Throughout 2013, Bank
BTN disburse Kredit Ruko BTN as much as 622
units amounting to Rp197.5 billion.
KBR BTN is a loan to build a house for individual
customers who already have land or a plot of
land. Financing amount is 70% of the Cost
Budget Plan (RAB) to build a house appropriate
to bank assessment. Loan term is given up to
10 years with floating interest rate.
In addition, Bank BTN continues to channel
other consumer loans through the following
products.
Kredit Agunan Rumah BTN
KAR BTN is a loan facility from Bank BTN
that can be used by customers for various
consumer needs by securing a residential
house/apartment/home
store/home
office
owned by the customer. The advantages of KAR
BBTN are competitive interest rates, free loan
value, very flexible loan period up to 10 years
and get loan life insurance and fire insurance
protection. This loan is used to fund various
purposes as long as not conflicting with the
law. In terms of this product, customers provide
guarantee with collateral in the form of land and
houses. Maximum loan granted is 75% of the
transaction value according to the Bank if loan
collateral is in the form of a residential house.
If the loan is secured by an apartment/home
store/condominium/flat/home office, the value
of loan distributed may not exceed 60% of the
transaction value according to the Bank. This
loan has a maximum tenor of 10 years with a
floating interest rate.
PUMP-KB BTN Jamsostek
For customers who are Jamsostek (Social
Security) participants and experiencing financial
hardship in connection with home purchase
down payment for a Housing Loan (KPR),
PUMP-KB BTN Jamsostek is the solution.
These loans are granted by PT Jamsostek
(Persero) through Bank BTN to its members
through who are eligible to get PUMP-KB, for
the purpose of home purchase down payment.
The advantages of PUMP-KB BTN Jamsostek
are flexible PUMP-KB period up to 15 years
and not exceeding KPR period, interest rate of
6% with the provisions of maximum loans, as
follows:
• Wages up to Rp5 million: Rp20 million
maximum
• Wages> Rp5 million up to Rp10 million:
Rp35 maximum
• Wages> Rp10 million: Rp50 million
maximum
This PUMP-KB BTN Jamsostek is granted
together with the granting of KPR BTN.
PRR-KB BTN Jamsostek
For customers who are Jamsostek (Social
Security) participants and experiencing financial
hardship in connection with home development
or renovation together with Kredit Agunan
Rumah (KAR), PRR-KB BTN Jamsostek is
the solution. These loans are granted by PT
Jamsostek (Persero) through Bank BTN to its
members through who are eligible to get PRRKB, with the aim to develop/improve housing,
where the loan is submitted, approved, granted
simultaneously against paripassu collateral
with KAR. The advantages of PRR-KB BTN
Jamsostek are flexible time period up to 10
years and not exceeding KAR period, interest
rate of 6%, maximum loan up to Rp30 million
and not exceeding 50% of the total loan (Kredit
Agunan Rumah BTN plus PRR-KB Jamsostek).
29
TBUM BTN Bapertarum
Supporting the Developers
For Civil Servant (PNS) customers who are
experiencing financial hardship in connection
with home purchase down payment for a
Housing Loan (KPR), the Additional Down
Payment Assistance (TBUM Bapertarum) is the
solution, namely partial down payment financing
aid product for housing loans (KPR) or partial
financing aid for housing loans (KPR), consisting
of aid that does not have to be returned and
aid that should be returned, distributed to
civil servants who meet the requirements and
intended for group I, group II and group III,
with source of funds from Taperum-PNS dues.
Loans are granted by Bapertarum through Bank
BTN to civil servants who meet the requirements
of TBUM Bapertarum,for the purpose of home
purchase down payment. The advantage of
TBUM-BTN Bapertarum is the interest rate of
6%, subject to maximum loan provisions as
follows:
• Group I: Rp13.2 million
• Group II: Rp13.5 million
• Group III: Rp13.8 million
Bank BTN does not only provide housing
finance but also supports developers to build
housing viable for the community. Bank BTN
also provides loan facilities to developers. We
realize the importance of the role of developers
in providing the best housing facilities for our
customers. Therefore, we continue to maintain
and increase products for the developers.
Support for developers is routed through Kredit
Konstruksi BTN that has managed to record
growth as much as 25% to Rp11.83 trillion in
2013 from Rp9.46 trillion in 2012.
Kring BTN
Kredit Ringan BTN (Kring BTN) is a loan
with mild installments to employees of
companies/agencies without collateral and only
by filing customer appointment letters (SK). The
advantages of Kring BTN are cash up to Rp100
million, competitive interest at a fixed rate, fast and
easy process and without collateral, flexible loan
period up to 5 years, loan life insurance protection
and increasingly lighter installments if customer
salaries make use of the BTN Payroll facility.
As a form of the Bank’s commitment to play
a role in the financing industry inside and
outside the country, Bank BTN has entered
into a cooperation with the World Savings
Bank Institute (WSBI) in the Tabungan Cermat
BTN program. This program is held as part
of the WSBI project to increase the amount
of savings for disadvantaged people. This
project is supported by a grant from the Bill
& Melinda Gates Foundation and Bank BTN
is one of the 10 banks around the world that
receives this funding support. The pilot project
for this program is held in Central Java. The
features provided in Tabungan Cermat BTN are
designed attractively and not difficult for people
who are not familiar with banking transactions.
The transactions for this program are done in
an online post office that has teamed up with
Bank BTN.
RESPONSIBILITY TO CUSTOMERS
Besides Kring BTN, Bank BTN also provides
services that cater for the needs of retirees
with a maximum loan amount of Rp300
million. The maximum loan period is 7
years with fixed interest rate system.
Bank BTN always strives to provide added value
in housing finance services, not only with the
best products, but also with consistent service,
trustworthy, thorough, and attentive to the
needs of customers and at the same time as
a form of compliance with the responsibility of
Bank BTN to customers.
Kredit Swadana BTN
Bank BTN Policy
Kredit Swadana BTN is a loan facility provided to
customers with collateral in the form of savings
and time deposits placed at Bank BTN with a
maximum loan of 90% of the funds deposited
at Bank BTN. The advantages are competitive
interest rate, fast and easy process, very flexible
loan period up to 1 year and can be extended.
One of the pillars of the Indonesian Banking
Architecture (API) as declared by Bank
Indonesia and must be implemented by national
banks is to realize empowerment and protection
for consumers of banking services through
the establishment of standard mechanisms
on customer complaints, establishment of an
Kring BTN Pensiunan
30
Involvement in International Projects
independent mediation institution, increased
transparency of information on banking
products, and socialization for customers.
Through these various programs, it is expected
to increase customer confidence to the national
banking system. Bank BTN is constantly striving
for the success of the API programs intended to
provide added value in housing finance services,
not only with the best products, but also with
consistent service, trustworthy, thorough, and
attentive to the needs of customers and at the
same time as a manifestation of the fulfillment of
Bank BTN’s responsibilities to customers.
The customers of Bank BTN can voice their
opinions about the services of the Bank through
the Branch Offices, Head Office Divisions,
Contact Center, as well as the print and
electronic media. Bank BTN has sought various
policies, including the following.
Receipt of Customer Complaints
• Develop a Customer Complaints System
(SPN) which can monitor the solution of the
complaints thoroughly. SPN is a web-based
system to facilitate monitoring of completion
status of complaints as well as provide
certainty for customers about the length of
time it takes the Bank to resolve complaints.
By using the online and integrated system,
customers can also submit complaints and
check the status of complaints at Branch
Offices anywhere in Indonesia.
With SPN that is online and web-based
and integrated, the handling mechanism of
complaints is more structured and can be
carefully monitored. The customer complaint
handling mechanism can be seen through
the illustration in the chart below.
Supervision of Customer Complaint
Handling
Coordination between Divisions to
Resolve Customer Complaints
Receipt of customer complaint (end user)
Receive notification of complaint from
the customer
Receive notification of customer complaint
Inquiry of customer complaint to SPN
See customer complaint details on SPN
See customer complaint details on SPN
Need escalation of group support?
Convey complaint progress to the
customer
Escalation of customer complaint
completion process
Data entry of customer complaint to SPN
Convey registration number to the
customer
Convey complaint completion results to
the customer
No
No
Yes
Already recorded in SPN
Coordinating the progress of settlement
Yes
Entry of complaint completion results
on SPN
Coordination of complain completion
process
Entry of complaint completion results
Closing of complaint
31
• Create and implement systems and
procedures to ensure that Bank BTN has
made transparent the information on Bank
products in accordance with Bank Indonesia
Regulation on Transparency of Information
on Bank Products and Use of Customer
Personal Data, such as:
» Provide written information in the
Indonesian language completely and
clearly about the characteristics of each
Bank product
» The information is submitted to the
Customer in writing or orally.
» In providing information, the Bank does
not provide deceiving (misleading)
information and or not ethical
(misconduct)
» Information on product characteristics
Such Bank product shall include:
- Product name
- Type of product
- Benefits and risks inherent on
product
- The requirements and procedures
of using the Bank product
- The costs attached to the product
- Calculation of interest or profit
sharing and profit margins
- The validity of the product
- Publisher (issuer/originator) of the
Bank product Bank
• In conjunction with the Bank’s products and
raising funds, the Bank provides information
regarding the products guarantee program.
• The Bank notifies the Customers regarding
any changes, additions, and or reduction in
the Bank’s product characteristics.
• The Bank includes information on bank
product characteristics which location or
shape is visible and or legible clearly and or
easy to understand.
• The Bank provides information services of
bank product characteristics that can easily
obtained by the public.
• Information about the Bank’s products
has been published through the Bank
homepage which can easily be accessed by
the wider community. Furthermore, we can
also convey that the use of the customer’s
personal data is managed in accordance
with the provisions, as follows:
32
» The Bank asks for written consent from
the Customer that the Bank will not
provide and/or disseminate Customer
Personal Data to Other Parties for
commercial purposes, unless specified
otherwise by other laws and regulations
in force.
» In the request for approval the
Bank first explained the purposes
and consequences of granting or
disseminating Customer Personal Data
to another party.
» Request for approval can be done by
the Bank prior to or after the Customer
conducted transactions related to the
Products of the Bank.
» Customer Approval to the request is
made by the Customer by signing on a
special form created for that purpose.
» When the Bank uses personal data
of a person and/or group of persons
obtained from Another Party for
commercial purposes, the Bank shall
have written assurance from the Other
Party containing written consent from
the person and or group of persons to
disseminate personal data.
» Create and implement systems and
procedures to ensure that the Bank has
made transparent customer complaint
and dispute settlement procedures to
the customer in accordance with the
Bank Indonesia Regulation on Customer
Complaints and Banking Mediation,
including through:
- The Customer Complaints Service
Unit, both at the Branch Office and
at Head Office (Division of Policy
and Business Development ) for
handling customer complaints.
- The Bank has policies and
procedures on customer complaint
resolutions in accordance with the
provisions.
- The Bank has made transparent
the procedures for customer
complaints and dispute resolutions
to the customer which have been
conveyed orally, by direct mail (via
mail), by mail via the Branch Office,
by phone, through Internet, and
through the mass media.
ACTIVITIES IN 2013
Funding provided for social activities in 2013 are
packed by Bank BTN by implementing various
Corporate Social Responsibility (CSR) activities.
Broadly speaking, the costs incurred in the
implementation of CSR activities are as follows:
Fields
Economy
Arts and Culture
Sports
Educations
Health
Public Infrastructure
Worship
Nature Conservation
Total Cost
In addition, Bank BTN also always provides
services to customers by putting forward good
service quality in terms of the quality of products
offered, the facilities provided for customer
satisfaction, even to the physical viability of our
service centers. The following are programs
undertaken by Bank BTN to improve the quality
of service in 2013.
1. Skill enhancement of front-liners (Customer
Service, Loan Service, Teller Service and
Security) through coaching and direct
assistance.
Total Cost (in IDR)
1,739,008,940
10,000,000
862,000,000
3,173,631,000
158,000,000
1,198,916,000
2,290,600,000
897,670,300
10,329,826,240
2. Mystery-Shopping for maintaining and
improving the quality of service at the
Branch Office.
3. Increased comfort on the physical
aspects which includes room comfort and
completeness of banking hall equipment.
4. Improved ease of conducting transactions
via e-BTN channel.
5. Interactive voice response for the contact
center.
33
Other Matters for Our Customers
As a token of appreciation from Bank BTN to
the loyalty of its customers, in 2013 Bank BTN
held a number of lotteries that offer attractive
prizes, including the Homebastis 2013 Lottery
Program. Lottery programs have been held
by Bank BTN since the beginning of 2003.
Lottery stages consist of Regular I, Regular II,
and Regular III along with Grand Prize. Drawing
of Regular I was made in October 2012 while
Regular II in January 2013 and Regular III along
with the Grand Prize in April 2013. During Grand
Prize raffle would be given 5 houses each worth
Rp1.5 billion. The houses, as the grand prize,
are all located in the Greater Jakarta area. While
with the regular lottery would be given prizes in
the form of savings to 99 winners worth Rp25
million each, to 333 winners, worth Rp10 million
each and to 555 winners worth Rp5 million
each. Giving Grand Prize in the shape of a home
is the embodiment of Bank BTN’s core business
in housing finance. The house is also an asset
with a value that continues to grow. All lottery
participants are savers of Tabungan BTN Batara
and Tabungan BTN Prima.
Financial Impact on Customer Service
Costs incurred for the period May up to
December 2013 by Bank BTN for the
improvement of services in response to the
needs of its customers can be seen in the
following table:
Activity Arranger
Activity Costs
(Million IDR)
Service Quality Assurance
Improvement
Consultant Survey Mistery
Shoping Service Quality
HR Quality Improvement
1,700
1,607
489
Human Capital Development and Industrial
Relations
Bank BTN guaranteed the rights and obligations
as well as the equal opportunities to all employees
without distinction of ethnicity, religion, race,
34
class, gender, and physical condition. Bank BTN
also has a strong commitment to protect good
working environment for the creation of a healthy,
safe, and comfortable working atmosphere.
In 2013, the turnover rate of Bank BTN was only
2.52% per year, or very low. This is consistent
with the results of a survey conducted by using
a survey method prepared by Louis Allen which
shows Bank BTN’s Employee Engagement
Index (EEI) at a score of 4.02% which suggests
that the efforts made by Bank BTN in protecting
good working environment for the creation of
good working atmosphere has been conducive
to fruition. The employees of Bank BTN are
willing to work hard and strive to exceed what is
expected to build a career at Bank BTN.
Bank BTN Policy
For Bank BTN, labor is one of major keys
to the success of the Bank’s business.
We believe that what we have achieved now
we will never get without the cooperation and
efforts of our employees. Therefore, we are
always trying to develop the ability of employees
as well as give fair appreciation in accordance
with their performance over the years. We wish
to develop the potential of each employee
optimally so that they can actively contribute to
the sustainability of the Bank. We are also trying
so that Bank BTN can be the best workplace for
its employees.
Bank BTN is managing all personnel affairs
starting from planning every stage of employment
development or starting from recruitment,
employee selection, talent mapping, career
development, and succession until retirement
of employees. Bank BTN has been using the
Integrated Human Capital Management as a
guide to manage human resources at the Bank
as can be seen in the illustration of Integrated
Human Capital Management below. We can
state that in general, the whole policy of the
Bank in the field of human capital management
is divided into 6 (six) policy sections, as follows:
1. Organization Development Policy
Contains policies and procedures of the Bank
in the field of preparation and development
of organizational capability and infrastructure
in human resource development.
2. Human Capital Acquisition Policy
Contains policies and procedures of the
Bank about the manner of the search,
selection and placement of Employees
at vacant positions, both from within and
outside the environment of the Bank, to
ensure placement of the right person on the
right position (the right man on the right job).
3. Human Capital Development Policy
Contains policies and procedures of the Bank
on aspects of development and learning for
employees to increase their competence so
that all employees can perform their jobs
well. The policies and procedures in this
section govern the development process
and learning, both formal and informal.
4. Human Capital Engagement Policy
Contains policies and procedures of
the Bank to increase commitment and
motivation of Employees in working
through the procedures of performance
and career management and the creation
of a harmonious working relationship
between the Bank and Employees as well
as relationship between Employees.
5. Human Capital Reward Policy
the Bank to increase commitment and
motivation of Employees in working through
the procedures of rewarding employees,
both in the form of cash and non-cash.
6. Human Capital Information System Policy
the Bank regarding the processes and
procedures of personnel administration
related with Employee positions and jobs,
and Human Capital information systems and
database.
Application of Human Capital Management System
Organization
Development
Human Capital
Acquisition
Human Capital
Development
Human Capital
Engagement
Human Capital
Reward
Vission - Mission
Strategic
Employee Needs
Planning & Standards
Formation
Spending &
Development
Talent Mapping
Cash
Remuneration
Cultural
Induction
Procurement
Employees
Education
Talent
Management
Non-Cash
Remuneration
Organization
Structure
Assesment
Carrier
Management
Occupational
Positions and
Ranks
Employee Selection
Performance
Management System
Job Description & Job
Specification
Alih Daya
Industrial Relations
Family Title
Appointment &
Placement of
Employees
Competency
Requirements
Human Capital Administrasion
Administration
Personal
Employment Master
Data
Human Capital Information on System (i-HCIS)
35
Recruitment and Selection of Employees
Changes in the external environment and in the
organization bring changes in the needs for the
number and quality of human capital. Employee
recruitment is the initial step to meet those
needs. Therefore, we need a certain procedure
to ensure that we can attract potential talents
to join our team and contribute to the growth of
the Bank.
The principles that we apply in recruiting
employees are as follows:
• Meeting the needs of employees based on
Workload Analysis.
• Employee Recruitment is done if the analysis
results showed the difference (minus)
between Workload Analysis calculation and
the number of employees who currently
serves in one unit.
• Employee Recruitment can also be done
when there are vacant positions to be
immediately filled.
• Employee Recruitment focuses on internal
recruitment (promotion and rotation), but
can also be done via external recruitment
if internal recruitment is considered not
sufficient or inadequate.
The following are the types of recruitment
conducted by Bank BTN.
• Internal Recruitment: the Bank recruits
existing employees to fill certain positions.
Internal recruitment can be done with several
ways as follows:
» Promotion
Mutation of employees to a higher level
both in one division and to different
divisions.
» Rotation
Mutation of employees to an equal
position level both in one division and to
different divisions
36
• External Recruitment: the Bank recruits
candidates from outside the Bank to fill
certain vacant positions. External recruitment
can be direct-hire of fresh graduates, prohire of experienced employees as well as
labor outsourcing. To meet the employee
selection principles of Bank BTN, applicants
should submit a formal application letter
with attachments as required by the Bank.
The selection process is done by HCD and
does not rule out by the branch office. The
selection process should be approved by
the Director of Human Capital Supervision.
• The methods commonly used in employee
selection are among others
» Administrative selection
» Checking references
» Tests of academic potential
» Interviews
» Assessment
» Health Test
» Training Program
Not all of the above methods is done in a
selection process, but is adapted based on the
purposes and positions that will be addressed.
Talent Mapping
Effective management and placement of
employees is the key to the success of the Bank’s
performance. Talent mapping is a method used
by Bank BTN to manage and place employees
in appropriate positions. This method measures
the potential, competence and performance
of employees. With this method, we assess
employees based on performance and potential.
What is meant by potential here is cognitive
and personality, behavioral competence,
technical competence, last education, and
work experience. Assessment results will then
be formulated into a matrix of 9 Boxes so that
can be seen the performance level and potential
of each employee as can be seen through the
illustration.
Matriks 9 boxes
Potential
Performance
Low
Medium
High
High
(30003700)
Need To Develop:
- Coaching &
Concelling
- Repositioning
- On The Job Dev
7.
Potential
8.
Star Employee
9.
Fast Track
(< 2 yr)
Medium
(23512999)
Slow Starter:
- Training
- Study Literature
- Mentoring
4.
Average
5.
Potential
6.
Middle Track
(2 – 3 yr)
Unﬁt
1.
2.
Need To Develop:
- Coaching & Concelling
- Repositioning
- On The Job Dev
3.
Normal Track
(> 3 yr)
Low
(10002350)
Slow Starter:
- Training
- Study Literature
- Mentoring
By mapping into 9 Boxes, each employee
is grouped by 9 group types, Group 1 is the
group that is deemed low performing and
low potential (unfit) while group 9 is the group
considered performing and potentially most
high (star employees). The group with the best
performance and best potential get a chance
to rise to a higher career level. Meanwhile, the
group with the lowest performance and lowest
potential may be evaluated, and possibly receive
several sanctions, including transfer to lower
positions.
supervisor who holds the position and proposed
by the division personnel committee concerned.
Succession is only for employees who belong to
group 9 (star employees) in the talent mapping.
The candidates who are nominated must not be
involved in cases of certain irregularities. Then
the successors will be provided development
training by mentors and will be prepared to
serve these positions in the next four years or
more. If the successor has been truly ready,
he/she can fill the position referred to only in a
period of 1-2 years.
Career Path and Succession
With the clear performance measurement
system, we have the ability to assess any
employee who has potential to be developed
to a higher career level. Bank BTN gives this
opportunity through rotation and promotion.
Rotation and promotion is reserved only
for employees who belong to group 9 (star
employees, 8 and 6 (potentials), and 5 (average)
in the talent mapping. Normally employees
can be promoted in a period of over 3 years.
However, if the employee indeed has potential
and is performing well, promotion can be done
in just 1-2 years.
Labor, Health, and Safety
Management of stakeholders, particularly
employees is directed to the progress of the
Bank’s business with due regard to social
responsibility of the Bank associated with labor,
safety and employment health, and equality
in employment opportunity without regard
to gender differences and SARA, as well as
focused on priorities and mutual respect in order
to reach balance and harmony.
Meanwhile, for certain positions that are
considered important, Bank BTN prepares a
particular succession system. The candidate
for succession of office is nominated by the
In an effort to guarantee the rights of labor over
basic protection against workplace accidents,
mortality and health, as well as to comply with
Government policy that requires work providers
to include all of their employees into Jamsostek
(Social Security) program, Bank BTN provides
Social Security benefits as part of the benefit
allowance for its employees. Social Security
37
benefits are given so that employees can work in
peace and convenience. Social Security benefits
provided by Bank BTN are as follows:
• Workers’ Social Security (Jamsostek):
Protection for workers in the form of
compensation in cash as partial replacement
of lost or reduced income and services as a
result of events or circumstances such as
workplace accidents, illness, pregnancy,
maternity, old age, and death
• Accident Insurance:
Protection program aimed at coping with
the loss of part or total income caused by
the existence of social risks such as death
or disability due to workplace accidents both
physically and mentally.
• Old Age Security:
Protection program which is payable when
workers reach 55 years of age or have met
certain requirements.
• Death Benefit:
Protection program which is addressed to
the heirs of the participants of the Social
Security program who died not due to
accidents at work in an effort to ease the
burden of the family both in the form of
funeral expenses and compensation in the
form of money.
race, class, gender, or physical condition as part
of the Benefit Allowance in order to improve
optimal quality of work to better support Bank
operations. The goal is to ease the burden of
the employee if he/she and family must seek
medical care/treatment.
In addition, Bank BTN provides a variety of health
assistance for the purposes of health treatment
and recovery. All employees are eligible for
health assistance regardless of ethnicity, religion,
Ratio of Highest and Lowest Salaries
The ratio of the highest and lowest salaries of
employees of Bank BTN in 2013 is as follows:
The following is health aid given to the regular
employees of Bank BTN.
• Health treatment abroad
• Hospitalization, including for a long period
• Outpatient
• Traffic accidents
• Illnesses on business trips or education
• Glasses
• Periodic health examinations that include
General Medical Check-up and Medical
Check-up
Appreciation to Employees
In practice, Bank BTN does not only provide
career path development opportunities to
employees. Based on professionalism, we
also provide them with various forms of proper
appreciation in salaries, office allowance,
worker’s social security, religious holiday
allowance (THR), leave allowance, bonus, and
so on.
Ratio of Highest and Lowest Salary in 2013
Item
Highest and lowest Employee salary
Highest and lowest Director salary
Highest and lowest Commissioner salary
Highest Director salary and highest Employee salary
38
Ratio
20.25 : 1
1.11 : 1
1:1
2.59 : 1
Training and Development
In 2013, Bank BTN held a series of training and
development programs, which include:
• Career education and training,
• Technical education and training,
• Business-related training,
• Academic education, and
• Education and training for development of
other employees
2012, which amounted to Rp190 million per
employee. This means there is an increase
in employee productivity in contributing to
the achievement of the targeted profit of the
company.
In 2013, total funds incurred for training and
development programs amounted to Rp110
billion. No fewer than 595 kinds of activities were
carried out by Bank BTN to 19 331 employees
as participants.
The achievement of Bank BTN’s work program
in 2013 in order to improve the competence of
its employees was better than the previous year.
Employee productivity ratio in 2013 amounted
to Rp195 million per employee, higher than in
Personnel
Costs Ratio/
Employee
Profit Ratio/
Employee
Employee
Asset Ratio
BOPO (%)
Profit
(billion)
Assets
(trillion)
Productivity Ratio
Personnel
Costs
(billion)
Financial Data
Total
Employees
Prospective
Employees
Year
Permanent
Employees
Number of Employees
Human capital achievement to Bank BTN’s
asset and profit growth throughout 2009
up to 2013 can be seen through the table and
illustration below.
2009
4,085
255
4,340
58,448
490
654
88.29
13.47
112.90
150.69
2010
4,231
1,081
5,312
68,385
916
762
82.39
12.87
172.25
143.45
2011
5,135
1,202
6,337
89,121
1,119
892
81.75
14.06
176.42
140.76
2012
6,048
1,094
7,142 111,749
1,364
1,010
80.74
15.65
190.98
141.42
2013
6,869
1,142
8,011 131,236
1,562
1,198
82.19
16.38
195.86
149.54
Ratio of Assets per Employee (Billion Rupiah)
13.47
12.87
14.06
15.65
Ratio of Personnel Costs per Employee (Million Rupiah)
16.38
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
2009
2010
2011
2012
2013
Ratio of Net Income/Profit per Employee (Million Rupiah)
112.90 172.25 176.47 190.90 195.86
150.69 143.45 140.76 141.42 149.54
2009
2010
2011
2012
88.29
82.39
81.75
80.74
100.00
50.00
0.00
2011
2012
2013
82.10
88.00
86.00
84.00
82.00
80.00
78.00
76.00
150.00
2010
2013
BOPO (%)
200.00
2009
150.00
148.00
146.00
144.00
142.00
140.00
138.00
136.00
134.00
2009
2010
2011
2012
2013
39
Turnover Rate
During 2013, 202 employees resigned. Based
on this figure, Bank BTN’s turnover rate is
only 2.52% per year, or very low. The working
environment which is unconducive is the
reason of the very low turnover rate. In future,
Bank BTN is committed to protecting the good
working environment for the creation of an
employment atmosphere that is healthy, safe,
and comfortable.
Employment Climate Survey Results
In 2013, the results of a survey conducted using
the survey method prepared by Louis Allen
shows Bank BTN’s Employee Engagement
Index (EEI) at a score of 4.02% with a scale as
follows:
• 1-2: Not Engaged,
• 3: Neutral,
• 4: Engaged, and
• 5: Highly Engaged.
This survey is consistent and/or in line with
the turnover rate above that Bank BTN efforts
in maintaining a good working environment in
order to create a healthy, safe and convenient
working atmosphere bears fruit in the form of
Bank BTN employees willing to work hard and
strive to exceed the expected to build a career
at Bank BTN.
Equality of Rights
As has been described above Bank BTN gives
equal rights and obligations as well as equal
opportunities to all employees in developing
their career and performing their duties in a
professional manner without discrimination
of ethnicity, religion, race, class, gender, and
physical condition.
Creating a Working Environment that is
Conducive
Bank BTN constantly implements measures to
create a healthy, safe, and comfortable working
environment. Every effort that we are doing
in achieving those goals is always based on
corporate culture guidelines for all employees of
all office levels to work at Bank BTN.
40
The corporate values are contained in the POLA
PRIMA which includes:
• Service Excellence: providing services
which are more than what is expected from
customers. This applies to the internal and
external relationships of Bank BTN.
• Innovation: continuously developing new
ideas and refining sustainable programs that
ultimately can deliver added value to Bank
BTN.
• Exemplary: every employee must start from
himself/herself to be exemplary in behavior
that reflects the values of Bank BTN’s work
culture. This is true for fellow co-workers at
Bank BTN and related parties.
• Professionalism: competent in their field and
always eager to develop themselves. Thus,
every employee of Bank BTN can generate
the best performance and provide added
value to the Company and all employees.
• Integrity: encouraging every employee of
Bank BTN to be consistent in thought,
words, and actions, in accordance with
Bank BTN provisions, codes of professional
conduct, and the principles of commendable
truth.
• Cooperation: always encouraged to build
sincere and open relationship with fellow
employees of Bank BTN and other parties,
which is based on mutual trust and respect
to achieve common goals.
Development of MSMEs and the
Partnership Program
The empowerment of Micro, Small and
Medium enterprises (MSMEs) is a factor that
is very important in the economic development
in Indonesia in order to realize a fair and
prosperous society. MSMEs are dominant as
main national economic actors as well as vital
development subjects for the expansion of
business opportunities for new entrepreneurs
and the absorption of labor and reduction
of unemployment (pro job). Therefore, the
development approach of supporting MSMEs
becomes very important. As housing finance
leading player in in Indonesia, Bank BTN
has been carrying out its duty in providing
total financial solution to all its customers
and the whole society. In order to provide
comprehensive services to the community,
Bank BTN is committed to helping the growth
and development of micro, small, and medium
enterprises (MSMEs), which play a crucial role for
business and economic activities in Indonesia.
Bank BTN Policy
SME lending products that exist at Bank BTN
consist of KUR, Kredit Usaha Mikro, Kecil dan
Menengah/KUMKM (Micro, Small and Medium
Enterprise Loan) and Partnership program
loans. With this lending, Bank BTN categorizes
micro business customers as business that
has maximum total assets of Rp50 million and
maximum sale of Rp300 million per year. For
this segment, Bank BTN disburses KUMKM
of Rp100 million maximum. Small Business
customers are businesses with total assets of
Rp500 million maximum or total sale of Rp2.5
billion maximum per year. For small businesses,
Bank BTN disburse a loan of Rp500 million
maximum. Meanwhile, Medium Business is
a business that has assets of Rp10 billion
maximum or maximum sales of Rp50 billion per
year. Bank BTN disburse a maximum loan of
Rp5 billion to the segment.
People Business Lending (Kredit Usaha
Rakyat)
KUR BTN is disbursed to micro, small, medium
enterprises and cooperatives through linkage
institutions. Bank BTN disburses KUR for
working capital with a maximum loan term of
three years and can be extended up to six years.
KUR for investment purpose has a maximum
loan term of five years and can be extended
up to ten years. Loan collateral is the project
or business being financed in accordance with
Bank Indonesia regulations. Bank BTN charges
a maximum effective interest rate 22% per year
on loans up to Rp20 million and 13% per year on
loans over Rp500 million (Retail KUR) and 13%
per year on KUR Linkage (maximum 2 billion).
As of 2013, total KUR customers of Bank BTN
(outside Sharia financing) reached 13,362
accounts. This number grew 2.86% of total
KUR customers in 2012 consisting of 13,755
accounts. This increase is reflected in the
growth of KUR from year to year. When in 2012
Bank BTN disbursed KUR worth Rp1.24 trillion,
in 2012 the number rose 40.64% to Rp733,708
million.
KUR BTN lending since 2009 up to December
2013 has been spread across several economic
sectors. The largest distribution of KUR during
the last 5 years was made to the Wholesale
and Retail Sector (27.99%), Construction
sector (27.88%) and the Real Estate, Rental
Business and Corporate Services (10.80%)
and the remainder is disbursed to other sectors
(33.34%). Meanwhile, the largest distribution
of KUR BTN per region is to Java (68.53%),
Sumatra (13.47%), and Kalimantan (5.55%).
4%
27
%
.88
33
.3
Distribution of KUR BTN as of December 2013
Wholesalers and Retail
%
80
Construction sector
Leasing
Others
41
27
.99%
10
.
Largest distribution of KUR BTN by region as of December 2013
1 3 .47 %
5.5
5
%
%
.45
12
Jawa
68.
53
Sumatra
%
Kalimantan
Others
The obstacles encountered in the distribution
of KUR BTN during 2013 were business
sector segmentation restrictions in lending
KUR, namely housing related industries and
associated businesses, as well as cooperation
with MSME coaching institutes. To overcome
this problem, Bank BTN has taken the following
measures:
a. Establishment
of
business
model
appropriate to MSME lending
b. Improvement of MSME lending business
process to support optimal realization of
MSME lending through management focus
Economy Sectors
Industrial
42
Partnership Program Activities
The distribution of Bank BTN’s partnership
program is spread across various economic
sectors. The largest distribution until December
2013 was made to the Trade (60.70%) and
Agriculture (42.36%) sectors. The following
is a table of Bank BTN’s partnership program
distribution for the period 2009-2013.
Disbursed until December 2013 (in Rp)
Percentage
4,807,539,375
12.39%
Commerce
23,560,074,584
60.70%
Agriculture
16,440,514,775
42.36%
Livestock
4,068,906,947
10.48%
Plantation
(14,978,729,285)
-38.59%
Fishery
711,318,038
1.83%
Service
2,848,937,412
7.34%
Others
1,354,027,626
3.49%
Total
38,812,589,472
100%
Distribution of Bank BTN
Partnership Program by
Economic Sector
7.34%
3.49%
1.83%
12.39%
59
%
Industrial
Agriculture
60.70%
-38.
Commerce
Livestock
%
.48
10
Plantation
Fishery
Service
Others
42.36%
Meanwhile, the largest distribution of Bank BTN partnership program per region is Java (65.06%),
Sumatra (11.80%), and Sulawesi (10.48%).
Distribution of Partnership Programs by Region
.48%
11.8
0%
10
Jawa
Sumatra
Sulawesi
65
.0
6%
Our Partners Thrive Together
Our efforts in lending to micro, small, and medium
enterprises have also been welcomed by the
success of the growth in MSME businesses,
particularly the growth of MSMEs financed by
Bank BTN. The growth of Indonesian MSMEs
will have a positive impact on the Indonesian
economy as a whole. As an appreciation for
their cooperation with Bank BTN in developing
the national economy, we will show the profiles
of our MSME partners, as follows:
43
Testimonials from
MSME Partners
Nunung Nurnilasari
Nunung Nurnilasari is one of the development
partners of Bank BTN Cirebon Branch Office who
previously has been a development partner of
Tangerang Branch Office since 2005 when the
business domicile was in Jakarta. In 2008 she
moved her business site to the city of Cirebon to
date, and has become a development partner
of Bank BTN Cirebon Branch Office since
August 10, 2010 through the Partnership Loan
Program.
The Development Partner has acquired
sufficient experience in her line of business since
the year 2000. The type of business carried out
is production and trade of Indonesian traditional
batik cloth, handicraft: home supplies such as
decorative lights, baskets, multipurpose boxes,
racks, bags and furniture with wood construction
or aluminum combined with woven rattan, water
hyacinth or synthetic rattan.
44
Production Process/Procurement of
Goods:
Batik Cloth
Procurement of traditional batik cloth is partly
from own production of batik cloth and direct
purchase from artisans either for supply or on
order from buyers.
Production is done with the procurement of raw
materials, and batik design concepts are drawn
by herself which is then processed by batik
craftsmen in Trusmi (Cirebon Batik Craftsmen
Center) and Pekalongan with wages according
to mutual agreement (adjusted to the level of
difficulty and artistic value). The type of batik
material traded is cotton and silk fabric with
stamp and written batik techniques.
Handicraft & Rattan furniture
Production/procurement on the basis of orders
from buyers and produced by the sub-producers
in the regions of Tegal Wangi and Rajagaluh.
Sales system is directly to consumers or
Galleries/Boutiques with cash and loan
payments. Accounts receivable is usually
payable in 14 calendar days or 2 weeks.
Local Marketing Regions: Jakarta, Surabaya
and Semarang for Batik trade targeting
individual
customers
of
embassies,
government agencies and galleries/boutiques.
International Marketing Regions: Italy, France,
Lebanon and Saudi Arabia specifically for Rattan
Furniture and Handicrafts.
Exhibitions ever attended are among others:
• ICRA 4th Interior and Craft Products
Exhibition, July 27 to 31, 2005 at the JCC
with Debindo as Organizer
• KRIDAYA 2010 Exhibition, August 18 to
22, 2010, at the JCC with PT Mediatama
Binakreasi as Organizer
• The 13th Jakarta International Handicraft
Trade Fair (INACRAFT 2011), April 20 to
24, 2011 at the JCC with PT . Mediatama
• Indonesia Creativity Exhibition Products
Week Exhibition (Pameran Pekan Produk
Kreativitas Indonesia, PPKI) 2011, July 6 to
10, 2011 with Ministry of Cooperatives and
Small & Medium Enterprises Republic of
Indonesia as Organizer
• The 14th Jakarta International Handicraft
Trade Fair (INACRAFT 2012), April 25 to
29, 2012, at the JCC with PT . Mediatama
• The 3rd Muslim World Biz Exhibition,
September 12 to 16, 2012, at the JCC with
OIC - International Business Centre Malaysia
as Organizer
• Community Empowerment Work Hold
Exhibition (Gelar Karya Pemberdayaan
Masyarakat, GKPM) Expo & Award
2012, September 27 to 30, 2012 with
Komenkokesra RI as Organizer
Through participation in exhibitions, the
development partner is quite well known by
buyers from abroad for ordering batik cloth and
handicraft products.
The business of the development partner is
thriving thanks to support from the Partnership
Pogram of Bank BTN. Currently, applicants are
more focused on the business of production and
trading of batik cloth, while Handicrafts & Rattan
Furniture are still sporadic and production is
done based on orders.
45
Ratna Irawati
The most important skills and abilities to be
successful is the ability in setting time. This is
believed and owned by Ratna Irawati commonly
called Ira. In addition to her role as a housewife,
she also serves as nurse and owner of a rattan
handicraft business. This lady who was born in
1971 in Jakarta spent her school years in several
regions along with her parents as a State-owned
Enterprise (BUMN) employee. Until it was time
for continuing study in 1990, she decided to
return to Jakarta to study nursing.
Professional curiosity has brought brought into
several fields of work. After completing college
and working in a private hospital in Jakarta, Ira
studied broadcasting and became a broadcaster
for a private radio in Jakarta until 1997.
46
The nurse who is also a former broadcaster was
also filling her time to become a health educator
in a NGO and actively taught drum band in a
kindergarten (TK). From all of these experiences
and the ability to socialize and interact later
became her capital for running the rattan
business today.
In early 2007, after observing various
developments in the handicraft business in
Indonesia has fostered the creativity spirit of this
mother of two kids to plunge into the world of
entrepreneurship. Ira selected rattan handicraft
on the grounds that this kind of business is not
that many if compared with clothing and batik
business, so that the business opportunity is
still wide open. With strong determination and
confidence to develop her own ability Ira is not
reluctant to ride along in a container truck for her
business trips of going back and forth Jakarta –
Cirebon. She employs several furniture makers
in Cirebon to make a variety of handicrafts
demanded by the market today. Although those
craftsmen remain in Cirebon it is not an obstacle
for Ira to coordinate with them to be creative.
She still remembered in her mind that the first
buyer of the craft is her schoolmate who bought
4 pieces of large size rattan baskets for her
boutique business. Later she managed to sell
4 pieces of dining chairs to other friends. It is
from there that her spirit to be able to continue
to run her rattan business has been increasingly
encouraged. Thus in the same year, ESTU
RATTAN was launched with the confidence
that it would thrive to produce diverse creative
handicrafts that are much in demand by society.
Top of FormThis business can be run, powered
by the desire to develop rattan craft business so
that people become interested again because
now they are more interested in buying crafts
from plastic or metal.
By following the development and growing market
demand, Ira required support and additional
capital for business development. In 2009, Bank
BTN lent funds as well as made ESTU RATTAN
a Development Partner that is always included
in large scale handicraft exhibitions in Jakarta.
Through these exhibitions ESTU RATTAN sales
increasingly improved. Then in 2011 Bank BTN lent
funds again so that ESTU RATTAN is more able to
increase production and sell rattan handicraft to
the public.
Thanks to the support of Bank BTN, Ira is grateful
that ESTU RATTAN remains an independent
business that persists and continues to run in
the middle of economic competition that is
getting tougher.
47
Ahmad Yani
Through a long struggle and high spirit,
Ahmad Yani or familiar by the name of Yani has
succeeded in establishing simple furniture in
Yogyakarta, deliver his products to the many
parts of the archipelago and even abroad,
including Mauritius, Jordan, France and
Malaysia.
For approximately three years, Ahmad Yani a
former salesman has opened his own business
with a very small capital of Rp2 million that he
used to make frames and some small calligraphy
products as well as some simple products such
as chairs and tables.
After having finished college he went to where
he worked and armed with furniture tools and
ready-made wood he made some works for sale
in his showroom. This activity became Ahmad
Yani’s routine activity every day after college. His
career in the field of furniture day after day has
begun to produce results. One time the college
48
held an exhibition and this opportunity was not
wasted by Yani for displaying his wares at the
prestigious event with the hope that there is an
advantage in participating in the exhibition and
increasing his spirit to introduce products to his
friends, especially in the campus environment.
It had been Yani desire to develop his furniture
business not only in the region of Yogyakarta. He
wanted his creation to be sold all over Indonesia
and even to foreign countries.
In early 1992 to realize his obsession he tried to
migrate to Jakarta and set up a furniture shop
in Jakarta and as the result his merchandise
could be consumed by overseas consumers.
Calligraphy is the superior product of Ahmad
Yani but he was not only satisfied with the
furniture he was working on all this time and in
order to increase business prestige he tried to
add a collection of products with calligraphy in
the form of wood carving that turned out to have
earned a pretty good market response.
According to Ahmad Yani the calligraphy
business is very risky, especially in
writing verses that if wrong could have
a different meaning. “Calligraphy is
quite complicated because it involves
accuracy.”
One day he participated in a very large exhibition
and there was a calligraphy seller who was
almost doomed to failure because the carved
writing turned out to be wrong, and this seller
was not aware because he just bought from a
craftsman for sale. Fortunately he could replace
it with another item from Yani.
Thanks to the uniqueness of his products,
Yani’s calligraphy was purchased by the fifth
Indonesian President, Mr. Susilo Bambang
Yudhoyono (SBY) who bought three pieces. Yani
was overcome by pride and emotion when he
knew that his merchandize was purchased by
the number one person in this Republic, and in
addition other merchandize were also bought by
there are several Middle East embassies.
According to Yani the market for calligraphy
teak wood carving is very good, because the
calligraphy models he is working on is very rare in
the market, despite the expensive price ranging
from Rp400 thousand to Rp5 million each but
demand is many and Yani is also prepared to
give a pretty long warranty.
Although calligraphy as his superior product is
hard selling, but Yani is not satisfied because to
get teak wood for raw material is increasingly
difficult mainly due to illegal logging.
Ahmad Yani’s persistence in running his business
intensified after he became a Development
Partner of Bank BTN and obtained additional
working capital from the Bank to support
business development.
As a development partner who is always
included in large scale handicraft exhibitions
in Jakarta, his furniture business continues to
thrive, and calligraphy orders come from all
over Indonesia, while antique furniture orders
made of teak wood have been increasingly in
demand, including the desks and chairs of all
Judges in the Attorney General’s which are the
production of Aura Jati Jepara managed by
Yani. The Jakarta Police mosque pulpit also
uses calligraphy made by Yani.
Thanks to the support of Bank BTN, Ahmad Yani
is grateful that Aura Jati Jepara has become an
independent business and continues to survive
even thrive until now amidst the increasingly
stringent competition.
49
Sustainability
Indicators
These Sustainable Indicators are organized based on
financial and non-financial categories which include
environment and social aspects and other aspects
relevant to the sustainability report.
Performance indicators or Key Performance
Indicators (KPI) of BTN Bank are demonstrated
through 4 (four) perspectives using the Balanced
Scorecard method that we can convey as
follows:
• Financial Perspective, namely management
performance which includes the achievement
of corporate financial targets such as ROA,
ROE, NIM, Profit Margin and CER.
• Customer Perspective, which consists the
market share for KPR and KPA and Service
Index.
• Business Process Perspective, which consists
of GCG Index, project implementation
changes, implementation percentage of IT
Master Plan, opening of networks, growth
of commercial third-party funds, growth of
commercial loans, implementation of i-Loan,
growth of consumer third-party funds,
CASA ratio, implementation of performance
management (BSC), percentage of NPLs
(Gross), risk profile, and implementation of
Human Capital Systems.
• Growing and Learning Perspective, which
consists of Culture Assessment Index,
implementation of organizational structure,
and implementation of business process.
FINANCIAL INDICATORS
Bank BTN managed to earn a net profit of
Rp1.56 trillion in 2013, up 15% from 2012.
Meanwhile, Bank BTN loan financing position
reached Rp99.33 trillion and funding position
amounted to Rp96.21 trillion.
50
Meanwhile, in terms of asset growth as of
December 31, 2013 Bank BTN managed to
increase up to 17% to Rp131.17 trillion from
Rp111.75 trillion in the previous year. Based
on total assets, Bank BTN remained firm in
maintaining its position in the group of 10
national banks with the largest assets. Main
financial ratios are also relatively stable. Several
indicators such as CAR reached 15.62%, LDR
104.42%, ROA 1.79%, and ROE 16.05% at the
end of 2013. Bank BTN also managed to keep
the stability of Net Interest Margin (NIM) above
5%, namely worth 5.44% in 2013. However, in
terms of loan quality there was an improvement.
In 2013, NPLs (net) was at the level of 3.04%
a reduction from 3.12% in 2012. Therefore,
management pays special attention and review
this based on better governance to improve loan
quality in times to come.
In addition to maintaining its banking position,
the bond ratings of Bank BTN also experienced
improvement. The Indonesian Securities Rating
Agency (Lembaga Pemeringkat Efek Indonesia,
Pefindo) has raised Bank BTN rating for bonds
issued, namely Bond XII 2006, Bond XIII 2009 and
Bond XIV 2010, Bond XV 2011, and Sustainable
I Bond 2013 of which each get a rating increase
from AA - to idAA. The increase in rating reflects
the strengthening position of Bank BTN and the
improvement of profitability indicators.
In terms of increased efficiency, to support
the smooth running of the business as well
as to optimize Bank operations in the face of
customer expectations that are increasingly high
and complex, Bank BTN is applying the I–Loan
and I-Coll technology integratedly with the risk
management system of the Bank. Several other
IT applications that have been implemented
to accelerate business processes are among
others Voip, HCIS, Interface RTGS Outwards,
Single Sign On, as well as the Clearing intercity
stabilization application. In terms of market
share of Government subsidized loans for
low income communities (MBR), Bank BTN
has remained consistent to maintaining its
commitment to the Government by channeling
financing for Subsidized KPR and Bank BTN is
the largest distributor bank. Throughout 2013,
Bank BTN managed to channel Subsidized
KPR amounting to Rp6.02 trillion, or as much
as 80,148 housing units through Conventional
Banks and Rp0.49 billion or as much as 6,524
housing units through Sharia Business Unit.
Thus, as a whole Bank BTN disbursed 15%
(14% from BTN Conventional and 1% from
Sharia Business Unit). Bank BTN has also
performed a number of diversified businesses
in order to increase fee-based income, improve
margins, reduce concentration of loan risk, as
well as manage maturity mismatch. Bank BTN
plans to improve the composition of housing
loans and non-housing loans. One way is
through the increase in priority banking service
and bancassurance.
NON-FINANCIAL INDICATORS
There are several levels of customer service
models that can be implemented by Bank BTN.
The most superior service level is a service
that is often referred to as service excellence.
Through POLA PRIMA corporate culture, Bank
BTN seeks to continue to improve its services to
the customers.
In 2013, Bank BTN managed to win a number of
awards, such as:
• Indonesia Most Trusted Companies Award
2013 (Most Trusted Company based on
Corporate Governance Perception Index,
CGPI)
• Indonesia Middle-Class Consumers’ Choice
2013 (The Indonesia Middle-Class Brand
Champion 2013, Product Category: KPR)
• 2013 Banking Service Excellence ( 5th Best
Overall Performance (Islamic Business Unit))
• 2013 Banking Service Excellence (1st Best
Phone Handling (Islamic Business Unit))
• 2013 Banking Service Excellence (2nd Best
Phone Handling (Commercial Bank))
• Sharia Finance Award 2013 - The Best
Sharia Finance Institutions (Banks that are
categorized as “Very Good” in terms of
Financial Performance in 2012)
• IT Banking Excellence Award 2013 (IT
Banking Excellence Award 2013, in the
category of Core Capital Rp5-30 trillion)
• Adiupaya Puritama 2013 (Rank 1
Implementing Bank of KPR Sejahtera
through the FLPP Program, Loan Provider
Institution - Conventional category)
• Adiupaya Puritama 2013 (Rank 1
Implementing Bank of KPR Sejahtera
through the FLPP Program, Loan Provider
Institution – Sharia category)
This suggests that the efforts of Bank BTN have
begun to produce the expected results.
Meanwhile, in terms of employment, the
results of a survey conducted by Louis Allen
Worldwide Inc. showed that the Employee
Engagement Index (EEI) of Bank BTN in 2013
was at the score of 4.02, which is almost the
same as the achievement in 2012. With the
scale range of 1 - 5, this value indicates that
the employees enjoy the working atmosphere at
Bank BTN and have felt bound as an integral
part of the company. This is also supported by
Bank BTN’s policy that gives equal rights and
obligations as well as equal opportunities to all
employees in developing career and performing
their duties in a professional manner without
discrimination of ethnicity, religion, race, class,
gender, and physical condition. In addition,
Bank BTN constantly implements measures to
create a healthy, safe and comfortable working
environment. Every effort that we do in achieving
those goals is always based on corporate culture
guidelines for all employees of all levels to work
at Bank BTN. Bank BTN has a commitment to
51
making the company a learning organization,
where every employee is encouraged to develop
his/her potential and competence in order to
work better and be ready for higher positions.
The commitment is also realized by keeping a
good working environment for the creation of
a working atmosphere that is healthy, safe and
comfortable. As a result, during 2013, there
were only 202 employees who resigned. Based
on this figure, the turnover rate of Bank BTN is
only 2.52% per year, or can be said very low.
Then, based on third party assessment
conducted by the Indonesian Institute for
Corporate Governance (IICG), Bank BTN is
again awarded as the Most Trusted Company
2013. This award is the third time received
by Bank BTN. A survey conducted by IICG
and SWA Magazine carried the theme “GCG
in the Knowledge Perspective” and Bank
BTN managed to get a score of 85.42 from
a maximum value of 100. Bank BTN has
been elected after going through a series of
assessments by industry analysts regarding
important parameters, such as innovation
power, management, transparency, and ability
to serve customer complaints. The award
shows that the implementation of banking
compliance principles has been fervently run
by Bank BTN. This has been done in order
to maintain business continuity by upholding
good corporate governance principles, namely
Transparency, Accountability, Responsibility,
Independence, as well as Fairness and Equality.
Of the achievements mentioned above it can be
said that Bank BTN is very aware of its steadfast
commitment to remain focused on housing
finance as the primary business of the Bank by
making sustainable development as the most
important factor to put forward.
52
GCG ASSESSMENT
Bank BTN is implementing the GCG
assessment program periodically. In this case,
there are two types of GCG assessment to
be performed, namely third party assessment
and self-assessment. In 2013, Bank BTN
implemented
• Third party assessment in cooperation
with the Indonesian Institute for Corporate
Governance (IICG). After having performed
an independent and objective ranking
based on CGPI and the theme “GCG in the
Knowledge Perspective”, IICG concluded
that Bank BTN is included in the company
category of “Very Trustworthy” as well as
managed to retain the award as “The Most
Trusted Company.”
• Self-assessment in accordance with
Bank Indonesia Regulation which requires
that Banks should perform internal selfassessment of the implementation of
GCG. Bank BTN has been assessing
GCG internally since 2007 using the SelfAssessment Method.
GCG Assessment by IICG
Since the last decade, IICG has consistently
conducted Corporate Governance Perception
Index (CGPI). In 2013, CGPI was conducted
through four assessment phases with different
weights that we can convey as follows: selfassessment (25%), completion of documents
(23%), paper and presentation (17%) and
observation (35%). Research results and CGPI
rankings are later organized into 3 (three) rating
categories, namely “Fairly Trusted”; “Trusted”
and “Highly Trusted”. After the independently
and objectively ranking based on CGPI criteria,
IICG concluded that Bank BTN is included in the
company category of “Highly Trusted”. The CG
implementation quality score of Bank BTN in
2013 was 85.42 (eighty five point forty two) of a
maximum value of 100 (one hundred) and at the
same time managed to get an award as “The
Most Trusted Company”. According to IICG, the
management of the company has been done
properly.
GCG Assessment by IICD
As a public company, the implementation of
GCG by Bank BTN is continually assessed by
independent parties. One of which is carried out
by IICD using the Organization for Economic Cooperation and Development (OECD) standards,
which include five assessment factors, as
follows:
• The Rights of Shareholders and Key
Ownership Functions
• The Equitable Treatment of Shareholders
• The Role of Stakeholders in Corporate
Governance
• Disclosure and Transparency
• The Responsibilities of the Board
As explained by IICD that the activities aim
to continue to encourage the spirit of GCG
implementation as well as to give the highest
appreciation and award to the company that
has managed to implement GCG well, true and
fervently.
AWARDS
In 2013, Bank BTN received or won various
awards which proved its commitment in
maintaining business continuity, maintaining
good corporate governance, as well as
contributing to society and the environment,
among others
• The Minister for Public Housing of the
Republic of Indonesia has awarded Bank
BTN with “Adiupaya Puritama 2013”
due to the success of Bank BTN in
being the Best FLPP Program Executor
(first rank in conventional banking and
first rank in sharia banking). This shows
Bank BTN’s seriousness to run the mandate
from the Government in providing the best
services for the people who are in need.
• In the field of GCG, Bank BTN has proved its
commitment to being one of the companies
with the best Governance in 2013. Bank
BTN won the Most Trusted Company Based
on Corporate Governance Perception
Index from IICG. The same award was also
obtained by Bank BTN in 2012.
• “BUMN Marketing Award 2013” award was
given to Bank BTN in the category of “BUMN
Marketing 2013 Silver Winner & Bronze
Winner I”. Bank BTN has been entrusted by
the Government as a distributor of housing
loans since 1974. Since that time Bank BTN
has struggled to help Indonesian families
from all walks of life to have a decent place
to stay.
Those various awards are indicators that have
demonstrated the commitment of Bank BTN to
conduct business in a sustainable manner. As
for complete information of the various awards
earned by Bank BTN throughout the year 2013
this can be seen in the Annual Report 2013.
53
Global Reporting Initiatives
(GRI) Cross Reference
This Sustainability Reporting is adjusted to international
standards that comply with the rules of Global Reporting
Initiatives (GRI) 3.1.
Category
Page
1 Strategy and Analysis
1.1 Statement of the highest decision-maker in the organization associated with the sustained
relationship to the organization and its strategy.
6-9
1.2 Description of key impacts, risks and opportunities.
AR
2 Organizational Profile
2.1 Name of the Organization.
Cover
2.2 Main brands, products and/or services.
AR
2.3 Operational structure of the organization, operating companies, subsidiaries, and joint
ventures.
AR
2.4 Location of head office of the organization.
4, 59, AR
2.5 Number of countries where the organization operates, and names of countries where there is
Sustainable connection or related to the major or special operations.
irrelevant
2.6 Nature of ownership and legal entity.
2.7 Markets served (including geographic details, sectors served, types of customers /
beneficiaries).
4
27-30
2.8 The size the reporting organization
- Number of employees;
- Net Sales;
- Total capitalization broken down in debt and equity;
- Quantity of products and services rendered.
AR
2.9 Significant changes that occurred in the reporting period related to the size, structure, or
ownership.
AR
2.10 Awards received during the reporting period.
53
3 Parameters of the Report
3.1 Reporting period for the information presented.
2
3.2 Date of most recent report.
2
3.3 Reporting cycle.
2
3.4 Address of contact for questions related to the report and its contents.
59
Scope and Restrictions of the Report
3.5 The process of determining the contents of the report, including:
- Establishing materiality;
- Prioritized topics in the report; and
- Identification of stakeholders expected by the organization to use the report.
2
3.6 Restrictions of the report (for example countries, divisions, subsidiaries, leased facilities, joint
ventures, suppliers). See GRI Protocol Restrictions for further guidance.
2
3.7 State any limitations of the scope or restrictions of the report.
3.8 Basis for reporting joint ventures, subsidiaries, leased facilities, outsourced operations and
other entities that affect significantly, so that the information can be compared over time and
or between organizations.
54
2
AR
3.9 Data measurement techniques and the basis of calculations, including assumptions and
techniques underlying estimations applied in the compilation of indicators and
other information in the report.
2
3.10 Explanation of the impact of the re-statement on the information provided in previous
reports, and the reasons for making such re-statement (for example due to mergers/
acquisitions, change of base years periods used, the nature of the business, measurement
method).
2
Category
Page
3.11 Significant changes from previous reporting periods related to the scope, restriction, or
measurement method used in the report.
2
3.12 Table which shows the location of Disclosure Standards in the report.
54-58
3.13 Current policies and practices aimed at seeking external assurance for the report. If you
do not include an assurance report, to accompany the sustainability report, explain the
scope and basis of any external assurance available. Explain the relationship between the
organization and the assurance provider.
2, AR
4 Governance, Commitment, and Engagement
4.1 The governance structure of the organization, including committees under the highest
governing body responsible for specific tasks, such as in setting strategy or mechanism for
the supervision of the organization.
AR
4.2 Indicate whether the Chairman of the highest governing body is concurrently an executive
officer (and, if yes, please show their functions in the management of the organization and
the reasons why there is such a condition).
AR
4.3 For an organization that has a single board structure, please state the number of members of
the highest governing body who come from independent groups or non-executive members.
AR
4.4 The mechanism for shareholders and employees to provide recommendations or direction to
the highest governing body.
AR
4.5 The relationship between compensation for members of the highest governing body, senior
managers, and executives (including travel arrangements ) and the performance of the
organization (including social and economic performance).
AR
4.6 The existing process in the highest governing body in ensuring the avoidance of
conflicts of interest.
AR
4.7 The process of determining qualifications and expertise of the members of the highest
governing body in directing organizational strategies related to economic, environmental, and
social topics.
AR
4.8 Internal development of the statements on mission or values, code of conduct, and
principles relevant to economic, environmental and social performance as well as the status
of implementation.
AR
4.9 Procedure in the highest governing body to oversee the management and organizational
identification of economic, environmental and social performance, including risks and
relevant opportunities, and adherence or compliance with the international standards that
have been approved, code of conduct, and principles.
AR
4.10 The process in evaluating the performance of the highest governing body, especially related
to economic, environmental, and social performance.
AR
Commitment to External Initiatives
4.11 Explanation of how the precautionary approach or principle is used by
organization
13
4.12 Charters, principles, or other initiatives developed externally related to economic,
environmental, social and also supported/adopted by the organization.
13
4.13 Membership in associations (such as industry associations) and or advocacy organizations.
AR national/international
Involvement of Stakeholders
4.14 List of stakeholder groups engaged by the organization.
2, 22-27
4.15 The basis used in identifying and selecting stakeholders that will be involved.
none
4.16 The approach used to involve stakeholders, including frequency of engagement
based on type and group of stakeholders.
17-19
4.17 Topics and major concern raised through stakeholder engagement, and how the
organization responded to the topics and major concern, including through reporting.
none
Economic Performance Indicators
EC1 Economic value generated and distributed directly, including income,
operating costs, compensation to employees, donations and investments to the public, retained
earnings and payments to capital providers and the government.
AR
EC2 Financial implications and various risks and opportunities for all activities of the company in
the face of climate change.
AR
EC3 List of company liability coverage in the defined benefit plan.
AR
EC4 Significant financial assistance obtained from the government.
AR
Market Presence
EC5 Employee wage standard parameters in the initial level compared with minimum employee
wage applicable in the location of a particular operation.
AR
EC6 Policy, implementation and distribution of spending on local subcontractors (work partners)
existing in various operating locations.
none
55
Category
Page
EC7 Local labor hiring procedures and some people at the senior management level drawn from
the local community in several operating locations.
none
EC8 Development and impact of infrastructure investments and services provided especially for
public interest through trade, and services or that is pro-bono.
none
EC9 Understanding and explanation of indirect economic impacts, including the extent of the
impact
AR
Performance Indicators in the Environmental Field
Materials
EN1 Use of Materials; itemized by weight or volume.
EN2 Use Percentage of Recycled Materials.
irrelevant
none
Energy
EN3 Direct Energy Consumption of Primary Energy Resources.
EN4 Indirect Energy Consumption by Primary Source.
none
irrelevant
EN5 Energy Savings through Conservation and Efficiency Improvement.
none
EN6 Initiatives to obtain products and services based on energy efficiency or renewable energy.
none
EN7 Initiatives to reduce indirect energy consumption and reductions achieved.
none
Water
EN8 Total water withdrawal by source.
none
EN9 Water sources significantly affected by withdrawal of water.
none
EN10 Percentage and total volume of water reused and recycled.
none
Biodiversity
EN11 Location and Size of Land owned, leased, managed by the reporting organization
located within, or adjacent to a protected area or areas that have high biodiversity values outside
the protected area.
none
EN12 Description of various significant impacts caused by the activities, products, and services
of the reporting organization on biodiversity in a protected area and in areas that have high
biodiversity values outside the protected area.
irrelevant
EN13 Habitat Protection and Restoration.
19, 21-23
EN14 Strategies, actions, and future plans for managing impacts on biodiversity.
19, 21-23
EN15 Number of species based on the level of extinction risk that are included in the Red List of
the IUCN (IUCN Red List Species) and are included in the list of national conservation with habitat
in areas affected by the operations.
irrelevant
Emissions, Effluents and Waste
EN16 Total greenhouse gas emissions that are directly or indirectly specified by weight.
irrelevant
EN17 Other indirect emissions of greenhouse gases itemized by weight.
irrelevant
EN18 Initiatives to reduce greenhouse gas emissions and the achievement.
irrelevant
EN19 Emissions of chemicals that damage the ozone layer (ozone depleting substances/ODS)
specified by weight.
irrelevant
EN20 NOx, SOx and other significant air emissions itemized by type and weight.
irrelevant
EN21 Total water discharge by quality and destination.
irrelevant
EN22 Total weight of waste by type and disposal method .
irrelevant
EN23 The number and volume of significant spills .
irrelevant
EN24 Weight of waste transported, imported, exported, or treated that are considered dangerous
according to the Basel Convention Annex I, II, III and VIII, and the percentage of transported
waste internationally.
irrelevant
EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats
that are significantly affected by water disposal and runoff of the reporting organization.
irrelevant
Products and Services
EN26 Initiatives to mitigate environmental impacts on products and services and the reduced
extent of impact.
irrelevant
EN27 Percentage of products sold and packaging materials that are drawn by category.
irrelevant
Compliance
EN28 Significant monetary value of fines and non-monetary sanctions for violations of
environmental laws and regulations.
EN29 Significant environmental impacts as a result of the movement of products and other goods
and materials used for the company’s operations, and the labor that move them.
56
irrelevant
none
Category
Page
Comprehensive Aspects
EN30 Total expenditure for environmental protection and investment by type.
25
Social Performance Indicators
Employment
LA1 Total workforce by employment type, employment contract, and region.
AR
LA2 Employee turnover rate and number age group, gender, and region.
34, 40, AR
LA3 Benefits provided to full-time employees (full time) that are not provided for
non-permanent employees (part-time) according to the principal activity.
37-39
LA4 Percentage of employees covered by collective bargaining agreement.
none
LA5 Minimum notice period of significant activity changes, including whether they are
outlined in the collective agreement.
none
LA6 Percentage of total workforce represented formally in the Health and Safety committee
between management and the workers that help monitor and give advice to
office safety and health programs.
none
LA7 Level of physical accidents, illnesses due to work position, lost days, and absenteeism, and
the number of deaths due to work by region.
none
LA8 Programs on education, training, counseling/guidance, prevention, local risk control to help
the employees, family members and community members regarding serious/dangerous diseases.
24-25
LA9 Health and safety problems that are covered in formal agreements with labor unions.
37-38 AR
LA10 Average hours of training per year per employee by category/group of employees.
38, AR
LA11 Programs for setting skills and lifelong learning that support continued employment of the
employees and assist them in facing the end of career.
36-37
LA12 Percentage of employees receiving performance reviews and career development on a
regular basis.
40, AR
LA13 Composition of the governing body/authority and breakdown of employees per category /
group by gender, age group, minority group membership, and other diversity indicators.
LA14 Basic salary comparison/ratio of men to women by group/category of employees.
AR
38, AR
Human Rights
HR1 Percentage and number of significant investment agreements that contain human rights
clauses or have undergone the process of screening/filtration associated with human rights
aspects.
none
HR2 Percentage of significant suppliers and contractors that have undergone the process of
screening/filtration in terms of human rights aspects.
none
HR3 Total training time for employees in terms of policies and procedures related
with the relevant human rights aspects of the activities of the organization, including the
percentage of employees that have undergone training.
AR
HR4 Number of occurred discrimination cases and actions taken/done.
none
HR5 Identification of all association and assembly activities that may pose significant risks and
actions taken to support the rights.
none
HR6 Identification of activities containing significant risks in the onset of child labor cases, and the
measures taken to support efforts to eliminate child labor.
none
HR7 Identification of activities containing significant risks that may cause forced or compulsory
labor, and measures taken to support the efforts to eliminate forced or compulsory labor.
none
HR8 Percentage of security personnel trained in policies and procedures of the
organization concerned with human rights aspects relevant to the activities of the organization.
none
HR9 Total violation cases related to the rights of indigenous people and the steps
taken.
none
Community Responsibility
SO1 The nature, scope, and effectiveness of any programs and practices are carried out to
assess and manage the impacts of operations on communities, both at the time of launch, during
operation, and at the end.
AR
SO2 Percentage and number of business units that have the risk of corruption.
none
SO3 Percentage of employees trained in anti-corruption policies and procedures.
none
SO4 Actions taken in response to the incidence of corruption.
AR
SO5 Public policy position and participation in lobbying and public policy-making process.
none
SO6 Value of financial and in-kind contributions to political parties, politicians, and related
institutions based on the country in which the company operates.
none
57
Category
Page
SO7 Total legal action against violation of provisions on anti-competition, anti-trust, and
monopoly practices and sanctions.
none
SO8 Significant money value of fines and number of non-monetary sanctions for violations of the
laws and regulations.
none
Product Responsibility Performance Indicators
PR1 Life cycle stages in which the impact on products and services related to health and security
is assessed for improvement, and percentage of categories of products and services important to
follow the procedures.
irrelevant
PR2 Total non-adherence (non-compliance) towards regulations and ethics regarding the impact
on health and safety of products and services during the life cycle, per product.
irrelevant
PR3 Type of product and service information required by procedures and percentage of products
and services significantly associated with the required information concerning.
none
PR4 Total non-adherence (non-compliance) towards regulations and voluntary codes concerning
provision of information on products and services and product labeling, per product.
none
PR5 Practices related to customer satisfaction, including survey results measuring customer
satisfaction.
30-33
PR6 Programs on adherence to laws, standards related to marketing communication, including
advertising, promotion and sponsorship.
PR7 Total non-adherence (non-compliance) towards regulations and voluntary codes concerning
marketing communication, including advertising, promotion, and sponsorship, according to the
product.
PR8 Total number of complaints based on violations of customer privacy and customer data loss.
PR9 Monetary value of fines for non-adherence (non-compliance) towards laws and regulations
concerning procurement and use of products and services.
31
none
AR
none
Portfolio of Products
FS1 Policies with regard to environmental and social aspects which are applied to business lines.
none
FS2 Procedures for assessing and screening of environmental and social risks on business lines.
none
FS3 Process for monitoring implementation and compliance with environmental and social
requirements by the customer included in the agreement or transaction.
none
FS4 Process for improving staff competency to implement environmental and social policies and
procedures as applied to business lines.
none
FS5 Interactions with customers/associations/business partners about opportunities as well as
environmental and social risks.
20-22
FS6 Percentage of portfolio for line of business by specific region, business segment (for example
micro/SME/large) and also by sector.
58
26, 30, 40-43
FS7 Monetary value of products and services designed to provide social benefits
specific to each business line grouped by objective.
27-30
FS8 Monetary value of products and services designed to provide environmental benefits specific
to each business line grouped by objective.
none
FS9 Coverage and frequency of audits to assess the implementation of environmental and social
policies as well as procedures and risks.
none
FS10 Percentage and number of companies placed in institutional portfolio with which the SR
reporting organization interacts on environmental or social issues.
none
FS11 Percentage of assets to perform environmental and social screening both positive and
negative.
none
FS12 Voting policy as applied to environmental or social issues related to shares through which
the SR reporting organization has voting rights on the shares or provide suggestions to conduct
voting.
none
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Menara Bank BTN
Jln. Gajah Mada No.1
Jakarta 10130 - Indonesia
Telp. +62 (021) 6336789
Faks. +62 (021) 6336719
E-mail : csd@btn.co.id
www.btn.co.id
59
PT Bank Tabungan Negara (Persero) Tbk
Menara Bank BTN
Jln. Gajah Mada No. 1 Jakarta 10130
Phone
: 62-21 6336789
Fax
: 62-21 6346704
E-mail
: csd@btn.co.id
Call Center : 500 286

Sustainability Report 2013

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